In an exclusive distributor agreement, the exclusive distributor is often obligated to fulfil minimum purchase requirements. If the distributor does not fulfil these requirements, it will be considered a breach of the agreement. However, the question is also whether the supplier may claim compensation for its loss of gross margin if the exclusive distributor fails […]
1- Martin & Co (UK) Limited v Cedra and Joseph Bitar. In this case, the High Court in London in July 2015 considered a claim by Martin & Co which is a property lettings franchise, seeking an injunction against a franchisee whose franchise agreement had been terminated. The franchisee argued that the franchisor should have […]
In January of this year, the Court of Appeal of Arnhem-Leeuwarden rendered an interesting judgment regarding the interpretation to be given to article 5(1)(a) and second indent of Article 5(1)(b) of Regulation (EC) No 44/2001 and the definition of a distribution agreement. Article 5(1)(a) stipulates that a person domiciled in a Member State may, in […]
To provide the facts of the case briefly, in 2008 Principal and Agent entered into a contract, stipulating that Agent would conclude contracts with clients in Principal’s name and sell mobile phones and Principal would pay Agent for its services. Up until the point of legal dispute between the parties, Agent operated in a network […]
FTC v. Wyndham Worldwide Corp., No. 14-3514 (3d Cir. Aug 24, 2008). The FTC’s complaint was predicated on data security breaches of the property management system used by Wyndham and its franchisees. FTC v. Wyndham Worldwide Corp., 2014 U.S. Dist. LEXIS 47622 (D.N.J. Apr. 7, 2014). Wyndham’s appeal marks the first time a business has […]
In the context of the restructuring of its network, a franchisor had acquired, via one of its subsidiaries, shares in franchisee companies whose employees were then laid off. Considering that the franchisor was their co-employer, the employees sued it for the payment of various amounts. The French Supreme Court refused to recognize the franchisor as […]
Evaluation of the Council Directive 86/653/EEC (‘the Directive’ ) was identified as legislation that should be assessed given that it had never been evaluated since it entered into force in 1986 and there was an interest to know whether the Directive was still relevant to stakeholders and had EU added value. The purpose of the […]
The parties entered into a relationship at least 15 years ago with no written agreement. Therefore, the first question to solve was to decide about the nature of the agreement: agency or distribution. The Court considered that there was in fact an agency agreement because it resulted from the evidences shown in the procedure that: […]
In this article our aim is to provide a brief overview of the recent court judgment concerning the approval by the principal of authority of the contracts concluded by an agent on behalf of a principal without the authorization of the latter. Background Person “A” entered into a Tourist Services Agreement with Individual Entrepreneur “B” […]
1. Italian rules applicable to franchise agreements. The main rules governing franchising contracts in Italy are provided by law No. 129 of May 6, 2004, entitled “Rules on the regulation of franchising” (hereafter also “Law 129/2004”). Such law mainly deals with pre-contractual disclosure obligations, but also provides rules concerning the contents of franchising contracts, […]
Since Tuesday June 16, the initial concept of the Dutch Franchise Code has appeared, on the initiative of the Dutch Ministry of Economic Affairs. The Code intends to banish excesses and fraudulent practices in the franchise sector. This concept Code, however, falls completely short of its target. `Code` sounds pretty innocuous, as if it were […]
The importance of the classification is that it may determine whether mandatory commercial agent law will apply. These regulations are based on the EU Commercial Agents Directive 86/653/EC. (the ‘Directive’) According to article 2 of the Directive a ‘commercial agent’ shall mean a self-employed intermediary who has continuing authority to negotiate the sale or the […]
Law on Business Deregulation On 12 February 2015 the Parliament of Ukraine adopted the Law of Ukraine ‘On Amendments to Several Legislative Acts of Ukraine regarding the Facilitation of Conditions for Doing Business (Deregulation)’ (the ‘Law on Business Deregulation’). The said Law is an important part of the extensive business deregulation plan to be shortly […]
In a preliminary ruling, the Korean court ruled that the Contract had not been terminated and the Supplier’s claim was dismissed. The Supplier then filed a law suit in Denmark claiming that the Contract had been lawfully terminated. The Danish court found in favor of the Supplier based on the termination clauses in the […]
1) The agency has been subject to the influence of the EU 653/86 Directive. Hence, it contemplates agency with fixed term (freely discussed between the parties) and agency without any term (undetermined) subject to unilateral discontinuance with prior notice by any party. 2) The agent is defined, according to the traditional parameters, as an independent […]
In the case at hand the agent terminated the contract himself. Nevertheless, he demanded follow-up commission payments for the insurance contracts he has acquired during the agency contract according section 8 para. 2 Austrian Act on Agencies. He filed for the respective book extract (action for accounting). Allianz objected that the agent had terminated the […]
(I) Statement of Facts The Civil Uruguayan Court of Appeals for the First Circuit has recently ruled in a case involving a foreign supplier and a domestic distributor (Court Decision No 81/2014). INSAR SRL (Distributor) brought a legal action against its supplier CENTRO DE INSEMINACIÓN LA ELISA CIALE (CIALE ARGENTINA) for the compensation of […]
However, the law does not qualify what is pertinent and what is impertinent. It should have stated as they are compatible but it failed to do so. A simple construction of the provisions however implies a strong difference with the current innominated agreement of distribution as regulated by case law, such as: 1) Under current […]
