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High Court, in claim by former franchisee against franchisor arising from termination of agreement to collect and distribute parcels and letters, determines: a) that a restraint of trade clause in the contract was reasonable and proportionate; b) that an allegation of fraud in under-weighing of parcel consignments had not been established; c) no claim arose in respect of a change in commission; and d) the plaintiffs were entitled to the return of €8,680 in respect of the provision of a trailer by the defendants.
Franchise - courier company - franchise to collect and deliver parcels and letters in specific geographical region - sale of franchise - notice by franchisor to terminate agreement - effect of termination clause - compensation of plaintiffs - lost commission - alteration of rate of commission - whether franchisor guilty of fraud in under-weighing consignments of parcels - whether restraint of trade clause enforceable - whether special circumstances justifying restraint of trade clause - whether reasonable or proportionate - requirement of proving fraud - false representation - construction of contractual terms - ambiguity in contractual term.
Note: This is intended to be a fair and accurate report of a decision made public by a court of law. Any errors should be notified to the editor and will be dealt with accordingly.
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