Libby-Broadway Drive-In, Inc. v. McDonalds System, Inc Case Study

Libby-Broadway Drive-In, Inc. v. McDonalds System, Inc - Case Study ExampleLibby sued McDonalds, alleging a breach of the franchise agreement.In this campaign, the agreement is unenforceable because it was not made in the form indispensable by the Statute of Fraud which is applicable law in this case. Said law provides that agreement which cannot be performed within a period of one grade should be in writing and signed by the party to be charged of the its performance in order to be enforceable. The substance of the case, as quoted from this case is that if the complainants would give up their options and would sell the other restaurant, McDonalds would provide them with two franchises of comparable size, location, and profit. The performance of the number needed to be done by the plaintiff cannot be performed in one year, thus, the performance of the obligation of McDonalds cannot also be performed within one year because the performance of the latters obligation depends on th e performance of the act required from the plaintiff. Therefore, the said agreement should have been reduced into writing as required by the Statute of Law.Secondly, a contract of lease is also required in the agreement on the property where the franchise is to be established.