Part 15 published on 01/08/06
Management Agreement not properly terminated
Under the terms of the Management Agreement, either party could terminate the agreement at any year-end, upon 90 days written notice to the other party. In addition, the condominium corporation had the right to terminate the agreement at any time upon 60 days written notice to the manager, in the event of a substantial breach on the part of the manager.
The condominium corporation did not exercise the 90-day termination right. Instead, the condominium corporation subsequently purported to terminate the agreement on 60 days notice based upon the manager’s “substantial breach”. The Court found that the manager’s failings did not constitute a “substantial breach” on the part of the manager. The condominium corporation accordingly was not entitled to terminate the agreement and the manager was entitled to one year’s worth of property management fees.