The plaintiff, IMG Canada Limited, sued General Motors of Canada Limited and MacLaren McCann Canada Inc. for breach of an alleged oral two-year sponsorship agreement and, alternatively, for negligent misrepresentation.
IMG claimed an oral contract was formed on November 3, 2015, for Cadillac's sponsorship of Taste of Toronto 2016 and 2017.
The court found no oral agreement due to a lack of certainty of essential terms (specifically price) and no intention to create a legally binding agreement, as evidenced by ongoing negotiations and the requirement for a formal written contract.
The negligent misrepresentation claim, alleging Momentum failed to communicate Cadillac's concerns, was also dismissed because the plaintiff could not prove damages resulted from the alleged misrepresentation, as it was too late to mitigate losses by the time the misrepresentation occurred.
All claims were dismissed.