Eddie contracts to buy a franchise from Fast n' Fresh Grocery Company. The contract is silent on the issue of territorial rights. Fast n' Fresh allows a competing franchise to be established near Eddie's store, which suffers a significant loss in profits. This is most likely a violation of

Question

Quizplus · Accepted Answer

The implied covenant of good faith and fair dealing requires that parties to a contract not act in a way that unfairly interferes with the other party's rights under the contract. In this case, Fast n' Fresh allowing a competing franchise to be established near Eddie's store may be viewed as a breach of this implied covenant, as it significantly impacted Eddie's profits. The contract's silence on the issue of territorial rights does not necessarily mean that Fast n' Fresh had the right to allow a competitor to establish a franchise near Eddie's store.

Eddie Contracts to Buy a Franchise from Fast N' Fresh