Contract Law: Validity of Contracts and Standard Form Contracts

Running Head: CONTRACT LAW
Business Law
Name
Affiliation
Instructor
Date

Contract Law 2
Contracts
Specific Suggestions before entering into the Franchise agreement
The first step that Charlie should have taken was to consult with a franchising lawyer
and an accounting expert so that he could assist him to go through the franchise agreement
and the printouts provided by Nell. This act could have helped him in making a clear and
informed decision. Secondly, Charlie should have looked at the Franchising Code of Conduct
before entering into the agreement. Also, written disclosure of all information and material
facts must be provided during disclosure, (Walter, Pederson & Webb, 2017, 973). Printouts
should not be allowed. He should also understand that these documents must be provided
within a period of fourteen days before any binding agreement is executed, as stipulated by
the Canadian Franchise Association Code of Ethics. It is paramount for Charlie to undertake
his own research so that he is satisfied with the research and statistics provided by Nell. As
stated earlier, disclosure documents are essential, (Monestier, 2018, 177). Under the
Ontario’s Arthur Wishart (Franchise Disclosure) Act, a disclosure document must contain
material facts, financial statements, copies of proposed agreements, statements relating to
the making of informed investment decisions and any copy of documents mentioned. Also,
drafting of agreements should be between the two parties involved so that there is fairness.
Standard Form Contracts and why it may be used in this case
Standard form contracts are drafted by one party thus raising the scenario of “take it
or leave it”. the party being subjected to the contract does not have any room to negotiate.