Agency Agreement French Law

In a commercial agency, the obligation of the commercial agent to act conscientiously towards the supplier in accordance with Article L134-3 of the French Commercial Code would limit his actions vis-à-vis a competitor, even if there is no specific non-competition clause. However, if such a clause exists, it must not exceed two years and must be limited to the territory and types of goods they should buy or sell. While there is no direct government agency that specifically regulates the relationship between a supplier and its distributor in France, there are other government agencies that could regulate the relationship indirectly. These are: Technology transfer agreements are more common in large financial transactions and less common in simple distribution relationships in France. Article L.330-3 of the French Commercial Code requires that before concluding a distribution contract, a specific document be signed by the supplier so that the merchant knows what he is committing to. This document must specify the supplier`s experience, the state and development of the market, the size of the supplier`s network, the duration, the conditions for renewal, termination and transfer of the contract, as well as the details of what is to be treated as exclusive. The commercial agency contract cannot be assigned by the entrepreneur without the prior consent of the customer. In the event that the contract is assigned, the representative is no longer entitled to the compensation due by the customer upon termination of the contract. The agency contract can have a fixed or indefinite duration.

If the contract has an indefinite duration, it may be terminated by either party with notice from at least the following parties: the territory covered by the distribution contract, an exclusivity agreement gives a single distributor exclusivity for the distribution of the supplier`s products. This should be limited to a specific area with a limited duration. The compensation scheme, which is based on the French law of 1958, does not set a maximum amount of compensation, unlike the compensation scheme. Indeed, French case law and the amount of compensation has justified this system by the fact that it represents the cost of purchasing the agency for the agent`s successor or that it represents the time it takes the agent to restore the clientele from which he was forcibly deprived. Articles 11 to 13 govern the termination of a contract, Article 11 laying down the conditions for such termination. Specifically, the notice period for terminating a commercial agency contract is as follows: While confidentiality agreements are common, there are restrictions to the extent that the courts apply them. According to Article L.134-1 of the French Commercial Code, a commercial agent is a professional representative who finally negotiates and concludes contracts in the name and in the name and on behalf of his principal. A written agency contract is not mandatory, but is recommended. It depends on whether the distribution agreement was a fixed-term contract or not. Cancellation policy: 1 month for the first year, 2 months for the second year, 3 months after.

In the event of premature termination of the agency contract, the intermediary is entitled to compensation for the damage suffered. In addition, a commercial agent is entitled to a termination payment at the end of the contract in accordance with Article L134-12 of the French Commercial Code. No law requires the registration or approval of a distribution agreement or an intellectual property licensing agreement by a government agency, unless they must be approved by the French competition authority or the European Commission (see question 20). In addition, according to the Macron law of 2015, certain distribution agreements must be submitted to the competition authority under certain conditions (global turnover of more than 10 billion euros and national turnover of more than 3 billion euros). This pre-contractual information document must be provided to the dealer at least 20 days before the contract is signed. In addition to the basic legal requirements, you should also be included in the distribution contract: if you want to sell low-risk products, a distribution agreement may be the best option. A «distribution agreement» is a contract with an intermediary who sells products or services for you. There are 3 types of distribution agreements: (1) the exclusive «Exclusive Distribution» agreement, (2) the «Selective Distribution» agreement, and (3) the «Franchise Agreement» franchise agreement. The conditions governing relations between commercial agents and their principals in France are governed by Law No. 91-593 of 25 June 1991. That legislation shall include Council Directive 86/653/EEC coordinating the laws of the Member States relating to self-employed commercial agents, including the requirement laid down in Article 17 that each Member State take the necessary measures to ensure that the commercial agent is compensated or compensated after the termination of the agency contract. Non-compete obligation: prevents the agent from competing with the client after the termination of the agency contract.

Must be limited in writing, time and space. Are there laws that require distribution agreements or intellectual property licensing agreements to be registered with a government agency or approved by a government agency? Any clause obliging the agent not to compete with the client`s activities after the termination of the agency contract must be made in writing. The duration of such a clause shall not exceed two (2) years after the termination of the commercial agency contract. The non-compete obligation must also be limited to the geographical area, the clientele and the products or services which have been the subject of the agency contract. In the event of premature termination of the agency contract, the agent is entitled to compensation for the damage caused by such termination (which, if the contract is of a certain duration, is equal to the amount of commissions that the agent would have received up to the normal date of termination of the contract). . . .

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