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Good faith in franchising: how far does it stretch?
The Franchising Code of Conduct imposes an obligation of good faith on parties to a franchise agreement. The scope of this obligation can be particularly uncertain. This article breaks down how the courts have interpreted the requirement and what it means for your business.
Imprecise Contracts and Good Faith: Lessons from Beecham Motors Pty Ltd v General Motors Holden Australia NSC Pty Ltd
The language used in a contract can significantly impact its enforceability. Reliance on the incorporation of an obligation to act in good faith will not necessarily result in an outcome sought. This was considered in the recent Supreme Court decision in Beecham Motors Pty Ltd v General Motors Holden Australia NSC Pty Ltd, which provides guidance for those with or considering a franchise agreement and the drafters of franchise agreements. #franchise_agreements #good_faith #franchisee_group_action