Giroux v. Malik Flashcards
What was the dispute in Giroux v. Malik?
Mr. and Mrs. Giroux bought a residential lot from Malik to build a home but later learned the lot was a former landfill and not eligible for a building permit due to soil and sewerage issues.
What legal claim did the Giroux family make?
That Malik committed fraud through omission by **failing to disclose material facts **about the property.
What evidence showed Malik knew about the land issues?
He had tried to sell the land twice before and disclosed the problems each time.
He had personally attempted to build on it and was denied due to the same issues.
He remained silent during the sale to the Giroux.
Did the buyers ask about potential land issues?
No, but under Quebec law, sellers must disclose known defects, even if the buyer does not ask.
What article of the CCQ did the court apply regarding fraud?
CCQ 1401 – Fraud or misrepresentation invalidates consent.
What is the result when consent is vitiated by fraud?
Under CCQ 1407, the contract can be annulled, and damages may be awarded.
What was the court’s ruling?
The contract was annulled.
Giroux were refunded the $45,000 purchase price.
Awarded $10,000 in compensatory damages.
Malik was ordered to pay immediately, even if he planned to appeal.
What lesson does this case teach about buying real estate?
Always hire a notary to check zoning and land history. Sellers must disclose material facts, and silence can constitute fraud.
What special circumstance sped up this trial?
The judge found urgent hardship, allowing the case to go to trial within 1 year, rather than the usual 3–4 years.
