User blog comment:AYET/About chapter 739/@comment-10543621-20140227045710

I think the contract just means they have to fulfil what the contract states, it doesn't mean they're completely stripped of free will. If they're completely stripped of free will, the toys woudn't be able to live normal lives and do normal daily activities. The general contracts prohibits them from acting against the Doffy family and such, but it doesn't say you shouldn't try to stay alive and not get crushed by falling objects. When the dwarves were turned into toys, didn't Sugar just instruct them to crush the other dwarves? She didn't say you should not run away if something threatens to crush you.

As for the dwarves knowing who TSOR is, yeah I agree, i think TSOR probably just told them that. And indeed due to their trusting nature, they'd be the only ones TSOR would be able to tell. TSOR himself would probably know that it's pointless telling other people who he is since no one would believe him, but meeting the dwarves probably presented him with an opportunity of finally being able to tell people his identity and have them believe him. I'm sure he'd welcome the chance to do that.