Commission of the commercial agent
Remuneration of the commercial agent
The usual mode of remuneration of the commercial agent is remuneration on commission, i.e. remuneration which varies depending on the number or on the value of the business conducted by the commercial agent for his/her principal.
It may thus concern, notably, a percentage on the turnover but also a percentage …
The breach of the commercial agent contract
Modalities of the breach of the commercial agent contract
Whether it is decided by the commercial agent or the principal, the breach of the commercial agent permanent contract must in the first instance be reported to the other party.
The law does not impose particular formality on the subject.
A registered letter or …
Enrolment with the RSAC and a written contract are not necessary to be a commercial agent: an abrupt reminder!
As we have already had the opportunity to write on several occasions (see in particular our article of 17 October 2007…), the fact of not being enrolled in the Special Register of commercial agents does not prevent claiming the status of commercial agent.
Likewise, a written contract has never been required …
Article L 134-13 of the Commercial Code: our explanations
Article L 134-13 of the Commercial code set out the sole exceptions to the principle of the right to compensation for termination of contract of the commercial agent.
Pursuant to article L 134-13 of the Commercial code, the compensation stipulated in article L. 134-12 is not due in the following cases:
1° Termination …
The clause of post-contractual non-competition stipulated in a commercial agent contract must be proportionate
On the occasion of an order rendered on 23 September 2014, the Court of Cassation came to specify that besides the conditions of validity set out in article L 134-14 of the Commercial Code, a clause of non-competition stipulated in a commercial agent contract must be proportionate.
In effect, article …
The Commercial Agent cannot renounce his/her end-of-contract indemnity in advance
The Commercial Agent cannot renounce his/her end-of-contract indemnity in advance. There is no doubt about it. However, during an order of 21 October 2014 (13-18370) which we are dealing with here, the Court of Cassation had to, however, recall this principle.
Articles L 134-12 and L 134-13 of the Commercial …
Compensation for Termination of the Commercial Agent Contract
I.The right to compensation for termination of the commercial agent contract
In the event of termination of his/her relations with his/her principal, the commercial agent has right to compensatory allowance for redress for the harm suffered on this occasion (art. L 134-12 of the Commercial Code).
In French law, this compensation …
Period of claiming of compensation for breach of the commercial agent contract
Since the law of 25 June 1991 (articles L 134-1 et seq. of the Commercial Code), the compensation for termination of the commercial agent contract must imperatively be claimed within the period of one year from the end of the contract.
Once this period is over, the commercial agent loses his/her …
Calculation of compensation for breach of the commercial agent contract
Calculation of compensation for breach of the commercial agent contract: what rules?
Article L 134-12 of the Commercial Code, like the directive of 18 December 1986 relating to coordination of the rights of the Member States concerning independent commercial agents, lays down a fundamental principle of the status of the commercial …
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Contractual termination clause and sudden termination of established business relationships
A succession of contracts can be established business relationships. A termination clause of right does not preclude application of the provisions of Article L 442-6 -I- 5 of the French Commercial Code on the sudden termination of established commercial relationship. On the occasion of a judgment of 12 September …
Sudden termination of established business relationships, contract subject to foreign law and victim in France
In a court judgment of 5 September 2013, the Grenoble Court of Appeal confirmed that the provisions of article L 442-6 -I- 5 of the Code de Commerce on the sudden termination of established business relationships override mandatory provisions and therefore apply when the termination occurred on the French …
The loss of opportunity to make a profit is compensable
According to a court judgment of 8 October 2013, the 3rd Civil Chamber of the French Supreme Court has recognized that a loss of opportunity to make a profit can be certain and therefore compensable.
In this case, a company had made a promise to sell various plots and a …
Registration of the commercial agent
Pursuant to a decree dated 2 November 2010 relating to the special register of commercial agents, the registration formalities of commercial agents have been simplified. Indeed, if commercial agents still have to registered in the special register of commercial agents, it has now been provided that this registration is …
French commercial agent, foreign principal (Spanish) : competent court to claim compensation
In case of cross-border dispute within the European Union, in the absence of contractual provision, the rules concerning court jurisdiction in civil and commercial matters are now determined by Council Regulation No 44/2001 of 22 December 2000 which replaces the Brussels Convention of 27 September 1968 on the same subject. …
Amount of the termination indemnity of the commercial agent agreement: impossible to determine in advance (new confirmation by case law)
On the occasion of a court decision dated 18 May 2010, the commercial chamber of the Suprem Court (Cour de cassation) upheld the rule pursuant to which the amount of the termination indemnity of the commercial agent agreement can not be fixed in advance by the parties.
Indeed, in this …
(Français) French commercial code articles governing commercial agents
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(Français) The status of the commercial agent in France (commercial agent law)
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