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Hav-A-Kar Leasing: Accelerated Payments in Canada ' Close But Not Quite Right
The objective of awarding damages for a breach of contract is to put the injured party in the same position as if the contract had been properly performed. This principle is commonly included in contracts through termination provisions that allow the injured party to recover future payments upon an event of default. Where all remaining payments automatically become due, the agreement typically includes a mechanism to discounted payments to take into account the time value of money. These acceleration clauses, if properly drafted, can be considered a genuine pre-estimate of damages as the lessor is in the same position it would have been in had the contract been completed. The key to a fair acceleration clause is to allow for proper discounting as to reflect the value of receiving the remaining payments before they would otherwise become due. If the lessor were to collect full payments at the time of default, the lessor would be in a better position than had the default not occurred.
The use of acceleration clauses has been accepted by Canadian courts; however, there is at least one case where the courts allowed for an accelerated payment clause to be enforced without discounting payments. An Ontario Court of Appeal case, Hav-A-Kar Leasing Ltd. v. Vekselshtein, 2012 ONCA 826 (“Hav-A-Kar“), enforced such a clause and did not discount payments for early receipt. As discussed below, the decision to enforce this type of clause is problematic as it gives the lessor more funds than it would have received had the agreement been fulfilled.
The Article 8 Opt In
The Article 8 opt-in election adds an additional layer of complexity to the already labyrinthine rules governing perfection of security interests under the UCC. A lender that is unaware of the nuances created by the opt in (may find its security interest vulnerable to being primed by another party that has taken steps to perfect in a superior manner under the circumstances.
Beach Boys Songs Written Decades Ago Triggered Current Quarrel With Lawyers
There's current litigation in the ongoing Beach Boys litigation saga. A lawsuit filed in 2019 against Nevada residents Mike Love and his wife Jacquelyne in the U.S. District Court for the District of Nevada that alleges inaccurate payment by the Loves under the retainer agreement and seeks $84.5 million in damages.
Major Differences In UK, U.S. Copyright Laws
This article highlights how copyright law in the United Kingdom differs from U.S. copyright law, and points out differences that may be crucial to entertainment and media businesses familiar with U.S law that are interested in operating in the United Kingdom or under UK law. The article also briefly addresses contrasts in UK and U.S. trademark law.
Strategy vs. Tactics: Two Sides of a Difficult Coin
With each successive large-scale cyber attack, it is slowly becoming clear that ransomware attacks are targeting the critical infrastructure of the most powerful country on the planet. Understanding the strategy, and tactics of our opponents, as well as the strategy and the tactics we implement as a response are vital to victory.
When Is a Repair Structural or Nonstructural Under a Commercial Lease?
A common question that commercial landlords and tenants face is which of them is responsible for a repair to the subject premises. These disputes often center on whether the repair is "structural" or "nonstructural."