ALERT: UNFAIR PRACTICES - PROPORTIONALITY PRINCIPLE - LONG TERM CONTRACT - SIGNIFICANT IMBALANCE - SUDDEN BREAK OF ESTABLISHED BUSINESS RELATIONSHIPS - TERMINATION OF SUPPLY

Significant imbalance: The Paris Court of Appeals renders a judgement on a cancellation of order in light of a significant imbalance (SETNAG/ TECORA)

*This article is an automatic translation of the original article, provided here for your convenience. Read the original article. The clauses providing in the GCS for compensation by the purchaser, in the event of cancellation of an order, to cover the costs borne by the supplier to honour it, do not ipso facto constitute a significant imbalance of article L.442-6 I 2° C. com. even if the compensation would reach 100% of the amount of the order and/or the cancellation would be the result of a contractual fault on the part of the supplier. Thus the teaching of the judgment could be summarized under commentary. Of course, this solution must be linked to the circumstances of the case. Apart from these circumstances, the judgment does not propose to make the withdrawal of an undertaking

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  • Jean-Michel Vertut - Avocat (Montpellier)

Quotation

Jean-Michel Vertut, Significant imbalance: The Paris Court of Appeals renders a judgement on a cancellation of order in light of a significant imbalance (SETNAG/ TECORA), 5 July 2018, Concurrences N° 4-2018, Art. N° 88508, www.concurrences.com

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