Enzo Formaggio has always loved cheese. For as long as he can remember, his favourite foods have been macaroni and cheese, grilled cheese and cheese fondue. Enzo is sure that his lifelong love of cheese greatly influenced his decision to become a chef. For the past four (4) years, Enzo has been the head chef at the prestigious Douglas Hotel in downtown Vancouver. The Hotel has four (4) popular restaurants but Enzo admits that his favourite is "Queijo" where everything on the menu features cheese. Customer favourites include the mac & cheese sandwich with braised ribs, cheddar bacon puffs and apple and cheddar stuffed pork chops.

Enzo's contract with the Douglas Hotel requires him to provide his services exclusively to the hotel in which he is paid $300,000 per year plus a generous benefits package. The hotel has seen its revenue jump in its four restaurants by over $1.5 million per year since it hired Enzo. Its restaurants have also been featured more in local foodie magazines than any other restaurant thanks largely to Enzo's celebrity chef status. The 7-year contract between Enzo and the hotel expires on July 31, 2024.

The contract contains a term that prohibits Enzo from working for specific restaurants in the City of Vancouver for the duration of his contract and for one year afterwards. The restricted restaurants include some of Douglas Hotel's key competitors such as Il Capilano, Langara House, and The Kwantlen Kafe.

Unfortunately, Enzo has recently had 'personality differences' with the senior hotel management and wants to immediately sever his relationship with the hotel. He has also made it known that he intends to take his culinary skills to Langara House, which is located just one block away from the Douglas Hotel.

Enzo has also been pursuing another business venture of late. He wants to open up a cheese hall consisting of ten (10) retail spaces each specializing in the sale of a different 'nationality' of cheeses. So, one shop would sell French cheeses, another Dutch cheeses, another Italian cheeses, and so on. Enzo has a contract with Marpole Construction Ltd. ("MCL") to build the cheese hall, which is slated for completion on April 30, 2021. The contract contains the following term:

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If the contract is not completed by Marpole Construction Ltd. ("MCL") on or before April 30, 2021 then MCL agrees to pay Enzo Formaggio the sum of $30,000 per week for every week or part of a week after April 30, 2021 until the contract is completed."

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Questions:

1. MCL runs beyond the completion date and does not finish building the cheese hall until exactly ten (10) weeks after the scheduled completion date

1. a)if the actual loss to Enzo for lost rent is $280,000, briefly explain how much money MCL will have to pay Enzo. Provide your reasons. (4 marks)
2. b)if the actual loss to Enzo for lost rent is $60,000 (several tenants backed out of their pre-lease commitments because of the pandemic), do you think the court will uphold the clause? Briefly provide your reasons. (2 marks)
3. c)in one sentence, provide a reason that the parties would want to include such a clause in their agreement. (1 mark)

2. If Douglas Hotel wants to prevent Enzo from working for Langara House, then what remedy is Douglas Hotel most likely to request from the court? provide a brief description of this remedy. (1 mark)

3. What are two (2) things that a court would consider before granting this remedy? From the facts of the scenario, do you think Douglas Hotel would be able to satisfy these two (2) requirements? Must the court grant the equitable remedy? Why or why not? (5 marks)

4. If the court feels that Douglas Hotel is not entitled to the equitable remedy in Question # 2, what common law remedy can Douglas Hotel request? Do you think it will be successful? Why or why not? (2 marks)

5. What is the name of the legal phrase used to describe the restriction on Enzo that is contained in the contract? (1 mark)