Ms. Stewart bought a business operating in rented space in a shopping mall. Shortly after she took over the business, the landlord pressured her to sign a lease that made her responsible for the arrears in rent of the previous tenant. The landlord secured Stewart’s agreement by exerting tremendous pressure on her. For example, he called in the sheriff to execute a distress for rent when, at that time, Stewart was only in arrears for the month of January. The landlord told Stewart that if she did not pay the former tenant’s arrears that “she would be the one to suffer.” The landlord knew that Stewart was unsophisticated in business dealings and signed the lease without seeking advice. Is she obligated to the lease?
This scenario is based, in part, on Stewart v. Canada Life Assurance Co. (1994), 132 N.S.R. (2d) 324 (C.A.).