Lord Shaw:-

This appeal is brought from a judgment of the Court of Appeal of British Columbia, dated 4th April 1916, dismissing an appeal by the appellants against the judgment of Murphy, J. dated 29th June 1915.

The respondents, the corporation of the district of North Vancouver, are a municipality incorporated under the Municipal Act of the province of British Columbia. On 16th August 1905, they entered into an agreement with the appellants, the Vancouver Power Company, Limited granting to the latter power for the construction maintenance and operation, within the limits of the district, of all the works, power-houses, buildings, poles and wires required "for the generation, distribution, and sale of electricity for light, heat and power and any other purpose". By clause 11 of that agreement a monopoly or exclusive right was granted to the company.

By the same clause 11 however, it was also provided :-

"But at the expiration of ten years from the said date of this agreement the corporation may, upon giving at least twelve months prior notice in writing of its intention to do so assume the ownership of the electric lighting system within the limits of the district, together with all