LAW 101 Saudi Electronic University Law Case Study

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I’m working on a international law case study and need an explanation and answer to help me learn.

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Law101
Case Study
J.C., Inc., had a franchise agreement with McDonaldàCorporation to operate McDonaldÊrestaurants in Lancaster, Ohio. The agreement required J.C. to make monthly payments to
McDonaldàof certain percentages of the gross sales. If any payment was more than 30 days
late, McDonaldàhad the right to terminate the franchise. The agreement also stated that even if
McDonaldàaccepted a late payment, that would not ïnstitute a waiver of any subsequent
breach.
cDonaldàsometimes accepted J.C.àlate payments, but when J.C. defaulted on the
payments in July 2010, McDonaldàgave notice of 30 days to comply or surrender possession of
the restaurants. J.C. missed the deadline. McDonaldàdemanded that J.C. vacate the restaurants,
but J.C. refused. McDonaldàfiles a lawsuit alleging that J.C. had violated the franchise
agreement. J.C claimed that McDonaldàhad breached the implied covenant of good faith and
fair dealing. Which party should prevail and why?

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