Day 139 - 21 Jun 95 - Page 06

     
     1
     2   MR. RAMPTON:  I cannot help your Lordship about that for the
     3        moment, but I will in due course.
     4
     5   MR. JUSTICE BELL:  (To the witness)  I assume that there is some
     6        kind of forfeiture provision somewhere, or default
     7        provision somewhere?
     8        A.  My Lord, if I have looked at licence agreements half
     9        dozen times in 21 years, that would be a lot.
    10
    11   Q.   That would be more experience than I have had, probably, or
    12        as much.  But I would think that what I am about to say is
    13        not very far wide of the mark, and I say it so I can be put
    14        right if it is far wide of the mark.  You can have an
    15        express forfeiture clause or default clause in any kind of
    16        contract?
    17        A.  Yes.
    18
    19   Q.   You can expressly provide for what should happen in the
    20        case of certain kinds of breaches of the contract?
         A.  Yes.
    22
    23   MR. RAMPTON:  It is on page 16.
    24
    25   MR. JUSTICE BELL:  Thank you very much.
    26
    27   MR. RAMPTON:  We have blanked out those material breaches which
    28        reflect what one might call a breach of the financial
    29        arrangements between the Licensee and the Corporation.
    30
    31   MR. JUSTICE BELL:  Yes.  They are not relevant.
    32
    33   MR. RAMPTON:  No, they are not relevant.  We have left in what
    34        I call the conduct breach.
    35
    36   MR. MORRIS:  I think they are relevant.
    37
    38   MR. JUSTICE BELL:  You can explain to me why.  At the moment,
    39        I thought you were more concerned with breaches of
    40        standards?
    41
    42   MR. MORRIS:  Yes.
    43
    44   MR. JUSTICE BELL:  Let me read 18.
    45
    46   MR. RAMPTON:  My Lord, it continues at the bottom of the page
    47        and goes over the page as well.
    48
    49   MR. JUSTICE BELL:  Yes.  That refers back to the standards which
    50        had previously been referred to, obviously. 
    51 
    52   MR. MORRIS:  I am just going to draw the court's attention to a 
    53        couple of things.
    54
    55   MR. JUSTICE BELL:  Might I make a suggestion?  If you think that
    56        Mr. Stein is the McDonald's person to ask about breaches of
    57        a franchise agreement, because a joint -- well, this is
    58        franchise, not joint venture partner -- an owner/operator
    59        or licensee/franchisee, call them what you may, has failed
    60        to reach some particular standard in some particular area,