CASE COMMENT : DISTRIBUTION OF MOTOR VEHICLES - CONCESSION - CONTRACT FOR AN INDEFINITE PERIOD - DISCONTINUED ABUSE - MOTIVATION

Distribution of motor vehicles : The Paris Court of Appeal recalls that the licensor has not to motivate the contract’s breach when the contractual notice is applied (Société Corroler automobile)

*This article is an automatic translation of the original article, provided here for your convenience. Read the original article. CA Paris, March 1, 2006, Corroler automobile, n° 03/16268 Facts Following a succession of fixed-term contracts, Corroler Automobile entered into an open-ended dealership contract with General Motors France in 1997. In 2001, General Motors terminates this commitment by giving the contractually agreed notice period. The dealer considered that the breach of that open-ended contract was abusive and brought an action against Société General Motors France to have the abuse established. While the Paris Commercial Court found that the termination was not abusive, it awarded the concessionaire a "customer indemnity" [1], which the Court of Appeal overturned.

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Dominique Ferré, Distribution of motor vehicles : The Paris Court of Appeal recalls that the licensor has not to motivate the contract’s breach when the contractual notice is applied (Société Corroler automobile), 1 March 2006, Concurrences N° 2-2006, Art. N° 27747, www.concurrences.com

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