“A franchisor’s designation of COVID-19 as force majeure was subject to an implied duty of rationality. Failure to take a relevant factor into account breached this duty and entitled the franchisee to terminate the contract. In Dwyer v Fredbar, as part of a lengthy judgment, the court considered a franchisor’s discretion to designate COVID-19 as force majeure in a plumbing franchise agreement, which would have suspended the contract …” (more)
[Po-Siann Goh, Compact Contract, 20 May]
First posted 2021-05-20 14:00:31
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