Because of the Covid-19 lockdown, Skully McBones, owner of Broken Bones Skateboard Shoppe, had no customers for a period of six months. At the end of the first month, he told his landlord, Betty Stern, that he would have to declare bankruptcy because he could not afford to pay the rent. Betty said she would reduce the rent from $1000 to $250 to help him out. Skully paid her $250 and, with a bank loan, managed to do so every month. In the seventh month, when the lockdown stopped and the economy reopened, Skully went to Betty’s office and gave her a cheque for $1000. Betty said, “Where is the $4500 for the other six months?” Skully replied, “I thought you had forgiven me that rent because of the lockdown.” Betty said, “Of course not. I only delayed payment until the lockdown ended. You still owe me the money.” Skully refused to pay the $4500.
What is the law, issue, analysis and remedy for this case? Canadian Business Law
