What is the test for rescission of a purchase and sale agreement?

The circumstances in Kaufmann v. Gibson, [2007] O.J. No. 2711 (Sup. Ct. Jus.) were somewhat similar to the present case. This was an action, however, brought by the plaintiff sellers against the defendant buyers for breach of an agreement of purchase and sale as a result of the defendants’ refusal to close. The defendants counterclaimed for rescission based upon an allegation of a failure by the sellers to comply with their contractual disclosure obligations. Killeen J. found for the defendants on the basis of the plaintiffs failure to comply with their disclosure obligations under a Seller Property Information Statement (“SPIS”) that they had completed.