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3 April 2006
In 2001 we were appointed the main managing solicitors in a group of about 100 petrol retailers who had issues with an oil company over their standard Licence agreements for running this company's petrol stations. These agreements were essentially franchise type operations.
Conducting this really significant commercial case meant that we tested the law on the powers of a 'franchisor' to stretch the parameters under the agreement. For example, did the oil company have in practice absolute power to reduce the Retailers margins by such percent that it would be fatal to the Retailers' business? Questions like these came up for decision in the case, and meant the range of contract text book law was comprehensively covered, and the law clarified as a result. Legal principles that were established were helpful to the Licensees, the way the group issues were dealt with by the Court left the Licensees in practice without the resources to pursue their losses individually.
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