The two sons of the taxpayer had transferred to him shares of a family corporation. The shareholders agreement provided that, on the death of a shareholder, his shares were deemed to have been redeemed by the company on the day preceding that of death.
The Court affirmed the finding of the Tax Court Judge that the deemed redemption provisions in the agreement did not effect a retroactive disposition of the shares the day before the taxpayer's death, nor was the Court persuaded that the sale of the shares to the taxpayer was void for a mistake because the sale did not have one of its intended tax consequences.