CASE COMMENTS: DISTRIBUTION – PRE-CONTRACTUAL INFORMATION – PROJECTED BUSINESS – CANCELLATION OF THE CONTRACT – FRAUD

Franchise: The Court of Appeal of Paris reminds that cancellation of franchise contract for fraud is justified when the franchisor intentionally gives a wrong description of the network and of projected businesses via implementation of know-how (Me B. Jeanne / Ducatti West Europe ; Me Rey et Verrechia / BM Est France )

*This article is an automatic translation of the original article, provided here for your convenience. Read the original article. The franchisor's failure to comply with his pre-contractual obligations of information, reinforced by Article L. 330-3 of the Commercial Code, often leads the franchisee to invoke the nullity of the contract for error and sometimes for fraudulent concealment (Civil Code, Art. 1116), as illustrated by two judgments rendered 15 days apart by the Courts of Appeal of Paris and Colmar. Stressing the responsibilities of the distributor, the Paris Court of Appeal first stated in a general manner that "an operating forecast is drawn up by the franchisee and gives a reasonable objective to

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Nicolas Éréséo, Franchise: The Court of Appeal of Paris reminds that cancellation of franchise contract for fraud is justified when the franchisor intentionally gives a wrong description of the network and of projected businesses via implementation of know-how (Me B. Jeanne / Ducatti West Europe ; Me Rey et Verrechia / BM Est France ), 16 September 2015, Concurrences N° 1-2016, Art. N° 77904, pp. 116-117

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