Common Law Franchise Agreement

The civil approach to good faith should be compared to the common law approach. The U.S. Uniform Trade Code provides that “any contract. . . impose an obligation of good faith in its performance or enforcement.¬†Similarly, the U.S. declaration (second) of paragraph 205 of the treaty states that “each contract imposes on each party a duty of good faith and good management of its performance and implementation.” The two countries considered, Italy and England, are very different. Italy is a civil law with a specific franchise right. England, on the other hand, is a country of common law without specific franchise laws.

One would expect there to be considerable differences in the approach of the two jurisdictions, but in fact, the resemblance is striking. .