musicaljoke
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... As for buying the company, do we know for sure that these clauses were only put in because it was BS?
Yes, we know, as a fact from the court documents, which have been posted here a few times now, that the offer was made by BS.
We also know, as a fact, that the offer was rejected by Royal Trust and that the clause DID NOT become part of the sale agreement.
The judge gave these findings:
[31] The plaintiffs argue that in order for Sherman’s actions to give rise to an ad hoc fiduciary duty, there must have been an Undertaking that resulted from a Commitment to Royal Trust. I find that Sherman did not make such a Commitment. There was, accordingly, no Undertaking, and Sherman owes no ad hoc fiduciary duty to the plaintiffs.
[32] The plaintiffs argue that certain correspondence from Sherman created a Commitment to Royal Trust. I fail to see how any of it did. The letter written in November 25, 1965 was merely an offer to Royal Trust that was rejected. Without acceptance of the offer, there could be no legal Commitment from Sherman. The other correspondence, written around the time of the sale of the Empire Companies to S & U, was nothing more than a reiteration of Sherman’s position vis-à-vis the children as set out at paragraph 14.00 of the purchase agreement and again in the option agreement, which merely mirrored the wording in the purchase agreement.
[33] The correspondence cannot be elevated into something more. Sherman and S & U had set out in writing exactly what they were prepared to do for the children following the sale of the Empire Companies.
[34] I agree with Justice Perell’s analysis, as confirmed by the Court of Appeal, that:
• There was never an entitlement to an option agreement (paragraph 119);
• Royal Trust attempted to have Sherman offer more but he refused to budge (paragraph 121);
• Sherman was under no obligation to offer employment opportunities to the children (paragraph 122);
• Sherman was only prepared to offer a limited, qualified, contingent and conditional employment contract and option agreement (paragraph 123);
• Sherman was asked to be more generous but would not budge (paragraph 123);
• The option agreement expressed precisely what had been agreed upon by the parties (paragraph 123);
• The children were acquiring a right for which they had no legal entitlement (paragraph 125).
https://www.canlii.org/en/on/onsc/d...TaGVybWFuIGFuZCB3aW50ZXIAAAAAAQ&resultIndex=2