Articles 11 to 13 provide for the termination of a contract, with Article 11 articulating the terms of termination. In practical terms, the deadline for terminating an agency contract is as follows: franchise agreements allow a company to use a concept and benefit from the know-how of a company that has already developed a proven business model. A written agreement is required in some cases, for example in the case of a non-competition clause provided for by the treaty.B. Under the compensation system, the agent is entitled to compensation for the damage caused by the termination of his relationship with his client. Such prejudice applies in particular where termination may take place 1) in circumstances 1) by depriving the commission obtained for the proper performance of the agency contract, whereas the contracting authority would have obtained substantial benefits related to the agent`s activity and/or 2, which did not allow the agent to recover, by decision of the principal, the costs and expenses he had incurred for the performance of the agency contract. The above-mentioned minimum termination periods also apply to fixed-term agency contracts if these agreements are maintained after their normal termination date. The agency contract may have a fixed or indeterminate duration. If the contract is indefinite, it may be terminated by either party, provided there is at least one prior notification: the supplier must therefore ensure that the distributor or representative remains independent to be protected from liability in the event of a violation of labour law. The French courts consider that there is subordination when the supplier strictly defines retail prices (except in the commercial agency) or when the supplier is the owner of the distributor`s customer list in accordance with the contract. With regard to the latter circumstance, the Court of Cassation found in 2010 that a contractor terminating a commercial agency contract could evade its obligation to pay compensation in the event of a serious late payment of the agent during the execution of a contract, even if the client was aware of such a default after the termination. A limitation of the commercial clause in force during the agency contract is authorized by French law, including Articles 3 and 4. Under Article L.134-1 of the French Code of Commerce, a commercial agent is a licensed agent who negotiates contracts on behalf of and on behalf of his sponsor and ultimately concludes it. A written agency agreement is not required, but it is recommended.
Agency commercial agreements (and the activity of the commercial agent) are strictly regulated in France. The agent enjoys significant legal protection and commercial agency agreements must be drafted with caution in order to protect both the interests of the agent and those of the client.