My family and I invested in a courier franchise with a startup for three years. We started operations after three months, securing a client. The business thrived for the first three months, with daily collections deposited into the client’s account. However, after 75 days, our company instructed us to deposit the funds into their account, which we did. Suddenly, the client stopped using our services, citing non-receipt of payments from our company. Despite my inquiries, the company offered conflicting reasons. It seems clear they misled us. We initially paid ₹65,000 for the franchise agreement and security deposit. We also invested ₹22,000 monthly to keep the business running, hoping to recoup these losses later. Could you advise me on the relevant legal sections to file a case against the company?
Best Answer
You can potentially file a case against the company under the **Indian Contract Act, 1872**, for breach of contract and misrepresentation. You may also explore options under the **Consumer Protection Act, 2019**, considering the franchise agreement falls under the definition of a service. However, you should consult a lawyer to assess your specific situation and understand the applicable legal provisions.
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