The applicant, 1750738 Ontario Inc., sought specific performance of a verbal contract against the respondent corporations.
The verbal contract stipulated that Hervé Lacroix would invest in a real estate development project (Oasis) on the condition that his son's company, Maisons Lacroix Homes Inc., would construct 25% of the lots.
The respondents later terminated this arrangement.
The court found that the verbal contract existed, was ratified by 1750739 Ontario Inc. despite preceding its incorporation, was sufficiently certain, and was not precluded by the Statute of Frauds due to part performance.
Furthermore, a "whole agreement" clause in a subsequent shareholders' agreement did not terminate the verbal contract, given the circumstances of its signing and the lack of independent legal advice for Lacroix.
The court also found no convincing evidence of serious misconduct by Maisons Lacroix Homes Inc. that would justify termination.
The court granted specific performance, annulling the termination decision and ordering the allocation of 25% of lots to Maisons Lacroix Homes Inc.