Setting-up Long-term Leases and Conditional Sales Contracts Against the Trustee - The Supreme Court of Canada Quashes the Court of Appeal
Date:
October 1 2004
Since the Civil Code of Québec (“C.C.Q.”) was amended in 1998, conditional sales contracts (art. 1745 C.C.Q.), leasing contracts (art. 1847 C.C.Q.) and long-term lease contracts (art. 1852 C.C.Q.) must be published at the Registry of Real and Personal Moveable Rights within fifteen days in order to have effect against third persons. Is the trustee in bankruptcy, who is sometimes seen as the successor to the debtor, and sometimes as a representative of his creditors, such a third person? This is the question which has been answered in the Supreme Court of Canada rulings rendered yesterday in the matters of In Re Lefebvre, In Re Tremblay and In Re Ouellette.
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