Galler v. Galler

In Galler v. Galler, 32 Ill. 2d 16, 203 N.E.2d 577, 586 (Ill. 1964), a shareholder agreement between two brothers having equal interest in a close corporation did not provide for a specific termination date. The express purpose of the agreement was to provide financial support to the stockholders' immediate families upon their death. 203 N.E.2d at 580. One of the shareholders died. Id. Thereafter, the agreement was challenged and held to be enforceable. Id. at 585-86. Despite a clause in the agreement stating that its terms "'shall be binding upon and shall inure to the benefits of' the legal representative, heirs and assigns of the parties," the court reasoned that the purpose of the agreement was accomplished at the death of the survivor of the parties. Id. at 586.