Libby-Broadway Drive-In, Inc. v. McDonalds System, Inc Case Study

Libby-Broadway Drive-In, Inc. v. McDonalds System, Inc - Case Study Example Libby sued McDonald's, alleging a breach of the franchise agreement. In this case, the agreement is unenforceable because it was not made in the form required by the Statute of Fraud which is applicable law in this case. Said law provides that "agreement which cannot be performed within a period of one year should be in writing and signed by the party to be charged of the its performance" in order to be enforceable. The substance of the case, as quoted from this case is that "if the plaintiffs would give up their options and would sell the other restaurant, McDonald's would provide them with two franchises of comparable size, location, and profit". The performance of the act required to be done by the plaintiff cannot be performed in one year, thus, the performance of the obligation of McDonald's cannot also be performed within one year because the performance of the latter's obligation depends on the performance of the act required from the plaintiff. Therefore, the said agreement should have been reduced into writing as required by the Statute of L aw. Secondly, a contract of lease is also required in the agreement on the property where the franchise is to be established.