Law 8763
Description
J.C., Inc., had a franchise agreement with McDonaldænbsp;Corporation to operate McDonaldænbsp;restaurants in Lancaster, Ohio. The agreement required J.C. to make monthly payments to McDonaldænbsp;of certain percentages of the gross sales. If any payment was more than 30 days late, McDonaldænbsp;had the right to terminate the franchise. The agreement also stated that even if McDonaldænbsp;accepted a late payment, that would not ïnstitute a waiver of any subsequent breach.®bsp;McDonaldænbsp;sometimes accepted J.C.ænbsp;late payments, but when J.C. defaulted on the payments in July 2010, McDonaldænbsp;gave notice of 30 days to comply or surrender possession of the restaurants. J.C. missed the deadline. McDonaldænbsp;demanded that J.C. vacate the restaurants, but J.C. refused. McDonaldænbsp;files a lawsuit alleging that J.C. had violated the franchise agreement. J.C claimed that McDonaldænbsp;had breached the implied covenant of good faith and fair dealing. Which party should prevail and why??
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