Atria Networks LP v. AboveNet Communications Inc. 2007 CanLII 33115 (ON S.C).

Atria Networks LP wanted to acquire access to cable to establish a fibre-optic cable network with its partner throughout Ontario. They negotiated with MFN, which had a lease agreement with Telus, for the assignment of that lease giving them access to the Telus fibre-optic network in Ontario. But they also needed consent of MFN's parent, the American company AboveNet. Serious negotiations took place between Atria and AboveNet, with Atria thinking that an agreement had been reached. An important aspect of the deal for Atria and its partner was some sort of protection if something should go wrong, such as the lease with Telus being terminated. AboveNet took the position that they wanted a "no strings attached" deal with no such built-in obligations. AboveNet took the position that no agreement had been reached and refused to honour the contract. Explain the issues before the court, the arguments of both parties, and the likely outcome.