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ARTICLE · 20 AUGUST 2014

Shelf Life Of An Indemnity

In this case, the Landlord sought to recover unpaid rent from prior operators of a coffee shop.

CanadaReal Estate and Construction

1212763 ONTARIO LTD. V. BONJOUR CAFÉ examines whether an assignor's indemnity agreement can be enforced by a landlord following an assignment of an amendment to the lease. In this case, the Landlord sought to recover unpaid rent from prior operators of a coffee shop. The Landlord originally entered into a lease with the Tenant, Bonjour Café, for a term of fi ve years from February 1996 to February 2001. The coffee shop was run by a revolving door of operators as the Lease was assigned six times between 1996 and 2004. The Lease was fi rst assigned to 1312215 Ontario Inc. (the "First Assignee") in 1998. The Landlord consented to the assigned and agreed to extend the Term to February 2006 (the "First Extension Term"). Upon each assignment, the Landlord required the assignor to sign an agreement indemnifying the Tenant's obligations under the Lease throughout the Term, notwithstanding any subsequent assignments. The principal of one assignor, Café Ebenezer, signed a

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