CASE COMMENTS: DISTRIBUTION – FRANCE – FRANCHISE – PENALTY CLAUSE – SIGNIFICANT IMBALANCE

Franchise: The Paris Court of Appeal considers that the stipulation of a penalty clause providing, in the event of termination of the contract as a result of the wrongful conduct of the franchisee, the payment by the latter of the amount of the annual fee multiplied by the number of years to run until the end of the contract does not create a significant imbalance (Pierre Dulac / Distribution Casino France)

*This article is an automatic translation of the original article, provided here for your convenience. Read the original article. Consideration of the balance between the rights and obligations of the parties to a distribution contract is again, this quarter, at the heart of the news. After the introduction, in ordinary contract law, of the sanction of significant imbalance in contracts of adhesion (art. 1171 C. civ.), the recent recasting of the law on practices restricting competition (cf. ord. n°2019-359 of 24 April 2019 recasting Title IV of Book IV C. com. relating to transparency, practices restricting competition and other prohibited practices) and the movement to broaden the scope of application of the mechanism for sanctioning significant imbalance

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Dominique Ferré, Franchise: The Paris Court of Appeal considers that the stipulation of a penalty clause providing, in the event of termination of the contract as a result of the wrongful conduct of the franchisee, the payment by the latter of the amount of the annual fee multiplied by the number of years to run until the end of the contract does not create a significant imbalance (Pierre Dulac / Distribution Casino France), 15 May 2019, Concurrences N° 3-2019, Art. N° 91471, pp. 93-94

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