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Franchising

27 August 2019
Gordon Drakes Economic duress and franchising: when does a threat not to enter into a contract amount to economic duress?

United Kingdom - Fieldfisher LLP

In a recent case, the Court of Appeal considered whether a threat not to enter a contract could amount to economic duress, holding that it would not unless the threat was made in bad faith. While the decision provides useful and comforting guidance for franchisors, it also serves as a reminder to review contractual terms and processes and ensure that they are both robust and fair, as there is a fine line between protecting the integrity of the network and abusing a position of power.

Author: Gordon Drakes
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