Editing Contracts Ayres/9th ed. Outline
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***** Good faith cessation of production = extreme cost/disastrous emergency | ***** Good faith cessation of production = extreme cost/disastrous emergency | ||
***** Same good faith rule applies to a Requirements K | ***** Same good faith rule applies to a Requirements K | ||
**** | **** Zapatha v. Dairy Mart (Mass 1980) | ||
***** o Facts: Mutual termination clause without cause. D ensures P reads K, advises to get lawyer. D pays back 80% value of inventory. Handled by UCC (transfer of goods). | ***** o Facts: Mutual termination clause without cause. D ensures P reads K, advises to get lawyer. D pays back 80% value of inventory. Handled by UCC (transfer of goods). | ||
************ Not bad faith if franchisee won’t change terms. | ************ Not bad faith if franchisee won’t change terms. |