Are these defenses effective against klutz

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Reference no: EM132192975

Thomas klutz obtained a franchise from Kahala franchise corp. to operate a Samurai Sam's restaurant. Under their agreement, klutz could transfer the franchise only if he obtained Kahala's approval and paid a transfer fee. Without telling Kahala, Klutz sold the restaurant to William Thorbecke. Thorbecke signed a note for the price. when Kahala learned of the deal, the franchisor told Thorbecke to stop using the Samurai Sam's name. Thorbecke stopped paying on the note and klutz filed a claim for the unpaid amount. In defense Thorbecke asserted breach of contract and fraud. Are these defenses effective against Klutz?

Reference no: EM132192975

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