The Court of Appeals upheld the lower court’s decision setting the indemnity at one year’s worth of commissions. The judges took into consideration the terms of the contract, which provided for an indemnity equal to twelve months of commissions, the duration of the relationship between the parties (three years), and the fact that the contract had been terminated in accordance with the provisions of the contract.
This decision runs counter to the dominant case law in this area, which refuses the enforcement of clauses that predetermine the amount of such indemnities, leaving their evaluation up to the discretionary power of the courts.
Didier Ferrier, IDI Country Expert for France.
