Legal Question in Business Law in Indiana

Terminating a Contract ''without cause''

A franchise agreement that I signed states several ways the agreement can be broken (by the franchisor or for non-performance by the franchisor). It specifically states that any other reason is ''termination without cause''. We want to terminate the agreement, and realize this would be without cause. However, the agreement does NOT state any repurcussions to terminating without cause. If we terminate without cause, does the contract need to specifically state repurcussions in order for there to be any repurcussions?


Asked on 7/01/06, 10:53 am

2 Answers from Attorneys

Burton Padove Indiana and Illinois Lawyer, Burton A. Padove

Re: Terminating a Contract ''without cause''

Unfortunately, this question can not be answered without a reveiw of the entire contract and other written material. You should contact your attorney.

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Answered on 7/01/06, 11:53 am
C. David DuMond Law Offices of David DuMond

Re: Terminating a Contract ''without cause''

It is very unlikely that there would be no negative repercussions if you simply "terminated" your franchise agreement. If there are franchise payments due under the agreement, those payments would continue to accrue. I can't say if there are other penalties involved without reading the agreement. You better do two things, soon. First, carefully re-read your agreement, and this time take off the rose-coloured glasses. Second, take your agreement and all the other documents concerning your franchise to a lawyer with experience in contract law. Good luck.

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Answered on 7/02/06, 8:44 pm


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