RESTRICTIVE PRACICES : BUSINESS ASSETS - SALE – UNFAIR COMPETITION

Non-competition clause: The French Supreme Court consideres there is no prohibited or unfair competition as far as the non-competition clause is valid and respected by the transferor of a business asset and as there is no evidence of transferor actions intending to divert the business customers (GL3E)

*This article is an automatic translation of the original article, provided here for your convenience. Read the original article. The contractual non-competition obligation on the seller of a business is the source of a particularly lively dispute, one of the most lively aspects of which is undoubtedly the determination of its scope. Beyond the difficulties encountered in determining their validity, these clauses continue to give rise to a certain number of difficulties as their conciliation with the freedom of trade and industry and free competition seems delicate. At issue was a contract for the sale of a business of coffee and beverages. This contract contained a non-competition clause stipulating that "the sellers shall refrain, as from the signature of the final deed, from

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  • University Littoral-Cote d’Opale (Boulogne/Mer)

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Valérie Durand, Non-competition clause: The French Supreme Court consideres there is no prohibited or unfair competition as far as the non-competition clause is valid and respected by the transferor of a business asset and as there is no evidence of transferor actions intending to divert the business customers (GL3E), 8 April 2014, Concurrences N° 3-2014, Art. N° 67927, pp. 120-121

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