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Contracts Keyed to Ayres
Zapatha v. Dairy Mart Inc.
Citation:
381 Mass. 284.Facts
The plaintiff had previous experience in business administration and business law. After he was released from his former job, he met with a representative of the defendant and signed an application to be considered for a franchise. The plaintiff’s franchise application was approved. A representative of the defendant asked the plaintiff and his wife to read and sign the agreement. In this agreement the termination provision provided that either party after 12 months could terminate the agreement without cause on ninety days written notice. The representative read and explained the termination provision to the plaintiff. The plaintiffs signed the agreement. In a few years, another store became available and the parties executed a new franchise agreement. Two years after the second franchise agreement, the defendant presented a new agreement for the plaintiff to sign. Some of the new terms were less than favorable to the plaintiff. The plaintiff told the defendant he was content with the existing contract and decided not to sign the new agreement. The defendant gave written notice to the plaintiff that their contract was being terminated effective in 90 days.
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