Shoker engaged a real estate agent to find a property suitable for use as a trucking terminal.

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Shoker engaged a real estate agent to find a property suitable for use as a trucking terminal. The agent found a property which was zoned “highway commercial”. Its permitted uses included a retail store, car and truck sales agency, commercial garage, parking lot and restaurant. Shoker signed an agreement to buy the property, which contained two conditions – the buyer would confirm the zoning with the municipality and the buyer would exercise due diligence to ensure that the property was suitable for his intended use. The agreement did not specify a trucking terminal as the intended use. Shoker discovered that the zoning would not permit the operation of a trucking terminal. He gave notice to terminate the agreement. The seller alleged breach of contract and kept the deposit of $50 000. Is the agreement enforceable by the seller? How could the agreement have been more clearly written?
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Canadian Business & the Law

ISBN: 978-0176501624

4th edition

Authors: Dorothy DuPlessis, Shannnon o'Byrne, Steven Enman, Sally Gunz

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