CASE COMMENTS: UNFAIR COMMERCIAL PRACTICES – FRANCE – NON-COMPETITION CLAUSE – BREACH – DISTRIBUTION NETWORK

Non-competition clause: The Paris Court of Appeal considers, for the purpose of applying a non-competition clause, that using a common name does not imply the creation of a distribution network (International Esthétique / Joël M.)

*This article is an automatic translation of the original article, provided here for your convenience. Read the original article. Here is a most common contractual clause, housed in a franchise agreement: the distributor is prohibited from "creating a competing network[ in the same field] in all the cities where the franchised institutes are located, for one year from the termination of this contract". The clause is a priori well-strung: it is limited in time and space, it is necessary for the preservation of the network, and it is not disproportionate (in this sense, Cass.

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  • University of Aix-Marseille

Quotation

Frédéric Buy, Non-competition clause: The Paris Court of Appeal considers, for the purpose of applying a non-competition clause, that using a common name does not imply the creation of a distribution network (International Esthétique / Joël M.), 23 January 2019, Concurrences N° 2-2019, Art. N° 90408, p. 107

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