Does a third party who has not yet approved an agreement between a plaintiff and defendant in a patent case have to be bound by the terms of the agreement?
British Columbia, Canada
The following excerpt is from Western Log Exchange Ltd. v. Soucie Construction Ltd., 1979 CanLII 368 (BC SC):
This situation seems to me to be covered by the authority of Pym v. Campbell (1856), 6 E. & B. 370, 119 E.R. 903. In that case the plaintiff and defendant negotiated certain terms regarding the development of an invention, and it was agreed that they would meet a third person; if he approved the invention and agreed with the terms, they would make a bargain on the basis of the terms already settled between them. The plaintiff and defendant then signed an agreement, but the defendant alleged it was further agreed that they would not be bound by the agreement until the third party had approved. In fact, the third party did not approve.
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