University of Paris I Panthéon-Sorbonne Centre de Droit de l'Entreprise (Montpellier)

Stéphane Brena

University of Paris I Panthéon-Sorbonne, Expertise France (Paris), Centre de Droit de l’Entreprise (Montpellier)
Lecturer

Stéphane Brena is a lecturer in private law at the University of Montpellier (faculty of law, Centre du droit de l’entreprise) where he teaches contract law, property law, company law, banking law and real estate law. Research director in law, he directs several doctorate thesis. His research mainly focuses on contract law and business law: commercial and residential leases (Revue des loyers), self-employed commercial agents (Lettre de la distribution) and real estate agents (Jurisclasseur). He was Attaché for higher education cooperation at the French Embassy in Djibouti from 2017 to 2018 and, since 2021 the director of the Institute of International Business Law of the University of Paris 1 Pantheon-Sorbonne in Cairo (Egypt), where he still teaches.

Linked authors

University of Montpellier
University of Paris I Panthéon-Sorbonne
University of Paris I Panthéon-Sorbonne
University of Montpellier
Lumière University Lyon II

Articles

7327 Review

Stéphane Brena Commercial agent: The French Supreme Court reaffirms that serious misconduct committed by the commercial agent prior to the termination of the contract but discovered afterwards cannot be depriving of the right to compensation (SDR / Eovi Aesio)

128

Facts. A commercial agency contract signed in 2004 was terminated by the principal without notice or compensation. In its letter of termination dated January 23, 2015, the principal claimed that the agent had committed serious breaches of his obligations, and that these breaches - deprived of (...)

Stéphane Brena Sales agency: The Court of Justice of the European Union considers the commissions that the agent loses, to include those which would have been received by the agent if the contractual relationship had continued, even if the planned commissions would be one-time lump-sum commissions (QT / O2 Czech Republic)

225

Facts. In 1998, an agency agreement was concluded between a Czech company and a sales agent of the same nationality. The contract mainly concerned the distribution of telecommunication services and the sale of cell phones, and stipulated a single lump-sum remuneration for all new contracts (...)

Stéphane Brena Commercial agency : The Paris Court of Appeal considers that a commercial agent is someone whose mission is to market the principal’s products, to look for new clients and to negotiate contracts (Consult Plus / Afapark)

164

Facts. An intermediary company had a relationship with another company producing/distributing visual and audio guidance systems in car parking lots, based on a contract, repeatedly renewed, entitled "business contributor contract", for a geographical area covering France, Belgium, Luxembourg, (...)

Stéphane Brena Commercial agent: The Paris Court of Appeal considers that a commercial agent is someone whose mission is to develop the principal’s clientele, a mission which can be ensured by means of information, advice and discussion actions, without requiring the ability to modify the contractual terms ( STS / Zinio)

57

Facts. A company, providing digital press publishing services to magazine publishers, had entrusted a distributor with "representation, prospecting and development" assignments under successive contracts since 2008. In 2016, the parties entered into a new contract, entitled "commercial agent (...)

Stéphane Brena Commercial agency : The French Supreme Court, operating a reversal of case law, decides that the serious fault of the agent prior to the termination not referred to in the letter of termination because of its late discover, cannot be invoked by the principal (Acopal / Paniers Terdis)

65

Facts. Since 2008, a company had been working as a commercial agent for a principal who had clearly tolerated the representation of competing products by the agent. In 2013, a commercial agency agreement was signed by the same parties, expressly stipulating that the agent " may not accept the (...)

Stéphane Brena Commercial agency: The French Supreme Court excludes the qualification of commercial agency for a contract entrusting to the intermediary the research and the presentation of potential investors, for lack of bringing customers to the principal and for lack of negotiating power of the intermediary (Stokors / Astrance Capital)

55

Facts. A company specializing in the purchase of companies entrusts another company, specialized in the search for investors, with the task of assisting it in the raising of the funds necessary for the presentation of a continuation plan for a target company, under the terms of a "fund (...)

Stéphane Brena Commercial agency: The Court of Appeal of Bordeaux considers that the absorption of the commercial agent by merger not authorized by the principal constitutes an irregular assignment of contract, authorizing the principal to terminate the contract without notice or compensation (Oenophil / Maison Ginestet)

33

Facts. A commercial agency contract was concluded in 2007 for the distribution of wines and spirits, between a principal and a legal entity agent (EURL whose sole partner was the manager, named Oenophil and registered with the RCS of Bayonne). The contract expressly states its intuitu personae (...)

Stéphane Brena Commercial agency: The Court of Appeal of Bourges considers that the subsequent behavior of the agent to the termination of the agency contract for serious misconduct cannot be invoked by the principal (Victoir’Invest)

76

Faits. Les agents immobiliers peuvent recourir, afin d’organiser leur force de vente, à des agents commerciaux. C’est ainsi qu’un intermédiaire a conclu en 2018 un contrat d’agence commerciale avec un mandant, agent immobilier. Quelques mois plus tard, ce dernier rompt unilatéralement le (...)

Stéphane Brena Franchising : The Grenoble Court of Appeal decides that the franchise contract, entered into by a franchisee who does not obtain the administrative authorization necessary for the exercise of his activity, is neither null nor void (Réponse financement)

87

This article was first published in the Lettre de la distribution published by the Centre du Droit de l’Entreprise of the University of Montpellier. Facts. Specialized in the marketing, by brokerage, of credit and loan insurance, SAS Réponse Financement has set up a network of franchisees (...)

Stéphane Brena The Paris Court of Appeal declares the nullity of an exclusive distribution agreement for error on the essential qualities of the distributor consisting of his technical and commercial skills (Oriens/ Filorga)

84

Mistakes about the person of the contracting party or about his essential qualities are rarely accepted as grounds for nullity of the contract. This was the case in the judgment under comment, concerning an exclusive distribution contract. Facts. The company Filorga, a producer of medical (...)

Stéphane Brena Commercial agency : The Court of Appeal of Reims considers that the principal can retain the power to negotiate prices with the client and that the compensation for termination of the relationship must be set at thirty months due to the length of the relationship, to the agent’s loss of business and the closed nature of the market concerned (champagne) (P. Agenturen / Champagne de Castellane)

45

Faits. Une société étrangère avait conclu, en 1982, un contrat d’agence commerciale lui conférant exclusivité de diffusion des produits (champagne) de plusieurs mandants – la SA Champagne Beaumet Chaurey et la SA Champagne Oudinot Jeanmmaire – « pour tous les pays étrangers à l’exclusion de la (...)

Stéphane Brena Qualification of commercial agent: The Court of Cassation rules once again, unlike some trial judges, that the power of negotiation of the commercial agent does not imply that of modifying contractual conditions or prices (Champagne D., Les jardins de Longsard / Champagne Manuel J.)

93

Cet article a fait l’objet d’une première publication dans la Lettre de la distribution publiée par le Centre du Droit de l’Entreprise de l’Université de Montpellier. La qualification d’agent commercial, et singulièrement le pouvoir de négociation dont il doit être investi de manière (...)

Stéphane Brena Commercial agent: The French Supreme Court considers that the power of negotiation does not imply modifying the contractual conditions and especially the prices (Nicolas / Verdier)

193

Powers of the commercial agent: still... and finally ?* The power to negotiate, which is essential to the qualification of commercial agent, is once again at the heart of two recent decisions, one by the Commercial Chamber of the Court of Cassation, the other by the Paris Court of Appeal, (...)

Stéphane Brena Agency agreement: The French Supreme Court decides that the principal does not breach his duty of loyalty by contracting directly with a client located outside the sector and with a clientele different from that entrusted to to his agent (Rêve / Kidiliz)

191

The French Supreme Court decides that the principal does not have to pay a commission and does not breach his obligation of loyalty by contracting directly with a client located outside the area entrusted to the commercial agent and who distributes the products in the geographical area of the (...)

Stéphane Brena Commercial agency: The Grenoble Court of Appeal considers that the intermediary in charge of putting in contact and following up the customers is a broker and not a commercial agent (Ortho Ouest / Zimmer Biomet)

157

The recomposition of the field of distribution is underway: the imperialism of the category of commercial agents, catalysed by an extensive conception of negotiating power, tends to significantly reduce that of brokers. Recent jurisprudence seems to give rise to the notion of "putting in (...)

Stéphane Brena Commercial agency: The French Supreme Court considers that an intermediary who has no power of representation and who is not involved in determining the commercial and pricing policy of the client or who merely puts the client in contact with central purchasing agencies has no negotiating power and cannot be qualified as a commercial agent (Fructidoc / Esteban E. France...)

144

In the first case (judgment of 27 Jan. 2021), a contract entitled "business contributor contract" was terminated by the principal, as a result of which the service provider sued it for payment of a termination fee, arguing that the contract should be reclassified as a commercial agency. The (...)

Stéphane Brena Agency agreement: The Court of Appeal of Rouen rules that the principal cannot claim the serious misconduct of the commercial agent after his death (C…-Arredo / Consorts Z)

95

Facts This decision provides further clarification of the effects of the commercial agent’s serious (or at least allegedly serious) misconduct on the allowance for termination of his relationship with the principal, where such misconduct was discovered after the relationship was terminated; (...)

Stéphane Brena Agency agreement: The Grenoble Court of Appeal refuses to equate the death of the managing partner of a one-man limited liability company with that of a commercial agent (EURL X / PJA Diffusion)

87

Facts and procedure The decision to operate the activity of commercial agent under cover of an EURL must be carefully weighed in view of the consequences it is likely to produce; consequences produced by the screen that the legal personality of the company constitutes. In the present case, (...)

Stéphane Brena Commercial agency: The Grenoble Court of Appeal recognizes the freedom of the parties in setting the agent’s remuneration but excludes any compensation for termination of a relationship for failure to create new customers (Antenor Immobilier Grenoble)

154

Facts and procedure. Real estate agents very frequently use commercial agents in the organisation of their sales force. This possibility, which has been difficult for some time, is enshrined in Article 4(2) of Act 70-9 of 2 January 1970 as amended by Act 2006-872 of 13 July 2006. The (...)

Stéphane Brena Commercial agency: The Versailles Court of Appeal considers that the power of negotiation presupposes the power to modify the terms of the contract and that the determination of the termination indemnity is cumulative with the damages due for the wrongful nature of the termination (Natprocess / FCD)

273

Facts. A contract entitled "commercial representation" was entered into on July 13, 2012, to market a food sterilization process. The contract provided, on the one hand, that the broadcaster (Natprocess) had to respect a minimum selling price set by the producer (FCD); on the other hand, an (...)

Stéphane Brena Commercial agency: The Metz Court of Appeal requires the principal to invoke the serious fault of which he was aware at the time of the breach of the contract (Villars Maître Chocolatier / Y & CO)

309

The serious misconduct of the commercial agent, depriving him, at the time of the termination of the contract, of any right to compensation and of any notice period, gives rise to a lively dispute not only as to its characterization but also as to the moment at which it may be invoked by the (...)

Stéphane Brena Agency agreement: The Versailles Court of Appeal dismisses the qualification of commercial agency due to the lack of negotiating power but recognizes that the intermediary has a right to information on the amount of commissions due (Sensas / Italia Fishing)

124

The broadcaster’s remuneration on a commission basis requires the supplier to allow the broadcaster to verify the amount due to it, even if the qualification of commercial agent is disregarded. This is, implicitly, the lesson to be learned from a ruling handed down on 23 April by the (...)

Stéphane Brena Distribution agreement: The French Supreme Civil Court rules that the action for public order nullity due to the lack of counterpart is submitted to the prescription of the article L. 110-4 of the commercial code (Auchan France & Eurauchan / Jean-Marc Valensi & Bethsa B)

806

Facts and procedure. Several commercial agreements, concluded between 2002 and 2011, linked costume jewellery producers and a retailer (Auchan). Believing that these agreements included false commercial cooperation services, the producers sued the distributor, by deeds of 27 December 2011 and (...)

Stéphane Brena Selective distribution: The Paris Court of Appeal decides that the business sale plan can allow the transfer of a commercial lease and a sign contracts (ITM Entreprises et IEM / Valorme)

114

Facts. A distribution company, a member of the Intermarché network, was placed in receivership, the court having adopted a plan of sale in favour of two purchasers, authorised to substitute a company to be set up between them. In accordance with the provisions of Article L. 642-7 of the French (...)

Stéphane Brena Commercial agency: The Court of Appeal of Rennes excludes from the termination indemnity the amount of commissions which would no longer have been received by the commercial agent (Galliance / Inaudi)

156

In view of its seniority and the abundance of litigation it generates, the status of commercial agents is the subject of solutions that are now classic, which judges are regularly called upon to recall. Nevertheless, it is the seat of difficulties, whether recurrent or new, which are not (...)

Stéphane Brena Commercial agency: The Court of Appeal of Versailles does not accept to reduce the compensation due to the agent, even in consideration of the brevity of the relationship (G-Tech / AC Agency)

80

As a touchstone of the status of commercial agents, Article L. 134-12, paragraph 1 of the French Commercial Code provides: "In the event of termination of relations with the principal, the commercial agent shall be entitled to a compensatory indemnity to compensate for the loss suffered". By (...)

Stéphane Brena Integrated distribution: The Rennes Court of Appeal considers that the branch manager is subject to the general old-age insurance scheme but not, as he’s not an employee, to the supplementary one (Total Marketing Services)

99

Since a law of 21 March 1941, the provisions of which are now codified in Articles L. 7321-1 et seq. of the Labour Code, the "branch manager" benefits from a partial extension of employment law as long as he meets the conditions set out in Article L. 7321-2. In spite of the absence of a (...)

Stéphane Brena Commercial agency: The Bordeaux Court of Appeal decides that the proof of the commercial agency is free and that the transfer of the contract requires the agreement of the principal (Caves du Château / Vignobles D.)

101

An original figure which has long been apprehended, in ordinary contract law, by case law alone, the assignment of a contract is now governed by articles 1216 to 1216-3 of the Civil Code, resulting from the Order of 10 February 2016, which makes it a solemn contract (Civil Code, art. 1216, (...)

Stéphane Brena Commercial agency: The Chambéry Court of Appeal does not allow the principal to rely, in order to justify a breach for serious misconduct, on the actions of the commercial agent prior to the breach (Early Bird / Faith Connexion)

158

Contract for valuable consideration, the commercial agency contract entitles the agent to remuneration; contract of common interest, it gives rise to compensation of the commercial agent on termination of his relationship with the principal. It is with these two aspects of the status of (...)

Stéphane Brena Commercial agency: The Versailles Court of appeal rejects the economic violence and admits the validity of the clause of modification of the perimeter of intervention of the agent (SdLease / Econocom-Osiatis)

253

On the occasion of a merger, Econocom, the principal, proposed and obtained from its commercial agent, SD Lease, the conclusion of a new agency contract modifying the basis and rate of its commissions - the rate of 6% of turnover is substituted for 9% of the gross margin - and including a (...)

Stéphane Brena Commercial agency: The French Supreme Civil Court rules that the non-renewal of the contract decided by the principal needn’t any reason (Pasteur / Technologies services)

96

By the judgment under comment, the Court of Cassation very usefully completes the jurisprudential system for dealing with the question of the conditions under which the principal can claim serious misconduct on the part of the commercial agent. First, the Court of Justice (ECJ, 28 Oct. 2010, (...)

Stéphane Brena Commercial agency: The Caen Court of appeal decides the one year deadline laid down in the article L. 134-12 of the commercial code is a time of foreclosure to an agent’s right to dommages (Carpentry of the Manche and Calvados)

118

The commercial agent is protected by the recognition of a right to an indemnity at the end of the contract under the conditions provided for in Articles L. 134-12 and L. 134-13 of the French Commercial Code. The first of these texts lays down the principle of the right to compensation in the (...)

Stéphane Brena Significant imbalance: The French Commission on the examination of unfair practices considers that the clause of non-renewal of contract indemnity, stipulated to the benefit of the commissioner, can contravene the article L. 442-6, I, 2° of the French Commercial Code (Commission contract)

189

The CEPC was seized of the question whether "the clause in a sales commission contract requiring the principal alone to pay its commission agent, in the event of non-renewal of the contract, whoever the non-renewer and whatever the cause of such non-renewal, an indemnity of an amount (...)

Stéphane Brena Agency agreement: The Paris Court of Appeal decides that an international contract submitted by the parties to the “international law” is a contract for which the applicable law has not been chosen (Isoplus GMBH)

150

The need to qualify a contract, allegedly as a commercial agency, may arise in an international context, a situation which raises not only the question of the application of the criteria for qualification but also, perhaps more thorny, that of their identification. A contract, entitled the (...)

Stéphane Brena Agency agreement: The Lyon Court of appeal recalls the principal must inform his representative of changes in price policy, respect the contractual exclusivity and transmit the documents enabling him to verify the respect of his remuneration rights (CB Forez Loisirs / Financière O2, A.S. Pool, Albiges, Albon)

133

A commercial agency contract is a contract of common interest which is subject to a bilateral obligation of loyalty (Com. C., art. L. 134-4). Failure by the principal to comply with this obligation makes it possible to attribute to him the breach initiated by the agent and thus to maintain the (...)

Stéphane Brena Salesman: The French Civil Supreme Court decides the salesman has to be paid although the products delivery failed, due to his employer’s supplier (Loisirs Distributions / Crocs Europe)

138

As a professional presenter, the sales representative must be paid for the work he does for his employer’s clients. Article L. 7311-3, 4°, of the Labour Code thus stipulates that the contract concluded between the sales representative and his employer must specify "the rate of remuneration" of (...)

Stéphane Brena Notice period: The Paris Court of Appeal delivers a ruling on the commercial agent’s right to be given notice and to be compensated in the case of a succession of agency agreements (Olivier C. / Bonne Etoile)

150

Although the question of the possibility for an estate agent to use the services of a commercial agent has now been settled (L. n° 70-9, 2 Jan. 1970, Art. 4, from L. n° 2006-972, 13 Jul. 2006, Art. 97), the determination of the rights of the commercial agent on termination of relations with (...)

Stéphane Brena Sale: The Courts of Appeals of Paris and Toulouse consider that the status of commercial agent is not dependent of the will of the parties or the denomination in the contract but the effective conditions of exercise of the activity (Edition Atlas / New PLV)

232

The submission of a contractual relationship to the protective status of commercial agents presupposes that it falls within its scope. As the Toulouse and Paris judges recalled, in the same terms, on the occasion of the two cases under comment, "the application of the status of commercial (...)

Stéphane Brena Compensation: The French Supreme Court affirms a systematic indemnification of the termination of the relationship with the principal to the commercial agent holding a fixed-term contract, including when the agent opposes the renewal of this relationship (La Diffusion Sofradif / Elsevier Masson)

55

Non-renewal of the agency contract: systematic compensation of the commercial agent* Can a commercial agent who refuses to renew a fixed-term agency contract claim the indemnity provided for in Article L. 134-12 of the Commercial Code? The position of the case law on this issue seemed to (...)

Stéphane Brena Non-competition clause: The French Supreme Court censures the application of a post-contractual non-competition clause in a commercial agency contract on the grounds that it does not comply with the "common law" conditions (La Vie au bord de la mer / Le Comptoir Saint Louis)

60

Post-contractual non-competition clause and commercial agency contract: the absorption of special law by common law ?* The termination of the commercial agency contract in principle releases the agent from his obligation of loyalty towards the principal, by allowing him to carry on a (...)

Stéphane Brena Commercial agency: The French Supreme Court considers that the immediate termination of the commercial agent’s relationship with the competing company has no influence on the qualification of his conduct (Achat direct / Electrodépôt)

69

Commercial agency: disloyalty discouraged but proof of commission entitlement favoured* The performance of a commercial agency contract requires each party to respect its commitments. Thus, the commercial agent must perform his duties with loyalty, which is reflected in the contractual (...)

Stéphane Brena Non-competition clause: The French Supreme Court considers that a non-competition clause covering only the territory initially entrusted is no longer applicable if this same territory was modified three times without amendment (Cafpi)

93

Rights and obligations of the commercial agent: rigour is required* The status of commercial agents includes provisions relating to the obligations of the distributor and the rights that he may exercise against the principal. These two aspects are addressed by the judgment under commentary, (...)

Stéphane Brena Commercial agency: The Paris Court of Appeal links the power to negotiate with the power to bind the principal, thereby excessively restricting the criteria for negotiation and conclusion that the Directive and Article L.134-1 C. com. distinguish (Medtronic)

57

Commercial agency and bargaining power: a missed opportunity?* The application of the protective status of commercial agents presupposes that the contractual relationship between the principal and the agent meets the qualification criteria set out in Article L.134-1, paragraph 1 of the (...)

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