Ontario’s appeal court has ordered a new trial in a dispute between brokerage houses over the sale of Montreal Exchange Inc. shares.

UBS Securities Canada Inc. appealed a trial judgment dismissing its application for declaratory and injunctive relief and specific performance as remedies for the alleged breach of an agreement to sell 100,000 shares of MX by Sands Brothers Canada, Ltd.

The appeal court explained in its decision, “The judgment was rendered on a trial of the following issue: is there or is there not an agreement to sell the shares, and if there is an agreement, what are its terms and what is the remedy? The trial judge found that the parties had not reached a binding contract.”

However, the appeal court agreed with UBS’ s argument that the trial judge erred by not applying the objective test for contract formation. “The appeal is allowed, the finding of the trial judge is set aside, and the matter remitted for a new trial of the issue,” it ruled.