Samson v. Levack

Samson v. Levack

The appeal was dismissed because the court held that the contractual condition restraining the vendor from divulging the formula remained valid and did not justify annulling the sale merely because the formula had been registered and its existence known to the buyers; therefore the respondent's claim to part of the price was maintained.

Citation
[1926] SCR 601
Parties
Appellant: Samson; Respondent: Levack
Court
Supreme Court of Canada
Jurisdiction
Canada
Judgment Date
4 May 1926
Procedural Posture
Civil Appeal (contract) / Final Judgment on Appeal to the Supreme Court of Canada
Outcome
Appeal dismissed with costs.
Legal Topics
Conditions Precedent and Subsequent, Secret Formula/confidentiality, Patent Registration Effect, Rescission/annulment of Contract, Sale of Industrial Enterprise, Art 1080 C.c.
Source Language
English
Contract Patent Law Quebec Civil Code Conditions Precedent and Subsequent Secret Formula/confidentiality Patent Registration Effect Rescission/annulment of Contract Sale of Industrial Enterprise +1 more

Case Brief

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Parties

Samson

Appellant

Levack

Respondent

Procedural Posture

Civil Appeal (contract) / Final Judgment on Appeal to the Supreme Court of Canada

Legal Issues

  1. 1 Whether a sale of interests in an industrial enterprise subject to a condition that the vendor not divulge a secret formula can be annulled when the formula had been registered at the patents office and thus could be publicly known
  2. 2 Whether knowledge or registration of the formula by the public or by the buyers negates the enforceability of the confidentiality condition
  3. 3 Interpretation and application of Art. 1080 of the Civil Code of Quebec to restraints on disclosure in a sale

Ratio Decidendi

The appeal was dismissed because the court held that the contractual condition restraining the vendor from divulging the formula remained valid and did not justify annulling the sale merely because the formula had been registered and its existence known to the buyers; therefore the respondent's claim to part of the price was maintained.

Court Disposition

Appeal dismissed with costs.

Orders

  • Appeal dismissed with costs.