Question
Thomas obtained a franchise from Kahala Corp to operate a Samurai Sam's restaurant. Under their agreement,Thomascould transfer the franchise only if he obtained Kahala's approval
Thomas obtained a franchise from Kahala Corp to operate a Samurai Sam's restaurant. Under their agreement,Thomascould transfer the franchise only if he obtained Kahala's approval and paid a transfer fee. Without telling Kahala,Thomassold the restaurant to William. William signed a note for the purchase price. When Kahala learned of the deal, the franchisor told William to stop using the Samurai Sam's name. William stopped paying on the note, and Thomas filed a claim for the unpaid amount. In defense, William asserted breach of contract and fraud. Are these defenses effective against Thomas? Why or why not? Are there additional facts you would like to know?Explain.
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