Article 1604 C.c.Q.: Resolution or Resiliation of the Contract for Non-Performance

Where the creditor does not avail himself of the right to force the specific performance of the contractual obligation of the debtor in cases which admit of it, he is entitled either to the resolution of the contract, or to its resiliation in the case of a contract of successive performance. However and notwithstanding any stipulation to the contrary, he is not entitled to resolution or resiliation of the contract if the default of the debtor is of minor importance, unless, in the case of an obligation of successive performance, the default occurs repeatedly, but he is then entitled to a proportional reduction of his correlative obligation. All the relevant circumstances are taken into consideration in assessing the proportional reduction of the correlative obligation. If the obligation cannot be reduced, the creditor is entitled to damages only.

Civil Code of Québec, art. 1604 C.c.Q.

What this article means

Article 1604 offers the creditor an alternative to specific performance: seeking the end of the contract. This is called resolution for an ordinary contract and resiliation for a contract of successive performance, such as a lease. It is the general foundation behind, in housing matters, applications to end a lease for a failure to perform.

The article sets an essential limit: there is no right to resolution or resiliation where the debtor's default is "of minor importance." A minor failure does not justify ending the contract, and this limit applies notwithstanding any clause to the contrary. There is one exception for contracts of successive performance: a default, even individually minor, can justify resiliation if it occurs repeatedly.

Where the failure is of minor importance, the creditor is not entitled to end the contract but can obtain a proportional reduction of their own obligation, assessed on the circumstances. If that reduction is impossible, only damages remain. This article is read with article 1863, which applies this logic to the residential lease.

What it means for you

If you are a tenant

If your landlord seriously fails to meet their obligations, article 1604 is the general foundation of the right to seek resiliation of the lease. But a minor failure is not enough: the law requires a default of a certain importance, or, for a recurring problem, a repeated character.

Before seeking resiliation, a written demand describing the failure and giving the landlord a chance to fix the situation is generally expected. Document how serious or how repeated the problem is, because that determines whether you are entitled to resiliation or only to a rent reduction or damages.

If you are a landlord

Article 1604 also grounds your right to seek resiliation of the lease when a tenant fails to meet their obligations. Here too, a failure of minor importance is not enough: it takes a sufficiently serious default or, for repeated failures, genuine recurrence.

A written demand describing the failure and allowing time to remedy it strengthens your position. Build a file showing how serious or how repeated the problem is. If the default is minor, the tribunal may refuse resiliation and grant only another measure; that's why documentation is decisive.

Related articles

• Mise en demeure: Definition, Effects and Deadlines (Demand Letter)
• Sous toutes réserves: Meaning of the Notice (Without Prejudice)
• Article 1595 C.c.Q.: Written Form of an Extrajudicial Demand
• Article 1597 C.c.Q.: Debtor in Default by Operation of Law
• Article 1601 C.c.Q.: Specific Performance of the Obligation