Non compete obligation: The Court of Cassation pronounces on compensation offered to the distributor in the beer sector when a non compete obligation is planned in the contract (Karlsbrau/Farigoulette)

*This article is an automatic translation of the original article, provided here for your convenience. Read the original article. Cass. com, 17 January 2012, Karlsbrau v. Farigoulette, No. 11-10641 The so-called "beer contract" is probably the most basic of all distribution contracts. Only three stipulations contribute to its content. The first is an exclusivity clause, which obliges the distributor to obtain beer and other beverages only from the other party or from a third party designated by the other party for its needs. The second provides for minimum quantities to be acquired through purchase quotas, very often accompanied by a penalty clause. The third offers a service to the distributor in return for exclusivity, in the form of a loan of money or equipment, or a guarantee.