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Franchising

25 February 2020
Bruno Floriani Franchisee defaults: when is it 'material' enough?

Canada - Lapointe Rosenstein Marchand Melançon LLP

Few areas of contract law have created as much confusion as the nebulous distinction between material breaches, substantial breaches and breaches going to the root of the contract. This distinction is important in a franchise context, where franchise agreements often provide that the franchisor has a right to terminate the franchise agreement for material breach by the franchisee, leaving what constitutes a 'material' breach open for interpretation.

Authors: Bruno Floriani, Marissa Carnevale, Tanya Nakhoul
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