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

In fixed-term contracts, expiry of the term stipulated is the normal mode of extinction . At the expiry of the term, the parties have the option of either putting an end to their contractual relationship or renewing the contract. No provision may destroy that alternative. On expiry of the term, the parties do not have any right to have the contract renewed. They may therefore freely put an end to  …

Content and scope.

In fixed-term contracts, expiry of the term stipulated is the normal mode of extinction . At the expiry of the term, the parties have the option of either putting an end to their contractual relationship or renewing the contract. No provision may destroy that alternative. On expiry of the term, the parties do not have any right to have the contract renewed. They may therefore freely put an end to it: they have no obligation to state the reasons for the decision not to renew , and no compensation is due .

A consequence of the principle according to which any person is free to contract or not, the principle of absence of the right to renew is limited by the principle of misuse of right . The right not to renew the fixed-term contract must not only be devoid of abuse, but must also not be exercised suddenly. The party not wishing to renew the contract must therefore give sufficient prior notice. Likewise, where there is no termination clause and in the absence of a serious breach, a fixed-term contract cannot be terminated before its term .

Where there is no termination clause, the parties cannot terminate a fixed-term contract before the term, see Cass. com., 9 July 1996, LawLex201000000498JBJ; see also, in the particular case of an indefinite-term contract that has become a fixed-term contract by conversion, Cass. com., 14 June 1994, LawLex200200005400JBJ.

Cass. com., 3 November 1992, LawLex200200005952JBJ: the grounds that justify the supplier's decision not to renew the distribution contract are irrelevant in assessing any possible abuse; 4 January 1994, LawLex200200005362JBJ: the practice of parallel exports may be relied upon as reason for non-renewal without the latter being held abusive; 3 July 2001, LawLex200200004907JBJ: the non-renewal of a distribution contract is not unfair for lack of reasons where it has been notified within the contractual time-periods; 17 December 2002, LawLex200300001164JBJ; CA Lyon, 13 March 2003, LawLex200300004120JBJ.

Cass. com., 4 January 1994, LawLex200200005362JBJ, quashing the decision of the trial court who had granted a provisional compensation to the distributor for the harm suffered due to the non-renewal.

Cass. com., 6 June 2001, LawLex200200005011JBJ. 

Cass. com., 14 June 1994, LawLex200200005400JBJ; 9 July 1996, LawLex201000000498JBJ.

French Distribution Law

303. Content and scope.

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Les décisions de justice citées dans ce paragraphe :

Les notions juridiques connexes

303. Content and scope.

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Les décisions de justice citées dans ce paragraphe :

Les notions juridiques connexes

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au contenu exclusif Livv – juristes d’entreprise