Legislation Section: Among the other new laws we added, we can mention: OMAN: Royal Decree 3/2007 amending the Arbitration Law 47/1997, Jurisdiction (art. 35 et seq., art. 352 et seq.) ESTONIA: Jurisdiction (art. 69 et seq., art 619 et seq. of the New Code of Civil Procedure), Arbitration (art. 712 et seq. of […]
The parties, MEDINA METAL, S.A. (Principal) and CUBIERTAS Y ACCESORIOS VITORIA, S.L. (Distributor) had signed an exclusive distribution agreement in January 25th 1996 and January 21st 1998. In this agreement the Distributor was obliged to attain minimum sales of 1.683.000 euro. The contract also included a penalty of 2.5% on the difference between the real […]
The principal then argued that the two agents had committed serious misconduct, which justified the non-payment of any damages. The Court of Appeals reduced the amount of the indemnities owed, upon finding that the misconduct in question could not be characterized as ‘serious, such that they forfeited all rights to indemnities.’ The Supreme Court has […]
You will find in the Reports’ Section the first country reports on franchising for Italy and UK. Franchising reports of further countries will be published soon. The CV of the country experts on franchising (Fabio Bortolotti and John Pratt) are published in the experts’ section of the site. IDI Editorial Board […]
These covenants are only enforceable in so far as they are reasonable and the English courts adopt a strict view as to the interpretation of these clauses. Set out below was the particular clause under consideration:- ‘23.1 For a period of 12 Months following termination of this Agreement for whatever reason, or the assignment […]
The parties were Mr. Pedro Antonio (sub-distributor) and «Refrescos Envasados del Sur, S.A.» (RENDELSUR) (main distributor). Both parties had agreed in 1998 a sub-distribution contract for some products of Coca-Cola for which RENDELSUR had the distribution for the area of West Andalusia. The subdistributor had a limited area of activity in the city of Jerez […]
In line with a decision of the Swiss Federal Supreme Court (‘SFSC’) rendered back in 1962(1) we used to advise our clients that an exclusive distributor is denied, analogous to the agency law as set forth in Art. 418u Swiss Code of Obligations (‘CO’), a compensation for customers upon termination of the exclusive distribution agreement. […]
The parties agreed to submit the agreement to the ‘laws of the United Kingdom’ and choose the foreign jurisdiction in case of conflict. In spite of the parties will, Brazilian Superior Court stated that the expression ‘laws of the United Kingdom’ was vague, and the Brazilian material law is applicable, since the agreement was performed […]
The parties, MILA POBLET, S.A. (Distributor) and AUTOMÓVILES UTILITARIOS, S.A. (Principal) had agreed a non-written agreement in 1989. This agreement had an indeterminate duration and was the continuation of a previous relationship between the same Principal and Mr. M. -the sole administration of MILA POBLET- as agent since 1966. By an oral communication in […]
It is quite common in the UK if a franchisor pursues a franchisee for damages in respect of the franchisee’s unlawful termination of the franchise agreement for franchisees to counterclaim on the basis of a franchisee’s alleged breaches of contract and/or misrepresentation. The High Court agreed with the franchisor that the franchisee’s failure to make […]
Following the Honyvem judgment, the Italian Supreme Court has now established the so-called principle of a ‘guaranteed minimum’, according to which, at the end of the relationship, the agent is entitled, at least, to the indemnity provided by Collective Agreements, and to the higher amount provided by Article 1751 of the civil code (which implemented […]
Abuse of dominant position through non-compete clauses in agency contracts In late 2007 and beginning of 2008, CB has made a wide investigation on the service market of computerized reservation systems used in aviation sector upon the complaint of Turkish Airlines (‘THY’) against Amadeus Reservation Distribution Systems A. (‘Amadeus’). THY alleged that Amadeus is […]
Eastborn is a supplier of bedroom furniture and mattresses. Selling of the products is done through a network of approx 300 dealers/distributors in The Netherlands. One of those distributors is the company M.F. Design. The distribution relationship between Eastborn and M.F. Design dates back to the early 1990’s. The distribution relationship has not been laid […]
The parties PROVIDENCIA TRANSIT BONUM (franchisee) and FUN SCIENCE-CIENCIA DIVERTIDA, S.L. (franchisor) had entered into a franchise agreement in March 13th 2003 according to which the franchisor was obliged to transfer to the franchisee the ‘know how’ or the exploitation right of a system for the commercialization of services for the leisure and education of […]
Under the franchise agreement, a list of suggested suppliers is offered and the computerized system for making orders is made available by the franchisor. (The franchisee, however, is free to make orders to other suppliers.) If the franchisee makes orders to the suggested suppliers through the ordering system, the franchisor makes payments to the supplier […]
Decision of 2008-01-28 in civil case No. 3K-3-18/2008 (S) Facts: On 15th February, 2006 the Parties have concluded the contract of agency, which has obliged the plaintiff to find a buyer for the defendant’s property. It was stated that the plaintiff has fulfilled his contractual obligations: within the term given the agent found a buyer […]
The Commercial Court of the Canton of Berne admitted part of the complaint of X. It qualified the contract as a sole agency contract based on the exclusivity granted in the contract. The termination by Y was illegal because Y did not meet the delivery time, ignored the exclusivity agreement and was not able to […]
That decision also has consequences for foreign systems which develop the German market with a company of their own or have a place of business in Germany. I. Civil-law background of the advertising cost contributions. Franchise contracts usually require the franchisee to participate in the supra-regional advertising costs of the franchise system, in addition to […]
