Agricultural Law NetLetter - Saturday, October 7, 2017 - Issue 381

HIGHLIGHTS

• The Saskatchewan Court of Appeal has upheld the decision of a chambers Judge who concluded that the term in a lentil production contract that specified "#2 Canada" grade lentils was a "true condition precedent" and that two farmers who signed this contract, but were not able to produce this grade because of poor weather conditions, had no obligation to supply any lentils, including lower grade lentils instead of this grade. Market prices had risen sharply between the time the contract was entered and the lentils were to be supplied. The Court of Appeal rejected the purchaser's argument that it was entitled to waive the higher grade requirement, because this requirement was a true condition precedent in which the obligations of both sides to the contract were dependent on an uncertain future event that was not under the control of either party. (PS International Canada Corp. (c.o.b. Seaboard Specialty Grains and Foods) v. Palimar Farms Inc., CALN/2017-05