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Apr 20, 2015

Disclaimer and Merger Clauses in Contracts

In Legacy Academy, Inc. v. Mamilove, LLC, Case No. S14G1891 (decided April 20, 2015), the Georgia Supreme Court reinforced a long-standing rule in Georgia that disclaimer and merger clauses in contracts are effective to defeat claims that a party to a contract was defrauded by promises and representations not reflected in that contract. Mamilove and its officers had sued Legacy Academy for rescission of a franchise agreement and for damages relating to the purchase of a franchise. The franchisees claimed that they had received from the franchisor representations about the future earnings of the franchise. However, the franchise agreement they… Read more