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

Pursuant to Article L. 134-4(2) of the Commercial Code, the commercial agent has an obligation of loyalty. Thus, the commercial agent must comply with the confidentiality of information of which he is aware while performing his mandate and ensure that he does not disclose his contracting party's commercial strategy . Article R. 134-1 of the Commercial Code adds that he should “disclose to his prin …

Obligation to provide information.

Pursuant to Article L. 134-4(2) of the Commercial Code, the commercial agent has an obligation of loyalty. Thus, the commercial agent must comply with the confidentiality of information of which he is aware while performing his mandate and ensure that he does not disclose his contracting party's commercial strategy . Article R. 134-1 of the Commercial Code adds that he should “disclose to his principal any information needed to perform his contract”, and any provision to the contrary is deemed inoperative pursuant to Article R. 134-4 of the same Code.

By reason of the independence of the commercial agent, the obligation to provide information is restricted to what is necessary for the proper performance of the contract. Thus, the principal may require information on the customers' wishes and reactions, on the state of the market , on competition, on the difficulties encountered in performing the agency, or items justifying his remuneration .

Where a commercial agent fails to comply with this obligation, this constitutes a serious fault capable of justifying the termination of the contract without notice or compensation , a reduction in the amount of the termination indemnity due to the principal's loss of a regular source of information useful for its strategic choices in the face of competition , or a sharing of liability between the parties where the principal's conduct is also at the origin of the termination . The agent cannot be criticized for not having provided regular business reports where the contract does not stipulate any such obligation , for failing to mention all visits made, when justifying regular follow-up and systematic reminders to prospects  or for not having sent half-yearly reports to the principal with whom he has a close relationship when such reports were not requested of him . 

CA Paris, 20 November 1997, LawLex200200004678JBJ: the commercial agent who disregards the essential object of his contract by stopping visiting customers and informing his principal on the state of the market and competition, commits serious misconduct that justifies his deprivation of termination indemnity.

Cass. com., 11 June 2002, LawLex200200004186JBJ, upholding CA Bordeaux, 4 May 1999, LawLex200200004195JBJ: commercial agents must justify their right to commission on transactions concluded by supplying supporting documentation that is used to calculate the amount of such commission.

CA Paris, 27 October 2000, LawLex200200004872JBJ; CA Versailles, 3 April 2008, LawLex200900003238JBJ.

CA Paris, 27 October 2000, LawLex200200004872JBJ.

CA Paris, 8 March 2001, LawLex200200000659JBJ.

CA Paris, 21 September 2006, LawLex200600002458JBJ.

CA Aix-en-Provence, 20 November 2014, LawLex201400001373JBJ.

Cass. com., 14 March 1995, LawLex200200005454JBJ, upholding CA Bordeaux, 20 March 1992, LawLex200200001745JBJ. 

French Distribution Law

473. Obligation to provide information.

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Les décisions de justice citées dans ce paragraphe :

Les notions juridiques connexes

473. Obligation to provide information.

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