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20. If the parties take their dispute to court and both ask the court to supply the missing term, how will the court likely proceed?
Two years into the franchise agreement, a dispute has arisen regarding an aspect of the franchisee's operations that the agreement does not address.
A franchise agreement between a franchisor and a franchisee was drafted by the franchisor. The franchisor, which had the greater bargaining power, drafted the majority of the agreement's terms in its own favor.
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A is incorrect. The remedy of rescission is not appropriate. The court may supply an omitted term if the parties intended to have a binding contract.
B is incorrect. A writing will be construed against the drafter only as a last resort to address ambiguous language. Here, the franchise agreement is silent on an issue rather than ambiguous.
C is incorrect. A court will supply a term that is reasonable under the circumstances to fill a gap in a contract. The term might not necessarily be one the parties would have agreed to.