During the pandemic of 2020, the government imposed a stay at home order requiring everyone to...

 

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During the pandemic of 2020, the government imposed a stay at home order requiring everyone to stay at home except for essential trips. Brad operated a small ice cream and candy shop in Niagara- on-the-Lake. Once the order was issued he had virtualy no customers since no tourists could come to the Town. At the end of the first month he told his landlord, Patrick, that he would likely need to declare bankruptcy because he could not pay the rent. Patrick encouraged him to stay and said that he would reduce the rent from $8,000.00 to $2,000.00 per month to help him out. Brad paid Patrick $2,000.00 and with loans from family members managed to do so each month. In the seventh month the pandemic was declared to be over and the stay at home order was rescinded. Brad went to Patrick's office with a big smile and gave him a cheque for $8,000.00. Patrick said "Where is the $36,000.00 for the other 6 months"? Brad was surprised and said "That rent was forgiven because of the pandemic". Patrick replied "Of course not, we still have a valid lease that requires payments of $8,000.00 per month. You still owe me the rent". Brad claims that he would have closed the store and declared bankruptcy 6 months earlier if Patrick had not promised to reduce the rent. He commences an action to enforce Patrick's promises. Required: Discuss the legal issues that will be raised by the parties with reference to the applicable principles. What is the likely result? During the pandemic of 2020, the government imposed a stay at home order requiring everyone to stay at home except for essential trips. Brad operated a small ice cream and candy shop in Niagara- on-the-Lake. Once the order was issued he had virtualy no customers since no tourists could come to the Town. At the end of the first month he told his landlord, Patrick, that he would likely need to declare bankruptcy because he could not pay the rent. Patrick encouraged him to stay and said that he would reduce the rent from $8,000.00 to $2,000.00 per month to help him out. Brad paid Patrick $2,000.00 and with loans from family members managed to do so each month. In the seventh month the pandemic was declared to be over and the stay at home order was rescinded. Brad went to Patrick's office with a big smile and gave him a cheque for $8,000.00. Patrick said "Where is the $36,000.00 for the other 6 months"? Brad was surprised and said "That rent was forgiven because of the pandemic". Patrick replied "Of course not, we still have a valid lease that requires payments of $8,000.00 per month. You still owe me the rent". Brad claims that he would have closed the store and declared bankruptcy 6 months earlier if Patrick had not promised to reduce the rent. He commences an action to enforce Patrick's promises. Required: Discuss the legal issues that will be raised by the parties with reference to the applicable principles. What is the likely result?

Answer rating: 100% (QA)

Answer This case would be a case of breach of contract It means that Brad would file a legal suit ag... View the full answer