Legal Question in Business Law in New Jersey
I am a franchisee , I currently have a contract that forbids me from practices, However, for a period of several years the Franchisor has Looked the other way and allowed this action anyway. ( despite their own contract restriction) .. Now, the franchisor wants to terminate me for these actions. Is there a legal name for this Implied consent ? any info appreciated
1 Answer from Attorneys
The term you are looking for is "waiver". Under some circumstances, if one party to a contract knowingly neglects to enforce a contract term, particularly over a long period time, it waives the right to hold the other party in breach for a subsequent or continuing breach. In other circumstances, the waiver only operates to forgive prior breaches. That is especially true for contracts that contain a "no waiver" clause. In the circumstance that you describe, assuming the franchise agreement is well-drafted, the franchisor will be able to require you to comply with the agreement but will have difficulty in terminating you.
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See also: http://info.corbettlaw.net/lawguru.htm
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