CASE COMMENTS: UNFAIR COMMERCIAL PRACTICES - SUDDEN TERMINATION - PERFORMANCE OF THE PRIOR NOTICE - SUBSTANTIAL MODIFICATION

Sudden termination: The French Supreme Court confirms that the loss of the distributor’s exclusivity, as provided for in the contract and compensated by the reciprocal and concomitant abandonment by the author of the breach of the rights which are the counterpart of the breach, does not constitute a substantial modification of the performance of the notice period (SBA / AGCO)

*This article is an automatic translation of the original article, provided here for your convenience. Read the original article. It is well known that the notice period granted in the event of termination of commercial relations must be carried out under the same conditions as those prevailing during the course of the contract (see for example Cass com, 10 February 2015, No. 13-26414). The decision of the Court of Cassation of 24 June 2020 goes back on one of the derogations to this principle. The facts at the origin of the case were relatively classic. In a contract dated May 2, 2006, AGCO entrusted the exclusive distribution of its agricultural and forestry machines to SBA. In the event of termination, the

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Mary-Claude Mitchell, Sudden termination: The French Supreme Court confirms that the loss of the distributor’s exclusivity, as provided for in the contract and compensated by the reciprocal and concomitant abandonment by the author of the breach of the rights which are the counterpart of the breach, does not constitute a substantial modification of the performance of the notice period (SBA / AGCO), 24 June 2020, Concurrences N° 4-2020, Art. N° 97638, pp. 153-154

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