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

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The situation described involves a breach of the implied covenant of good faith and fair dealing, which is an implied obligation in contracts that requires the parties to act with honesty and fairness towards one another. Even if the contract is silent on territorial rights, there is an expectation that Greene would not act in a way that would harm Fern's business. Allowing a competing franchise to be established near Fern's store can be seen as a breach of this obligation.

Fern Contracts to Buy a Franchise from Greene Grocery Inc