Apni Law Staff asked 2 years ago
Dear Sir,
I signed a franchise agreement and lease contract with an oil company in Mumbai, valid for 25 years. The business has been unprofitable for the past 10 years, and I’m facing losses. All investments and the land are in my name, and I have obtained necessary licenses.
Can I withdraw from these contracts by giving 3 months’ notice before the stipulated period? If I do, am I legally obligated to pursue the case only in Mumbai courts?
What’s the best way to free my property and investment from this struggling business?
Regards,
Rajan Babu
Best Answer
Apni Law Staff answered 2 years ago
Based on Indian law, you likely cannot terminate the contracts before 25 years without specific clauses allowing early termination. If the contracts do not have such clauses, you are obligated to fulfill the terms. The contracts likely specify the jurisdiction for dispute resolution, but you should consult with a lawyer to discuss your options and explore potential solutions like renegotiating the terms or finding a buyer for the franchise.
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