CASE COMMENT: RESTRICTIVE PRACTICES - NON-SOLICITATION CLAUSE - DISTINCTION BETWEEN NON SOLICITATION CLAUSE AND NON-COMPETITION CLAUSE

Non-solicitation clause: The Court of Cassation considers that a non solicitation clause does not constitute a non competition clause, it is neither a version nor a precision of the later (Barandon c/ GELU)

This explicit distinction made by the French Supreme Court leads to assume that validity conditions of both clauses are different, especially regarding their financial counterpart

*This article is an automatic translation of the original article, provided here for your convenience. Read the original article. – Cass. com, July 11, 2006, Barandon v/ société GELU, n° 04-20.438 On 11 July 2006, the Court of Cassation further clarified the notion of non-solicitation clause. For the first time, it expressly distinguished this type of clause from non-competition clauses. In this case, Mr. and Mrs. Y operated several reprographic companies in the Hérault region. In 1996, they sold the shares in two of their companies to a third company headed by Mr Z. The deeds of transfer of those companies each contained a non-competition clause and a non-solicitation clause under which 'both the transferring group and the transferee group shall refrain, as far as it is concerned, from

Access to this article is restricted to subscribers

Already Subscribed? Sign-in

Access to this article is restricted to subscribers.

Read one article for free

Sign-up to read this article for free and discover our services.

 

PDF Version

Author

Quotation

Jean-Patrice de La Laurencie, Non-solicitation clause: The Court of Cassation considers that a non solicitation clause does not constitute a non competition clause, it is neither a version nor a precision of the later (Barandon c/ GELU), 11 July 2006, Concurrences N° 4-2006, Art. N° 12475, p. 86

Visites 9407

All reviews