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Fundamentally, every franchising relationship is a contractual relationship and therefore, the Indian Contract Act, 1872 (“Contract Act”) would be applicable to all franchising arrangements. Fundamentally, every franchising relationship is a contractual relationship and therefore, the Indian Contract Act, 1872 (“Contract Act”) ...
Wazzeer Professional Network
ProfessionalWe had entered into a Franchise business with a company under proper franchise agreements but subsequent to all payments from our side, the company started to show its color i.e. it inordinately delayed the supply of material initially and going forward it did not adhere to not one single agreed term of the agreement, consequently we started to run into negative. Same was the case with all the other franchisees. Now the problem is:
Even before one year, the company itself offered to close the franchise and we accepted. We entered into a franchise closure agreement on a 100/- stamp paper wherein the company director agreed to clear all our dues from the company into two installments i.e. first before 29th Feb 2016 and the second before 31st March 2016. Now he does not take our calls nor respond to our emails or messages. He only keeps postponing the payments through the local representative. As per the franchise closure agreement he agreed to be charged civil and criminal proceedings if he does not adhere to the promised payments. What do we do?
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Wazzeer Professional Network
ProfessionalFundamentally, every franchising relationship is a contractual relationship and therefore, the Indian Contract Act, 1872 (“Contract Act”) would be applicable to all franchising arrangements. Fundamentally, every franchising relationship is a contractual relationship and therefore, the Indian Contract Act, 1872 (“Contract Act”) would be applicable to all franchising arrangements. Under the Contract Act, a “contract” is an agreement enforceable by law. The following elements are required to constitute a contract:
(a) An agreement, i.e. an offer and an acceptance of the offer;
(b) Lawful consideration for the agreement;
(c) Lawful object and purpose of the agreement;
(d) Free consent of the parties to the agreement;
(e) Capacity of the parties to enter into an agreement.
You can definitely sue to the Company through their representative in India and can claim damage for the breach of Contract according to the terms and policy of the Franchise Closure Agreement. If the Company is postponing the payment then according to Agreement you can file case against the Company and can claim for payments as well as damages for delaying the payment accordingly.
So why delay the process, 'Get a Wazzeer' to kick start the process.
almost 5 years ago
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We had entered into a Franchise business with a company under proper franchise agreements but subsequent to all payments from our side, the company started to show its color i.e. it inordinately delayed the supply of material initially and going forward it did not adhere to not one single agreed term of the agreement, consequently we started to run into negative. Same was the case with all the other franchisees. Now the problem is:
Even before one year, the company itself offered to close the franchise and we accepted. We entered into a franchise closure agreement on a 100/- stamp paper wherein the company director agreed to clear all our dues from the company into two installments i.e. first before 29th Feb 2016 and the second before 31st March 2016. Now he does not take our calls nor respond to our emails or messages. He only keeps postponing the payments through the local representative. As per the franchise closure agreement he agreed to be charged civil and criminal proceedings if he does not adhere to the promised payments. What do we do?
-
Wazzeer Professional Network
ProfessionalFundamentally, every franchising relationship is a contractual relationship and therefore, the Indian Contract Act, 1872 (“Contract Act”) would be applicable to all franchising arrangements. Fundamentally, every franchising relationship is a contractual relationship and therefore, the Indian Contract Act, 1872 (“Contract Act”) would be applicable to all franchising arrangements. Under the Contract Act, a “contract” is an agreement enforceable by law. The following elements are required to constitute a contract:
(a) An agreement, i.e. an offer and an acceptance of the offer;
(b) Lawful consideration for the agreement;
(c) Lawful object and purpose of the agreement;
(d) Free consent of the parties to the agreement;
(e) Capacity of the parties to enter into an agreement.
You can definitely sue to the Company through their representative in India and can claim damage for the breach of Contract according to the terms and policy of the Franchise Closure Agreement. If the Company is postponing the payment then according to Agreement you can file case against the Company and can claim for payments as well as damages for delaying the payment accordingly.
So why delay the process, 'Get a Wazzeer' to kick start the process.
almost 5 years ago
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