ALERTS: DISTRIBUTION – COMMISSION CONTRACT – SIGNIFICANT IMBALANCE - DAMAGES

Significant imbalance: The French Commission on the examination of unfair practices considers that the clause of non-renewal of contract indemnity, stipulated to the benefit of the commissioner, can contravene the article L. 442-6, I, 2° of the French Commercial Code (Commission contract)

*This article is an automatic translation of the original article, provided here for your convenience. Read the original article. The CEPC was seized of the question whether "the clause in a sales commission contract requiring the principal alone to pay its commission agent, in the event of non-renewal of the contract, whoever the non-renewer and whatever the cause of such non-renewal, an indemnity of an amount equivalent to two years' turnover, corresponding de facto to the full remuneration that the commission agent would have received in the event of renewal of the contract, may (...) be considered as creating a significant imbalance in the rights and obligations of the parties, within the meaning of Article L. 442-6, I, 2° of the Commercial Code" and if "the commissionaire's

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Stéphane Brena, Significant imbalance: The French Commission on the examination of unfair practices considers that the clause of non-renewal of contract indemnity, stipulated to the benefit of the commissioner, can contravene the article L. 442-6, I, 2° of the French Commercial Code (Commission contract), 6 May 2019, Concurrences N° 3-2019, Art. N° 91061, www.concurrences.com

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