ALERT: DISTRIBUTION – COMMERCIAL AGENCY – AGENCY AGREEMENTS

Commercial agency : The French Supreme Court, operating a reversal of case law, decides that the serious fault of the agent prior to the termination not referred to in the letter of termination because of its late discover, cannot be invoked by the principal (Acopal / Paniers Terdis)

*This article is an automatic translation of the original article, provided here for your convenience. Read the original article. Facts. Since 2008, a company had been working as a commercial agent for a principal who had clearly tolerated the representation of competing products by the agent. In 2013, a commercial agency agreement was signed by the same parties, expressly stipulating that the agent " may not accept the representation of products likely to compete with those which are the subject of this contract ", representation of competing products which the agent had apparently pursued, which the principal was unaware of. By letter dated March 4, 2016, the principal terminated the agency agreement, without notice or compensation for termination, and without indicating the breach

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