Strategic Lawering Paris Lyon Bruxelles

Sudden breach

Published at 30 November 2015
E-newsletter: November 2015
Neither the public policy nature of the provisions set forth in Article L. 442-6 of the French Commercial Code nor the exclusive jurisdiction granted to judicial courts to hear restrictive trade practices related cases – including cases concerning the sudden breach of an established business relationship – precludes the use of arbitration to settle disputes in connection with this Article. As such, insofar as it falls within the scope of application of the arbitration clause agreed upon by the parties, a claim for compensation for the loss suffered as a result of the sudden breach of an established business relationship can validly be brought before an arbitration tribunal. This is the finding of the Cour de Cassation (French Supreme Court) in a decision rendered on October 21, 2015.
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Published at 29 October 2015
Author : Flore Foyatier
Category : Business Law
E-newsletter: October 2015
To assess the length of an established business relationship and determine the notice period that ought to be applied prior to the effective termination thereof, the length of the business relationship that preceded the sale of a business going concern must not be taken into account wherever it is not demonstrated that the purchaser of such going concern “had the intent to pursue the business relationships initially developed” between the seller and the terminated party. This is the finding of the Cour de Cassation (French Supreme Court) in a decision rendered on September 15, 2015.
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Published at 28 January 2015
Category : Business Law
E-newsletter: January 2015
Article L. 442-6 I 5e of the French Commercial Code (the “FCC”) punishes the sudden breach of an established business relationship and sets forth the public policy principle that the terminating party is liable in tort, a principle from which the contractual parties may not derogate. Yet, nothing prevents the parties from contractually agreeing on the terms and conditions that will apply to the breach of their business relationship and finding an agreement on the compensation for the loss suffered as a result of such breach. This is the principle laid out by the Cour de Cassation (French Supreme Court) in a decision dated December 16, 2014.
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