Problem at McDonald India

History of McDonald
McDonald corporation was initiated by two brothers Mac and Dick Donald who after graduation started a store in Chicago for serving hotdogs and burgers as working lunch for the people doing jobs. The taste and quality of the food items soon became very popular and people from other part of the city started dropping by to have the food. 5 years later McDonald registered themselves as a brand and started with stores in ew !ork" #ashington D C" $os %ngeles and Detroit. &owever they still had not adapted the style of uniqueness in the quality and taste of the food. 'oon" Mac and Dick thought of having a uniqueness in the taste of the food and so they designed a special recipe to make burgers and hot dogs and got it patented. They circulated this recipe to all its stores and that is how McDonald(s strategy of uniqueness in taste came into e)istence. The earlier popularity and profits of the store was very high and this is was termed as world(s first *drive+ through, restaurant. McDonald-s pioneered breakfast fast food with the introduction of the .gg Mc muffin" in /012 when market research indicated that a quick breakfast would be welcomed by consumers. 3ive years later the company added a full breakfast line to the menu" and by /041 one+fourth of all breakfasts eaten out in the 5nited 'tates came from McDonald-s restaurants. 6n /075" McDonald-s Corporation went public. Common shares were offered at 822.59 per share. :y the end of the first day-s trading" the price had shot up to 8;9. % block of /99 shares purchased for 82"259 in /075 was worth" after /2 stock splits <increasing the number of shares to 1=";79>" about 8/.4 million by the end of 299;

History of McDonald in India

McDonald e)tended its reach to 6ndia in the early 2999. The basic idea of the company was to start the business as stand alone business as they had been doing it across the world. The C.? Mr @im Cantalupo" however" argued that the 6ndian Market is one of the toughest market to capture as there are vast cultural differences in 6ndia and hence it will be good for the company to have a joint ventures with some of the old restaurants of 6ndia who basically know the market properly. McDonald-s 6nternational through its wholly owned subsidiary McDonald-s 6ndia entered into two @As" one with Connaught BlaCa Destaurants Bvt. $td. in the orthern E .astern region and another with &ard Castle Destaurants Bvt. $td. in the #estern E 'outhern region There were basically ; national heads of McDonald 6ndia. %mit @atia" McDonald(s 6ndia <#est E 'outh>" Aikram :akshi McDonald(s 6ndia < orth E .ast>" Madhurima :akshi" Director+ Corporate Communications" McDonald(s 6ndia < orth E .ast>

Problem 1
6n 299/" McDonald 6ndia asked one of its @oint Aenture partner" Connaught BlaCa Destaurant Bvt. $td. to supply them with the basic raw materials of the food. They basically order burger and sandwich buns. The quantity that they order was to meet the increasing demand of the food items across 6ndia for = months. The quantity ordered was 29 quintals. They gave a quotation rate of Ds =F+ per bun to Connaught BlaCa Destaurants and it agreed with the contract.

$ater on" Connaught BlaCa Destaurants offered a contract to purchase the buns from an another bakery" Golden :akers" which was located in ew Delhi at a quotation rate of Ds 2F+ per bun. &owever" Golden :akers denied to sign the contract by saying it is not too profitable. &owever" the chairman of Connaught BlaCa Destaurant was the father in law of the manager of Golden :akers and hence he convinced him using this relation. The goods were acquired and were sold to McDonalds. The credit period that Mcdonald asked was of 2 months and the credit period which was promised to Connaught BlaCa restaurants by Golden :akers was ; months. &owever" in %pril 299/" / month after the goods were sold" Golden :akers sued McDonald to either deliver the goods back to them or to give them Ds/F+ e)tra per bun. The argument that they used in the court was that the contract which they entered into with Connaught BlaCa restaurants was voidable and hence they are declaring the contract Aoid and demanding the goods back or to be reinstated with more profits.

Problem 2
6n 2991" when McDonald" after trying for 5 years finally tapped the metropolitan customers of 6ndia" it was still making losses in terms of presence in the other major cities" proper brand recall and being favorite among the youth. The creative director of McDonald" Mr 'anjeev Choksi" came with a diagnosis that McDonald(s food items lacked the 6ndian Taste and also they are not as cheap as compared to any other regular food item available in an average 6ndian restaurant ?n his suggestion" team McDonald introduced a campaign of 6ndian :urgers which claimed that it has the real spices of 6ndia along with garlic paste and also at cheaper affordable rates. 6t was however discovered by the management that using the real spices and specially a hand made garlic paste will render the burger as a little costlier then what it is promised for in the ad campaign. :ut now as the ad campaign was on air so it was not possible for the company to raise the rates of the burgers. To meet this situation" the company started using artificial colored garlic paste which was costing cheaper compared to the hand made paste so as to fit the burger at the rate which was promised in the campaign. &owever there was a social activist" from a Bolitical party" who found the real fact and sued McDonald for this issue.

Questions
H./ Can Golden :akers succeed in the case against McDonald 6ndiaI Blease give your justification using the legal concept of 6ndian $aw. H.2 Can the social activist" in his case" against McDonald 6ndia" succeed.I Blease give your justification using the legal concept of 6ndian $aw. H.; #hich essential element as per the 6ndian Contracts %ct" was not present in the contract between Connaught BlaCa Destaurant and Golden :akersI H.= 6s there any remedy available to Golden :akersI Blease give your answer using the legal concept of 6ndian $aw.