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14 | May 31 mai 2013 | Citoyen Borden Citizen
LEGAL GROUNDS
Gordon R. MacKenzie, Local Lawyer
Angus 705-424-1331
THE $759,000 COMMA
With the compositional precision
of my Grade 7 English
teacher, Ontario's Superior
Court of Justice struck down AMJ
Campbell Inc.'s request to have the court
amend a contract to remove a comma
between the words "freight" and
"rebates." The result cost AMJ
$759,000. (AMJ Campbell Inc. v. Kord
Products Inc.)
AMJ was finalizing the details of the
sale of its $13 million container manufacturing
subsidiary to Kord Products
Inc. Kord's lawyers requested several
changes to the contract including adding
the famous comma in a clause calculating
the purchase price. The change was
made and the revised contract was
approved and signed.
After the deal closed AMJ realised the
comma's cost and sued to have the contract
corrected arguing that they did not
know the comma was added. The court
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ruled that it would not rectify the contract,
because AMJ, like everyone else,
is liable for the documents they sign
even if they did not take the trouble to
read it. For its part, Kord had not acted
improperly by requesting the change or
assuming AMJ knew about it since
AMJ's lawyers made the change. As
well, the court would not correct the
contract if the result would not make
sense and there were no "freight rebates"
in the business being sold.
AMJ's plight is a vivid reminder to us
all that if we don't read what we sign, we
could get stuck with some unpleasant
consequences.
This article is presented as general
information only and is not to be relied
on as legal advice. You should contact
your lawyer to see how the law applies
to your circumstances before any action
is taken.
Uncover More Legal Grounds at: yourlocallawyer.com
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