Buyer v. Vendor: Breach of Contract for Failure to Discharge Mortgage

A person who had contracted to purchase a property subject to a mortgage subsequently entered into a new agreement with the vendor to pay the remaining purchase price directly to the mortgagee in exchange for the vendor transferring the property to the buyer free and clear of the mortgage debt, but the vendor, despite receiving full payment from the buyer as agreed, failed to fulfill their obligation to have the mortgage officially discharged, leading the buyer to sue for damages after the mortgagee eventually initiated foreclosure proceedings. The court of cassation quashed the lower court's decision, reasoning that the lower court erred in finding that the buyer's direct payment to the mortgagee discharged the vendor from their contractual obligation to clear the mortgage, as the vendor was bound by their specific undertaking to ensure the property was delivered free of encumbrances, and failure to do so constituted a breach of contract justifying damages.