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Franchising

14 July 2020
Bruno Floriani 'Special relationship' between franchisors and franchisees: could it give rise to a pre-contractual duty of good faith?

Canada - Lapointe Rosenstein Marchand Melançon LLP

Common law jurisdictions recognise that certain circumstances could arise that would lead contracting parties to have some type of pre-contractual good-faith obligation, including where they have a 'special relationship' – typically characterised by an imbalance of information. A franchise arrangement has been characterised as an example of such a special relationship that could fall within the narrow set of particular requirements for good faith in the pre-contractual context.

Authors: Bruno Floriani, Marissa Carnevale, Tanya Nakhoul
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