Not All Breaches of Contract Are Created Equal

A breach of contract that deprives the innocent party of "substantially the whole benefit of the contract" gives the innocent party the option to terminate the contract and discharge the parties from future obligations, the Alberta Court of Appeal recently reminded us in Booster Juice Inc v West Edmonton Mall Property Inc, 2019 ABCA 58 [Booster Juice]. Normally a breach of contract only gives rise to the right to seek damages or an order enforcing compliance with the contract.

In Booster Juice, West Edmonton Mall Property Inc. (WEM) leased a kiosk to Booster Juice Inc. (Booster Juice) in West Edmonton Mall. After a successful run, the parties entered into a second lease for another kiosk in a different area of the mall. The relationship between the parties deteriorated, resulting in litigation. At trial, the Court of Queen's Bench found that both parties acted contrary to the second lease—Booster Juice failed to pay rent owed under the lease, while WEM breached