In a decision dated April 5, 2018, the Commercial Chamber of the Cour de Cassation (French Supreme court) confirmed that failure by a party to achieve the sales targets set forth in a contract does not alone suffice to justify the termination of an established business relationship without prior notice.
The trial judges must indeed specify why failure to meet this obligation is likely to establish the existence of a breach that is sufficiently serious to justify the termination.
Two years after the adoption of the so-called Trade Secrets Directive, the Bill endorsed by the Joint Committee (i.e. a legislative committee composed of an equal number of members from the Senate and the National Assembly) on March 24, 2018 was finally passed by Parliament on June 21, 2018.
This article provides insights on the three chapters of the Bill: Scope and conditions of application, measures to prevent, put an end to, and obtain redress in case of infringement of a trade secret, and general provisions to protect trade secrets before civil and commercial courts.
In an opinion dated September 21, 2017 and released in early November, the Commission d’examen des pratiques commerciales (Commercial Practices Review Committee) ruled on the lawfulness of the payment of year-end rebates provided for in an annual agreement between a supplier and a distributor whereas the requirements applicable for such payment were not met.
In a decision dated June 21, 2017, the Cour de Cassation (French Supreme Court) ruled that the termination of a distribution agreement during the contractual trial period could not be considered as abusive.
It follows from this decision that the parties are free to include in a distribution agreement a trial period during which each of them has a unilateral termination right.
On February 23, 2016, the Direction Générale de la Concurrence, de la Consommation et de la Répression des Fraudes (General Directorate for Competition, Consumer Protection and Frauds, hereinafter “DGCCRF”) released it 2016 activity report.
In this report, the DGCCRF – which monitors the proper operation of the markets to the benefit of consumers and businesses – highlights the salient facts of 2016 concerning inter alia the balance of business relationships, the fight against late payments and the fight against anti-competitive practices. It also provides a status report on its activity concerning the rules on economic protection of consumers and the fight against abusive practices.
“Appearances can be true” according to French poet Eugene Guillevic. In a decision dated February 3, 2015, the Cour de Cassation (French Supreme Court) endorsed this oxymoron by ruling that a parent company that interferes in the commercial relationship of one of its subsidiaries, thereby suggesting that it has substituted itself for the latter in the performance of a contract, can be held liable for the sums due by the subsidiary under such contract.
The Pinal Law significantly amends the rules governing commercial leases and provide for a number of strong measures, among which limiting rent increases, restricting circumstances where a tenant can waive its right to terminate the lease every three years, imposing more transparency in favor of tenants, and granting to tenants a right of first refusal when the leased premises are offered for sale.
Even if its primary aim is to improve the conditions in which very small companies can rent commercial premises, it will impact all landlords and tenants – whatever their size – of commercial or industrial premises.
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