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Appellant franchise sought review of a decision of the Superior Court of Sacramento County (California), which denied judgment notwithstanding the verdict in an action for damages for breach of an oral agreement to assist in selling the assets of an agency and for fraudulent representations in making the agreement and not performing it.
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Respondent car dealer sought damages for the termination by the franchise of his car dealership. The car dealer's sales performance did not meet car franchise's criteria. Car franchise recommended to car dealer that he terminate the agency and sign a letter of intent to resign. Car dealer resisted and representatives of the franchise offered him an oral agreement to assist in selling the assets of the dealership. The representative then set a price well below asked for by the car dealer and then did not perform the contract. The court held that the franchise breached an oral agreement to assist in selling the assets of an agency and made fraudulent representations in making the agreement and not performing it. The court affirmed the judgment notwithstanding the verdict and held that party filing action would have recovered costs on the appeal.
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Updated on February 26, 2022
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