ALERTS: UNFAIR COMMERCIAL PRACTICES – ESTABLISHED BUSINESS RELATIONSHIPS - SUDDEN BREAK

Sudden termination: The French Supreme Court recognizes a clause of intuitu personae and a transaction efficiency in the assment of sudden break of relationships (Apodiss, AJ Partenaires / Urban State Group...)

*This article is an automatic translation of the original article, provided here for your convenience. Read the original article. Background The Court of Cassation has long held that the former Article L. 442-6, I, 5° (and no doubt the new Article L. 442-1, II) of the Commercial Code is a matter of public policy, the judge then assessing the conditions of its application freely, i.e. without being bound by contractual provisions. Compliance with contractual stipulations therefore hardly preserves the subsequent identification of the brutality of the termination (cf. N. Ferrier, La prévention du grief de rupture brutale d'une relation commerciale établie par le contenu du contrat, in Flux et Reflux de la rupture d'une relation commerciale, LexisNexis, 2018, p. 45). Two decisions of the

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Clémence Mouly-Guillemaud, Sudden termination: The French Supreme Court recognizes a clause of intuitu personae and a transaction efficiency in the assment of sudden break of relationships (Apodiss, AJ Partenaires / Urban State Group...), 18 November 2020, Concurrences N° 1-2021, Art. N° 99082, www.concurrences.com

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