This book provides a wide-ranging review of the European rules relating to distribution: exclusive purchase and exclusive supply, exclusive and selective distribution, motor vehicle distribution, franchises, commercial agents.

French Distribution Law

The termination of a dealer agreement is sometimes followed by talks between the manufacturer and the dealer, the purpose of which is to find a transferee. In principle, this negotiation phase does not generate rights or obligations for negotiators since only the contract or the law may produce those effects. However, case law has accepted that the termination of talks might be a source of liabili …

Liability of the terminating party.

The termination of a dealer agreement is sometimes followed by talks between the manufacturer and the dealer, the purpose of which is to find a transferee. In principle, this negotiation phase does not generate rights or obligations for negotiators since only the contract or the law may produce those effects. However, case law has accepted that the termination of talks might be a source of liability where it is abusive. The reform of contract law has enshrined these solutions in Article 1112 of the Civil Code, which now expressly states that while parties are free to break off “pre-contractual negotiations” the requirements of good faith must still be respected.

Thus, the termination of transfer negotiations incurs the liability of the manufacturer where it is done in a casual manner and causes the ousted candidate to waste time and money, when it had already selected another candidate . By contrast, the termination of transfer negotiations formalized by an agreement in principle is not “sudden” where it takes place at the end of discussions that have been ongoing for more than a year, without the purchasing candidate having submitted the documents required by the manufacturer . Likewise, the termination of discussions that should have led to the conclusion of a new dealer agreement is attributable to the dealer only where the latter refuses to comply with the conditions laid down by the manufacturer . Moreover, making mandatory the period of time during which transfer negotiations may go on does not characterize an abusive termination of those discussions where this is a strict deadline .

T. com. Bobigny, 18 December 1997, LawLex200200005082JBJ.

CA Paris, 10 November 1995, LawLex200200005508JBJ, approving TGI Paris, 25 November 1993, LawLex200200005354JBJ.

CA Paris, 15 November 1996, LawLex200200005616JBJ.

CA Paris, 28 June 1995, LawLex200200005478JBJ.

French Distribution Law

263. Liability of the terminating party.

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Les décisions de justice citées dans ce paragraphe :

Les notions juridiques connexes

263. Liability of the terminating party.

Demandez un accès gratuit au contenu exclusif Livv – juristes d’entreprise

Les décisions de justice citées dans ce paragraphe :

Les notions juridiques connexes

Demandez un accès gratuit
au contenu exclusif Livv – juristes d’entreprise