It was recently discussed, in a judicial case in Uruguay (FORTYLEX S.A. v SOCIEDAD COMERCIAL E IMPORTADORA ENKO LTDA.), involving a supplier and a distributor of an international brand of lighters (RONSON), an issue about the circumstances that can legally lead to a termination for a reasonable cause. Under Uruguayan legislation, there is no definition […]
Ref: Paris Court of Appeal, Section 5, Ch. 4, 26 June 2024, RG no. 22/01389 A motorcycle importer had had a contractual relationship with its exclusive distributor since 1994. On 9 October 2017, the importer terminated the contract with its distributor, giving notice ending on 30 September 2018 and informing the distributor that a new […]
One of the most recent cases regarding commercial agency agreements in Colombia involves the Supreme Court’s distinction between an employment contract and a commercial agency agreement. This article will discusses decision No. SL1642-2024 by the Supreme Court of Justice issued on April 29, 2024.[1] Background of the case Hernán Vargas Lozano filed a lawsuit […]
Key takeaways New government consultation launched proposing to abolish the Commercial Agents Regulations. The Commercial Agents Regulations have been in force since 1 January 1994, pursuant to an EU-wide directive. They provide important statutory protection to agents, including a right to a goodwill termination payment. If the government proceeds with its plans, it will have […]
Introduction The EU Commission has always taken a very strict approach on the issue of resale price maintenance, leaving practically no space for exceptions in cases where a certain control over resale prices by members of the distribution network would be necessary for avoiding aggressive price competition, which has been made easier by the […]
The Italian Supreme Court has finally confirmed an important principle, previously expressed by some lower Courts, which remedies a probable mistake made when approving Law 129 of 2004 (Italian Franchising Law). Article 3.3 of Law 129/2004 provides that the franchise contract must have a minimum duration of three years in order to allow the franchisee […]
Balancing transparency with protection is an essential element in most distributor-principal relationship. Generally, the principal brings product knowledge and the distributor provide market knowledge. But the roles are often more complex. Adapting product to local markets or introducing new solutions requires that both parties participate in technical as well as market considerations. And often cooperation […]
The agent was appointed in order to promote the sales of specific machines of the principal (a foreign company). Under the agreement, the agent was entitled to a commission of 25% of the sales proceeds. Several years later, the main customer, the Airports Authority, decided to terminate the agreement with the principal and entered into […]
The Bombay High Court recently held in a judgement dated 26th February 2024 that the provisions of the (Indian) Arbitration and Conciliation Act, 1996 (“Arbitration Act”) would supersede any institutional arbitration rules that parties to a contract choose by way of an arbitration agreement or clause. In the present case, two parties to a sale […]
On 8 February 2024, the Minister for Small Business, the Hon Julie Collins MP, released the Independent Review of the Franchising Code of Conduct (Code) by Dr Michael Schaper. 1. Summary The Review assessed the fitness for purpose of the Code, with particular regard to the provisions relating to new vehicle dealerships and the […]
The Belgian Code of Economic Law requires disclosing specific information before concluding, amending, or renewing a commercial partnership agreement defined as an agreement: (i)entered between two independent parties, each acting in his own name and on his own behalf, (ii) whereunder the right to use a commercial concept that implies either (a) the use […]
This Decision follows the referrals made in January 2017 by the professional organisation Union de la Bijouterie Horlogerie and the company Pellegrin & Fils. These referrals come in the context of a dispute between Rolex France and its distributors following the network head’s wish to restructure its distribution network in France, which involves reducing the […]
Kuwait has recently enacted a new Law No. 1/ 2024 which was published on 21/1/2024 in the Kuwait Gazette, granting foreign companies the right to set up branches in Kuwait to carry out its work and business without appointing a local contract agent, logistic sponsor, or distributor. The new law aims to eliminate any constraints […]
On 11 January 2024, the Bulgarian Competition Protection Commission (the ‘Commission’) officially adopted a new Block Exemption Decision (the ‘Decision’) of certain categories of agreements, decisions and concerted practices. 1. Prohibited Agreements and Block Exemption Article 15 of the Bulgarian Competition Protection Act (the ‘Act’) prohibits all agreements between undertakings, decisions by associations of undertakings […]
Chitty on Contracts states that a “force majeure clause” is normally used to describe a contractual term by which one (or both) of the parties is entitled to cancel the contract or is excused from performance of the contract, in whole or in part, or is entitled to suspend performance or to claim an extension […]
On June 2, 2023, the Belgian Supreme Court has ruled in a matter concerning the breach of “pre-contractual information obligations” in a franchise agreement. Pursuant to Article 3 of the Law of December 19, 2005 concerning “pre-contractual information in commercial cooperation agreements”, (as revised by article 4, 2° of the law of April 2, 2014), […]
The lawsuit is related to the claim of the franchisor for the collection of the franchise fees for the remaining term of the franchise agreement together along with the penalty clause based on the claim that the franchise agreement between the parties has been terminated by the franchisee without any justifiable ground. The Court of […]
On May 11, 2023, the Belgian Supreme Court has ruled in a matter concerning the immediate termination of a distribution agreement, based on an explicit termination clause. The case concerned the termination of a distribution agreement by Rolex. A contract clause allowed Rolex not only to terminate the agreement in case of contractual breach, but […]
