Article 442-1.II of the French Commercial Code (former Article L. 442-6.I.5 °) sanctions the termination by a trader of a written contract or an informal business relationship without giving sufficient written prior notice. Over the last twenty years, this article became the recurring legal basis for all compensation actions (up to 18 months of gross margin, plus other damages) when a commercial relationship or a contract ends (totally or even partially).

Therefore, a foreign trader who contracts with a French company should try not to fall under the aegis of this rule (part I) and, if it cannot, should understand and control its implementation (part II).

In a nutshell:

How can a foreign company avoid or control the risk linked to the „sudden termination of commercial relations“ set by French law? Foreign companies doing business with a French counterpart should:

– enter, as soon as possible, into a written (frame) agreement with their French suppliers or customers, even for a very simple relation and;

– stipulate a clause in favour of foreign court or arbitration and foreign applicable law while, failing to choose it, they would rather be subject to French courts and laws;

How can a foreign company master the risk linked to the „sudden termination of commercial relations“ set by French law? Foreign companies doing business with a French counterpart should:

• know that this article applies to almost all type of commercial relationship or contracts, whether written or not, fixed-term or not;
• check whether its relation/contract is sufficiently long, regular and significant and whether the other party has a legitimate belief in the continuation of this relation/contract;
• give a written notice of termination or non-renewal (or even of a major modification), which length takes mainly into account the duration of the relation, irrespectively of the length of the contractual notice;
• invoke, with cautiousness, force majeure and gross negligence of the party, to set aside “sudden termination”;
• anticipate, in case of insufficient notice, a compensation which amount is the product of the average monthly gross margin per the length of non-granted prior notice.

How to avoid the application of the French “Sudden Termination” rule?

In international matters, a foreign company must anticipate whether its relationship will be subject or not to French law before terminating a contract or a business relationship and, in case of dispute, whether it will be brought before a French court or not.

What will be the law applicable to “Sudden Termination”?

It is quite difficult for a foreign company to correctly grasp the French legal framework of conflict of laws rules applicable to “sudden termination”. In a ruling of September 19, 2018 (RG 16/05579, DES/ Clarins), the Court of appeal of Paris made, by an implicit reference to the Granarolo EU ruling (07 14 16, N°C196/15) an extension of the contractual qualification to most of the business relationships which will improve foreseeability in order for a foreign company to try to exclude French law and its “sudden termination” rule.

Sudden termination of a written contract or of a „tacit contractual relationship”

According to Rome I Regulation (EC No 593/2008, June 17 2008) on the law applicable to contracts:

– In case of choice of a foreign law by the parties: The clause selecting a foreign applicable law will be valid and respected by French judges (subject to OMR, see below), provided that the choice of law by the parties is express or certain.

– In case of no choice by the parties: French law will likely to be declared applicable as it might be either the law of the country where is based the distributor/franchisee, etc. or the law of the country where the party who is to provide the service features of the contract has its domicile.

Sudden termination of a “non-tacit contractual relationship”

In case of informal relationship (i.e. orders placed from time to time), French judges would retain the tort qualification and will refer to the Rome II Regulation (No 864/2007, July 11 2007) on the law applicable to non-contractual obligations..

– In case of choice of a foreign law by the parties: a properly drafted choice of foreign law clause should be implemented by a French judge, provided that it expressly includes tort cases.

– In case of no choice of law by the parties: French law will likely to be declared applicable as it might be the law of the country where the damage occurs (regardless of the place of the causing event or that of the indirect consequences), which is the place of the head office where the French victim suffers the consequences of the termination.

“Sudden Termination” rule, a French Overriding Mandatory Rule?

The position of French courts is quite vague and unsatisfactory, and this has been the case for a long time. To make it short: the Commercial Court of Paris judges that “sudden termination” is not an OMR, the Court of appeal of Paris (sole French appellate court in charge of “sudden termination” cases) is also not in favour of the OMR qualification on the grounds that the text „protects purely private economic interests“ (CA Paris, pôle 5, ch. 5, Feb 28. 2019, n° 17/16475 / CA Paris, pôle 5, ch. 5, Oct 8. 2020, n°17/19893). Recently, the Paris Court of Appeal reaffirmed that the rules on sudden termination of established commercial relations are not an OMR (Court of appeal Paris, March 11, 2021, n° 18/03112).

The French Supreme Court has never explicitly addressed the issue (OMR or not OMR). Indeed, the French Supreme Court ruled in the Expedia case (Cass. com., July 8, 2020, n°17-31.536) that the provisions of the former article L. 442-6, I, 2º and II, d), about “significant imbalance” (which is in the same set of rules than “Sudden termination”) are OMR. However, this qualification should be limited to the specific action brought by the Ministry of Finance and not be applicable to an action by a private party. Moreover, some courts may be tempted to invoke the provisions of French law n°2023-221 (March 30, 2023, aka Egalim III) to qualify Sudden termination rule as an OMR, however this text (article L 444-1.A Commercial code) does not quote expressly OMR and set no justification whatsoever to set such a qualification.

Consequently, if a claim for “sudden termination” is brought to a French court, there is still a  risk that the latter would exclude the applicable foreign law and replace it with the regime resulting from the „sudden termination“ of Article L 442-1. II. However, to avoid this risk, a foreign company would better not only choose a foreign governing law but also stipulate that the dispute will be brought before a foreign judge or an arbitral tribunal.

How to avoid jurisdiction of French court over a “Sudden Termination” claim?

“Sudden Termination” claim and intra EU co-contractor

The ECJ ruling (Granarolo, July 14, 2016, N°C196/15) created a distinction between claims occurring from:

– written framework contract or tacit contractual relationship (existing only if the body of evidences listed by the ECJ are identified by national judges, i.e. length of relation and commitments recognized to each other, such as exclusivity, special price or terms of delivery or payment, non-competition, etc.): such claim has a contractual nature according to conflict of jurisdiction rules under Brussels I recast Regulation;

– informal relationship which is a non–tacit contractual relationship (i.e. orders placed from time to time): such a request has a tort nature under Brussels I recast ;

To be noted: the so-called Egalim III law has no impact on the EU rules on jurisdiction clauses.

(a) Who is the Judge of the “sudden termination” of a written contract or of a „tacit contractual relationship”?

– Jurisdiction clause for the benefit of a foreign court will be enforced by French courts, even though it is an asymmetrical clause (Court of cassation, October 7, 2015, Ebizcuss.com / Apple Sales International).

– In case of lack of choice of court clause, French courts are likely to have jurisdiction if the French claimant bringing a case based on “sudden termination» is the service provider, such as distributor, agent, etc. (see ECJ Corman Collins case, 19 12 13, C-9/12, and article 7.1.b.2 of Brussels I recast°).

(b) Who is the Judge of the “sudden termination” of a „non- tacit contractual relationship”?

– We believe that French courts may continue to give effect to a jurisdiction clause in tort case, especially when it expressly encompasses tort litigation (Court of cassation, 1° Ch. Civ., January 18, 2017, n° 15-26105, Riviera Motors / Aston Martin Lagonda Ltd).

– In case of lack of choice of court clause, French courts will have jurisdiction over a “sudden termination” claim as the judge of the place where the harmful event occurred (art. 7.3 of Brussels I recast), which is the place where the sudden termination has effect…i.e. in France if the French company is the victim.

“Sudden Termination” claim and Non-EU co-contractor

The Granarolo solution will not ipso facto apply if a French victim brings a claim to French courts, based on a „sudden termination“ made by a non-EU company. In non-EU relations, French judges could continue to retain only the tort qualification. In such a case, French courts may keep their jurisdiction based on the place where the harmful event occurs.

Jurisdiction clause to a foreign court may be recognized in France (even for tort-based claims), provided that this jurisdiction clause is valid according to either a bilateral international convention or to the Hague Convention of 30 June 2005 on choice of court agreements. Otherwise, according to Egalim III law, imperative jurisdiction might be attributable to French courts.

“Sudden Termination” claim and arbitration

Stipulating an ad hoc or institutional arbitration clause is probably the safest solution to avoid the jurisdiction of French courts. Ideally, the clause will fix the seat of the arbitral tribunal outside France. According to the principle of competence-competence of the arbitrators, French courts declare themselves incompetent, unless the arbitration clause is manifestly void or manifestly inapplicable, regardless of contract or tort ground (see, in particular, Paris Court of Appeal, 5 September 2019, n°17/03703). The so-called “Egalim III” law has no impact on arbitration clauses.

Conclusion: Foreign companies should not leave open the Jurisdiction and governing Law issues. They must negotiate a safe harbour, otherwise a French victim of a termination will likely to be entitled to bring a “sudden termination” claim in front of French judges (see what happen below in Part 2)

How to master the “Sudden Termination” French rules?

When French law is applicable, the foreign company will face the legal regime of article L442 -1.II of the French Commercial Code sanctioning “sudden termination”. As a preliminary remark, it is important to know, above all, that the implementation of the liability for „sudden termination“ is the consequence of the lack of a notice or a too short notice. Thus, this scheme does not lay down an automatic compensation rule. In other words, as soon as reasonable notice is given by the author of the termination, liability on that basis can be dismissed.

The prerequisite for “Sudden Termination”: an established commercial relationship

All contracts are covered by this legal regime, except for contracts whose regulations provide for a specific notice of termination, like commercial agency contracts and transport of goods by road subcontracts.

First, there must be a relationship that can be proven by a written contract or de facto, by behaviour of the parties. Article L.442-1 II of the French Commercial Code covers all “commercial” relationships and not only “contractual ones so that such relationship may be based on a succession of tacitly renewed contracts or a regular flow of business, materialized by multiple orders. This was recently recalled by the Supreme Court (Supreme Court, February 16, 2022, n° 20-18.844)

Second, this relationship must have an established character. There is no legal definition, but this notion has been defined year after year by case law which has established an objective criterion and a more subjective one.

(a) The objective criterion implies a sufficiently long, regular and significant relationship between the two parties. The duration of the relationship is the most important criterion. The relationship must also be regular, that is, it must not have been interrupted (too often or too long). The relationship must ultimately be meaningful and represent a serious flow of business between the parties, in volume or value.

(b) The subjective test focuses primarily on the legitimate belief of the victim of the rupture in the continuation of the contract / the relationship that is based on factual elements, such as investment requests, budgets over several years, etc. Conversely, it is on the basis of the finding of a lack of legitimate belief in a common future that the terminating party can prove the absence of a stable character when he has resorted, on several occasions, a call for tenders (unless it is a trick).

Anticipating a “Sudden Termination” claim

(a) The termination may be total or partial

The total rupture is materialized by a complete stop of the relations, for example ending the contract, stopping the sending of orders by the purchaser or the recording of orders by the supplier.

The Supreme Court recently recalled that a significant drop in sales with a partner must be considered as a partial rupture of the relationship (February 16, 2022, n° 20-18.844, cited above). But the most complicated situation to deal with is the so-called partial rupture that will be deduced from a modification of elements that partly impacts the relationship but does not reduce it to nothing (ex.: a price increase or decrease, a change in the terms of payment or delivery).

(b) The termination must be subject to a reasonable written prior notice

The notice must be notified in writing. The absence of written notice is already a breach in itself. The notification must clearly reflect the willingness of a party to sever the relationship in whole or in part, which must be clearly identified. The notification must also clearly identify the date on which the relationship will end.

Thus, an ambiguity on the notice period (e.g if the termination of an agreement is notified, whilst offering to maintain certain prices and payment terms, in the meantime) is considered as an insufficient termination notice (French Supreme Court, January 29, 2013, n° 11-23.676).

Parties must distinguish between the letter of formal notice for default and the subsequent notification of the breach, giving notice (if applicable). During the period of notice, parties must fully comply with all contractual conditions.

This principle also applies to distribution contracts subject to specific French rules imposing annual or multi-year negotiation obligations. In fact, the Court of cassation has ruled that „when the conditions of the commercial relationship established between the parties are subject to annual negotiation, modifications made during the notice period which are not so substantial as to undermine its effectiveness do not constitute a brutal breach of that relationship“ (Cass. com., Dec. 7, 2022, n° 19-22.538).

However, it’s not necessary to mention the reasons why the commercial relationship is terminated is not a fault or breach of the relationship. In fact, French courts consider that “the fact that the given reason to terminate was false does not in any way present the terminating party from terminating the commercial relationship” (Versailles Court of Appeal, June 10, 1999).

The duration of the prior notice to be respected is not defined by French law which did not pose precise rule until the reform 2019. If several criteria are stated by case law, it should be noted that the most important criterion is the duration of the relationship. Judges also take into account the share of turnover achieved by the victim, the existence or not of a territorial exclusivity, the nature of the products and the sector of activity, the importance of the investments made by the victim especially to the relationship in question, and finally the state of economic dependence. Economic dependence is defined as the impossibility for a company to have a solution that is technically and economically equivalent to the contractual relations it has established with another company. Case law considers this to be an aggravating factor justifying a longer termination notice.

The minimum notice period must be notified at the time of notification of termination. As a consequence, events that affect the victim after the notification, both positively (conclusion of a new contract) and negatively (loss of another custome), will not be taken into account by the judge, at the time of ruling, when assessing the “brutality” of the termination.

The length of the notice given by the judges is very variable. The appreciation of notice is made on a case-by-case basis. It is very difficult to give a golden rule, even though roughly for each year of relationship, a month’s notice might be due (to modulate up or down depending on the other criteria in the relationship). But way of illustration, however, the following case law may be cited:

• Paris Court of Appeal , Feb.9, 2022: 16-year relationship with 15 months‘ notice;
• Paris Court of Appeal, Jan.20, 2022: 12-year relationship with 8 months‘ notice;
• Paris Court of Appeal, Oct. 25, 2022: 16-year relationship with 18 months‘ notice;
• Paris Court of Appeal , Feb. 23, 2022: 17-year relationship with 11 months‘ notice;
• Paris Court of Appeal, Sept. 21, 2022: 5-year relationship with 14 months‘ notice.

Since the Order of April 24, 2019, which limits the length of reasonable notice to a maximum of 18 months, if the notice period granted by a party is 18 months, it cannot be held liable for a sudden termination. However, much of the litigation remains uncertain, as only exceptionally long or particularly sensitive relationships led, prior to 019, to the award of more than 18 months‘ notice. Ordinance of April 24, 2019, limits to 18 months the maximum period of notice reasonably due under Article L 442-1.II. But much of the litigation will remain uncertain since only relations of exceptional longevity or particularly sensitive, could have led to the allocation of a notice higher than 18 months.

Judges are not bound by the contractual notices stipulated in the contract. But if the author of the breach also violated the terms and conditions of termination provided for by contract, the victim may seek the responsibility of the author both on the tort basis of the sudden rupture and also on the basis of the breach of a contractual obligation.

Cases in which “Sudden Termination” is ruled out

The legal regime provides for two cases, and the case-law seems to have imposed others.

(a) The two legal exceptions are Force majeure (very rarely consecrated by the courts) and the fault of the victim of the termination, case-law having added that it must be a serious violation (“faute grave”) of a contractual commitment or a legal provision (such as non-respect of an exclusivity, a non-compete, a confidentiality or a change of control duty, or non-payment of amounts due contractually).

The judges consider themselves, of course, not bound by a termination clause defining what constitutes serious misconduct. In any case the party who terminates for serious misconduct must clearly notify it in its letter of termination. Above all, serious misconduct leads to a lack of notice, therefore, if the terminating party alleges serious misconduct but grants notice, whichever it may be, judges may conclude that the fault was not serious enough.

Thus, the seriousness of the misconduct must be motivated by judges in their rulings. Noting that the contract was breached after two formal notices is not sufficient (Cass. com., Feb 16. 2022, n° 20-18.844).

However, the Court of Cassation considers that „even in the case of serious misconduct justifying the immediate termination of the commercial relationship, the other party remains free to give the other party a notice“ (Cass. Com., Oct. 14 2020, n°18-22.119).

(b) In recent years, case-law has added other cases of liability waiver. This is the case when the rupture is the consequence of a cause external to the author of the rupture, such as the economic crisis, the loss of its own customers or suppliers, upstream or downstream.

For example, in 2021 the Court of cassation has ruled that “the business partner is not entitled to an unchanged relationship and cannot refuse any adaptation required by economic changes” (Com, Dec 01, 2021, n°20-19.113). In fact, to be attributable to an economic player, a termination must be free and deliberate. This is not the case if termination is imposed by the economic situation.

However, adding a liability exemption clause in a contract, aimed at waiving destinated to escape the penalties of article L. 442-1, is without consequences on the judge’s appreciation.

Judges have also excluded “sudden termination” in the hypothesis of the end of the first period of a fixed-term contract, whatever its duration is: the first renewal of a contract, constitutes a foreseeable event for the victim of the rupture, which excludes the very notion of brutality; but once the contract has been renewed at least once, judges can subsequently characterize the victim’s legitimate belief in a new tacit renewal.

Compensation for “Sudden Termination”

Judges only compensate for the detrimental consequences of the brutality itself of the breach but do not compensate, at least in the context of article L442 -1.II, for the consequences of the breach itself.

The basic rule is very simple: it is necessary to determine the length of the notice which should have been granted, from which the notice actually granted is deducted. This net notice is multiplied by the average monthly gross margin of the victim, or more often the so called margin on variable costs (i.e. the turnover minus costs disappearing with non-performance of the contract/relation). Defendant should not hesitate to ask for the full accountancy evidences, especially to identify (lower) margin rates, or even for a judicial expertise on those accounting elements. In general, the base of the average monthly margin consists of the last 24 or 36 months.

The compensation calculated on the average margin is, in general, exclusive of any other compensation. However, the victim can prove that it has suffered other losses as a consequence of the brutality of the rupture. Such as dismissals directly caused by this brutality or the depreciation of investments made recently by the victim.

Some practical tips when considering to anticipate “Sudden Termination”

Even though the legal regime is still ambiguous and the case-law terribly casuistic which prevents to release strong guidelines, here are some practical tips when a company plans to terminate a relationship / contract:

• in the case of a fixed-term contract renewable tacitly, the notification of non-renewal must be anticipated well in advance of the beginning of the contractual notice in order to avoid being in a situation where it is necessary to choose between not renewing the contract with a notice that is not sufficient or agree to see the contract renewed itself for a new term;
• commercial teams must be made aware of the risk of partial sudden termination when they change the conditions of execution of a commercial relationship / contract too radically;
• in some cases, it may be useful to send a pre-notice of termination with a “notice proposal” in order to try to validate this notice with the other party;
• it may also be useful, in certain relationships, to notify the end of the relationship with different lengths of notice depending on the nature of the product lines;
• Finally, the best way is to conclude an end-of-relation protocol, fixing the duration of the notice as well as, if necessary, the progressive decline of the orders, the whole within the framework of a settlement agreement which definitively waives any claim, including “sudden termination”.

Sudden termination regime shall be taken into consideration when entering into the final phase of a duration relationship: the way in which the contract (or de facto relationship) is terminated must be carefully planned, in order to manage the risk of causing damages to the counterparty and being sued for compensation.

Given the significance of the influencer market (over €21 billion in 2023), which now encompasses all sectors, and with a view for transparency and consumer protection, France, with the law of June 9, 2023, proposed the world’s first regulation governing the activities of influencers, with the objective of defining and regulating influencer activities on social media platforms.

However, influencers are subject to multiple obligations stemming from various sources, necessitating the utmost vigilance, both in drafting influence agreements (between influencers and agencies or between influencers and advertisers) and in the behaviour they must adopt on social media or online platforms. This vigilance is particularly heightened as existing regulations do not cover the core of influencers‘ activities, especially their status and remuneration, which remain subject to legal ambiguity, posing risks to advertisers as regulatory authorities‘ scrutiny intensifies.

Key points to remember 

• Influencers‘ activity is subject to numerous regulations, including the law of June 9, 2023.
• This law not only regulates the drafting of influence contracts but also the influencer’s behaviour to ensure greater transparency for consumers.
• Every influencer whose audience includes French users is affected by the provisions of the law of June 9, 2023, even if they are not physically present in French territory.
• Both the law of June 9, 2023, and the „Digital Services Act,“ as well as the proposed law on „fast fashion,“ foresee increasing accountability for various actors in the commercial influence sector, particularly influencers and online platforms.
• Despite a plethora of regulations, the status and remuneration of influencers remain unaddressed issues that require special attention from advertisers engaging with influencers.

The law of June 9, 2023, regulating influencer activity  

The definition of influencer professions

The law of June 9, 2023, provides two essential definitions for influencer activities:

• Influencers are defined as ’natural or legal persons who, for consideration, mobilize their notoriety with their audience to communicate to the public, electronically, content aimed at promoting, directly or indirectly, goods, services, or any cause, engaging in commercial influence activities electronically.‘
• The activity of an influencer agent is defined as ‚that which consists of representing, for consideration,‘ the influencer or a possible agent ‚with the aim of promoting, for consideration, goods, services, or any cause‚ (article 7) The influencer agent must take ’necessary measures to ensure the defense of the interests of the persons they represent, to avoid situations of conflict of interest, and to ensure the compliance of their activity‚ with the law of June 9, 2023.

The obligations imposed on commercial messages created by the influencer

The law sets forth obligations that influencers must adhere to regarding their publications: 

• Mandatory particulars: When creating content, this law imposes an obligation on influencers to provide information to consumers, aiming for transparency towards their audience. Thus, influencers are required to clearly, legibly, and identifiably indicate on the influencer’s image or video, regardless of its format and throughout the entire viewing duration (according to modalities to be defined by decree):

  – The mention „advertisement“ or „commercial collaboration.“ Violating this obligation constitutes deceptive commercial practice punishable by two years‘ imprisonment and a fine of €300,000 (Article 5 of the law of June 9, 2023).
  – The mention of „altered images“ (modification by image processing methods aimed at refining or thickening the silhouette or modifying the appearance of the face) or „virtual images“ (images created by artificial intelligence). Failure to do so may result in a one-year prison sentence and a fine of €4,500 (Article 5 of the law of June 9, 2023).

• Prohibited or regulated promotions: This law reminds certain prohibitions, subject to criminal and administrative sanctions, stemming from French law on the direct or indirect promotion of certain categories of products and services, under penalty of criminal or administrative sanctions. This includes the promotion of products and services related to:

  – health: surgery, aesthetic medicine, therapeutic prescriptions, and nicotine products;
  – non-domestic animals, unless it concerns an establishment authorized to hold them;
  – financial: contracts, financial products, and services;
  – sports-related: subscriptions to sports advice or predictions;
  – crypto assets: if not from registered actors or have not received approval from the AMF;
  – gambling: their promotion prohibited for those under 18 years old and regulated by law;
  – professional training: their promotion is not prohibited but regulated.

The accountability of influencer behaviour

The law also holds influencers accountable from the contracting of their relationships and when they act as sellers:

• Regulation of commercial influence agreements: This law imposes, subject to nullity, from a certain threshold of influencer remuneration (defined by decree), the formalization in writing of the agreement between the advertiser and the influencer, but also, if applicable, between the influencer’s agent, and the mandatory stipulation of certain clauses (remuneration, mission description, etc.).
• Influencer responsibility as a cyber seller: Influencers engaging in drop shipping (selling products without handling their delivery, done by the supplier) must provide the buyer with all information in French as required by Article L. 221-5 of the Consumer Code about the product, such as its availability and legality (i.e., guarantee that the product is not counterfeit), applicable product warranty, and supplier identity. Additionally, influencers must ensure the proper delivery and receipt of products and, in case of default, compensate the buyer. Influencers are also logically subject to obligations regarding deceptive commercial practices (for more information, the DGCCRF website explain the dropshipping).

The accountability of other actors in the commercial influence ecosystem

Joint and several liability is set by law, for the advertiser, influencer, or influencer’s agent for damages caused to third parties in the execution of the commercial influence contract, allowing the victim of the damage to act against the most solvent party.

Furthermore, the law introduces accountability for online platforms by partially incorporating the European Regulation 2022/2065 on digital services (known as the „DSA„) of October 19, 2022.

French regulation and international influencers

Influencers established outside the European Union (including also Switzerland and the EEA) who promote products or services to a French audience must obtain professional liability insurance from an insurer established within the EU. They must also designate a legal or natural person providing „a form of representation“ (SIC) within the EU. This representative (whose regime is not very clear) is remunerated to represent the influencer before administrative and judicial authorities and to ensure the compliance of the influencer’s activity with law of June 9, 2023.

Furthermore, according to law of June 9, 2023, when the contract binding the influencer (or their agency) aims to implement a commercial influence activity electronically „targeting in particular an audience established in French territory“ (SIC), this contract should be exclusively subject to French law (including the Consumer Code, the Intellectual Property Code, and the law of June 9, 2023). According to this law, the absence of such a stipulation would be sanctioned by the nullity of the contract. Law of June 9, 2023, seems to be established as an overriding mandatory law capable of setting aside the choice of a foreign law.

However, the legitimacy (what about compliance with the definition of overriding mandatory rules established by Regulation Rome I?) and effectiveness (what if the contract specifies a foreign law and a foreign jurisdiction?) of such a legal provision can be questioned, notably due to its vague and general wording. In fact, it should be the activity deployed by the „foreign“ influencer to their community in France that should be apprehended by French overriding mandatory rules, rather than the content of the agreement concluded with the advertiser (which itself could also be foreign, by the way).

The other regulations governing the activity of influencers

The European regulations

The DSA further holds influencers accountable because, in addition to the reporting mechanism imposed on platforms to report illicit content (thus identifying a failing influencer), platforms must ensure (and will therefore shift this responsibility to the influencer) the identification of commercial communications and specific transparency obligations towards consumers.

The «soft law»

As early as 2015, the Advertising Regulatory Authority („ARPP“) issued recommendations on best practices for digital advertising. Similarly, in March 2023, the French Ministry of Economy published a „code of conduct“ for influencers and content creators. In 2023, the European Commission launched a legal information platform for influencers. Although non-binding, these rules, in addition to existing regulations, serve as guidelines for both influencers and content creators, as well as for judicial and administrative authorities.

The special status of child influencers

The law of October 19, 2020, aimed at regulating the commercial exploitation of children’s images on online platforms, notably opens up the possibility for child influencers to be recognized as salaried workers. However, this law only targeted video-sharing platforms. Article 2 of the law of June 9, 2023, extended the provisions regarding child influencer labor introduced by the 2020 law to all online platforms. Finally, a recent law aimed at ensuring respect for the image rights of children was published on February 19, 2024, introducing a principle of joint and several responsibility of both parents in protecting the minor’s image rights.

The status and remuneration of influencers: uncertainty persists

Despite the diversity of regulations applicable to influencers, none address their status and remuneration.

The status of the influencer

In the absence of regulations governing the status of influencers, a legal ambiguity persists regarding whether the influencer should be considered an independent contractor, an employee (as is partly the case for models or artists), or even as a brand representative (i.e. commercial agent), depending on the missions contractually entrusted to the influencer.

The nature of the contract and the applicable social security regime stem from the missions assigned to the influencer:

• In the case of an employment contract, the influencer will fall under the general regime for employees and assimilated persons, based on Articles L. 311-2 or 311-3 of the French Social Security Code.
• In the case of a service contract, the influencer will fall under the regime for self-employed workers.

The existence of a relationship of subordination between the advertiser and the influencer typically determines the qualification of an employment contract. Subordination is generally characterized when the employer gives orders and directives, has the power to control and sanction, and the influencer follows these directives. However, some activities are subject to a presumption of an employment contract; this is the case (at least in part) for artist contracts under Article L. 7121-3 of the French Labor Code and model contracts under Article L. 7123-2 of the French Labor Code.

The remuneration of the influencer

The influencer can be remunerated in cash (fixed or proportional) and/or in kind (for example: receiving a product from the brand, invitations to private or public events, coverage of travel expenses, etc.). The influencer’s remuneration must be specified in the influencer agreement and is directly impacted by the influencer’s status, as certain obligations (minimum wage, payment of social security contributions, etc.) apply in the case of an employment contract.

Furthermore, the remuneration (for the influencer’s services) must be distinguished from that of the transfer of their copyrights or image rights, which are subject to separate remuneration in exchange for the IP rights transferred.

The influencers… in the spotlight

The law of June 9, 2023, grants the French authority (i.e. the Consumer Affairs, Competition and Fraud Prevention Agency, “DGCCRF”) new injunction powers (with reinforced penalties). This comes in addition to the recent creation of a „commercial influence squad„, within the DGCCRF, tasked with monitoring social networks, and responding to reports received through Signal Conso. The law provides for fines and the possibility of blocking content.

As early as August 2023, the DGCCRF issued warnings to several influencers to comply with the new regulations on commercial influence and imposed on them the obligation to publicly disclose their conviction for non-compliance with the new provisions regarding transparency to consumers on their own social networks, a heavy penalty for actors whose activity relies on their popularity (DGCCRF investigation on the commercial practices of influencers).

On February 14, 2024, the European Commission and the national consumer protection authorities of 22 EU member states, Norway, and Iceland published the results of an analysis conducted on 570 influencers (the so-called „clean-up operation“ of 2023 on influencers): only one in five influencers consistently presented their commercial content as advertising. 

In response to environmental, ethical, and quality concerns related to „fast fashion,“ a draft law aiming to ban advertising for fast fashion brands, including advertising done by influencers (Proposal for a law aiming to reduce the environmental impact of the textile industry), was adopted by the National Assembly on first reading on March 14, 2024.

Lastly, the law of June 9, 2023, has been criticized by the European Commission, which considers that the law would contravene certain principles provided by EU law, notably the principle of „country of origin,“ according to which the company providing a service in other EU countries is exclusively subject to the law of its country of establishment (principle initially provided for by the E-commerce Directive of June 8, 2000, and included in the DSA). Some of its provisions, particularly those concerning the application of French law to foreign influencers, could therefore be subject to forthcoming – and welcome – modifications.

Summary

To avoid disputes with important suppliers, it is advisable to plan purchases over the medium and long term and not operate solely on the basis of orders and order confirmations. Planning makes it possible to agree on the duration of the ’supply agreement, minimum volumes of products to be delivered and delivery schedules, prices, and the conditions under which prices can be varied over time.
The use of a framework purchase agreement can help avoid future uncertainties and allows various options to be used to manage commodity price fluctuations depending on the type of products , such as automatic price indexing or agreement to renegotiate in the event of commodity fluctuations beyond a certain set tolerance period.

I read in a press release: “These days, the glass industry is sending wine companies new unilateral contract amendments with price changes of 20%…”

What can one do to avoid the imposition of price increases by suppliers? 

• Know your rights and act in an informed manner
• Plan and organise your supply chain

Does my supplier have the right to increase prices?

If contracts have already been concluded, e.g., orders have already been confirmed by the supplier, the answer is often no.

It is not legitimate to request a price change. It is much less legitimate to communicate it unilaterally, with the threat of cancelling the order or not delivering the goods if the request is not granted.

What if he tells me it is force majeure?

That’s wrong: increased costs are not a force majeure but rather an unforeseen excessive onerousness, which hardly happens.

What if the supplier canceled the order, unilaterally increased the price, or did not deliver the goods?

He would be in breach of contract and liable to pay damages for violating his contractual obligations.

How can one avoid a tug-of-war with suppliers?

The tools are there. You have to know them and use them.

It is necessary to plan purchases in the medium term, agreeing with suppliers on a schedule in which are set out:

• the quantities of products to be ordered
• the delivery terms
• the durationof the agreement
• the pricesof the products or raw materials
• the conditions under which prices can be varied

There is a very effective instrument to do so: a framework purchase agreement.

Using a framework purchase agreement, the parties negotiate the above elements, which will be valid for the agreed period.

Once the agreement is concluded, product orders will follow, governed by the framework agreement, without the need to renegotiate the content of individual deliveries each time.

For an in-depth discussion of this contract, see this article.

• “Yes, but my suppliers will never sign it!”

Why not? Ask them to explain the reason.

This type of agreement is in the interest of both parties. It allows planning future orders and grants certainty as to whether, when, and how much the parties can change the price.

In contrast, acting without written agreements forces the parties to operate in an environment of uncertainty. Suppliers can request price increases from one day to the next and refuse supply if the changes are not accepted.

How are price changes for future supplies regulated?

Depending on the type of products or services and the raw materials or energy relevant in determining the final price, there are several possibilities.

• The first option is to index the price automatically. E.g., if the cost of a barrel of Brent oil increases/decreases by 10%, the party concerned is entitled to request a corresponding adjustment of the product’s price in all orders placed as of the following week.
• An alternative is to provide for a price renegotiation in the event of a fluctuation of the reference commodity. E.g., suppose the LME Aluminium index of the London Stock Exchange increases above a certain threshold. In that case, the interested party may request a price renegotiationfor orders in the period following the increase.

What if the parties do not agree on new prices?

It is possible to terminate the contract or refer the price determination to a third party, who would act as arbitrator and set the new prices for future orders.

Summary

The framework supply contract is an agreement that regulates a series of future sales and purchases between two parties (customer and supplier) that take place over a certain period of time. This agreement determines the main elements of future contracts such as price, product volumes, delivery terms, technical or quality specifications, and the duration of the agreement.

The framework contract is useful for ensuring continuity of supply from one or more suppliers of a certain product that is essential for planning industrial or commercial activity. While the general terms and conditions of purchase or sale are the rules that apply to all suppliers or customers of the company. The framework contract is advisable to be concluded with essential suppliers for the continuity of business activity, in general or in relation to a particular project.

What I am talking about in this article:

• What is the supply framework agreement?
• What is the function of the supply framework agreement?
• The difference with the general conditions of sale or purchase
• When to enter a purchase framework agreement?
• When is it beneficial to conclude a sales framework agreement?
• The content of the supply framework agreement
• Price revision clause and hardship
• Delivery terms in the supply framework agreement
• The Force Majeure clause in international sales contracts
• International sales: applicable law and dispute resolution arrangements

What is a framework supply agreement?

It is an agreement that regulates a series of future sales and purchases between two parties (customer and supplier), which will take place over a certain period.

It is therefore referred to as a „framework agreement“ because it is an agreement that establishes the rules of a future series of sales and purchase contracts, determining their primary elements (such as the price, the volumes of products to be sold and purchased, the delivery terms of the products, and the duration of the contract).

After concluding the framework agreement, the parties will exchange orders and order confirmations, entering a series of autonomous sales contracts without re-discussing the covenants already defined in the framework agreement.

Depending on one’s point of view, this agreement is also called a sales framework agreement (if the seller/supplier uses it) or a purchasing framework agreement (if the customer proposes it).

What is the function of the framework supply agreement?

It is helpful to arrange a framework agreement in all cases where the parties intend to proceed with a series of purchases/sales of products over time and are interested in giving stability to the commercial agreement by determining its main elements.

In particular, the purchase framework agreement may be helpful to a company that wishes to ensure continuity of supply from one or more suppliers of a specific product that is essential for planning its industrial or commercial activity (raw material, semi-finished product, component).

By concluding the framework agreement, the company can obtain, for example, a commitment from the supplier to supply a particular minimum volume of products, at a specific price, with agreed terms and technical specifications, for a certain period.

This agreement is also beneficial, at the same time, to the seller/supplier, which can plan sales for that period and organize, in turn, the supply chain that enables it to procure the raw materials and components necessary to produce the products.

What is the difference between a purchase or sales framework agreement and the general terms and conditions?

Whereas the framework agreement is an agreement that is used with one or more suppliers for a specific product and a certain time frame, determining the essential elements of future contracts, the general purchase (or sales) conditions are the rules that apply to all the company’s suppliers (or customers).

The first agreement, therefore, is negotiated and defined on a case-by-case basis. At the same time, the general conditions are prepared unilaterally by the company, and the customers or suppliers (depending on whether they are sales or purchase conditions) adhere to and accept that the general conditions apply to the individual order and/or future contracts.

The two agreements might also co-exist: in that case; it is a good idea to specify which contract should prevail in the event of a discrepancy between the different provisions (usually, this hierarchy is envisaged, ranging from the special to the general: order – order confirmation; framework agreement; general terms and conditions of purchase).

When is it important to conclude a purchase framework agreement?

It is beneficial to conclude this agreement when dealing with a mono-supplier or a supplier that would be very difficult to replace if it stopped selling products to the purchasing company.

The risks one aims to avoid or diminish are so-called stock-outs, i.e., supply interruptions due to the supplier’s lack of availability of products or because the products are available, but the parties cannot agree on the delivery time or sales price.

Another result that can be achieved is to bind a strategic supplier for a certain period by agreeing that it will reserve an agreed share of production for the buyer on predetermined terms and conditions and avoid competition with offers from third parties interested in the products for the duration of the agreement.

When is it helpful to conclude a sales framework agreement?

This agreement allows the seller/supplier to plan sales to a particular customer and thus to plan and organize its production and logistical capacity for the agreed period, avoiding extra costs or delays.

Planning sales also makes it possible to correctly manage financial obligations and cash flows with a medium-term vision, harmonizing commitments and investments with the sales to one’s customers.

What is the content of the supply framework agreement?

There is no standard model of this agreement, which originated from business practice to meet the requirements indicated above.

Generally, the agreement provides for a fixed period (e.g., 12 months) in which the parties undertake to conclude a series of purchases and sales of products, determining the price and terms of supply and the main covenants of future sales contracts.

The most important clauses are:

• the identification of products and technical specifications (often identified in an annex)
• the minimum/maximum volume of supplies
• the possible obligation to purchase/sell a minimum/maximum volume of products
• the schedule of supplies
• the delivery times
• the determination of the price and the conditions for its possible modification (see also the next paragraph)
• impediments to performance (Force Majeure)
• cases of Hardship
• penalties for delay or non-performance or for failure to achieve the agreed volumes
• the hierarchy between the framework agreement and the orders and any other contracts between the parties
• applicable law and dispute resolution (especially in international agreements)

How to handle price revision in a supply contract?

A crucial clause, especially in times of strong fluctuations in the prices of raw materials, transport, and energy, is the price revision clause.

In the absence of an agreement on this issue, the parties bear the risk of a price increase by undertaking to respect the conditions initially agreed upon; except in exceptional cases (where the fluctuation is strong, affects a short period, and is caused by unforeseeable events), it isn’t straightforward to invoke the supervening excessive onerousness, which allows renegotiating the price, or the contract to be terminated.

To avoid the uncertainty generated by price fluctuations, it is advisable to agree in the contract on the mechanisms for revising the price (e.g., automatic indexing following the quotation of raw materials). The so-called Hardship or Excessive Onerousness clause establishes what price fluctuation limits are accepted by the parties and what happens if the variations go beyond these limits, providing for the obligation to renegotiate the price or the termination of the contract if no agreement is reached within a certain period.

How to manage delivery terms in a supply agreement?

Another fundamental pact in a medium to long-term supply relationship concerns delivery terms. In this case, it is necessary to reconcile the purchaser’s interest in respecting the agreed dates with the supplier’s interest in avoiding claims for damages in the event of a delay, especially in the case of sales requiring intercontinental transport.

The first thing to be clarified in this regard concerns the nature of delivery deadlines: are they essential or indicative? In the first case, the party affected has the right to terminate (i.e., wind up) the agreement in the event of non-compliance with the term; in the second case, due diligence, information, and timely notification of delays may be required, whereas termination is not a remedy that may be automatically invoked in the event of a delay.

A useful instrument in this regard is the penalty clause: with this covenant, it is established that for each day/week/month of delay, a sum of money is due by way of damages in favor of the party harmed by the delay.

If quantified correctly and not excessively, the penalty is helpful for both parties because it makes it possible to predict the damages that may be claimed for the delay, quantifying them in a fair and determined sum. Consequently, the seller is not exposed to claims for damages related to factors beyond his control. At the same time, the buyer can easily calculate the compensation for the delay without the need for further proof.

The same mechanism, among other things, may be adopted to govern the buyer’s delay in accepting delivery of the goods.

Finally, it is a good idea to specify the limit of the penalty (e.g.,10 percent of the price of the goods) and a maximum period of grace for the delay, beyond which the party concerned is entitled to terminate the contract by retaining the penalty.

The Force Majeure clause in international sales contracts

A situation that is often confused with excessive onerousness, but is, in fact, quite different, is that of Force Majeure, i.e., the supervening impossibility of performance of the contractual obligation due to any event beyond the reasonable control of the party affected, which could not have been reasonably foreseen and the effects of which cannot be overcome by reasonable efforts.

The function of this clause is to set forth clearly when the parties consider that Force Majeure may be invoked, what specific events are included (e.g., a lock-down of the production plant by order of the authority), and what are the consequences for the parties‘ obligations (e.g., suspension of the obligation for a certain period, as long as the cause of impossibility of performance lasts, after which the party affected by performance may declare its intention to dissolve the contract).

If the wording of this clause is general (as is often the case), the risk is that it will be of little use; it is also advisable to check that the regulation of force majeure complies with the law applicable to the contract (here an in-depth analysis indicating the regime provided for by 42 national laws).

Applicable law and dispute resolution clauses

Suppose the customer or supplier is based abroad. In that case, several significant differences must be borne in mind: the first is the agreement’s language, which must be intelligible to the foreign party, therefore usually in English or another language familiar to the parties, possibly also in two languages with parallel text.

The second issue concerns the applicable law, which should be expressly indicated in the agreement. This subject matter is vast, and here we can say that the decision on the applicable law must be made on a case-by-case basis, intentionally: in fact, it is not always convenient to recall the application of the law of one’s own country.

In most international sales contracts, the 1980 Vienna Convention on the International Sale of Goods („CISG“) applies, a uniform law that is balanced, clear, and easy to understand. Therefore, it is not advisable to exclude it.

Finally, in a supply framework agreement with an international supplier, it is important to identify the method of dispute resolution: no solution fits all. Choosing a country’s jurisdiction is not always the right decision (indeed, it can often prove counterproductive).

A case recently decided by the Italian Supreme Court clarifies what the risks are for those who sell their products abroad without having paid adequate attention to the legal part of the contract (Order, Sec. 2, No. 36144 of 2022, published 12/12/2022).

Why it’s important: in contracts, care must be taken not only with what is written, but also with what is not written, otherwise there is a risk that implied warranties of merchantability will apply, which may make the product unsuitable for use, even if it conforms to the technical specifications agreed upon in the contract.

The international sales contract and the first instance decision

A German company had sued an Italian company in Italy (Court of Chieti) to have it ordered to pay the sales price of two invoices for supplies of goods (steel).

The Italian purchasing company had defended itself by claiming that the two invoices had been deliberately not paid, due to the non-conformity of three previous deliveries by the same German seller. It then counterclaimed for a finding of defects and a reduction in the price, to be set off against the other party’s claim, as well as damages.

In the first instance, the Court of Chieti had partially granted both the German seller’s demand for payment (for about half of the claim) and the buyer’s counterclaim.

The court-appointed technical expertise had found that the steel supplied by the seller, while conforming to the agreed data sheet, had a very low silicon value compared to the values at other manufacturers‘ steel; however, the trial judge ruled out this as a genuine defect.

The judgment of appeal

The Court of Appeals of L’Aquila, appealed to the second instance by the buyer, had reached a different conclusion than the Court of First Instance, significantly reducing the amount owed by the Italian buyer, for the following reasons:

• the regime of „implied warranties“ under Article 35 of the Vienna Convention on the International Sale of Goods of 11.4.80 („CISG,“ ratified in both Italy and Germany) applied, as the companies had business headquarters in two different countries, both of which were parties to the Convention;
• in particular, the chemical composition of the steel supplied by the seller, while not constituting a „defect“ in the product (i.e., an anomaly or imperfection) was nonetheless to be considered a „lack of conformity“ within the meaning of Articles 35(2)(a) and 36(1) of the CISG, as it rendered the steel unsuitable for the use for which goods of the same kind would ordinarily serve (also known as „warranty of merchantability“).

The ruling of the Supreme Court

The German seller then appealed to the Supreme Court against the Court of Appeals‘ ruling, stating in summary that, according to the CISG, the conformity or non-conformity of the goods must be assessed against what was agreed upon in the contract between the parties; and that the „warranty of merchantability“ should apply only in the absence of a precise agreement of the parties on the characteristics that the product must have.

However, the seller’s defense continued, in this case the Italian buyer had sent a data sheet including a summary table of the various chemical elements, where it was stated that silicon should be present in a percentage not exceeding 0.45, but no minimum percentage was indicated.

So, the fact that the percentage of silicon was significantly lower than that found on average in steel from other suppliers could not be considered a conformity defect, since, at the contract negotiation stage, the parties exchanging the data sheet had expressly agreed only on the maximum values, thus not considering the minimum values relevant to conformity.

The Supreme Court, however, disagreed with this reasoning and essentially upheld the Court of Appeals‘ ruling, rejecting the German seller’s appeal.

The Court recalled that, according to Article 35 first paragraph of the CISG, the seller must deliver goods whose quantity, quality and kind correspond to those stipulated in the contract and whose packaging and wrapping correspond to those stipulated in the contract; and that, for the second paragraph, „unless the parties agree otherwise, goods are in conformity with the contract only if: a) they are suitable for the uses for which goods of the same kind would ordinarily serve.“

Other guarantees are enumerated in paragraphs (b) to (d) of the same standard[1] . They are commonly referred to collectively as „implied warranties.“

The Court noted that the warranties in question, including the one of „merchantability“ just referred to, do not stand subordinate or subsidiary to contractual covenants; on the contrary, they apply unless expressly excluded by the parties.

It follows that, according to the Supreme Court, any intention of the parties to a sales contract to disapply the warranty of merchantability must „result from a specific provision agreed upon by the parties.„

In the present case, although the data sheet that was part of the contractual agreements was analytical and had included among the chemical characteristics of the material the percentage of silicon, the fact that only a maximum percentage was indicated and not also the minimum percentage was not sufficient to exclude the fact that, by virtue of the „implied guarantee“ of marketability, the minimum percentage should in any case conform to the average percentage of similar products existing on the market.

Since the „warranty of merchantability“ had not been expressly excluded between the parties by a specific contractual clause, the conformity of the goods to the contract still had to be evaluated in consideration of this implied warranty as well.

Conclusions

What should businesses that sell abroad keep in mind?

• In contracts for the sale of goods between companies based in two different countries, the CISG automatically applies in many cases, in preference to the domestic law of either the seller’s country or the buyer’s country.
• The CISG contains very important rules for the relationship between sellers and buyers, on warranties of conformity of goods with the contract and buyer’s remedies for breach of warranties.
• One can modify or even exclude these rules by drafting appropriate contracts or general conditions in writing.
• Parties may agree not to apply all or some of the „implied warranties“ (possibly replacing them with contractual warranties) just as they may exclude certain remedies (e.g., exclude or limit liability for damages, within certain limits). However, they must do so in clear and explicit clauses.
• For the „warranty of merchantability“ not to apply, according to the reasoning of the Italian Supreme Court, it is not enough not to mention it in the contract.
• It is not sufficient to attach an analytical description of the characteristics of the goods to the contract to exclude certain characteristics not mentioned but nevertheless present in similar products of other manufacturers, which can be used as a parameter for the conformity of the goods.
• Instead, it is necessary to include a clause in the contract expressly excluding this type of guarantee.

In other words, in contracts, one must pay attention not only to what is written but also to what is not written.

This case once again demonstrates the importance of drafting a proper and complete contract not only from a commercial, technical, and financial point of view but also from a legal point of view, using the expertise of a lawyer experienced in international commercial contracts.

Finally, it is important not to overlook applicable law and jurisdiction clauses. These aspects are unfortunately often overlooked, even in high-value negotiations, considering these clauses unimportant or even blocking for negotiation, only to regret them when litigation arises or even threatened. See an in-depth discussion here.

Many people think that the non-disclosure agreement (NDA) is the one and only necessary precaution in a negotiation. This is wrong, because this agreement only refers to a facet of the business relationship that the parties want to discuss or manage.

Why is it important

The function of the NDA is to maintain the confidentiality of certain information that the parties intend to exchange and to prevent it from being used for purposes on which the parties did not agree. However, many aspects of the negotiation are not regulated in the NDA.

The main issues that the parties should agree on in writing are the following:

• why do the parties want to exchange information?
• what is the ultimate scope to be achieved?
• on what general points do the parties already agree?
• how long will negotiations last?
• who will participate in the negotiations, and with what powers?
• what documents and information will be shared?
• are there any exclusivity and/or non-compete obligations during and after the negotiation?
• what law applies to the negotiations and how are potential disputes resolved?

If these questions are not answered, it is likely that misunderstandings and disputes will arise over time, especially in lengthy and complex negotiations with foreign counterparts.

How to proceed?

• It is advisable that the above agreements be set down in a Letter of Intent („LoI“) or Memorandum of Understanding („MoU“). These are preliminary agreements whose function is determining the scope of future negotiations, the timetable, and the rules to be observed during and after the negotiations.

Common objection

„These are non-binding contracts, so what is the point of using them if the parties are free not to comply?

• Some covenants may be binding (exclusivity during negotiation, non-competition, dispute settlement agreements), and some may not (with the freedom to conclude or not to conclude the agreement).
• In any case, agreeing on the negotiating roadmap is an advantage over operating without having set the negotiating guidelines.

What happens if no agreement is reached?

• The MoU usually expressly provides for each party to be free not to finalize the negotiation as long as that party behaves, keeps acting in good faith during the negotiations and preserves the other party’s rights.
• It should be noted that in case of early or unjustified termination of the negotiations by one of the parties, the other party may be entitled to damages (so-called pre-contractual liability) if the agreement and/or the law applicable to the contract so provide.

Then, when should a non-disclosure agreement be concluded?

• It can be executed at the same time as the MoU / LoI or immediately afterwards so that the specification of confidential information, the way it is used, the duration of confidentiality obligations, etc. are defined in a way that is consistent with the project the parties have agreed upon.

For more information on the content of confidentiality agreements, see this article.

Nach mehr als 30 Jahren Verhandlungen blickt die Welt nun auf das erste panafrikanische Handelsabkommen, welches 2019 in Kraft getreten ist: Die Afrikanische Kontinentale Freihandelszone (African Continental Free Trade Area – AfCFTA).

Afrika ist mit seinen 55 Ländern und rund 1,3 Milliarden Einwohnern nach Asien der zweitgrößte Kontinent der Welt. Das Potenzial des Kontinents ist enorm: Mehr als 50 % der afrikanischen Bevölkerung ist unter 20 Jahre alt, und die Bevölkerung wächst weltweit am schnellsten. Bis 2050 wird voraussichtlich jedes vierte Neugeborene aus Afrika stammen. Darüber hinaus ist der Kontinent reich an fruchtbaren Böden und Rohstoffen.

Für westliche Investoren hat Afrika in den letzten Jahren erheblich an Bedeutung gewonnen. So ist ein beachtliches internationales Handelsvolumen entstanden, das nicht zuletzt durch die 2017 von den G20-Staaten verabschiedete Initiative „Compact with Africa“, auch bekannt als „Marshallplan mit Afrika“, gefördert wird. Der Fokus liegt auf dem Ausbau der wirtschaftlichen Zusammenarbeit Afrikas mit den G20-Ländern durch die Stärkung privater Investitionen.

Zugleich stagnierte bislang jedoch der innerafrikanische Handel: Teilweise noch bestehende hohe innerafrikanische Zölle, nichttarifäre Handelshemmnisse (non-tariff barriers – NTBs), schwache Infrastruktur, Korruption, schwerfällige Bürokratie sowie intransparente und inkonsistente Regulierungen sorgten dafür, dass sich die interregionalen Exporte kaum entwickeln konnten und zuletzt nur 17 % des innerafrikanischen Handels und nur 0,36 % des Welthandels ausmachten. Schon lange hatte sich deshalb die Afrikanische Union (AU) die Schaffung einer gemeinsamen Handelszone auf ihre Agenda gesetzt.

Was verbirgt sich hinter AfCFTA?

Der Errichtung einer panafrikanischen Handelszone gingen jahrzehntelange Verhandlungen voraus, welche schließlich in das Inkrafttreten des AfCFTA am 30. Mai 2019 mündeten.

Das AfCFTA ist eine von ihren Mitgliedern errichtete Freihandelszone, die (mit Ausnahme Eritreas) den gesamten afrikanischen Kontinent umfasst und damit, gemessen an der Zahl der Mitgliedsstaaten nach der Welthandelsorganisation (World Trade Organization – WTO) die größte Freihandelszone der Welt ist.

Die Ausgestaltung des gemeinsamen Marktes war Gegenstand mehrerer Einzelverhandlungen, die in den Phasen I und II geführt wurden.

Phase I umfasst die Verhandlungen zu drei Protokollen und ist nahezu abgeschlossen.

Das Protokoll über den Handel mit Waren

Dieses Protokoll sieht die Abschaffung von 90 % aller innerafrikanischen Zölle in allen Warenkategorien innerhalb von fünf Jahren nach Inkrafttreten vor. Davon können bis zu 7 % der Waren als sensible Waren eingestuft werden, für die ein Zeitraum von zehn Jahren für die Beseitigung der Zölle gilt. Für die am wenigsten entwickelten Länder (Least Developed Countries – LDCs) wird die Vorbereitungszeit von fünf auf zehn Jahre und für sensible Waren von zehn auf dreizehn Jahre verlängert, sofern sie ihren Bedarf nachweisen. Die restlichen 3 % der Zölle sind vollständig vom Zollabbau ausgenommen.

Voraussetzung für den Zollabbau ist die klare Abgrenzung der Ursprungsregeln. Andernfalls könnten Einfuhren aus Drittländern von den ausgehandelten Zollvorteilen profitieren. Über die meisten Ursprungsregeln ist bereits eine Einigung erzielt worden.

Das Protokoll über den Handel mit Dienstleistungen

Die AU-Generalversammlung hat sich bisher auf fünf Schwerpunktbereiche (Verkehr, Kommunikation, Tourismus, Finanz- und Unternehmensdienstleistungen) und Leitlinien für die entsprechenden Verpflichtungen geeinigt. 47 AU-Mitgliedsstaaten haben bereits ihre Angebote für spezifische Verpflichtungen vorgelegt und die Überprüfung von 28 von ihnen ist abgeschlossen. Darüber hinaus sind die Verhandlungen, beispielsweise über die Anerkennung von Berufsqualifikationen, noch nicht abgeschlossen.

Das Protokoll über die Streitbeilegung

Mit dem Protokoll über Regeln und Verfahren für die Streitbeilegung schafft das AfCFTA ein Streitbeilegungssystem nach dem Vorbild der WTO-Streitbeilegungsvereinbarung. Das Streitbeilegungsgremium (Dispute Settlement Body – DSB) verwaltet das AfCFTA-Streitbeilegungsprotokoll und setzt ein Schiedsgericht (Adjudicating Panel – Panel) und ein Berufungsgremium (Appellate Body – AB) ein. Das DSB setzt sich aus einem Vertreter jedes Mitgliedstaates zusammen und wird tätig, sobald es zwischen den Vertragsstaaten Meinungsverschiedenheiten über die Auslegung und/oder Anwendung des Abkommens in Bezug auf ihre Rechte und Pflichten gibt.

Für die verbleibende Phase II sind Verhandlungen über Investitions- und Wettbewerbspolitik, Fragen des geistigen Eigentums, Online-Handel sowie Frauen und Jugend im Handel geplant, deren Ergebnisse in weitere Protokolle einfließen werden.

Die Umsetzung des AfCFTA

Grundsätzlich kann der Handel im Rahmen eines Handelsabkommens erst dann beginnen, wenn der rechtliche Rahmen endgültig steht. Die Staats- und Regierungschefs der AU haben jedoch im Dezember 2020 vereinbart, dass der Handel mit solchen Waren, für die die Verhandlungen abgeschlossen sind, beginnen kann. Im Rahmen dieser Übergangsregelung fand nach einer pandemiebedingten Verschiebung am 4. Januar 2021 die erste AfCFTA-Handelsabwicklung von Ghana nach Südafrika statt.

Bausteine der AfCFTA

Alle 55 Mitglieder der AU waren an den AfCFTA-Verhandlungen beteiligt. Davon gehören 47 zu mindestens einer der anerkannten Regionalen Wirtschaftsgemeinschaften (Regional Economic Communities – RECs), die gemäß der Präambel des AfCFTA-Abkommens weiterhin als Bausteine des Handelsabkommens dienen sollen. Folglich waren es die RECs, welche bei den AfCFTA-Verhandlungen für ihre jeweiligen Mitglieder auftraten. Das AfCFTA-Abkommen sieht vor, dass die RECs ihre Rechtsinstrumente, Institutionen und Streitbeilegungsmechanismen beibehalten.

Innerhalb der AU gibt es acht anerkannte regionale Wirtschaftsgemeinschaften, die sich in einigen Ländern überschneiden und bei denen es sich entweder um präferenzielle Handelsabkommen (Freihandelsabkommen) oder Zollunionen handelt.

Im Rahmen der AfCFTA haben die RECs verschiedene Aufgaben. Diese sind insbesondere:

• Koordinierung der Verhandlungspositionen und Unterstützung der Mitgliedsstaaten bei der Umsetzung des Abkommens
• Lösungsorientierte Mediation bei Unstimmigkeiten zwischen den Mitgliedsstaaten
• Unterstützung der Mitgliedsstaaten bei der Harmonisierung von Zöllen und anderen Grenzschutzbestimmungen
• Förderung der Nutzung des AfCFTA-Meldeverfahrens zum Abbau von NTBs

Ausblick auf das AfCFTA

Das AfCFTA hat das Potenzial, die Integration Afrikas in die Weltwirtschaft zu erleichtern und schafft die reale Möglichkeit einer Neuausrichtung der internationalen Integrations- und Kooperationsmuster.

Ein Handelsabkommen allein ist noch keine Garantie für wirtschaftlichen Erfolg. Damit das Abkommen den prognostizierten Durchbruch erzielt, müssen die Mitgliedstaaten den politischen Willen haben, die neuen Regeln konsequent umzusetzen und die dafür notwendigen Kapazitäten zu schaffen. Insbesondere die kurzfristige Beseitigung von Handelshemmnissen und die Schaffung einer nachhaltigen physischen und digitalen Infrastruktur dürften entscheidend sein.

Wenn Sie sich für das AfCFTA interessieren, können Sie hier eine erweiterte Version dieses Artikels lesen.

Der Legalmondo African Desk

Mit unseren Experten in Ägypten, Marokko, Algerien, Tunesien, Libyen, Sudan, Kamerun, Côte d’Ivoire, Ghana, Senegal und Malawi unterstützen wir Unternehmen bei Investitionen und Geschäftsvorhaben in Afrika.

Ausländische Unternehmen in afrikanischen Ländern, in denen wir nicht direkt mit einem Büro vertreten sind, können wir auch über unser Netzwerk von lokalen Partnern unterstützen.

Wie es funktioniert

• Wir vereinbaren ein Treffen (persönlich oder online) mit einem unserer Experten, um die Bedürfnisse des Mandanten zu verstehen.
• Sobald wir die Zusammenarbeit aufgenommen haben, begleiten wir den Mandanten mit einem Rechtsanwalt bei all seinen rechtlichen Angelegenheiten (einzelne Fälle oder laufende rechtliche Unterstützung)

Nehmen Sie Kontakt auf, um mehr zu erfahren.

Zusammenfassung

Anhand der Geschichte von Nike, die sich aus der Biografie des Gründers Phil Knight ableitet, lassen sich einige Lehren  für internationale Vertriebsverträge ziehen: Wie man den Vertrag aushandelt, die Vertragsdauer festlegt, die Exklusivität und die Geschäftsziele definiert und die richtige Art der Streitschlichtung bestimmt.

Worüber ich in diesem Artikel spreche

• Der Streit zwischen Blue Ribbon und Onitsuka Tiger und die Geburt von Nike
• Wie man eine internationale Vertriebsvereinbarung aushandelt
• Vertragliche Exklusivität in einer Handelsvertriebsvereinbarung
• Mindestumsatzklauseln in Vertriebsverträgen
• Vertragsdauer  und Kündigungsfrist
• Eigentum an Marken in Handelsverträgen
• Die Bedeutung der Mediation bei internationalen Handelsverträgen
• Streitbeilegungsklauseln in internationalen Verträgen
• Wie wir Ihnen helfen können

Der Streit zwischen Blue Ribbon und Onitsuka Tiger und die Geburt von Nike

Warum ist die berühmteste Sportbekleidungsmarke der Welt Nike und nicht Onitsuka Tiger?
Die Biographie des Nike-Schöpfers Phil Knight mit dem Titel “Shoe Dog” gibt hierauf antworten und ist nicht nur für Liebhaber des Genres eine absolut empfehlenswerte Lektüre.

Bewegt von seiner Leidenschaft für den Laufsport und seiner Intuition, dass es auf dem amerikanischen Sportschuhmarkt, der damals von Adidas dominiert wurde, eine Lücke gab, importierte Knight 1964 als erster überhaupt eine japanische Sportschuhmarke, Onitsuka Tiger, in die USA.  Mit diesen Sportschuhen konnte sich Knight innerhalb von 6 Jahren einen Marktanteil von satten 70 % sichern.

Das von Knight und seinem ehemaligen College-Trainer Bill Bowerman gegründete Unternehmen hieß damals noch Blue Ribbon Sports.

Die Geschäftsbeziehung zwischen Blue Ribbon-Nike und dem japanischen Hersteller Onitsuka Tiger  gestaltete sich trotz der sehr guten Verkaufszahlen und den postiven Wachstumsaussichten von  Beginn an als sehr turbulent.

Als Knight dann kurz nach der Vertragsverlängerung mit dem japanischen Hersteller erfuhr, dass Onitsuka in den USA nach einem anderen Vertriebspartner Ausschau hielt , beschloss Knight  – aus Angst, vom Markt ausgeschlossen zu  werden –  sich seinerseits mit einem anderen japanischen Lieferanten zusammenzutun und seine eigene Marke zu gründen. Damit war die spätere Weltmarke Nike geboren.

Als der japanische Hersteller Onitsuka von dem Nike-Projekt erfuhr, verklagte dieser  Blue Ribbon wegen  Verstoß gegen das Wettbewerbsverbot,  welches dem Vertriebshändler die Einfuhr anderer in Japan hergestellter Produkte untersagte, und beendete die Geschäftsbeziehung mit sofortiger Wirkung.

Blue Ribbon führte hiergegen an, dass der Verstoß von dem Hersteller Onitsuka Tiger ausging, der  sich bereits als der Vertrag noch in Kraft war und die Geschäfte mehr als gut liefen mit anderen potenziellen Vertriebshändlern getroffen hatte.

Diese Auseinandersetzung führte zu zwei Gerichtsverfahren, eines in Japan und eines in den USA, die der Geschichte von Nike ein vorzeitiges Ende hätten setzen können.

Zum Glück (für Nike) entschied der amerikanische Richter zu Gunsten des Händlers und der Streit wurde mit einem Vergleich beendet: Damit begann für Nike die Reise, die sie 15 Jahre später zur wichtigsten Sportartikelmarke der Welt machen sollte.

Wir werden sehen, was uns die Geschichte von Nike lehrt und welche Fehler bei einem internationalen Vertriebsvertrag tunlichst vermieden werden sollten.

Wie verhandelt man eine internationale Handelsvertriebsvereinbarung?

In seiner Biografie schreibt Knight, dass er bald bedauerte, die Zukunft seines Unternehmens an eine eilig verfasste, wenige Zeilen umfassende Handelsvereinbarung gebunden zu haben, die am Ende einer Sitzung zur Aushandlung der Erneuerung des Vertriebsvertrags geschlossen wurde.

Was beinhaltete diese Vereinbarung?

Die Vereinbarung sah lediglich die Verlängerung des Rechts von Blue Ribbon vor, die Produkte in den USA exklusiv zu vertreiben, und zwar für weitere drei Jahre.

In der Praxis kommt es  häufig vor, dass sich internationale Vertriebsverträge auf mündliche Vereinbarungen oder sehr einfache Vertragswerke mit kurzer Dauer beschränken. Die übliche Erklärung dafür ist, dass es auf diese Weise möglich ist, die Geschäftsbeziehung zu testen, ohne die vertragliche Bindung zu eng werden zu lassen.

Diese Art, Geschäfte zu machen, ist jedoch nicht zu empfehlen  und kann sogar gefährlich werden: Ein  Vertrag sollte niemals  als Last oder Zwang angesehen werden, sondern als Garantie für die Rechte beider Parteien. Einen schriftlichen Vertrag nicht oder nur sehr übereilt abzuschließen, bedeutet, grundlegende Elemente der künftigen Beziehung, wie die, die zum Streit zwischen Blue Ribbon und Onitsuka Tiger führten, ohne klare Vereinbarungen zu belassen: Hierzu gehören Aspekte wie Handelsziele, Investitionen, das Eigentum an Marken – um nur einige zu benennen.

Handelt es sich zudem um einen internationalen Vertrag, ist die Notwendigkeit einer vollständigen und ausgewogenen Vereinbarung noch größer, da in Ermangelung von Vereinbarungen zwischen den Parteien oder in Ergänzung zu diesen Vereinbarungen ein Recht zur Anwendung kommt, mit dem eine der Parteien nicht vertraut ist, d. h. im Allgemeinen das Recht des Landes, in dem der Händler seinen Sitz hat.

Auch wenn Sie sich nicht in einer Blue-Ribbon-Situation befinden, in der es sich um einen Vertrag handelt, von dem die Existenz des Unternehmens abhängt, sollten internationale Verträge stets mit Hilfe eines fachkundigen Anwalts besprochen und ausgehandelt werden, der das auf den Vertrag anwendbare Recht kennt und dem Unternehmer helfen kann, die wichtigen Vertragsklauseln zu ermitteln und auszuhandeln.

Territoriale Exklusivität, kommerzielle Ziele und Mindestumsatzziele

Anlass für den Konflikt zwischen Blue Ribbon und Onitsuka Tiger war zunächst einmal die Bewertung der Absatzentwicklung auf dem US-Markt.

Onitsuka argumentierte, dass der Umsatz unter dem Potenzial des US-Marktes liege, während nach Angaben von Blue Ribbon die Verkaufsentwicklung sehr positiv sei, da sich der Umsatz bis zu diesem Zeitpunkt jedes Jahr verdoppelt habe und ein bedeutender Anteil des Marktsektors erobert worden sei.

Als Blue Ribbon erfuhr, dass Onituska andere Kandidaten für den Vertrieb seiner Produkte in den USA prüfte, und befürchtete, damit bald vom Markt verdrängt zu werden , bereitete Blue Ribbon die Marke Nike als Plan B vor: Als der  japanische Hersteller diese Marke entdeckte , kam es zu einem Rechtsstreit zwischen den Parteien, der zu einem Eklat führte.

Der Streit hätte vielleicht vermieden werden können, wenn sich die Parteien auf kommerzielle Ziele geeinigt hätten und der Vertrag eine in Alleinvertriebsvereinbarungen übliche Klausel enthalten hätte, d.h. ein Mindestabsatzziel für den Vertriebshändler.

In einer Alleinvertriebsvereinbarung gewährt der Hersteller dem Händler einen starken Gebietsschutz für die Investitionen, die der Händler zur Erschließung des zugewiesenen Marktes tätigt.

Um dieses  Zugeständnis der Exklusivität auszugleichen, ist es üblich, dass der Hersteller vom Vertriebshändler einen so genannten garantierten Mindestumsatz oder ein Mindestziel verlangt, das der Vertriebshändler jedes Jahr erreichen muss, um den ihm gewährten privilegierten Status zu behalten.

Für den Fall, dass das Mindestziel nicht erreicht wird, sieht der Vertrag dann in der Regel vor, dass der Hersteller das Recht hat, vom Vertrag zurückzutreten (bei einem unbefristeten Vertrag) oder den Vertrag nicht zu verlängern (bei einem befristeten Vertrag) oder aber auch die Gebietsexklusivität aufzuheben bzw.  einzuschränken.

Der Vertrag zwischen Blue Ribbon und Onitsuka Tiger sah derartige  Zielvorgaben nicht vor – und das nachdem er gerade erst um drei Jahre verlängert wurde. Hinzukam, dass sich die Parteien bei der Bewertung der Ergebnisse des Vertriebshändlers nicht einig waren. Es stellt sich daher die Frage: Wie können in einem Mehrjahresvertrag Mindestumsatzziele vorgesehen werden?

In Ermangelung zuverlässiger Daten verlassen sich die Parteien häufig auf vorher festgelegte prozentuale Erhöhungsmechanismen: + 10 % im zweiten Jahr, + 30 % im dritten Jahr, + 50 % im vierten Jahr und so weiter.

Das Problem bei diesem Automatismus ist, dass dadurch  Zielvorgaben vereinbart werden, die nicht auf tatsächlichen Daten über die künftige Entwicklung der Produktverkäufe, der Verkäufe der Wettbewerber und des Marktes im Allgemeinen basieren , und die daher sehr weit von den aktuellen Absatzmöglichkeiten des Händlers entfernt sein können.

So wäre beispielsweise die Anfechtung des Vertriebsunternehmens wegen Nichterfüllung der Zielvorgaben für das zweite oder dritte Jahr in einer rezessiven Wirtschaft sicherlich eine fragwürdige Entscheidung, die wahrscheinlich zu Meinungsverschiedenheiten führen würde.

Besser wäre eine Klausel, mit der Ziele von Jahr zu Jahr einvernehmlich festgelegt werden. Diese besagt, dass die Ziele zwischen den Parteien unter Berücksichtigung der Umsatzentwicklung in den vorangegangenen Monaten und mit einer gewissen Vorlaufzeit vor Ende des laufenden Jahres vereinbart werden.  Für den Fall, dass keine Einigung über die neue Zielvorgabe zustande kommt, kann der Vertrag vorsehen, dass die Zielvorgabe des Vorjahres angewandt wird oder dass die Parteien das Recht haben, den Vertrag unter Einhaltung einer bestimmten Kündigungsfrist zu kündigen.

Andererseits kann die Zielvorgabe auch als Anreiz für den Vertriebshändler dienen: So kann z. B. vorgesehen werden, dass bei Erreichen eines bestimmten Umsatzes die Vereinbarung erneuert, die Gebietsexklusivität verlängert oder ein bestimmter kommerzieller Ausgleich für das folgende Jahr gewährt wird.

Eine letzte Empfehlung ist die korrekte Handhabung der Mindestzielklausel, sofern sie im Vertrag enthalten ist: Es kommt häufig vor, dass der Hersteller die Erreichung des Ziels für ein bestimmtes Jahr bestreitet, nachdem die Jahresziele über einen langen Zeitraum hinweg nicht erreicht oder nicht aktualisiert wurden, ohne dass dies irgendwelche Konsequenzen hatte.

In solchen Fällen ist es möglich, dass der Händler behauptet, dass ein impliziter Verzicht auf diesen vertraglichen Schutz vorliegt und der Widerruf daher nicht gültig ist: Um Streitigkeiten zu diesem Thema zu vermeiden, ist es ratsam, in der Mindestzielklausel ausdrücklich vorzusehen, dass die unterbliebene Anfechtung des Nichterreichens des Ziels während eines bestimmten Zeitraums nicht bedeutet, dass auf das Recht, die Klausel in Zukunft zu aktivieren, verzichtet wird.

Die Kündigungsfrist für die Beendigung eines internationalen Vertriebsvertrags

Der andere Streitpunkt zwischen den Parteien war die Verletzung eines Wettbewerbsverbots: Blue Ribbon verkaufte die Marke Nike , obwohl der Vertrag den Verkauf anderer in Japan hergestellter Schuhe untersagte.

Onitsuka Tiger behauptete, Blue Ribbon habe gegen das Wettbewerbsverbot verstoßen, während der Händler die Ansicht vertrat , dass er angesichts der bevorstehenden Entscheidung des Herstellers, die Vereinbarung zu kündigen, keine andere Wahl hatte.

Diese Art von Streitigkeiten kann vermieden werden, indem für die Beendigung (oder Nichtverlängerung) eine klare Kündigungsfrist festgelegt wird: Diese Frist hat die grundlegende Funktion, den Parteien die Möglichkeit zu geben, sich auf die Beendigung der Beziehung vorzubereiten und ihre Aktivitäten nach der Beendigung neu zu organisieren.

Um insbesondere Streitigkeiten wie die zwischen Blue Ribbon und Onitsuka Tiger zu vermeiden, kann in einem internationalen Vertriebsvertrag vorgesehen werden, dass die Parteien während  der Kündigungsfristmit anderen potenziellen Vertriebshändlern und Herstellern in Kontakt treten können und dass dies nicht gegen die Ausschließlichkeits- und Wettbewerbsverpflichtungen verstößt.

Im Fall von Blue Ribbon war der Händler über die bloße Suche nach einem anderen Lieferanten hinaus sogar noch einen Schritt weiter gegangen, da er begonnen hatte, Nike-Produkte zu verkaufen, während der Vertrag mit Onitsuka noch gültig war. Dieses Verhalten stellt einen schweren Verstoß gegen  die getroffene Ausschließlichkeitsvereinbarung dar.

Ein besonderer Aspekt, der bei der Kündigungsfrist zu berücksichtigen ist, ist die Dauer: Wie lang muss die Kündigungsfrist sein, um als fair zu gelten? Bei langjährigen Geschäftsbeziehungen ist es wichtig, der anderen Partei genügend Zeit einzuräumen, um sich auf dem Markt neu zu positionieren, nach alternativen Vertriebshändlern oder Lieferanten zu suchen oder (wie im Fall von Blue Ribbon/Nike) eine eigene Marke zu schaffen und einzuführen.

Ein weiteres Element, das bei der Mitteilung der Kündigung zu berücksichtigen ist, besteht darin, dass die Kündigungsfrist so bemessen sein muss, dass der Vertriebshändler die zur Erfüllung seiner Verpflichtungen während der Vertragslaufzeit getätigten Investitionen amortisieren kann; im Fall von Blue Ribbon hatte der Vertriebshändler auf ausdrücklichen Wunsch des Herstellers eine Reihe von Einmarkengeschäften sowohl an der West- als auch an der Ostküste der USA eröffnet.

Eine Kündigung des Vertrags kurz nach seiner Verlängerung und mit einer zu kurzen Vorankündigung hätte es dem Vertriebshändler nicht erlaubt, das Vertriebsnetz mit einem Ersatzprodukt neu zu organisieren, was die Schließung der Geschäfte, die die japanischen Schuhe bis zu diesem Zeitpunkt verkauft hatten, erzwungen hätte.

Im Allgemeinen ist es ratsam, eine Kündigungsfrist von mindestens 6 Monaten vorzusehen. Bei internationalen Vertriebsverträgen sollten jedoch neben den von den Parteien getätigten Investitionen auch etwaige spezifische Bestimmungen des auf den Vertrag anwendbaren Rechts (hier z. B. eine eingehende Analyse der plötzlichen Kündigung von Verträgen in Frankreich) oder die Rechtsprechung zum Thema Rücktritt von Geschäftsbeziehungen beachtet werden (in einigen Fällen kann die für einen langfristigen Vertriebskonzessionsvertrag als angemessen erachtete Frist 24 Monate betragen).

Schließlich ist es normal, dass der Händler zum Zeitpunkt des Vertragsabschlusses noch im Besitz von Produktvorräten ist: Dies kann problematisch sein, da der Händler in der Regel die Vorräte auflösen möchte (Blitzverkäufe oder Verkäufe über Internetkanäle mit starken Rabatten), was der Geschäftspolitik des Herstellers und der neuen Händler zuwiderlaufen kann.

Um diese Art von Situation zu vermeiden, kann in den Vertriebsvertrag eine Klausel aufgenommen werden, die das Recht des Herstellers auf Rückkauf der vorhandenen Bestände bei Vertragsende regelt, wobei der Rückkaufpreis bereits festgelegt ist (z. B. in Höhe des Verkaufspreises an den Händler für Produkte der laufenden Saison, mit einem Abschlag von 30 % für Produkte der vorangegangenen Saison und mit einem höheren Abschlag für Produkte, die mehr als 24 Monate zuvor verkauft wurden).

Markeninhaberschaft in einer internationalen Vertriebsvereinbarung

Im Laufe der Vertriebsbeziehung hatte Blue Ribbon eine neuartige Sohle für Laufschuhe entwickelt und die Marken Cortez und Boston für die Spitzenmodelle der Kollektion geprägt, die beim Publikum sehr erfolgreich waren und große Popularität erlangten: Bei Vertragsende beanspruchten nun beide Parteien das Eigentum an den Marken.

Derartige Situationen treten häufig in internationalen Vertriebsbeziehungen auf: Der Händler lässt die Marke des Herstellers in dem Land, in dem er tätig ist, registrieren, um Konkurrenten daran zu hindern, dies zu tun, und um die Marke im Falle des Verkaufs gefälschter Produkte schützen zu können; oder es kommt vor, dass der Händler, wie in dem hier behandelten Streitfall, an der Schaffung neuer, für seinen Markt bestimmter Marken mitwirkt.

Am Ende der Geschäftsbeeziehung, wenn keine klare Vereinbarung zwischen den Parteien vorliegt, kann es zu einem Streit wie im Fall Nike kommen: Wer ist der Eigentümer der Marke – der Hersteller oder der Händler?

Um Missverständnisse zu vermeiden, ist es ratsam, die Marke in allen Ländern zu registrieren, in denen die Produkte vertrieben werden, und nicht nur dort: Im Falle Chinas zum Beispiel ist es ratsam, die Marke auch dann zu registrieren, wenn sie dort nicht vertreiben wird, um zu verhindern, dass Dritte die Marke in böser Absicht übernehmen (weitere Informationen finden Sie in diesem Beitrag auf Legalmondo).

Es ist auch ratsam, in den Vertriebsvertrag eine Klausel aufzunehmen, die dem Händler die Eintragung der Marke (oder ähnlicher Marken) in dem Land, in dem er tätig ist, untersagt und dem Hersteller ausdrücklich das Recht einräumt, die Übertragung der Marke zu verlangen, falls dies dennoch geschieht.

Eine solche Klausel hätte die Entstehung des Rechtsstreits zwischen Blue Ribbon und Onitsuka Tiger verhindert.

Der von uns geschilderte Sachverhalt stammt aus dem Jahr 1976: Heutzutage ist es ratsam, im Vertrag nicht nur die Eigentumsverhältnisse an der Marke und die Art und Weise der Nutzung durch den Händler und sein Vertriebsnetz zu klären, sondern auch die Nutzung der Marke wie auch der Unterscheidungszeichen des Herstellers in den Kommunikationskanälen, insbesondere in den sozialen Medien, zu regeln.

Es ist ratsam, eindeutig festzulegen, dass niemand anderes als der Hersteller Eigentümer der Social-Media-Profile wie auch der erstellten Inhalte und der Daten ist, die durch die Verkaufs-, Marketing- und Kommunikationsaktivitäten in dem Land, in dem der Händler tätig ist, generiert werden, und dass er nur die Lizenz hat, diese gemäß den Anweisungen des Eigentümers zu nutzen.

Darüber hinaus ist es sinnvoll, in der Vereinbarung festzulegen, wie die Marke verwendet wird und welche Kommunikations- und Verkaufsförderungsmaßnahmen auf dem Markt ergriffen werden, um Initiativen zu vermeiden, die negative oder kontraproduktive Auswirkungen haben könnten.

Die Klausel kann auch durch die Festlegung von Vertragsstrafen für den Fall verstärkt werden, dass sich der Händler bei Vertragsende weigert, die Kontrolle über die digitalen Kanäle und die im Rahmen der Geschäftstätigkeit erzeugten Daten zu übertragen.

Mediation in internationalen Handelsverträgen

Ein weiterer interessanter Punkt, der sich am  Fall Blue Ribbon vs. Onitsuka Tiger erläutern lässt , steht im Zusammenhang mit der Bewältigung von Konflikten in internationalen Vertriebsbeziehungen: Situationen wie die, die wir gesehen haben, können durch den Einsatz von Mediation effektiv gelöst werden.

Dabei handelt es sich um einen Schlichtungsversuch, mit dem ein spezialisiertes Gremium oder ein Mediator betraut wird, um eine gütliche Einigung zu erzielen und ein Gerichtsverfahren zu vermeiden.

Die Mediation kann im Vertrag als erster Schritt vor einem eventuellen Gerichts- oder Schiedsverfahren vorgesehen sein oder sie kann freiwillig im Rahmen eines bereits laufenden Gerichts- oder Schiedsverfahrens eingeleitet werden.

Die Vorteile sind vielfältig: Der wichtigste ist die Möglichkeit, eine wirtschaftliche  Lösung zu finden, die die Fortsetzung der Beziehung ermöglicht, anstatt nur nach Wegen zur Beendigung der Geschäftsbeziehung zwischen den Parteien zu suchen.

Ein weiterer interessanter Aspekt der Mediation ist die Überwindung von persönlichen Konflikten: Im Fall Blue Ribbon vs. Onitsuka zum Beispiel war ein entscheidendes Element für die Eskalation der Probleme zwischen den Parteien die schwierige persönliche Beziehung zwischen dem CEO von Blue Ribbon und dem Exportmanager des japanischen Herstellers, die durch starke kulturelle Unterschiede verschärft wurde.

Der Mediationsprozess führt eine dritte Person ein, die in der Lage ist, einen Dialog mit den Parteien zu führen und sie bei der Suche nach Lösungen von gegenseitigem Interesse zu unterstützen, was entscheidend sein kann, um Kommunikationsprobleme oder persönliche Feindseligkeiten zu überwinden.

Für alle, die sich für dieses Thema interessieren, verweisen wir auf den hierzu verfassten  Beitrag auf Legalmondo sowie  auf die Aufzeichnung eines kürzlich durchgeführten Webinars zur Mediation internationaler Konflikte.

Streitbeilegungsklauseln in internationalen Vertriebsvereinbarungen

Der Streit zwischen Blue Ribbon und Onitsuka Tiger führte dazu, dass die Parteien zwei parallele Gerichtsverfahren einleiteten, eines in den USA (durch den  Händler) und eines in Japan (durch den  Hersteller).

Dies war nur deshalb  möglich, weil der Vertrag nicht ausdrücklich vorsah, wie etwaige künftige Streitigkeiten beigelegt werden sollten.  In der Konsequenz führte dies zu einer prozessual sehr komplizierten Situation mit gleich zwei gerichtlichen Fronten in verschiedenen Ländern.

Die Klauseln, die festlegen, welches Recht auf einen Vertrag anwendbar ist und wie Streitigkeiten beigelegt werden, werden in der Praxis als „Mitternachtsklauseln“ bezeichnet, da sie oft die letzten Klauseln im Vertrag sind, die spät in der Nacht ausgehandelt werden.

Es handelt sich hierbei  um sehr wichtige Klauseln, die bewusst gewählt  werden müssen, um unwirksame oder kontraproduktive Lösungen zu vermeiden.

Wie wir Ihnen helfen können

Der Abschluss eines internationalen Handelsvertriebsvertrags ist eine wichtige Investition, denn er regelt die vertragliche Beziehungen zwischen den Parteien verbindlich für die Zukunft  und gibt ihnen die Instrumente an die Hand, um alle Situationen zu bewältigen, die sich aus der künftigen Zusammenarbeit ergeben werden.

Es ist nicht nur wichtig, eine korrekte, vollständige und ausgewogene Vereinbarung auszuhandeln und abzuschließen, sondern auch zu wissen, wie sie im Laufe der Jahre zu handhaben ist, vor allem, wenn Konfliktsituationen auftreten.

Legalmondo bietet Ihnen die Möglichkeit, mit Anwälten zusammenzuarbeiten, die in mehr als 50 Ländern Erfahrung im internationalen Handelsvertrieb haben:  Bei bestehendem Beratungsbedarf schreiben Sie uns.

Article 442-1.II of the French Commercial Code (former Article L. 442-6.I.5 °) sanctions the termination by a trader of a written contract or an informal business relationship without giving sufficient written prior notice. Over the last twenty years, this article became the recurring legal basis for all compensation actions (up to 18 months of gross margin, plus other damages) when a commercial relationship or a contract ends (totally or even partially).

Therefore, a foreign trader who contracts with a French company should try not to fall under the aegis of this rule (part I) and, if it cannot, should understand and control its implementation (part II).

In a nutshell:

How can a foreign company avoid or control the risk linked to the „sudden termination of commercial relations“ set by French law? Foreign companies doing business with a French counterpart should:

– enter, as soon as possible, into a written (frame) agreement with their French suppliers or customers, even for a very simple relation and;

– stipulate a clause in favour of foreign court or arbitration and foreign applicable law while, failing to choose it, they would rather be subject to French courts and laws;

How can a foreign company master the risk linked to the „sudden termination of commercial relations“ set by French law? Foreign companies doing business with a French counterpart should:

• know that this article applies to almost all type of commercial relationship or contracts, whether written or not, fixed-term or not;
• check whether its relation/contract is sufficiently long, regular and significant and whether the other party has a legitimate belief in the continuation of this relation/contract;
• give a written notice of termination or non-renewal (or even of a major modification), which length takes mainly into account the duration of the relation, irrespectively of the length of the contractual notice;
• invoke, with cautiousness, force majeure and gross negligence of the party, to set aside “sudden termination”;
• anticipate, in case of insufficient notice, a compensation which amount is the product of the average monthly gross margin per the length of non-granted prior notice.

How to avoid the application of the French “Sudden Termination” rule?

In international matters, a foreign company must anticipate whether its relationship will be subject or not to French law before terminating a contract or a business relationship and, in case of dispute, whether it will be brought before a French court or not.

What will be the law applicable to “Sudden Termination”?

It is quite difficult for a foreign company to correctly grasp the French legal framework of conflict of laws rules applicable to “sudden termination”. In a ruling of September 19, 2018 (RG 16/05579, DES/ Clarins), the Court of appeal of Paris made, by an implicit reference to the Granarolo EU ruling (07 14 16, N°C196/15) an extension of the contractual qualification to most of the business relationships which will improve foreseeability in order for a foreign company to try to exclude French law and its “sudden termination” rule.

Sudden termination of a written contract or of a „tacit contractual relationship”

According to Rome I Regulation (EC No 593/2008, June 17 2008) on the law applicable to contracts:

– In case of choice of a foreign law by the parties: The clause selecting a foreign applicable law will be valid and respected by French judges (subject to OMR, see below), provided that the choice of law by the parties is express or certain.

– In case of no choice by the parties: French law will likely to be declared applicable as it might be either the law of the country where is based the distributor/franchisee, etc. or the law of the country where the party who is to provide the service features of the contract has its domicile.

Sudden termination of a “non-tacit contractual relationship”

In case of informal relationship (i.e. orders placed from time to time), French judges would retain the tort qualification and will refer to the Rome II Regulation (No 864/2007, July 11 2007) on the law applicable to non-contractual obligations..

– In case of choice of a foreign law by the parties: a properly drafted choice of foreign law clause should be implemented by a French judge, provided that it expressly includes tort cases.

– In case of no choice of law by the parties: French law will likely to be declared applicable as it might be the law of the country where the damage occurs (regardless of the place of the causing event or that of the indirect consequences), which is the place of the head office where the French victim suffers the consequences of the termination.

“Sudden Termination” rule, a French Overriding Mandatory Rule?

The position of French courts is quite vague and unsatisfactory, and this has been the case for a long time. To make it short: the Commercial Court of Paris judges that “sudden termination” is not an OMR, the Court of appeal of Paris (sole French appellate court in charge of “sudden termination” cases) is also not in favour of the OMR qualification on the grounds that the text „protects purely private economic interests“ (CA Paris, pôle 5, ch. 5, Feb 28. 2019, n° 17/16475 / CA Paris, pôle 5, ch. 5, Oct 8. 2020, n°17/19893). Recently, the Paris Court of Appeal reaffirmed that the rules on sudden termination of established commercial relations are not an OMR (Court of appeal Paris, March 11, 2021, n° 18/03112).

The French Supreme Court has never explicitly addressed the issue (OMR or not OMR). Indeed, the French Supreme Court ruled in the Expedia case (Cass. com., July 8, 2020, n°17-31.536) that the provisions of the former article L. 442-6, I, 2º and II, d), about “significant imbalance” (which is in the same set of rules than “Sudden termination”) are OMR. However, this qualification should be limited to the specific action brought by the Ministry of Finance and not be applicable to an action by a private party. Moreover, some courts may be tempted to invoke the provisions of French law n°2023-221 (March 30, 2023, aka Egalim III) to qualify Sudden termination rule as an OMR, however this text (article L 444-1.A Commercial code) does not quote expressly OMR and set no justification whatsoever to set such a qualification.

Consequently, if a claim for “sudden termination” is brought to a French court, there is still a  risk that the latter would exclude the applicable foreign law and replace it with the regime resulting from the „sudden termination“ of Article L 442-1. II. However, to avoid this risk, a foreign company would better not only choose a foreign governing law but also stipulate that the dispute will be brought before a foreign judge or an arbitral tribunal.

How to avoid jurisdiction of French court over a “Sudden Termination” claim?

“Sudden Termination” claim and intra EU co-contractor

The ECJ ruling (Granarolo, July 14, 2016, N°C196/15) created a distinction between claims occurring from:

– written framework contract or tacit contractual relationship (existing only if the body of evidences listed by the ECJ are identified by national judges, i.e. length of relation and commitments recognized to each other, such as exclusivity, special price or terms of delivery or payment, non-competition, etc.): such claim has a contractual nature according to conflict of jurisdiction rules under Brussels I recast Regulation;

– informal relationship which is a non–tacit contractual relationship (i.e. orders placed from time to time): such a request has a tort nature under Brussels I recast ;

To be noted: the so-called Egalim III law has no impact on the EU rules on jurisdiction clauses.

(a) Who is the Judge of the “sudden termination” of a written contract or of a „tacit contractual relationship”?

– Jurisdiction clause for the benefit of a foreign court will be enforced by French courts, even though it is an asymmetrical clause (Court of cassation, October 7, 2015, Ebizcuss.com / Apple Sales International).

– In case of lack of choice of court clause, French courts are likely to have jurisdiction if the French claimant bringing a case based on “sudden termination» is the service provider, such as distributor, agent, etc. (see ECJ Corman Collins case, 19 12 13, C-9/12, and article 7.1.b.2 of Brussels I recast°).

(b) Who is the Judge of the “sudden termination” of a „non- tacit contractual relationship”?

– We believe that French courts may continue to give effect to a jurisdiction clause in tort case, especially when it expressly encompasses tort litigation (Court of cassation, 1° Ch. Civ., January 18, 2017, n° 15-26105, Riviera Motors / Aston Martin Lagonda Ltd).

– In case of lack of choice of court clause, French courts will have jurisdiction over a “sudden termination” claim as the judge of the place where the harmful event occurred (art. 7.3 of Brussels I recast), which is the place where the sudden termination has effect…i.e. in France if the French company is the victim.

“Sudden Termination” claim and Non-EU co-contractor

The Granarolo solution will not ipso facto apply if a French victim brings a claim to French courts, based on a „sudden termination“ made by a non-EU company. In non-EU relations, French judges could continue to retain only the tort qualification. In such a case, French courts may keep their jurisdiction based on the place where the harmful event occurs.

Jurisdiction clause to a foreign court may be recognized in France (even for tort-based claims), provided that this jurisdiction clause is valid according to either a bilateral international convention or to the Hague Convention of 30 June 2005 on choice of court agreements. Otherwise, according to Egalim III law, imperative jurisdiction might be attributable to French courts.

“Sudden Termination” claim and arbitration

Stipulating an ad hoc or institutional arbitration clause is probably the safest solution to avoid the jurisdiction of French courts. Ideally, the clause will fix the seat of the arbitral tribunal outside France. According to the principle of competence-competence of the arbitrators, French courts declare themselves incompetent, unless the arbitration clause is manifestly void or manifestly inapplicable, regardless of contract or tort ground (see, in particular, Paris Court of Appeal, 5 September 2019, n°17/03703). The so-called “Egalim III” law has no impact on arbitration clauses.

Conclusion: Foreign companies should not leave open the Jurisdiction and governing Law issues. They must negotiate a safe harbour, otherwise a French victim of a termination will likely to be entitled to bring a “sudden termination” claim in front of French judges (see what happen below in Part 2)

How to master the “Sudden Termination” French rules?

When French law is applicable, the foreign company will face the legal regime of article L442 -1.II of the French Commercial Code sanctioning “sudden termination”. As a preliminary remark, it is important to know, above all, that the implementation of the liability for „sudden termination“ is the consequence of the lack of a notice or a too short notice. Thus, this scheme does not lay down an automatic compensation rule. In other words, as soon as reasonable notice is given by the author of the termination, liability on that basis can be dismissed.

The prerequisite for “Sudden Termination”: an established commercial relationship

All contracts are covered by this legal regime, except for contracts whose regulations provide for a specific notice of termination, like commercial agency contracts and transport of goods by road subcontracts.

First, there must be a relationship that can be proven by a written contract or de facto, by behaviour of the parties. Article L.442-1 II of the French Commercial Code covers all “commercial” relationships and not only “contractual ones so that such relationship may be based on a succession of tacitly renewed contracts or a regular flow of business, materialized by multiple orders. This was recently recalled by the Supreme Court (Supreme Court, February 16, 2022, n° 20-18.844)

Second, this relationship must have an established character. There is no legal definition, but this notion has been defined year after year by case law which has established an objective criterion and a more subjective one.

(a) The objective criterion implies a sufficiently long, regular and significant relationship between the two parties. The duration of the relationship is the most important criterion. The relationship must also be regular, that is, it must not have been interrupted (too often or too long). The relationship must ultimately be meaningful and represent a serious flow of business between the parties, in volume or value.

(b) The subjective test focuses primarily on the legitimate belief of the victim of the rupture in the continuation of the contract / the relationship that is based on factual elements, such as investment requests, budgets over several years, etc. Conversely, it is on the basis of the finding of a lack of legitimate belief in a common future that the terminating party can prove the absence of a stable character when he has resorted, on several occasions, a call for tenders (unless it is a trick).

Anticipating a “Sudden Termination” claim

(a) The termination may be total or partial

The total rupture is materialized by a complete stop of the relations, for example ending the contract, stopping the sending of orders by the purchaser or the recording of orders by the supplier.

The Supreme Court recently recalled that a significant drop in sales with a partner must be considered as a partial rupture of the relationship (February 16, 2022, n° 20-18.844, cited above). But the most complicated situation to deal with is the so-called partial rupture that will be deduced from a modification of elements that partly impacts the relationship but does not reduce it to nothing (ex.: a price increase or decrease, a change in the terms of payment or delivery).

(b) The termination must be subject to a reasonable written prior notice

The notice must be notified in writing. The absence of written notice is already a breach in itself. The notification must clearly reflect the willingness of a party to sever the relationship in whole or in part, which must be clearly identified. The notification must also clearly identify the date on which the relationship will end.

Thus, an ambiguity on the notice period (e.g if the termination of an agreement is notified, whilst offering to maintain certain prices and payment terms, in the meantime) is considered as an insufficient termination notice (French Supreme Court, January 29, 2013, n° 11-23.676).

Parties must distinguish between the letter of formal notice for default and the subsequent notification of the breach, giving notice (if applicable). During the period of notice, parties must fully comply with all contractual conditions.

This principle also applies to distribution contracts subject to specific French rules imposing annual or multi-year negotiation obligations. In fact, the Court of cassation has ruled that „when the conditions of the commercial relationship established between the parties are subject to annual negotiation, modifications made during the notice period which are not so substantial as to undermine its effectiveness do not constitute a brutal breach of that relationship“ (Cass. com., Dec. 7, 2022, n° 19-22.538).

However, it’s not necessary to mention the reasons why the commercial relationship is terminated is not a fault or breach of the relationship. In fact, French courts consider that “the fact that the given reason to terminate was false does not in any way present the terminating party from terminating the commercial relationship” (Versailles Court of Appeal, June 10, 1999).

The duration of the prior notice to be respected is not defined by French law which did not pose precise rule until the reform 2019. If several criteria are stated by case law, it should be noted that the most important criterion is the duration of the relationship. Judges also take into account the share of turnover achieved by the victim, the existence or not of a territorial exclusivity, the nature of the products and the sector of activity, the importance of the investments made by the victim especially to the relationship in question, and finally the state of economic dependence. Economic dependence is defined as the impossibility for a company to have a solution that is technically and economically equivalent to the contractual relations it has established with another company. Case law considers this to be an aggravating factor justifying a longer termination notice.

The minimum notice period must be notified at the time of notification of termination. As a consequence, events that affect the victim after the notification, both positively (conclusion of a new contract) and negatively (loss of another custome), will not be taken into account by the judge, at the time of ruling, when assessing the “brutality” of the termination.

The length of the notice given by the judges is very variable. The appreciation of notice is made on a case-by-case basis. It is very difficult to give a golden rule, even though roughly for each year of relationship, a month’s notice might be due (to modulate up or down depending on the other criteria in the relationship). But way of illustration, however, the following case law may be cited:

• Paris Court of Appeal , Feb.9, 2022: 16-year relationship with 15 months‘ notice;
• Paris Court of Appeal, Jan.20, 2022: 12-year relationship with 8 months‘ notice;
• Paris Court of Appeal, Oct. 25, 2022: 16-year relationship with 18 months‘ notice;
• Paris Court of Appeal , Feb. 23, 2022: 17-year relationship with 11 months‘ notice;
• Paris Court of Appeal, Sept. 21, 2022: 5-year relationship with 14 months‘ notice.

Since the Order of April 24, 2019, which limits the length of reasonable notice to a maximum of 18 months, if the notice period granted by a party is 18 months, it cannot be held liable for a sudden termination. However, much of the litigation remains uncertain, as only exceptionally long or particularly sensitive relationships led, prior to 019, to the award of more than 18 months‘ notice. Ordinance of April 24, 2019, limits to 18 months the maximum period of notice reasonably due under Article L 442-1.II. But much of the litigation will remain uncertain since only relations of exceptional longevity or particularly sensitive, could have led to the allocation of a notice higher than 18 months.

Judges are not bound by the contractual notices stipulated in the contract. But if the author of the breach also violated the terms and conditions of termination provided for by contract, the victim may seek the responsibility of the author both on the tort basis of the sudden rupture and also on the basis of the breach of a contractual obligation.

Cases in which “Sudden Termination” is ruled out

The legal regime provides for two cases, and the case-law seems to have imposed others.

(a) The two legal exceptions are Force majeure (very rarely consecrated by the courts) and the fault of the victim of the termination, case-law having added that it must be a serious violation (“faute grave”) of a contractual commitment or a legal provision (such as non-respect of an exclusivity, a non-compete, a confidentiality or a change of control duty, or non-payment of amounts due contractually).

The judges consider themselves, of course, not bound by a termination clause defining what constitutes serious misconduct. In any case the party who terminates for serious misconduct must clearly notify it in its letter of termination. Above all, serious misconduct leads to a lack of notice, therefore, if the terminating party alleges serious misconduct but grants notice, whichever it may be, judges may conclude that the fault was not serious enough.

Thus, the seriousness of the misconduct must be motivated by judges in their rulings. Noting that the contract was breached after two formal notices is not sufficient (Cass. com., Feb 16. 2022, n° 20-18.844).

However, the Court of Cassation considers that „even in the case of serious misconduct justifying the immediate termination of the commercial relationship, the other party remains free to give the other party a notice“ (Cass. Com., Oct. 14 2020, n°18-22.119).

(b) In recent years, case-law has added other cases of liability waiver. This is the case when the rupture is the consequence of a cause external to the author of the rupture, such as the economic crisis, the loss of its own customers or suppliers, upstream or downstream.

For example, in 2021 the Court of cassation has ruled that “the business partner is not entitled to an unchanged relationship and cannot refuse any adaptation required by economic changes” (Com, Dec 01, 2021, n°20-19.113). In fact, to be attributable to an economic player, a termination must be free and deliberate. This is not the case if termination is imposed by the economic situation.

However, adding a liability exemption clause in a contract, aimed at waiving destinated to escape the penalties of article L. 442-1, is without consequences on the judge’s appreciation.

Judges have also excluded “sudden termination” in the hypothesis of the end of the first period of a fixed-term contract, whatever its duration is: the first renewal of a contract, constitutes a foreseeable event for the victim of the rupture, which excludes the very notion of brutality; but once the contract has been renewed at least once, judges can subsequently characterize the victim’s legitimate belief in a new tacit renewal.

Compensation for “Sudden Termination”

Judges only compensate for the detrimental consequences of the brutality itself of the breach but do not compensate, at least in the context of article L442 -1.II, for the consequences of the breach itself.

The basic rule is very simple: it is necessary to determine the length of the notice which should have been granted, from which the notice actually granted is deducted. This net notice is multiplied by the average monthly gross margin of the victim, or more often the so called margin on variable costs (i.e. the turnover minus costs disappearing with non-performance of the contract/relation). Defendant should not hesitate to ask for the full accountancy evidences, especially to identify (lower) margin rates, or even for a judicial expertise on those accounting elements. In general, the base of the average monthly margin consists of the last 24 or 36 months.

The compensation calculated on the average margin is, in general, exclusive of any other compensation. However, the victim can prove that it has suffered other losses as a consequence of the brutality of the rupture. Such as dismissals directly caused by this brutality or the depreciation of investments made recently by the victim.

Some practical tips when considering to anticipate “Sudden Termination”

Even though the legal regime is still ambiguous and the case-law terribly casuistic which prevents to release strong guidelines, here are some practical tips when a company plans to terminate a relationship / contract:

• in the case of a fixed-term contract renewable tacitly, the notification of non-renewal must be anticipated well in advance of the beginning of the contractual notice in order to avoid being in a situation where it is necessary to choose between not renewing the contract with a notice that is not sufficient or agree to see the contract renewed itself for a new term;
• commercial teams must be made aware of the risk of partial sudden termination when they change the conditions of execution of a commercial relationship / contract too radically;
• in some cases, it may be useful to send a pre-notice of termination with a “notice proposal” in order to try to validate this notice with the other party;
• it may also be useful, in certain relationships, to notify the end of the relationship with different lengths of notice depending on the nature of the product lines;
• Finally, the best way is to conclude an end-of-relation protocol, fixing the duration of the notice as well as, if necessary, the progressive decline of the orders, the whole within the framework of a settlement agreement which definitively waives any claim, including “sudden termination”.

Sudden termination regime shall be taken into consideration when entering into the final phase of a duration relationship: the way in which the contract (or de facto relationship) is terminated must be carefully planned, in order to manage the risk of causing damages to the counterparty and being sued for compensation.

Given the significance of the influencer market (over €21 billion in 2023), which now encompasses all sectors, and with a view for transparency and consumer protection, France, with the law of June 9, 2023, proposed the world’s first regulation governing the activities of influencers, with the objective of defining and regulating influencer activities on social media platforms.

However, influencers are subject to multiple obligations stemming from various sources, necessitating the utmost vigilance, both in drafting influence agreements (between influencers and agencies or between influencers and advertisers) and in the behaviour they must adopt on social media or online platforms. This vigilance is particularly heightened as existing regulations do not cover the core of influencers‘ activities, especially their status and remuneration, which remain subject to legal ambiguity, posing risks to advertisers as regulatory authorities‘ scrutiny intensifies.

Key points to remember 

• Influencers‘ activity is subject to numerous regulations, including the law of June 9, 2023.
• This law not only regulates the drafting of influence contracts but also the influencer’s behaviour to ensure greater transparency for consumers.
• Every influencer whose audience includes French users is affected by the provisions of the law of June 9, 2023, even if they are not physically present in French territory.
• Both the law of June 9, 2023, and the „Digital Services Act,“ as well as the proposed law on „fast fashion,“ foresee increasing accountability for various actors in the commercial influence sector, particularly influencers and online platforms.
• Despite a plethora of regulations, the status and remuneration of influencers remain unaddressed issues that require special attention from advertisers engaging with influencers.

The law of June 9, 2023, regulating influencer activity  

The definition of influencer professions

The law of June 9, 2023, provides two essential definitions for influencer activities:

• Influencers are defined as ’natural or legal persons who, for consideration, mobilize their notoriety with their audience to communicate to the public, electronically, content aimed at promoting, directly or indirectly, goods, services, or any cause, engaging in commercial influence activities electronically.‘
• The activity of an influencer agent is defined as ‚that which consists of representing, for consideration,‘ the influencer or a possible agent ‚with the aim of promoting, for consideration, goods, services, or any cause‚ (article 7) The influencer agent must take ’necessary measures to ensure the defense of the interests of the persons they represent, to avoid situations of conflict of interest, and to ensure the compliance of their activity‚ with the law of June 9, 2023.

The obligations imposed on commercial messages created by the influencer

The law sets forth obligations that influencers must adhere to regarding their publications: 

• Mandatory particulars: When creating content, this law imposes an obligation on influencers to provide information to consumers, aiming for transparency towards their audience. Thus, influencers are required to clearly, legibly, and identifiably indicate on the influencer’s image or video, regardless of its format and throughout the entire viewing duration (according to modalities to be defined by decree):

  – The mention „advertisement“ or „commercial collaboration.“ Violating this obligation constitutes deceptive commercial practice punishable by two years‘ imprisonment and a fine of €300,000 (Article 5 of the law of June 9, 2023).
  – The mention of „altered images“ (modification by image processing methods aimed at refining or thickening the silhouette or modifying the appearance of the face) or „virtual images“ (images created by artificial intelligence). Failure to do so may result in a one-year prison sentence and a fine of €4,500 (Article 5 of the law of June 9, 2023).

• Prohibited or regulated promotions: This law reminds certain prohibitions, subject to criminal and administrative sanctions, stemming from French law on the direct or indirect promotion of certain categories of products and services, under penalty of criminal or administrative sanctions. This includes the promotion of products and services related to:

  – health: surgery, aesthetic medicine, therapeutic prescriptions, and nicotine products;
  – non-domestic animals, unless it concerns an establishment authorized to hold them;
  – financial: contracts, financial products, and services;
  – sports-related: subscriptions to sports advice or predictions;
  – crypto assets: if not from registered actors or have not received approval from the AMF;
  – gambling: their promotion prohibited for those under 18 years old and regulated by law;
  – professional training: their promotion is not prohibited but regulated.

The accountability of influencer behaviour

The law also holds influencers accountable from the contracting of their relationships and when they act as sellers:

• Regulation of commercial influence agreements: This law imposes, subject to nullity, from a certain threshold of influencer remuneration (defined by decree), the formalization in writing of the agreement between the advertiser and the influencer, but also, if applicable, between the influencer’s agent, and the mandatory stipulation of certain clauses (remuneration, mission description, etc.).
• Influencer responsibility as a cyber seller: Influencers engaging in drop shipping (selling products without handling their delivery, done by the supplier) must provide the buyer with all information in French as required by Article L. 221-5 of the Consumer Code about the product, such as its availability and legality (i.e., guarantee that the product is not counterfeit), applicable product warranty, and supplier identity. Additionally, influencers must ensure the proper delivery and receipt of products and, in case of default, compensate the buyer. Influencers are also logically subject to obligations regarding deceptive commercial practices (for more information, the DGCCRF website explain the dropshipping).

The accountability of other actors in the commercial influence ecosystem

Joint and several liability is set by law, for the advertiser, influencer, or influencer’s agent for damages caused to third parties in the execution of the commercial influence contract, allowing the victim of the damage to act against the most solvent party.

Furthermore, the law introduces accountability for online platforms by partially incorporating the European Regulation 2022/2065 on digital services (known as the „DSA„) of October 19, 2022.

French regulation and international influencers

Influencers established outside the European Union (including also Switzerland and the EEA) who promote products or services to a French audience must obtain professional liability insurance from an insurer established within the EU. They must also designate a legal or natural person providing „a form of representation“ (SIC) within the EU. This representative (whose regime is not very clear) is remunerated to represent the influencer before administrative and judicial authorities and to ensure the compliance of the influencer’s activity with law of June 9, 2023.

Furthermore, according to law of June 9, 2023, when the contract binding the influencer (or their agency) aims to implement a commercial influence activity electronically „targeting in particular an audience established in French territory“ (SIC), this contract should be exclusively subject to French law (including the Consumer Code, the Intellectual Property Code, and the law of June 9, 2023). According to this law, the absence of such a stipulation would be sanctioned by the nullity of the contract. Law of June 9, 2023, seems to be established as an overriding mandatory law capable of setting aside the choice of a foreign law.

However, the legitimacy (what about compliance with the definition of overriding mandatory rules established by Regulation Rome I?) and effectiveness (what if the contract specifies a foreign law and a foreign jurisdiction?) of such a legal provision can be questioned, notably due to its vague and general wording. In fact, it should be the activity deployed by the „foreign“ influencer to their community in France that should be apprehended by French overriding mandatory rules, rather than the content of the agreement concluded with the advertiser (which itself could also be foreign, by the way).

The other regulations governing the activity of influencers

The European regulations

The DSA further holds influencers accountable because, in addition to the reporting mechanism imposed on platforms to report illicit content (thus identifying a failing influencer), platforms must ensure (and will therefore shift this responsibility to the influencer) the identification of commercial communications and specific transparency obligations towards consumers.

The «soft law»

As early as 2015, the Advertising Regulatory Authority („ARPP“) issued recommendations on best practices for digital advertising. Similarly, in March 2023, the French Ministry of Economy published a „code of conduct“ for influencers and content creators. In 2023, the European Commission launched a legal information platform for influencers. Although non-binding, these rules, in addition to existing regulations, serve as guidelines for both influencers and content creators, as well as for judicial and administrative authorities.

The special status of child influencers

The law of October 19, 2020, aimed at regulating the commercial exploitation of children’s images on online platforms, notably opens up the possibility for child influencers to be recognized as salaried workers. However, this law only targeted video-sharing platforms. Article 2 of the law of June 9, 2023, extended the provisions regarding child influencer labor introduced by the 2020 law to all online platforms. Finally, a recent law aimed at ensuring respect for the image rights of children was published on February 19, 2024, introducing a principle of joint and several responsibility of both parents in protecting the minor’s image rights.

The status and remuneration of influencers: uncertainty persists

Despite the diversity of regulations applicable to influencers, none address their status and remuneration.

The status of the influencer

In the absence of regulations governing the status of influencers, a legal ambiguity persists regarding whether the influencer should be considered an independent contractor, an employee (as is partly the case for models or artists), or even as a brand representative (i.e. commercial agent), depending on the missions contractually entrusted to the influencer.

The nature of the contract and the applicable social security regime stem from the missions assigned to the influencer:

• In the case of an employment contract, the influencer will fall under the general regime for employees and assimilated persons, based on Articles L. 311-2 or 311-3 of the French Social Security Code.
• In the case of a service contract, the influencer will fall under the regime for self-employed workers.

The existence of a relationship of subordination between the advertiser and the influencer typically determines the qualification of an employment contract. Subordination is generally characterized when the employer gives orders and directives, has the power to control and sanction, and the influencer follows these directives. However, some activities are subject to a presumption of an employment contract; this is the case (at least in part) for artist contracts under Article L. 7121-3 of the French Labor Code and model contracts under Article L. 7123-2 of the French Labor Code.

The remuneration of the influencer

The influencer can be remunerated in cash (fixed or proportional) and/or in kind (for example: receiving a product from the brand, invitations to private or public events, coverage of travel expenses, etc.). The influencer’s remuneration must be specified in the influencer agreement and is directly impacted by the influencer’s status, as certain obligations (minimum wage, payment of social security contributions, etc.) apply in the case of an employment contract.

Furthermore, the remuneration (for the influencer’s services) must be distinguished from that of the transfer of their copyrights or image rights, which are subject to separate remuneration in exchange for the IP rights transferred.

The influencers… in the spotlight

The law of June 9, 2023, grants the French authority (i.e. the Consumer Affairs, Competition and Fraud Prevention Agency, “DGCCRF”) new injunction powers (with reinforced penalties). This comes in addition to the recent creation of a „commercial influence squad„, within the DGCCRF, tasked with monitoring social networks, and responding to reports received through Signal Conso. The law provides for fines and the possibility of blocking content.

As early as August 2023, the DGCCRF issued warnings to several influencers to comply with the new regulations on commercial influence and imposed on them the obligation to publicly disclose their conviction for non-compliance with the new provisions regarding transparency to consumers on their own social networks, a heavy penalty for actors whose activity relies on their popularity (DGCCRF investigation on the commercial practices of influencers).

On February 14, 2024, the European Commission and the national consumer protection authorities of 22 EU member states, Norway, and Iceland published the results of an analysis conducted on 570 influencers (the so-called „clean-up operation“ of 2023 on influencers): only one in five influencers consistently presented their commercial content as advertising. 

In response to environmental, ethical, and quality concerns related to „fast fashion,“ a draft law aiming to ban advertising for fast fashion brands, including advertising done by influencers (Proposal for a law aiming to reduce the environmental impact of the textile industry), was adopted by the National Assembly on first reading on March 14, 2024.

Lastly, the law of June 9, 2023, has been criticized by the European Commission, which considers that the law would contravene certain principles provided by EU law, notably the principle of „country of origin,“ according to which the company providing a service in other EU countries is exclusively subject to the law of its country of establishment (principle initially provided for by the E-commerce Directive of June 8, 2000, and included in the DSA). Some of its provisions, particularly those concerning the application of French law to foreign influencers, could therefore be subject to forthcoming – and welcome – modifications.

Summary

To avoid disputes with important suppliers, it is advisable to plan purchases over the medium and long term and not operate solely on the basis of orders and order confirmations. Planning makes it possible to agree on the duration of the ’supply agreement, minimum volumes of products to be delivered and delivery schedules, prices, and the conditions under which prices can be varied over time.
The use of a framework purchase agreement can help avoid future uncertainties and allows various options to be used to manage commodity price fluctuations depending on the type of products , such as automatic price indexing or agreement to renegotiate in the event of commodity fluctuations beyond a certain set tolerance period.

I read in a press release: “These days, the glass industry is sending wine companies new unilateral contract amendments with price changes of 20%…”

What can one do to avoid the imposition of price increases by suppliers? 

• Know your rights and act in an informed manner
• Plan and organise your supply chain

Does my supplier have the right to increase prices?

If contracts have already been concluded, e.g., orders have already been confirmed by the supplier, the answer is often no.

It is not legitimate to request a price change. It is much less legitimate to communicate it unilaterally, with the threat of cancelling the order or not delivering the goods if the request is not granted.

What if he tells me it is force majeure?

That’s wrong: increased costs are not a force majeure but rather an unforeseen excessive onerousness, which hardly happens.

What if the supplier canceled the order, unilaterally increased the price, or did not deliver the goods?

He would be in breach of contract and liable to pay damages for violating his contractual obligations.

How can one avoid a tug-of-war with suppliers?

The tools are there. You have to know them and use them.

It is necessary to plan purchases in the medium term, agreeing with suppliers on a schedule in which are set out:

• the quantities of products to be ordered
• the delivery terms
• the durationof the agreement
• the pricesof the products or raw materials
• the conditions under which prices can be varied

There is a very effective instrument to do so: a framework purchase agreement.

Using a framework purchase agreement, the parties negotiate the above elements, which will be valid for the agreed period.

Once the agreement is concluded, product orders will follow, governed by the framework agreement, without the need to renegotiate the content of individual deliveries each time.

For an in-depth discussion of this contract, see this article.

• “Yes, but my suppliers will never sign it!”

Why not? Ask them to explain the reason.

This type of agreement is in the interest of both parties. It allows planning future orders and grants certainty as to whether, when, and how much the parties can change the price.

In contrast, acting without written agreements forces the parties to operate in an environment of uncertainty. Suppliers can request price increases from one day to the next and refuse supply if the changes are not accepted.

How are price changes for future supplies regulated?

Depending on the type of products or services and the raw materials or energy relevant in determining the final price, there are several possibilities.

• The first option is to index the price automatically. E.g., if the cost of a barrel of Brent oil increases/decreases by 10%, the party concerned is entitled to request a corresponding adjustment of the product’s price in all orders placed as of the following week.
• An alternative is to provide for a price renegotiation in the event of a fluctuation of the reference commodity. E.g., suppose the LME Aluminium index of the London Stock Exchange increases above a certain threshold. In that case, the interested party may request a price renegotiationfor orders in the period following the increase.

What if the parties do not agree on new prices?

It is possible to terminate the contract or refer the price determination to a third party, who would act as arbitrator and set the new prices for future orders.

Summary

The framework supply contract is an agreement that regulates a series of future sales and purchases between two parties (customer and supplier) that take place over a certain period of time. This agreement determines the main elements of future contracts such as price, product volumes, delivery terms, technical or quality specifications, and the duration of the agreement.

The framework contract is useful for ensuring continuity of supply from one or more suppliers of a certain product that is essential for planning industrial or commercial activity. While the general terms and conditions of purchase or sale are the rules that apply to all suppliers or customers of the company. The framework contract is advisable to be concluded with essential suppliers for the continuity of business activity, in general or in relation to a particular project.

What I am talking about in this article:

• What is the supply framework agreement?
• What is the function of the supply framework agreement?
• The difference with the general conditions of sale or purchase
• When to enter a purchase framework agreement?
• When is it beneficial to conclude a sales framework agreement?
• The content of the supply framework agreement
• Price revision clause and hardship
• Delivery terms in the supply framework agreement
• The Force Majeure clause in international sales contracts
• International sales: applicable law and dispute resolution arrangements

What is a framework supply agreement?

It is an agreement that regulates a series of future sales and purchases between two parties (customer and supplier), which will take place over a certain period.

It is therefore referred to as a „framework agreement“ because it is an agreement that establishes the rules of a future series of sales and purchase contracts, determining their primary elements (such as the price, the volumes of products to be sold and purchased, the delivery terms of the products, and the duration of the contract).

After concluding the framework agreement, the parties will exchange orders and order confirmations, entering a series of autonomous sales contracts without re-discussing the covenants already defined in the framework agreement.

Depending on one’s point of view, this agreement is also called a sales framework agreement (if the seller/supplier uses it) or a purchasing framework agreement (if the customer proposes it).

What is the function of the framework supply agreement?

It is helpful to arrange a framework agreement in all cases where the parties intend to proceed with a series of purchases/sales of products over time and are interested in giving stability to the commercial agreement by determining its main elements.

In particular, the purchase framework agreement may be helpful to a company that wishes to ensure continuity of supply from one or more suppliers of a specific product that is essential for planning its industrial or commercial activity (raw material, semi-finished product, component).

By concluding the framework agreement, the company can obtain, for example, a commitment from the supplier to supply a particular minimum volume of products, at a specific price, with agreed terms and technical specifications, for a certain period.

This agreement is also beneficial, at the same time, to the seller/supplier, which can plan sales for that period and organize, in turn, the supply chain that enables it to procure the raw materials and components necessary to produce the products.

What is the difference between a purchase or sales framework agreement and the general terms and conditions?

Whereas the framework agreement is an agreement that is used with one or more suppliers for a specific product and a certain time frame, determining the essential elements of future contracts, the general purchase (or sales) conditions are the rules that apply to all the company’s suppliers (or customers).

The first agreement, therefore, is negotiated and defined on a case-by-case basis. At the same time, the general conditions are prepared unilaterally by the company, and the customers or suppliers (depending on whether they are sales or purchase conditions) adhere to and accept that the general conditions apply to the individual order and/or future contracts.

The two agreements might also co-exist: in that case; it is a good idea to specify which contract should prevail in the event of a discrepancy between the different provisions (usually, this hierarchy is envisaged, ranging from the special to the general: order – order confirmation; framework agreement; general terms and conditions of purchase).

When is it important to conclude a purchase framework agreement?

It is beneficial to conclude this agreement when dealing with a mono-supplier or a supplier that would be very difficult to replace if it stopped selling products to the purchasing company.

The risks one aims to avoid or diminish are so-called stock-outs, i.e., supply interruptions due to the supplier’s lack of availability of products or because the products are available, but the parties cannot agree on the delivery time or sales price.

Another result that can be achieved is to bind a strategic supplier for a certain period by agreeing that it will reserve an agreed share of production for the buyer on predetermined terms and conditions and avoid competition with offers from third parties interested in the products for the duration of the agreement.

When is it helpful to conclude a sales framework agreement?

This agreement allows the seller/supplier to plan sales to a particular customer and thus to plan and organize its production and logistical capacity for the agreed period, avoiding extra costs or delays.

Planning sales also makes it possible to correctly manage financial obligations and cash flows with a medium-term vision, harmonizing commitments and investments with the sales to one’s customers.

What is the content of the supply framework agreement?

There is no standard model of this agreement, which originated from business practice to meet the requirements indicated above.

Generally, the agreement provides for a fixed period (e.g., 12 months) in which the parties undertake to conclude a series of purchases and sales of products, determining the price and terms of supply and the main covenants of future sales contracts.

The most important clauses are:

• the identification of products and technical specifications (often identified in an annex)
• the minimum/maximum volume of supplies
• the possible obligation to purchase/sell a minimum/maximum volume of products
• the schedule of supplies
• the delivery times
• the determination of the price and the conditions for its possible modification (see also the next paragraph)
• impediments to performance (Force Majeure)
• cases of Hardship
• penalties for delay or non-performance or for failure to achieve the agreed volumes
• the hierarchy between the framework agreement and the orders and any other contracts between the parties
• applicable law and dispute resolution (especially in international agreements)

How to handle price revision in a supply contract?

A crucial clause, especially in times of strong fluctuations in the prices of raw materials, transport, and energy, is the price revision clause.

In the absence of an agreement on this issue, the parties bear the risk of a price increase by undertaking to respect the conditions initially agreed upon; except in exceptional cases (where the fluctuation is strong, affects a short period, and is caused by unforeseeable events), it isn’t straightforward to invoke the supervening excessive onerousness, which allows renegotiating the price, or the contract to be terminated.

To avoid the uncertainty generated by price fluctuations, it is advisable to agree in the contract on the mechanisms for revising the price (e.g., automatic indexing following the quotation of raw materials). The so-called Hardship or Excessive Onerousness clause establishes what price fluctuation limits are accepted by the parties and what happens if the variations go beyond these limits, providing for the obligation to renegotiate the price or the termination of the contract if no agreement is reached within a certain period.

How to manage delivery terms in a supply agreement?

Another fundamental pact in a medium to long-term supply relationship concerns delivery terms. In this case, it is necessary to reconcile the purchaser’s interest in respecting the agreed dates with the supplier’s interest in avoiding claims for damages in the event of a delay, especially in the case of sales requiring intercontinental transport.

The first thing to be clarified in this regard concerns the nature of delivery deadlines: are they essential or indicative? In the first case, the party affected has the right to terminate (i.e., wind up) the agreement in the event of non-compliance with the term; in the second case, due diligence, information, and timely notification of delays may be required, whereas termination is not a remedy that may be automatically invoked in the event of a delay.

A useful instrument in this regard is the penalty clause: with this covenant, it is established that for each day/week/month of delay, a sum of money is due by way of damages in favor of the party harmed by the delay.

If quantified correctly and not excessively, the penalty is helpful for both parties because it makes it possible to predict the damages that may be claimed for the delay, quantifying them in a fair and determined sum. Consequently, the seller is not exposed to claims for damages related to factors beyond his control. At the same time, the buyer can easily calculate the compensation for the delay without the need for further proof.

The same mechanism, among other things, may be adopted to govern the buyer’s delay in accepting delivery of the goods.

Finally, it is a good idea to specify the limit of the penalty (e.g.,10 percent of the price of the goods) and a maximum period of grace for the delay, beyond which the party concerned is entitled to terminate the contract by retaining the penalty.

The Force Majeure clause in international sales contracts

A situation that is often confused with excessive onerousness, but is, in fact, quite different, is that of Force Majeure, i.e., the supervening impossibility of performance of the contractual obligation due to any event beyond the reasonable control of the party affected, which could not have been reasonably foreseen and the effects of which cannot be overcome by reasonable efforts.

The function of this clause is to set forth clearly when the parties consider that Force Majeure may be invoked, what specific events are included (e.g., a lock-down of the production plant by order of the authority), and what are the consequences for the parties‘ obligations (e.g., suspension of the obligation for a certain period, as long as the cause of impossibility of performance lasts, after which the party affected by performance may declare its intention to dissolve the contract).

If the wording of this clause is general (as is often the case), the risk is that it will be of little use; it is also advisable to check that the regulation of force majeure complies with the law applicable to the contract (here an in-depth analysis indicating the regime provided for by 42 national laws).

Applicable law and dispute resolution clauses

Suppose the customer or supplier is based abroad. In that case, several significant differences must be borne in mind: the first is the agreement’s language, which must be intelligible to the foreign party, therefore usually in English or another language familiar to the parties, possibly also in two languages with parallel text.

The second issue concerns the applicable law, which should be expressly indicated in the agreement. This subject matter is vast, and here we can say that the decision on the applicable law must be made on a case-by-case basis, intentionally: in fact, it is not always convenient to recall the application of the law of one’s own country.

In most international sales contracts, the 1980 Vienna Convention on the International Sale of Goods („CISG“) applies, a uniform law that is balanced, clear, and easy to understand. Therefore, it is not advisable to exclude it.

Finally, in a supply framework agreement with an international supplier, it is important to identify the method of dispute resolution: no solution fits all. Choosing a country’s jurisdiction is not always the right decision (indeed, it can often prove counterproductive).

A case recently decided by the Italian Supreme Court clarifies what the risks are for those who sell their products abroad without having paid adequate attention to the legal part of the contract (Order, Sec. 2, No. 36144 of 2022, published 12/12/2022).

Why it’s important: in contracts, care must be taken not only with what is written, but also with what is not written, otherwise there is a risk that implied warranties of merchantability will apply, which may make the product unsuitable for use, even if it conforms to the technical specifications agreed upon in the contract.

The international sales contract and the first instance decision

A German company had sued an Italian company in Italy (Court of Chieti) to have it ordered to pay the sales price of two invoices for supplies of goods (steel).

The Italian purchasing company had defended itself by claiming that the two invoices had been deliberately not paid, due to the non-conformity of three previous deliveries by the same German seller. It then counterclaimed for a finding of defects and a reduction in the price, to be set off against the other party’s claim, as well as damages.

In the first instance, the Court of Chieti had partially granted both the German seller’s demand for payment (for about half of the claim) and the buyer’s counterclaim.

The court-appointed technical expertise had found that the steel supplied by the seller, while conforming to the agreed data sheet, had a very low silicon value compared to the values at other manufacturers‘ steel; however, the trial judge ruled out this as a genuine defect.

The judgment of appeal

The Court of Appeals of L’Aquila, appealed to the second instance by the buyer, had reached a different conclusion than the Court of First Instance, significantly reducing the amount owed by the Italian buyer, for the following reasons:

• the regime of „implied warranties“ under Article 35 of the Vienna Convention on the International Sale of Goods of 11.4.80 („CISG,“ ratified in both Italy and Germany) applied, as the companies had business headquarters in two different countries, both of which were parties to the Convention;
• in particular, the chemical composition of the steel supplied by the seller, while not constituting a „defect“ in the product (i.e., an anomaly or imperfection) was nonetheless to be considered a „lack of conformity“ within the meaning of Articles 35(2)(a) and 36(1) of the CISG, as it rendered the steel unsuitable for the use for which goods of the same kind would ordinarily serve (also known as „warranty of merchantability“).

The ruling of the Supreme Court

The German seller then appealed to the Supreme Court against the Court of Appeals‘ ruling, stating in summary that, according to the CISG, the conformity or non-conformity of the goods must be assessed against what was agreed upon in the contract between the parties; and that the „warranty of merchantability“ should apply only in the absence of a precise agreement of the parties on the characteristics that the product must have.

However, the seller’s defense continued, in this case the Italian buyer had sent a data sheet including a summary table of the various chemical elements, where it was stated that silicon should be present in a percentage not exceeding 0.45, but no minimum percentage was indicated.

So, the fact that the percentage of silicon was significantly lower than that found on average in steel from other suppliers could not be considered a conformity defect, since, at the contract negotiation stage, the parties exchanging the data sheet had expressly agreed only on the maximum values, thus not considering the minimum values relevant to conformity.

The Supreme Court, however, disagreed with this reasoning and essentially upheld the Court of Appeals‘ ruling, rejecting the German seller’s appeal.

The Court recalled that, according to Article 35 first paragraph of the CISG, the seller must deliver goods whose quantity, quality and kind correspond to those stipulated in the contract and whose packaging and wrapping correspond to those stipulated in the contract; and that, for the second paragraph, „unless the parties agree otherwise, goods are in conformity with the contract only if: a) they are suitable for the uses for which goods of the same kind would ordinarily serve.“

Other guarantees are enumerated in paragraphs (b) to (d) of the same standard[1] . They are commonly referred to collectively as „implied warranties.“

The Court noted that the warranties in question, including the one of „merchantability“ just referred to, do not stand subordinate or subsidiary to contractual covenants; on the contrary, they apply unless expressly excluded by the parties.

It follows that, according to the Supreme Court, any intention of the parties to a sales contract to disapply the warranty of merchantability must „result from a specific provision agreed upon by the parties.„

In the present case, although the data sheet that was part of the contractual agreements was analytical and had included among the chemical characteristics of the material the percentage of silicon, the fact that only a maximum percentage was indicated and not also the minimum percentage was not sufficient to exclude the fact that, by virtue of the „implied guarantee“ of marketability, the minimum percentage should in any case conform to the average percentage of similar products existing on the market.

Since the „warranty of merchantability“ had not been expressly excluded between the parties by a specific contractual clause, the conformity of the goods to the contract still had to be evaluated in consideration of this implied warranty as well.

Conclusions

What should businesses that sell abroad keep in mind?

• In contracts for the sale of goods between companies based in two different countries, the CISG automatically applies in many cases, in preference to the domestic law of either the seller’s country or the buyer’s country.
• The CISG contains very important rules for the relationship between sellers and buyers, on warranties of conformity of goods with the contract and buyer’s remedies for breach of warranties.
• One can modify or even exclude these rules by drafting appropriate contracts or general conditions in writing.
• Parties may agree not to apply all or some of the „implied warranties“ (possibly replacing them with contractual warranties) just as they may exclude certain remedies (e.g., exclude or limit liability for damages, within certain limits). However, they must do so in clear and explicit clauses.
• For the „warranty of merchantability“ not to apply, according to the reasoning of the Italian Supreme Court, it is not enough not to mention it in the contract.
• It is not sufficient to attach an analytical description of the characteristics of the goods to the contract to exclude certain characteristics not mentioned but nevertheless present in similar products of other manufacturers, which can be used as a parameter for the conformity of the goods.
• Instead, it is necessary to include a clause in the contract expressly excluding this type of guarantee.

In other words, in contracts, one must pay attention not only to what is written but also to what is not written.

This case once again demonstrates the importance of drafting a proper and complete contract not only from a commercial, technical, and financial point of view but also from a legal point of view, using the expertise of a lawyer experienced in international commercial contracts.

Finally, it is important not to overlook applicable law and jurisdiction clauses. These aspects are unfortunately often overlooked, even in high-value negotiations, considering these clauses unimportant or even blocking for negotiation, only to regret them when litigation arises or even threatened. See an in-depth discussion here.

Many people think that the non-disclosure agreement (NDA) is the one and only necessary precaution in a negotiation. This is wrong, because this agreement only refers to a facet of the business relationship that the parties want to discuss or manage.

Why is it important

The function of the NDA is to maintain the confidentiality of certain information that the parties intend to exchange and to prevent it from being used for purposes on which the parties did not agree. However, many aspects of the negotiation are not regulated in the NDA.

The main issues that the parties should agree on in writing are the following:

• why do the parties want to exchange information?
• what is the ultimate scope to be achieved?
• on what general points do the parties already agree?
• how long will negotiations last?
• who will participate in the negotiations, and with what powers?
• what documents and information will be shared?
• are there any exclusivity and/or non-compete obligations during and after the negotiation?
• what law applies to the negotiations and how are potential disputes resolved?

If these questions are not answered, it is likely that misunderstandings and disputes will arise over time, especially in lengthy and complex negotiations with foreign counterparts.

How to proceed?

• It is advisable that the above agreements be set down in a Letter of Intent („LoI“) or Memorandum of Understanding („MoU“). These are preliminary agreements whose function is determining the scope of future negotiations, the timetable, and the rules to be observed during and after the negotiations.

Common objection

„These are non-binding contracts, so what is the point of using them if the parties are free not to comply?

• Some covenants may be binding (exclusivity during negotiation, non-competition, dispute settlement agreements), and some may not (with the freedom to conclude or not to conclude the agreement).
• In any case, agreeing on the negotiating roadmap is an advantage over operating without having set the negotiating guidelines.

What happens if no agreement is reached?

• The MoU usually expressly provides for each party to be free not to finalize the negotiation as long as that party behaves, keeps acting in good faith during the negotiations and preserves the other party’s rights.
• It should be noted that in case of early or unjustified termination of the negotiations by one of the parties, the other party may be entitled to damages (so-called pre-contractual liability) if the agreement and/or the law applicable to the contract so provide.

Then, when should a non-disclosure agreement be concluded?

• It can be executed at the same time as the MoU / LoI or immediately afterwards so that the specification of confidential information, the way it is used, the duration of confidentiality obligations, etc. are defined in a way that is consistent with the project the parties have agreed upon.

For more information on the content of confidentiality agreements, see this article.

Nach mehr als 30 Jahren Verhandlungen blickt die Welt nun auf das erste panafrikanische Handelsabkommen, welches 2019 in Kraft getreten ist: Die Afrikanische Kontinentale Freihandelszone (African Continental Free Trade Area – AfCFTA).

Afrika ist mit seinen 55 Ländern und rund 1,3 Milliarden Einwohnern nach Asien der zweitgrößte Kontinent der Welt. Das Potenzial des Kontinents ist enorm: Mehr als 50 % der afrikanischen Bevölkerung ist unter 20 Jahre alt, und die Bevölkerung wächst weltweit am schnellsten. Bis 2050 wird voraussichtlich jedes vierte Neugeborene aus Afrika stammen. Darüber hinaus ist der Kontinent reich an fruchtbaren Böden und Rohstoffen.

Für westliche Investoren hat Afrika in den letzten Jahren erheblich an Bedeutung gewonnen. So ist ein beachtliches internationales Handelsvolumen entstanden, das nicht zuletzt durch die 2017 von den G20-Staaten verabschiedete Initiative „Compact with Africa“, auch bekannt als „Marshallplan mit Afrika“, gefördert wird. Der Fokus liegt auf dem Ausbau der wirtschaftlichen Zusammenarbeit Afrikas mit den G20-Ländern durch die Stärkung privater Investitionen.

Zugleich stagnierte bislang jedoch der innerafrikanische Handel: Teilweise noch bestehende hohe innerafrikanische Zölle, nichttarifäre Handelshemmnisse (non-tariff barriers – NTBs), schwache Infrastruktur, Korruption, schwerfällige Bürokratie sowie intransparente und inkonsistente Regulierungen sorgten dafür, dass sich die interregionalen Exporte kaum entwickeln konnten und zuletzt nur 17 % des innerafrikanischen Handels und nur 0,36 % des Welthandels ausmachten. Schon lange hatte sich deshalb die Afrikanische Union (AU) die Schaffung einer gemeinsamen Handelszone auf ihre Agenda gesetzt.

Was verbirgt sich hinter AfCFTA?

Der Errichtung einer panafrikanischen Handelszone gingen jahrzehntelange Verhandlungen voraus, welche schließlich in das Inkrafttreten des AfCFTA am 30. Mai 2019 mündeten.

Das AfCFTA ist eine von ihren Mitgliedern errichtete Freihandelszone, die (mit Ausnahme Eritreas) den gesamten afrikanischen Kontinent umfasst und damit, gemessen an der Zahl der Mitgliedsstaaten nach der Welthandelsorganisation (World Trade Organization – WTO) die größte Freihandelszone der Welt ist.

Die Ausgestaltung des gemeinsamen Marktes war Gegenstand mehrerer Einzelverhandlungen, die in den Phasen I und II geführt wurden.

Phase I umfasst die Verhandlungen zu drei Protokollen und ist nahezu abgeschlossen.

Das Protokoll über den Handel mit Waren

Dieses Protokoll sieht die Abschaffung von 90 % aller innerafrikanischen Zölle in allen Warenkategorien innerhalb von fünf Jahren nach Inkrafttreten vor. Davon können bis zu 7 % der Waren als sensible Waren eingestuft werden, für die ein Zeitraum von zehn Jahren für die Beseitigung der Zölle gilt. Für die am wenigsten entwickelten Länder (Least Developed Countries – LDCs) wird die Vorbereitungszeit von fünf auf zehn Jahre und für sensible Waren von zehn auf dreizehn Jahre verlängert, sofern sie ihren Bedarf nachweisen. Die restlichen 3 % der Zölle sind vollständig vom Zollabbau ausgenommen.

Voraussetzung für den Zollabbau ist die klare Abgrenzung der Ursprungsregeln. Andernfalls könnten Einfuhren aus Drittländern von den ausgehandelten Zollvorteilen profitieren. Über die meisten Ursprungsregeln ist bereits eine Einigung erzielt worden.

Das Protokoll über den Handel mit Dienstleistungen

Die AU-Generalversammlung hat sich bisher auf fünf Schwerpunktbereiche (Verkehr, Kommunikation, Tourismus, Finanz- und Unternehmensdienstleistungen) und Leitlinien für die entsprechenden Verpflichtungen geeinigt. 47 AU-Mitgliedsstaaten haben bereits ihre Angebote für spezifische Verpflichtungen vorgelegt und die Überprüfung von 28 von ihnen ist abgeschlossen. Darüber hinaus sind die Verhandlungen, beispielsweise über die Anerkennung von Berufsqualifikationen, noch nicht abgeschlossen.

Das Protokoll über die Streitbeilegung

Mit dem Protokoll über Regeln und Verfahren für die Streitbeilegung schafft das AfCFTA ein Streitbeilegungssystem nach dem Vorbild der WTO-Streitbeilegungsvereinbarung. Das Streitbeilegungsgremium (Dispute Settlement Body – DSB) verwaltet das AfCFTA-Streitbeilegungsprotokoll und setzt ein Schiedsgericht (Adjudicating Panel – Panel) und ein Berufungsgremium (Appellate Body – AB) ein. Das DSB setzt sich aus einem Vertreter jedes Mitgliedstaates zusammen und wird tätig, sobald es zwischen den Vertragsstaaten Meinungsverschiedenheiten über die Auslegung und/oder Anwendung des Abkommens in Bezug auf ihre Rechte und Pflichten gibt.

Für die verbleibende Phase II sind Verhandlungen über Investitions- und Wettbewerbspolitik, Fragen des geistigen Eigentums, Online-Handel sowie Frauen und Jugend im Handel geplant, deren Ergebnisse in weitere Protokolle einfließen werden.

Die Umsetzung des AfCFTA

Grundsätzlich kann der Handel im Rahmen eines Handelsabkommens erst dann beginnen, wenn der rechtliche Rahmen endgültig steht. Die Staats- und Regierungschefs der AU haben jedoch im Dezember 2020 vereinbart, dass der Handel mit solchen Waren, für die die Verhandlungen abgeschlossen sind, beginnen kann. Im Rahmen dieser Übergangsregelung fand nach einer pandemiebedingten Verschiebung am 4. Januar 2021 die erste AfCFTA-Handelsabwicklung von Ghana nach Südafrika statt.

Bausteine der AfCFTA

Alle 55 Mitglieder der AU waren an den AfCFTA-Verhandlungen beteiligt. Davon gehören 47 zu mindestens einer der anerkannten Regionalen Wirtschaftsgemeinschaften (Regional Economic Communities – RECs), die gemäß der Präambel des AfCFTA-Abkommens weiterhin als Bausteine des Handelsabkommens dienen sollen. Folglich waren es die RECs, welche bei den AfCFTA-Verhandlungen für ihre jeweiligen Mitglieder auftraten. Das AfCFTA-Abkommen sieht vor, dass die RECs ihre Rechtsinstrumente, Institutionen und Streitbeilegungsmechanismen beibehalten.

Innerhalb der AU gibt es acht anerkannte regionale Wirtschaftsgemeinschaften, die sich in einigen Ländern überschneiden und bei denen es sich entweder um präferenzielle Handelsabkommen (Freihandelsabkommen) oder Zollunionen handelt.

Im Rahmen der AfCFTA haben die RECs verschiedene Aufgaben. Diese sind insbesondere:

• Koordinierung der Verhandlungspositionen und Unterstützung der Mitgliedsstaaten bei der Umsetzung des Abkommens
• Lösungsorientierte Mediation bei Unstimmigkeiten zwischen den Mitgliedsstaaten
• Unterstützung der Mitgliedsstaaten bei der Harmonisierung von Zöllen und anderen Grenzschutzbestimmungen
• Förderung der Nutzung des AfCFTA-Meldeverfahrens zum Abbau von NTBs

Ausblick auf das AfCFTA

Das AfCFTA hat das Potenzial, die Integration Afrikas in die Weltwirtschaft zu erleichtern und schafft die reale Möglichkeit einer Neuausrichtung der internationalen Integrations- und Kooperationsmuster.

Ein Handelsabkommen allein ist noch keine Garantie für wirtschaftlichen Erfolg. Damit das Abkommen den prognostizierten Durchbruch erzielt, müssen die Mitgliedstaaten den politischen Willen haben, die neuen Regeln konsequent umzusetzen und die dafür notwendigen Kapazitäten zu schaffen. Insbesondere die kurzfristige Beseitigung von Handelshemmnissen und die Schaffung einer nachhaltigen physischen und digitalen Infrastruktur dürften entscheidend sein.

Wenn Sie sich für das AfCFTA interessieren, können Sie hier eine erweiterte Version dieses Artikels lesen.

Der Legalmondo African Desk

Mit unseren Experten in Ägypten, Marokko, Algerien, Tunesien, Libyen, Sudan, Kamerun, Côte d’Ivoire, Ghana, Senegal und Malawi unterstützen wir Unternehmen bei Investitionen und Geschäftsvorhaben in Afrika.

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Wie es funktioniert

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Zusammenfassung

Anhand der Geschichte von Nike, die sich aus der Biografie des Gründers Phil Knight ableitet, lassen sich einige Lehren  für internationale Vertriebsverträge ziehen: Wie man den Vertrag aushandelt, die Vertragsdauer festlegt, die Exklusivität und die Geschäftsziele definiert und die richtige Art der Streitschlichtung bestimmt.

Worüber ich in diesem Artikel spreche

• Der Streit zwischen Blue Ribbon und Onitsuka Tiger und die Geburt von Nike
• Wie man eine internationale Vertriebsvereinbarung aushandelt
• Vertragliche Exklusivität in einer Handelsvertriebsvereinbarung
• Mindestumsatzklauseln in Vertriebsverträgen
• Vertragsdauer  und Kündigungsfrist
• Eigentum an Marken in Handelsverträgen
• Die Bedeutung der Mediation bei internationalen Handelsverträgen
• Streitbeilegungsklauseln in internationalen Verträgen
• Wie wir Ihnen helfen können

Der Streit zwischen Blue Ribbon und Onitsuka Tiger und die Geburt von Nike

Warum ist die berühmteste Sportbekleidungsmarke der Welt Nike und nicht Onitsuka Tiger?
Die Biographie des Nike-Schöpfers Phil Knight mit dem Titel “Shoe Dog” gibt hierauf antworten und ist nicht nur für Liebhaber des Genres eine absolut empfehlenswerte Lektüre.

Bewegt von seiner Leidenschaft für den Laufsport und seiner Intuition, dass es auf dem amerikanischen Sportschuhmarkt, der damals von Adidas dominiert wurde, eine Lücke gab, importierte Knight 1964 als erster überhaupt eine japanische Sportschuhmarke, Onitsuka Tiger, in die USA.  Mit diesen Sportschuhen konnte sich Knight innerhalb von 6 Jahren einen Marktanteil von satten 70 % sichern.

Das von Knight und seinem ehemaligen College-Trainer Bill Bowerman gegründete Unternehmen hieß damals noch Blue Ribbon Sports.

Die Geschäftsbeziehung zwischen Blue Ribbon-Nike und dem japanischen Hersteller Onitsuka Tiger  gestaltete sich trotz der sehr guten Verkaufszahlen und den postiven Wachstumsaussichten von  Beginn an als sehr turbulent.

Als Knight dann kurz nach der Vertragsverlängerung mit dem japanischen Hersteller erfuhr, dass Onitsuka in den USA nach einem anderen Vertriebspartner Ausschau hielt , beschloss Knight  – aus Angst, vom Markt ausgeschlossen zu  werden –  sich seinerseits mit einem anderen japanischen Lieferanten zusammenzutun und seine eigene Marke zu gründen. Damit war die spätere Weltmarke Nike geboren.

Als der japanische Hersteller Onitsuka von dem Nike-Projekt erfuhr, verklagte dieser  Blue Ribbon wegen  Verstoß gegen das Wettbewerbsverbot,  welches dem Vertriebshändler die Einfuhr anderer in Japan hergestellter Produkte untersagte, und beendete die Geschäftsbeziehung mit sofortiger Wirkung.

Blue Ribbon führte hiergegen an, dass der Verstoß von dem Hersteller Onitsuka Tiger ausging, der  sich bereits als der Vertrag noch in Kraft war und die Geschäfte mehr als gut liefen mit anderen potenziellen Vertriebshändlern getroffen hatte.

Diese Auseinandersetzung führte zu zwei Gerichtsverfahren, eines in Japan und eines in den USA, die der Geschichte von Nike ein vorzeitiges Ende hätten setzen können.

Zum Glück (für Nike) entschied der amerikanische Richter zu Gunsten des Händlers und der Streit wurde mit einem Vergleich beendet: Damit begann für Nike die Reise, die sie 15 Jahre später zur wichtigsten Sportartikelmarke der Welt machen sollte.

Wir werden sehen, was uns die Geschichte von Nike lehrt und welche Fehler bei einem internationalen Vertriebsvertrag tunlichst vermieden werden sollten.

Wie verhandelt man eine internationale Handelsvertriebsvereinbarung?

In seiner Biografie schreibt Knight, dass er bald bedauerte, die Zukunft seines Unternehmens an eine eilig verfasste, wenige Zeilen umfassende Handelsvereinbarung gebunden zu haben, die am Ende einer Sitzung zur Aushandlung der Erneuerung des Vertriebsvertrags geschlossen wurde.

Was beinhaltete diese Vereinbarung?

Die Vereinbarung sah lediglich die Verlängerung des Rechts von Blue Ribbon vor, die Produkte in den USA exklusiv zu vertreiben, und zwar für weitere drei Jahre.

In der Praxis kommt es  häufig vor, dass sich internationale Vertriebsverträge auf mündliche Vereinbarungen oder sehr einfache Vertragswerke mit kurzer Dauer beschränken. Die übliche Erklärung dafür ist, dass es auf diese Weise möglich ist, die Geschäftsbeziehung zu testen, ohne die vertragliche Bindung zu eng werden zu lassen.

Diese Art, Geschäfte zu machen, ist jedoch nicht zu empfehlen  und kann sogar gefährlich werden: Ein  Vertrag sollte niemals  als Last oder Zwang angesehen werden, sondern als Garantie für die Rechte beider Parteien. Einen schriftlichen Vertrag nicht oder nur sehr übereilt abzuschließen, bedeutet, grundlegende Elemente der künftigen Beziehung, wie die, die zum Streit zwischen Blue Ribbon und Onitsuka Tiger führten, ohne klare Vereinbarungen zu belassen: Hierzu gehören Aspekte wie Handelsziele, Investitionen, das Eigentum an Marken – um nur einige zu benennen.

Handelt es sich zudem um einen internationalen Vertrag, ist die Notwendigkeit einer vollständigen und ausgewogenen Vereinbarung noch größer, da in Ermangelung von Vereinbarungen zwischen den Parteien oder in Ergänzung zu diesen Vereinbarungen ein Recht zur Anwendung kommt, mit dem eine der Parteien nicht vertraut ist, d. h. im Allgemeinen das Recht des Landes, in dem der Händler seinen Sitz hat.

Auch wenn Sie sich nicht in einer Blue-Ribbon-Situation befinden, in der es sich um einen Vertrag handelt, von dem die Existenz des Unternehmens abhängt, sollten internationale Verträge stets mit Hilfe eines fachkundigen Anwalts besprochen und ausgehandelt werden, der das auf den Vertrag anwendbare Recht kennt und dem Unternehmer helfen kann, die wichtigen Vertragsklauseln zu ermitteln und auszuhandeln.

Territoriale Exklusivität, kommerzielle Ziele und Mindestumsatzziele

Anlass für den Konflikt zwischen Blue Ribbon und Onitsuka Tiger war zunächst einmal die Bewertung der Absatzentwicklung auf dem US-Markt.

Onitsuka argumentierte, dass der Umsatz unter dem Potenzial des US-Marktes liege, während nach Angaben von Blue Ribbon die Verkaufsentwicklung sehr positiv sei, da sich der Umsatz bis zu diesem Zeitpunkt jedes Jahr verdoppelt habe und ein bedeutender Anteil des Marktsektors erobert worden sei.

Als Blue Ribbon erfuhr, dass Onituska andere Kandidaten für den Vertrieb seiner Produkte in den USA prüfte, und befürchtete, damit bald vom Markt verdrängt zu werden , bereitete Blue Ribbon die Marke Nike als Plan B vor: Als der  japanische Hersteller diese Marke entdeckte , kam es zu einem Rechtsstreit zwischen den Parteien, der zu einem Eklat führte.

Der Streit hätte vielleicht vermieden werden können, wenn sich die Parteien auf kommerzielle Ziele geeinigt hätten und der Vertrag eine in Alleinvertriebsvereinbarungen übliche Klausel enthalten hätte, d.h. ein Mindestabsatzziel für den Vertriebshändler.

In einer Alleinvertriebsvereinbarung gewährt der Hersteller dem Händler einen starken Gebietsschutz für die Investitionen, die der Händler zur Erschließung des zugewiesenen Marktes tätigt.

Um dieses  Zugeständnis der Exklusivität auszugleichen, ist es üblich, dass der Hersteller vom Vertriebshändler einen so genannten garantierten Mindestumsatz oder ein Mindestziel verlangt, das der Vertriebshändler jedes Jahr erreichen muss, um den ihm gewährten privilegierten Status zu behalten.

Für den Fall, dass das Mindestziel nicht erreicht wird, sieht der Vertrag dann in der Regel vor, dass der Hersteller das Recht hat, vom Vertrag zurückzutreten (bei einem unbefristeten Vertrag) oder den Vertrag nicht zu verlängern (bei einem befristeten Vertrag) oder aber auch die Gebietsexklusivität aufzuheben bzw.  einzuschränken.

Der Vertrag zwischen Blue Ribbon und Onitsuka Tiger sah derartige  Zielvorgaben nicht vor – und das nachdem er gerade erst um drei Jahre verlängert wurde. Hinzukam, dass sich die Parteien bei der Bewertung der Ergebnisse des Vertriebshändlers nicht einig waren. Es stellt sich daher die Frage: Wie können in einem Mehrjahresvertrag Mindestumsatzziele vorgesehen werden?

In Ermangelung zuverlässiger Daten verlassen sich die Parteien häufig auf vorher festgelegte prozentuale Erhöhungsmechanismen: + 10 % im zweiten Jahr, + 30 % im dritten Jahr, + 50 % im vierten Jahr und so weiter.

Das Problem bei diesem Automatismus ist, dass dadurch  Zielvorgaben vereinbart werden, die nicht auf tatsächlichen Daten über die künftige Entwicklung der Produktverkäufe, der Verkäufe der Wettbewerber und des Marktes im Allgemeinen basieren , und die daher sehr weit von den aktuellen Absatzmöglichkeiten des Händlers entfernt sein können.

So wäre beispielsweise die Anfechtung des Vertriebsunternehmens wegen Nichterfüllung der Zielvorgaben für das zweite oder dritte Jahr in einer rezessiven Wirtschaft sicherlich eine fragwürdige Entscheidung, die wahrscheinlich zu Meinungsverschiedenheiten führen würde.

Besser wäre eine Klausel, mit der Ziele von Jahr zu Jahr einvernehmlich festgelegt werden. Diese besagt, dass die Ziele zwischen den Parteien unter Berücksichtigung der Umsatzentwicklung in den vorangegangenen Monaten und mit einer gewissen Vorlaufzeit vor Ende des laufenden Jahres vereinbart werden.  Für den Fall, dass keine Einigung über die neue Zielvorgabe zustande kommt, kann der Vertrag vorsehen, dass die Zielvorgabe des Vorjahres angewandt wird oder dass die Parteien das Recht haben, den Vertrag unter Einhaltung einer bestimmten Kündigungsfrist zu kündigen.

Andererseits kann die Zielvorgabe auch als Anreiz für den Vertriebshändler dienen: So kann z. B. vorgesehen werden, dass bei Erreichen eines bestimmten Umsatzes die Vereinbarung erneuert, die Gebietsexklusivität verlängert oder ein bestimmter kommerzieller Ausgleich für das folgende Jahr gewährt wird.

Eine letzte Empfehlung ist die korrekte Handhabung der Mindestzielklausel, sofern sie im Vertrag enthalten ist: Es kommt häufig vor, dass der Hersteller die Erreichung des Ziels für ein bestimmtes Jahr bestreitet, nachdem die Jahresziele über einen langen Zeitraum hinweg nicht erreicht oder nicht aktualisiert wurden, ohne dass dies irgendwelche Konsequenzen hatte.

In solchen Fällen ist es möglich, dass der Händler behauptet, dass ein impliziter Verzicht auf diesen vertraglichen Schutz vorliegt und der Widerruf daher nicht gültig ist: Um Streitigkeiten zu diesem Thema zu vermeiden, ist es ratsam, in der Mindestzielklausel ausdrücklich vorzusehen, dass die unterbliebene Anfechtung des Nichterreichens des Ziels während eines bestimmten Zeitraums nicht bedeutet, dass auf das Recht, die Klausel in Zukunft zu aktivieren, verzichtet wird.

Die Kündigungsfrist für die Beendigung eines internationalen Vertriebsvertrags

Der andere Streitpunkt zwischen den Parteien war die Verletzung eines Wettbewerbsverbots: Blue Ribbon verkaufte die Marke Nike , obwohl der Vertrag den Verkauf anderer in Japan hergestellter Schuhe untersagte.

Onitsuka Tiger behauptete, Blue Ribbon habe gegen das Wettbewerbsverbot verstoßen, während der Händler die Ansicht vertrat , dass er angesichts der bevorstehenden Entscheidung des Herstellers, die Vereinbarung zu kündigen, keine andere Wahl hatte.

Diese Art von Streitigkeiten kann vermieden werden, indem für die Beendigung (oder Nichtverlängerung) eine klare Kündigungsfrist festgelegt wird: Diese Frist hat die grundlegende Funktion, den Parteien die Möglichkeit zu geben, sich auf die Beendigung der Beziehung vorzubereiten und ihre Aktivitäten nach der Beendigung neu zu organisieren.

Um insbesondere Streitigkeiten wie die zwischen Blue Ribbon und Onitsuka Tiger zu vermeiden, kann in einem internationalen Vertriebsvertrag vorgesehen werden, dass die Parteien während  der Kündigungsfristmit anderen potenziellen Vertriebshändlern und Herstellern in Kontakt treten können und dass dies nicht gegen die Ausschließlichkeits- und Wettbewerbsverpflichtungen verstößt.

Im Fall von Blue Ribbon war der Händler über die bloße Suche nach einem anderen Lieferanten hinaus sogar noch einen Schritt weiter gegangen, da er begonnen hatte, Nike-Produkte zu verkaufen, während der Vertrag mit Onitsuka noch gültig war. Dieses Verhalten stellt einen schweren Verstoß gegen  die getroffene Ausschließlichkeitsvereinbarung dar.

Ein besonderer Aspekt, der bei der Kündigungsfrist zu berücksichtigen ist, ist die Dauer: Wie lang muss die Kündigungsfrist sein, um als fair zu gelten? Bei langjährigen Geschäftsbeziehungen ist es wichtig, der anderen Partei genügend Zeit einzuräumen, um sich auf dem Markt neu zu positionieren, nach alternativen Vertriebshändlern oder Lieferanten zu suchen oder (wie im Fall von Blue Ribbon/Nike) eine eigene Marke zu schaffen und einzuführen.

Ein weiteres Element, das bei der Mitteilung der Kündigung zu berücksichtigen ist, besteht darin, dass die Kündigungsfrist so bemessen sein muss, dass der Vertriebshändler die zur Erfüllung seiner Verpflichtungen während der Vertragslaufzeit getätigten Investitionen amortisieren kann; im Fall von Blue Ribbon hatte der Vertriebshändler auf ausdrücklichen Wunsch des Herstellers eine Reihe von Einmarkengeschäften sowohl an der West- als auch an der Ostküste der USA eröffnet.

Eine Kündigung des Vertrags kurz nach seiner Verlängerung und mit einer zu kurzen Vorankündigung hätte es dem Vertriebshändler nicht erlaubt, das Vertriebsnetz mit einem Ersatzprodukt neu zu organisieren, was die Schließung der Geschäfte, die die japanischen Schuhe bis zu diesem Zeitpunkt verkauft hatten, erzwungen hätte.

Im Allgemeinen ist es ratsam, eine Kündigungsfrist von mindestens 6 Monaten vorzusehen. Bei internationalen Vertriebsverträgen sollten jedoch neben den von den Parteien getätigten Investitionen auch etwaige spezifische Bestimmungen des auf den Vertrag anwendbaren Rechts (hier z. B. eine eingehende Analyse der plötzlichen Kündigung von Verträgen in Frankreich) oder die Rechtsprechung zum Thema Rücktritt von Geschäftsbeziehungen beachtet werden (in einigen Fällen kann die für einen langfristigen Vertriebskonzessionsvertrag als angemessen erachtete Frist 24 Monate betragen).

Schließlich ist es normal, dass der Händler zum Zeitpunkt des Vertragsabschlusses noch im Besitz von Produktvorräten ist: Dies kann problematisch sein, da der Händler in der Regel die Vorräte auflösen möchte (Blitzverkäufe oder Verkäufe über Internetkanäle mit starken Rabatten), was der Geschäftspolitik des Herstellers und der neuen Händler zuwiderlaufen kann.

Um diese Art von Situation zu vermeiden, kann in den Vertriebsvertrag eine Klausel aufgenommen werden, die das Recht des Herstellers auf Rückkauf der vorhandenen Bestände bei Vertragsende regelt, wobei der Rückkaufpreis bereits festgelegt ist (z. B. in Höhe des Verkaufspreises an den Händler für Produkte der laufenden Saison, mit einem Abschlag von 30 % für Produkte der vorangegangenen Saison und mit einem höheren Abschlag für Produkte, die mehr als 24 Monate zuvor verkauft wurden).

Markeninhaberschaft in einer internationalen Vertriebsvereinbarung

Im Laufe der Vertriebsbeziehung hatte Blue Ribbon eine neuartige Sohle für Laufschuhe entwickelt und die Marken Cortez und Boston für die Spitzenmodelle der Kollektion geprägt, die beim Publikum sehr erfolgreich waren und große Popularität erlangten: Bei Vertragsende beanspruchten nun beide Parteien das Eigentum an den Marken.

Derartige Situationen treten häufig in internationalen Vertriebsbeziehungen auf: Der Händler lässt die Marke des Herstellers in dem Land, in dem er tätig ist, registrieren, um Konkurrenten daran zu hindern, dies zu tun, und um die Marke im Falle des Verkaufs gefälschter Produkte schützen zu können; oder es kommt vor, dass der Händler, wie in dem hier behandelten Streitfall, an der Schaffung neuer, für seinen Markt bestimmter Marken mitwirkt.

Am Ende der Geschäftsbeeziehung, wenn keine klare Vereinbarung zwischen den Parteien vorliegt, kann es zu einem Streit wie im Fall Nike kommen: Wer ist der Eigentümer der Marke – der Hersteller oder der Händler?

Um Missverständnisse zu vermeiden, ist es ratsam, die Marke in allen Ländern zu registrieren, in denen die Produkte vertrieben werden, und nicht nur dort: Im Falle Chinas zum Beispiel ist es ratsam, die Marke auch dann zu registrieren, wenn sie dort nicht vertreiben wird, um zu verhindern, dass Dritte die Marke in böser Absicht übernehmen (weitere Informationen finden Sie in diesem Beitrag auf Legalmondo).

Es ist auch ratsam, in den Vertriebsvertrag eine Klausel aufzunehmen, die dem Händler die Eintragung der Marke (oder ähnlicher Marken) in dem Land, in dem er tätig ist, untersagt und dem Hersteller ausdrücklich das Recht einräumt, die Übertragung der Marke zu verlangen, falls dies dennoch geschieht.

Eine solche Klausel hätte die Entstehung des Rechtsstreits zwischen Blue Ribbon und Onitsuka Tiger verhindert.

Der von uns geschilderte Sachverhalt stammt aus dem Jahr 1976: Heutzutage ist es ratsam, im Vertrag nicht nur die Eigentumsverhältnisse an der Marke und die Art und Weise der Nutzung durch den Händler und sein Vertriebsnetz zu klären, sondern auch die Nutzung der Marke wie auch der Unterscheidungszeichen des Herstellers in den Kommunikationskanälen, insbesondere in den sozialen Medien, zu regeln.

Es ist ratsam, eindeutig festzulegen, dass niemand anderes als der Hersteller Eigentümer der Social-Media-Profile wie auch der erstellten Inhalte und der Daten ist, die durch die Verkaufs-, Marketing- und Kommunikationsaktivitäten in dem Land, in dem der Händler tätig ist, generiert werden, und dass er nur die Lizenz hat, diese gemäß den Anweisungen des Eigentümers zu nutzen.

Darüber hinaus ist es sinnvoll, in der Vereinbarung festzulegen, wie die Marke verwendet wird und welche Kommunikations- und Verkaufsförderungsmaßnahmen auf dem Markt ergriffen werden, um Initiativen zu vermeiden, die negative oder kontraproduktive Auswirkungen haben könnten.

Die Klausel kann auch durch die Festlegung von Vertragsstrafen für den Fall verstärkt werden, dass sich der Händler bei Vertragsende weigert, die Kontrolle über die digitalen Kanäle und die im Rahmen der Geschäftstätigkeit erzeugten Daten zu übertragen.

Mediation in internationalen Handelsverträgen

Ein weiterer interessanter Punkt, der sich am  Fall Blue Ribbon vs. Onitsuka Tiger erläutern lässt , steht im Zusammenhang mit der Bewältigung von Konflikten in internationalen Vertriebsbeziehungen: Situationen wie die, die wir gesehen haben, können durch den Einsatz von Mediation effektiv gelöst werden.

Dabei handelt es sich um einen Schlichtungsversuch, mit dem ein spezialisiertes Gremium oder ein Mediator betraut wird, um eine gütliche Einigung zu erzielen und ein Gerichtsverfahren zu vermeiden.

Die Mediation kann im Vertrag als erster Schritt vor einem eventuellen Gerichts- oder Schiedsverfahren vorgesehen sein oder sie kann freiwillig im Rahmen eines bereits laufenden Gerichts- oder Schiedsverfahrens eingeleitet werden.

Die Vorteile sind vielfältig: Der wichtigste ist die Möglichkeit, eine wirtschaftliche  Lösung zu finden, die die Fortsetzung der Beziehung ermöglicht, anstatt nur nach Wegen zur Beendigung der Geschäftsbeziehung zwischen den Parteien zu suchen.

Ein weiterer interessanter Aspekt der Mediation ist die Überwindung von persönlichen Konflikten: Im Fall Blue Ribbon vs. Onitsuka zum Beispiel war ein entscheidendes Element für die Eskalation der Probleme zwischen den Parteien die schwierige persönliche Beziehung zwischen dem CEO von Blue Ribbon und dem Exportmanager des japanischen Herstellers, die durch starke kulturelle Unterschiede verschärft wurde.

Der Mediationsprozess führt eine dritte Person ein, die in der Lage ist, einen Dialog mit den Parteien zu führen und sie bei der Suche nach Lösungen von gegenseitigem Interesse zu unterstützen, was entscheidend sein kann, um Kommunikationsprobleme oder persönliche Feindseligkeiten zu überwinden.

Für alle, die sich für dieses Thema interessieren, verweisen wir auf den hierzu verfassten  Beitrag auf Legalmondo sowie  auf die Aufzeichnung eines kürzlich durchgeführten Webinars zur Mediation internationaler Konflikte.

Streitbeilegungsklauseln in internationalen Vertriebsvereinbarungen

Der Streit zwischen Blue Ribbon und Onitsuka Tiger führte dazu, dass die Parteien zwei parallele Gerichtsverfahren einleiteten, eines in den USA (durch den  Händler) und eines in Japan (durch den  Hersteller).

Dies war nur deshalb  möglich, weil der Vertrag nicht ausdrücklich vorsah, wie etwaige künftige Streitigkeiten beigelegt werden sollten.  In der Konsequenz führte dies zu einer prozessual sehr komplizierten Situation mit gleich zwei gerichtlichen Fronten in verschiedenen Ländern.

Die Klauseln, die festlegen, welches Recht auf einen Vertrag anwendbar ist und wie Streitigkeiten beigelegt werden, werden in der Praxis als „Mitternachtsklauseln“ bezeichnet, da sie oft die letzten Klauseln im Vertrag sind, die spät in der Nacht ausgehandelt werden.

Es handelt sich hierbei  um sehr wichtige Klauseln, die bewusst gewählt  werden müssen, um unwirksame oder kontraproduktive Lösungen zu vermeiden.

Wie wir Ihnen helfen können

Der Abschluss eines internationalen Handelsvertriebsvertrags ist eine wichtige Investition, denn er regelt die vertragliche Beziehungen zwischen den Parteien verbindlich für die Zukunft  und gibt ihnen die Instrumente an die Hand, um alle Situationen zu bewältigen, die sich aus der künftigen Zusammenarbeit ergeben werden.

Es ist nicht nur wichtig, eine korrekte, vollständige und ausgewogene Vereinbarung auszuhandeln und abzuschließen, sondern auch zu wissen, wie sie im Laufe der Jahre zu handhaben ist, vor allem, wenn Konfliktsituationen auftreten.

Legalmondo bietet Ihnen die Möglichkeit, mit Anwälten zusammenzuarbeiten, die in mehr als 50 Ländern Erfahrung im internationalen Handelsvertrieb haben:  Bei bestehendem Beratungsbedarf schreiben Sie uns.

Article 442-1.II of the French Commercial Code (former Article L. 442-6.I.5 °) sanctions the termination by a trader of a written contract or an informal business relationship without giving sufficient written prior notice. Over the last twenty years, this article became the recurring legal basis for all compensation actions (up to 18 months of gross margin, plus other damages) when a commercial relationship or a contract ends (totally or even partially).

Therefore, a foreign trader who contracts with a French company should try not to fall under the aegis of this rule (part I) and, if it cannot, should understand and control its implementation (part II).

In a nutshell:

How can a foreign company avoid or control the risk linked to the „sudden termination of commercial relations“ set by French law? Foreign companies doing business with a French counterpart should:

– enter, as soon as possible, into a written (frame) agreement with their French suppliers or customers, even for a very simple relation and;

– stipulate a clause in favour of foreign court or arbitration and foreign applicable law while, failing to choose it, they would rather be subject to French courts and laws;

How can a foreign company master the risk linked to the „sudden termination of commercial relations“ set by French law? Foreign companies doing business with a French counterpart should:

• know that this article applies to almost all type of commercial relationship or contracts, whether written or not, fixed-term or not;
• check whether its relation/contract is sufficiently long, regular and significant and whether the other party has a legitimate belief in the continuation of this relation/contract;
• give a written notice of termination or non-renewal (or even of a major modification), which length takes mainly into account the duration of the relation, irrespectively of the length of the contractual notice;
• invoke, with cautiousness, force majeure and gross negligence of the party, to set aside “sudden termination”;
• anticipate, in case of insufficient notice, a compensation which amount is the product of the average monthly gross margin per the length of non-granted prior notice.

How to avoid the application of the French “Sudden Termination” rule?

In international matters, a foreign company must anticipate whether its relationship will be subject or not to French law before terminating a contract or a business relationship and, in case of dispute, whether it will be brought before a French court or not.

What will be the law applicable to “Sudden Termination”?

It is quite difficult for a foreign company to correctly grasp the French legal framework of conflict of laws rules applicable to “sudden termination”. In a ruling of September 19, 2018 (RG 16/05579, DES/ Clarins), the Court of appeal of Paris made, by an implicit reference to the Granarolo EU ruling (07 14 16, N°C196/15) an extension of the contractual qualification to most of the business relationships which will improve foreseeability in order for a foreign company to try to exclude French law and its “sudden termination” rule.

Sudden termination of a written contract or of a „tacit contractual relationship”

According to Rome I Regulation (EC No 593/2008, June 17 2008) on the law applicable to contracts:

– In case of choice of a foreign law by the parties: The clause selecting a foreign applicable law will be valid and respected by French judges (subject to OMR, see below), provided that the choice of law by the parties is express or certain.

– In case of no choice by the parties: French law will likely to be declared applicable as it might be either the law of the country where is based the distributor/franchisee, etc. or the law of the country where the party who is to provide the service features of the contract has its domicile.

Sudden termination of a “non-tacit contractual relationship”

In case of informal relationship (i.e. orders placed from time to time), French judges would retain the tort qualification and will refer to the Rome II Regulation (No 864/2007, July 11 2007) on the law applicable to non-contractual obligations..

– In case of choice of a foreign law by the parties: a properly drafted choice of foreign law clause should be implemented by a French judge, provided that it expressly includes tort cases.

– In case of no choice of law by the parties: French law will likely to be declared applicable as it might be the law of the country where the damage occurs (regardless of the place of the causing event or that of the indirect consequences), which is the place of the head office where the French victim suffers the consequences of the termination.

“Sudden Termination” rule, a French Overriding Mandatory Rule?

The position of French courts is quite vague and unsatisfactory, and this has been the case for a long time. To make it short: the Commercial Court of Paris judges that “sudden termination” is not an OMR, the Court of appeal of Paris (sole French appellate court in charge of “sudden termination” cases) is also not in favour of the OMR qualification on the grounds that the text „protects purely private economic interests“ (CA Paris, pôle 5, ch. 5, Feb 28. 2019, n° 17/16475 / CA Paris, pôle 5, ch. 5, Oct 8. 2020, n°17/19893). Recently, the Paris Court of Appeal reaffirmed that the rules on sudden termination of established commercial relations are not an OMR (Court of appeal Paris, March 11, 2021, n° 18/03112).

The French Supreme Court has never explicitly addressed the issue (OMR or not OMR). Indeed, the French Supreme Court ruled in the Expedia case (Cass. com., July 8, 2020, n°17-31.536) that the provisions of the former article L. 442-6, I, 2º and II, d), about “significant imbalance” (which is in the same set of rules than “Sudden termination”) are OMR. However, this qualification should be limited to the specific action brought by the Ministry of Finance and not be applicable to an action by a private party. Moreover, some courts may be tempted to invoke the provisions of French law n°2023-221 (March 30, 2023, aka Egalim III) to qualify Sudden termination rule as an OMR, however this text (article L 444-1.A Commercial code) does not quote expressly OMR and set no justification whatsoever to set such a qualification.

Consequently, if a claim for “sudden termination” is brought to a French court, there is still a  risk that the latter would exclude the applicable foreign law and replace it with the regime resulting from the „sudden termination“ of Article L 442-1. II. However, to avoid this risk, a foreign company would better not only choose a foreign governing law but also stipulate that the dispute will be brought before a foreign judge or an arbitral tribunal.

How to avoid jurisdiction of French court over a “Sudden Termination” claim?

“Sudden Termination” claim and intra EU co-contractor

The ECJ ruling (Granarolo, July 14, 2016, N°C196/15) created a distinction between claims occurring from:

– written framework contract or tacit contractual relationship (existing only if the body of evidences listed by the ECJ are identified by national judges, i.e. length of relation and commitments recognized to each other, such as exclusivity, special price or terms of delivery or payment, non-competition, etc.): such claim has a contractual nature according to conflict of jurisdiction rules under Brussels I recast Regulation;

– informal relationship which is a non–tacit contractual relationship (i.e. orders placed from time to time): such a request has a tort nature under Brussels I recast ;

To be noted: the so-called Egalim III law has no impact on the EU rules on jurisdiction clauses.

(a) Who is the Judge of the “sudden termination” of a written contract or of a „tacit contractual relationship”?

– Jurisdiction clause for the benefit of a foreign court will be enforced by French courts, even though it is an asymmetrical clause (Court of cassation, October 7, 2015, Ebizcuss.com / Apple Sales International).

– In case of lack of choice of court clause, French courts are likely to have jurisdiction if the French claimant bringing a case based on “sudden termination» is the service provider, such as distributor, agent, etc. (see ECJ Corman Collins case, 19 12 13, C-9/12, and article 7.1.b.2 of Brussels I recast°).

(b) Who is the Judge of the “sudden termination” of a „non- tacit contractual relationship”?

– We believe that French courts may continue to give effect to a jurisdiction clause in tort case, especially when it expressly encompasses tort litigation (Court of cassation, 1° Ch. Civ., January 18, 2017, n° 15-26105, Riviera Motors / Aston Martin Lagonda Ltd).

– In case of lack of choice of court clause, French courts will have jurisdiction over a “sudden termination” claim as the judge of the place where the harmful event occurred (art. 7.3 of Brussels I recast), which is the place where the sudden termination has effect…i.e. in France if the French company is the victim.

“Sudden Termination” claim and Non-EU co-contractor

The Granarolo solution will not ipso facto apply if a French victim brings a claim to French courts, based on a „sudden termination“ made by a non-EU company. In non-EU relations, French judges could continue to retain only the tort qualification. In such a case, French courts may keep their jurisdiction based on the place where the harmful event occurs.

Jurisdiction clause to a foreign court may be recognized in France (even for tort-based claims), provided that this jurisdiction clause is valid according to either a bilateral international convention or to the Hague Convention of 30 June 2005 on choice of court agreements. Otherwise, according to Egalim III law, imperative jurisdiction might be attributable to French courts.

“Sudden Termination” claim and arbitration

Stipulating an ad hoc or institutional arbitration clause is probably the safest solution to avoid the jurisdiction of French courts. Ideally, the clause will fix the seat of the arbitral tribunal outside France. According to the principle of competence-competence of the arbitrators, French courts declare themselves incompetent, unless the arbitration clause is manifestly void or manifestly inapplicable, regardless of contract or tort ground (see, in particular, Paris Court of Appeal, 5 September 2019, n°17/03703). The so-called “Egalim III” law has no impact on arbitration clauses.

Conclusion: Foreign companies should not leave open the Jurisdiction and governing Law issues. They must negotiate a safe harbour, otherwise a French victim of a termination will likely to be entitled to bring a “sudden termination” claim in front of French judges (see what happen below in Part 2)

How to master the “Sudden Termination” French rules?

When French law is applicable, the foreign company will face the legal regime of article L442 -1.II of the French Commercial Code sanctioning “sudden termination”. As a preliminary remark, it is important to know, above all, that the implementation of the liability for „sudden termination“ is the consequence of the lack of a notice or a too short notice. Thus, this scheme does not lay down an automatic compensation rule. In other words, as soon as reasonable notice is given by the author of the termination, liability on that basis can be dismissed.

The prerequisite for “Sudden Termination”: an established commercial relationship

All contracts are covered by this legal regime, except for contracts whose regulations provide for a specific notice of termination, like commercial agency contracts and transport of goods by road subcontracts.

First, there must be a relationship that can be proven by a written contract or de facto, by behaviour of the parties. Article L.442-1 II of the French Commercial Code covers all “commercial” relationships and not only “contractual ones so that such relationship may be based on a succession of tacitly renewed contracts or a regular flow of business, materialized by multiple orders. This was recently recalled by the Supreme Court (Supreme Court, February 16, 2022, n° 20-18.844)

Second, this relationship must have an established character. There is no legal definition, but this notion has been defined year after year by case law which has established an objective criterion and a more subjective one.

(a) The objective criterion implies a sufficiently long, regular and significant relationship between the two parties. The duration of the relationship is the most important criterion. The relationship must also be regular, that is, it must not have been interrupted (too often or too long). The relationship must ultimately be meaningful and represent a serious flow of business between the parties, in volume or value.

(b) The subjective test focuses primarily on the legitimate belief of the victim of the rupture in the continuation of the contract / the relationship that is based on factual elements, such as investment requests, budgets over several years, etc. Conversely, it is on the basis of the finding of a lack of legitimate belief in a common future that the terminating party can prove the absence of a stable character when he has resorted, on several occasions, a call for tenders (unless it is a trick).

Anticipating a “Sudden Termination” claim

(a) The termination may be total or partial

The total rupture is materialized by a complete stop of the relations, for example ending the contract, stopping the sending of orders by the purchaser or the recording of orders by the supplier.

The Supreme Court recently recalled that a significant drop in sales with a partner must be considered as a partial rupture of the relationship (February 16, 2022, n° 20-18.844, cited above). But the most complicated situation to deal with is the so-called partial rupture that will be deduced from a modification of elements that partly impacts the relationship but does not reduce it to nothing (ex.: a price increase or decrease, a change in the terms of payment or delivery).

(b) The termination must be subject to a reasonable written prior notice

The notice must be notified in writing. The absence of written notice is already a breach in itself. The notification must clearly reflect the willingness of a party to sever the relationship in whole or in part, which must be clearly identified. The notification must also clearly identify the date on which the relationship will end.

Thus, an ambiguity on the notice period (e.g if the termination of an agreement is notified, whilst offering to maintain certain prices and payment terms, in the meantime) is considered as an insufficient termination notice (French Supreme Court, January 29, 2013, n° 11-23.676).

Parties must distinguish between the letter of formal notice for default and the subsequent notification of the breach, giving notice (if applicable). During the period of notice, parties must fully comply with all contractual conditions.

This principle also applies to distribution contracts subject to specific French rules imposing annual or multi-year negotiation obligations. In fact, the Court of cassation has ruled that „when the conditions of the commercial relationship established between the parties are subject to annual negotiation, modifications made during the notice period which are not so substantial as to undermine its effectiveness do not constitute a brutal breach of that relationship“ (Cass. com., Dec. 7, 2022, n° 19-22.538).

However, it’s not necessary to mention the reasons why the commercial relationship is terminated is not a fault or breach of the relationship. In fact, French courts consider that “the fact that the given reason to terminate was false does not in any way present the terminating party from terminating the commercial relationship” (Versailles Court of Appeal, June 10, 1999).

The duration of the prior notice to be respected is not defined by French law which did not pose precise rule until the reform 2019. If several criteria are stated by case law, it should be noted that the most important criterion is the duration of the relationship. Judges also take into account the share of turnover achieved by the victim, the existence or not of a territorial exclusivity, the nature of the products and the sector of activity, the importance of the investments made by the victim especially to the relationship in question, and finally the state of economic dependence. Economic dependence is defined as the impossibility for a company to have a solution that is technically and economically equivalent to the contractual relations it has established with another company. Case law considers this to be an aggravating factor justifying a longer termination notice.

The minimum notice period must be notified at the time of notification of termination. As a consequence, events that affect the victim after the notification, both positively (conclusion of a new contract) and negatively (loss of another custome), will not be taken into account by the judge, at the time of ruling, when assessing the “brutality” of the termination.

The length of the notice given by the judges is very variable. The appreciation of notice is made on a case-by-case basis. It is very difficult to give a golden rule, even though roughly for each year of relationship, a month’s notice might be due (to modulate up or down depending on the other criteria in the relationship). But way of illustration, however, the following case law may be cited:

• Paris Court of Appeal , Feb.9, 2022: 16-year relationship with 15 months‘ notice;
• Paris Court of Appeal, Jan.20, 2022: 12-year relationship with 8 months‘ notice;
• Paris Court of Appeal, Oct. 25, 2022: 16-year relationship with 18 months‘ notice;
• Paris Court of Appeal , Feb. 23, 2022: 17-year relationship with 11 months‘ notice;
• Paris Court of Appeal, Sept. 21, 2022: 5-year relationship with 14 months‘ notice.

Since the Order of April 24, 2019, which limits the length of reasonable notice to a maximum of 18 months, if the notice period granted by a party is 18 months, it cannot be held liable for a sudden termination. However, much of the litigation remains uncertain, as only exceptionally long or particularly sensitive relationships led, prior to 019, to the award of more than 18 months‘ notice. Ordinance of April 24, 2019, limits to 18 months the maximum period of notice reasonably due under Article L 442-1.II. But much of the litigation will remain uncertain since only relations of exceptional longevity or particularly sensitive, could have led to the allocation of a notice higher than 18 months.

Judges are not bound by the contractual notices stipulated in the contract. But if the author of the breach also violated the terms and conditions of termination provided for by contract, the victim may seek the responsibility of the author both on the tort basis of the sudden rupture and also on the basis of the breach of a contractual obligation.

Cases in which “Sudden Termination” is ruled out

The legal regime provides for two cases, and the case-law seems to have imposed others.

(a) The two legal exceptions are Force majeure (very rarely consecrated by the courts) and the fault of the victim of the termination, case-law having added that it must be a serious violation (“faute grave”) of a contractual commitment or a legal provision (such as non-respect of an exclusivity, a non-compete, a confidentiality or a change of control duty, or non-payment of amounts due contractually).

The judges consider themselves, of course, not bound by a termination clause defining what constitutes serious misconduct. In any case the party who terminates for serious misconduct must clearly notify it in its letter of termination. Above all, serious misconduct leads to a lack of notice, therefore, if the terminating party alleges serious misconduct but grants notice, whichever it may be, judges may conclude that the fault was not serious enough.

Thus, the seriousness of the misconduct must be motivated by judges in their rulings. Noting that the contract was breached after two formal notices is not sufficient (Cass. com., Feb 16. 2022, n° 20-18.844).

However, the Court of Cassation considers that „even in the case of serious misconduct justifying the immediate termination of the commercial relationship, the other party remains free to give the other party a notice“ (Cass. Com., Oct. 14 2020, n°18-22.119).

(b) In recent years, case-law has added other cases of liability waiver. This is the case when the rupture is the consequence of a cause external to the author of the rupture, such as the economic crisis, the loss of its own customers or suppliers, upstream or downstream.

For example, in 2021 the Court of cassation has ruled that “the business partner is not entitled to an unchanged relationship and cannot refuse any adaptation required by economic changes” (Com, Dec 01, 2021, n°20-19.113). In fact, to be attributable to an economic player, a termination must be free and deliberate. This is not the case if termination is imposed by the economic situation.

However, adding a liability exemption clause in a contract, aimed at waiving destinated to escape the penalties of article L. 442-1, is without consequences on the judge’s appreciation.

Judges have also excluded “sudden termination” in the hypothesis of the end of the first period of a fixed-term contract, whatever its duration is: the first renewal of a contract, constitutes a foreseeable event for the victim of the rupture, which excludes the very notion of brutality; but once the contract has been renewed at least once, judges can subsequently characterize the victim’s legitimate belief in a new tacit renewal.

Compensation for “Sudden Termination”

Judges only compensate for the detrimental consequences of the brutality itself of the breach but do not compensate, at least in the context of article L442 -1.II, for the consequences of the breach itself.

The basic rule is very simple: it is necessary to determine the length of the notice which should have been granted, from which the notice actually granted is deducted. This net notice is multiplied by the average monthly gross margin of the victim, or more often the so called margin on variable costs (i.e. the turnover minus costs disappearing with non-performance of the contract/relation). Defendant should not hesitate to ask for the full accountancy evidences, especially to identify (lower) margin rates, or even for a judicial expertise on those accounting elements. In general, the base of the average monthly margin consists of the last 24 or 36 months.

The compensation calculated on the average margin is, in general, exclusive of any other compensation. However, the victim can prove that it has suffered other losses as a consequence of the brutality of the rupture. Such as dismissals directly caused by this brutality or the depreciation of investments made recently by the victim.

Some practical tips when considering to anticipate “Sudden Termination”

Even though the legal regime is still ambiguous and the case-law terribly casuistic which prevents to release strong guidelines, here are some practical tips when a company plans to terminate a relationship / contract:

• in the case of a fixed-term contract renewable tacitly, the notification of non-renewal must be anticipated well in advance of the beginning of the contractual notice in order to avoid being in a situation where it is necessary to choose between not renewing the contract with a notice that is not sufficient or agree to see the contract renewed itself for a new term;
• commercial teams must be made aware of the risk of partial sudden termination when they change the conditions of execution of a commercial relationship / contract too radically;
• in some cases, it may be useful to send a pre-notice of termination with a “notice proposal” in order to try to validate this notice with the other party;
• it may also be useful, in certain relationships, to notify the end of the relationship with different lengths of notice depending on the nature of the product lines;
• Finally, the best way is to conclude an end-of-relation protocol, fixing the duration of the notice as well as, if necessary, the progressive decline of the orders, the whole within the framework of a settlement agreement which definitively waives any claim, including “sudden termination”.

Sudden termination regime shall be taken into consideration when entering into the final phase of a duration relationship: the way in which the contract (or de facto relationship) is terminated must be carefully planned, in order to manage the risk of causing damages to the counterparty and being sued for compensation.

Given the significance of the influencer market (over €21 billion in 2023), which now encompasses all sectors, and with a view for transparency and consumer protection, France, with the law of June 9, 2023, proposed the world’s first regulation governing the activities of influencers, with the objective of defining and regulating influencer activities on social media platforms.

However, influencers are subject to multiple obligations stemming from various sources, necessitating the utmost vigilance, both in drafting influence agreements (between influencers and agencies or between influencers and advertisers) and in the behaviour they must adopt on social media or online platforms. This vigilance is particularly heightened as existing regulations do not cover the core of influencers‘ activities, especially their status and remuneration, which remain subject to legal ambiguity, posing risks to advertisers as regulatory authorities‘ scrutiny intensifies.

Key points to remember 

• Influencers‘ activity is subject to numerous regulations, including the law of June 9, 2023.
• This law not only regulates the drafting of influence contracts but also the influencer’s behaviour to ensure greater transparency for consumers.
• Every influencer whose audience includes French users is affected by the provisions of the law of June 9, 2023, even if they are not physically present in French territory.
• Both the law of June 9, 2023, and the „Digital Services Act,“ as well as the proposed law on „fast fashion,“ foresee increasing accountability for various actors in the commercial influence sector, particularly influencers and online platforms.
• Despite a plethora of regulations, the status and remuneration of influencers remain unaddressed issues that require special attention from advertisers engaging with influencers.

The law of June 9, 2023, regulating influencer activity  

The definition of influencer professions

The law of June 9, 2023, provides two essential definitions for influencer activities:

• Influencers are defined as ’natural or legal persons who, for consideration, mobilize their notoriety with their audience to communicate to the public, electronically, content aimed at promoting, directly or indirectly, goods, services, or any cause, engaging in commercial influence activities electronically.‘
• The activity of an influencer agent is defined as ‚that which consists of representing, for consideration,‘ the influencer or a possible agent ‚with the aim of promoting, for consideration, goods, services, or any cause‚ (article 7) The influencer agent must take ’necessary measures to ensure the defense of the interests of the persons they represent, to avoid situations of conflict of interest, and to ensure the compliance of their activity‚ with the law of June 9, 2023.

The obligations imposed on commercial messages created by the influencer

The law sets forth obligations that influencers must adhere to regarding their publications: 

• Mandatory particulars: When creating content, this law imposes an obligation on influencers to provide information to consumers, aiming for transparency towards their audience. Thus, influencers are required to clearly, legibly, and identifiably indicate on the influencer’s image or video, regardless of its format and throughout the entire viewing duration (according to modalities to be defined by decree):

  – The mention „advertisement“ or „commercial collaboration.“ Violating this obligation constitutes deceptive commercial practice punishable by two years‘ imprisonment and a fine of €300,000 (Article 5 of the law of June 9, 2023).
  – The mention of „altered images“ (modification by image processing methods aimed at refining or thickening the silhouette or modifying the appearance of the face) or „virtual images“ (images created by artificial intelligence). Failure to do so may result in a one-year prison sentence and a fine of €4,500 (Article 5 of the law of June 9, 2023).

• Prohibited or regulated promotions: This law reminds certain prohibitions, subject to criminal and administrative sanctions, stemming from French law on the direct or indirect promotion of certain categories of products and services, under penalty of criminal or administrative sanctions. This includes the promotion of products and services related to:

  – health: surgery, aesthetic medicine, therapeutic prescriptions, and nicotine products;
  – non-domestic animals, unless it concerns an establishment authorized to hold them;
  – financial: contracts, financial products, and services;
  – sports-related: subscriptions to sports advice or predictions;
  – crypto assets: if not from registered actors or have not received approval from the AMF;
  – gambling: their promotion prohibited for those under 18 years old and regulated by law;
  – professional training: their promotion is not prohibited but regulated.

The accountability of influencer behaviour

The law also holds influencers accountable from the contracting of their relationships and when they act as sellers:

• Regulation of commercial influence agreements: This law imposes, subject to nullity, from a certain threshold of influencer remuneration (defined by decree), the formalization in writing of the agreement between the advertiser and the influencer, but also, if applicable, between the influencer’s agent, and the mandatory stipulation of certain clauses (remuneration, mission description, etc.).
• Influencer responsibility as a cyber seller: Influencers engaging in drop shipping (selling products without handling their delivery, done by the supplier) must provide the buyer with all information in French as required by Article L. 221-5 of the Consumer Code about the product, such as its availability and legality (i.e., guarantee that the product is not counterfeit), applicable product warranty, and supplier identity. Additionally, influencers must ensure the proper delivery and receipt of products and, in case of default, compensate the buyer. Influencers are also logically subject to obligations regarding deceptive commercial practices (for more information, the DGCCRF website explain the dropshipping).

The accountability of other actors in the commercial influence ecosystem

Joint and several liability is set by law, for the advertiser, influencer, or influencer’s agent for damages caused to third parties in the execution of the commercial influence contract, allowing the victim of the damage to act against the most solvent party.

Furthermore, the law introduces accountability for online platforms by partially incorporating the European Regulation 2022/2065 on digital services (known as the „DSA„) of October 19, 2022.

French regulation and international influencers

Influencers established outside the European Union (including also Switzerland and the EEA) who promote products or services to a French audience must obtain professional liability insurance from an insurer established within the EU. They must also designate a legal or natural person providing „a form of representation“ (SIC) within the EU. This representative (whose regime is not very clear) is remunerated to represent the influencer before administrative and judicial authorities and to ensure the compliance of the influencer’s activity with law of June 9, 2023.

Furthermore, according to law of June 9, 2023, when the contract binding the influencer (or their agency) aims to implement a commercial influence activity electronically „targeting in particular an audience established in French territory“ (SIC), this contract should be exclusively subject to French law (including the Consumer Code, the Intellectual Property Code, and the law of June 9, 2023). According to this law, the absence of such a stipulation would be sanctioned by the nullity of the contract. Law of June 9, 2023, seems to be established as an overriding mandatory law capable of setting aside the choice of a foreign law.

However, the legitimacy (what about compliance with the definition of overriding mandatory rules established by Regulation Rome I?) and effectiveness (what if the contract specifies a foreign law and a foreign jurisdiction?) of such a legal provision can be questioned, notably due to its vague and general wording. In fact, it should be the activity deployed by the „foreign“ influencer to their community in France that should be apprehended by French overriding mandatory rules, rather than the content of the agreement concluded with the advertiser (which itself could also be foreign, by the way).

The other regulations governing the activity of influencers

The European regulations

The DSA further holds influencers accountable because, in addition to the reporting mechanism imposed on platforms to report illicit content (thus identifying a failing influencer), platforms must ensure (and will therefore shift this responsibility to the influencer) the identification of commercial communications and specific transparency obligations towards consumers.

The «soft law»

As early as 2015, the Advertising Regulatory Authority („ARPP“) issued recommendations on best practices for digital advertising. Similarly, in March 2023, the French Ministry of Economy published a „code of conduct“ for influencers and content creators. In 2023, the European Commission launched a legal information platform for influencers. Although non-binding, these rules, in addition to existing regulations, serve as guidelines for both influencers and content creators, as well as for judicial and administrative authorities.

The special status of child influencers

The law of October 19, 2020, aimed at regulating the commercial exploitation of children’s images on online platforms, notably opens up the possibility for child influencers to be recognized as salaried workers. However, this law only targeted video-sharing platforms. Article 2 of the law of June 9, 2023, extended the provisions regarding child influencer labor introduced by the 2020 law to all online platforms. Finally, a recent law aimed at ensuring respect for the image rights of children was published on February 19, 2024, introducing a principle of joint and several responsibility of both parents in protecting the minor’s image rights.

The status and remuneration of influencers: uncertainty persists

Despite the diversity of regulations applicable to influencers, none address their status and remuneration.

The status of the influencer

In the absence of regulations governing the status of influencers, a legal ambiguity persists regarding whether the influencer should be considered an independent contractor, an employee (as is partly the case for models or artists), or even as a brand representative (i.e. commercial agent), depending on the missions contractually entrusted to the influencer.

The nature of the contract and the applicable social security regime stem from the missions assigned to the influencer:

• In the case of an employment contract, the influencer will fall under the general regime for employees and assimilated persons, based on Articles L. 311-2 or 311-3 of the French Social Security Code.
• In the case of a service contract, the influencer will fall under the regime for self-employed workers.

The existence of a relationship of subordination between the advertiser and the influencer typically determines the qualification of an employment contract. Subordination is generally characterized when the employer gives orders and directives, has the power to control and sanction, and the influencer follows these directives. However, some activities are subject to a presumption of an employment contract; this is the case (at least in part) for artist contracts under Article L. 7121-3 of the French Labor Code and model contracts under Article L. 7123-2 of the French Labor Code.

The remuneration of the influencer

The influencer can be remunerated in cash (fixed or proportional) and/or in kind (for example: receiving a product from the brand, invitations to private or public events, coverage of travel expenses, etc.). The influencer’s remuneration must be specified in the influencer agreement and is directly impacted by the influencer’s status, as certain obligations (minimum wage, payment of social security contributions, etc.) apply in the case of an employment contract.

Furthermore, the remuneration (for the influencer’s services) must be distinguished from that of the transfer of their copyrights or image rights, which are subject to separate remuneration in exchange for the IP rights transferred.

The influencers… in the spotlight

The law of June 9, 2023, grants the French authority (i.e. the Consumer Affairs, Competition and Fraud Prevention Agency, “DGCCRF”) new injunction powers (with reinforced penalties). This comes in addition to the recent creation of a „commercial influence squad„, within the DGCCRF, tasked with monitoring social networks, and responding to reports received through Signal Conso. The law provides for fines and the possibility of blocking content.

As early as August 2023, the DGCCRF issued warnings to several influencers to comply with the new regulations on commercial influence and imposed on them the obligation to publicly disclose their conviction for non-compliance with the new provisions regarding transparency to consumers on their own social networks, a heavy penalty for actors whose activity relies on their popularity (DGCCRF investigation on the commercial practices of influencers).

On February 14, 2024, the European Commission and the national consumer protection authorities of 22 EU member states, Norway, and Iceland published the results of an analysis conducted on 570 influencers (the so-called „clean-up operation“ of 2023 on influencers): only one in five influencers consistently presented their commercial content as advertising. 

In response to environmental, ethical, and quality concerns related to „fast fashion,“ a draft law aiming to ban advertising for fast fashion brands, including advertising done by influencers (Proposal for a law aiming to reduce the environmental impact of the textile industry), was adopted by the National Assembly on first reading on March 14, 2024.

Lastly, the law of June 9, 2023, has been criticized by the European Commission, which considers that the law would contravene certain principles provided by EU law, notably the principle of „country of origin,“ according to which the company providing a service in other EU countries is exclusively subject to the law of its country of establishment (principle initially provided for by the E-commerce Directive of June 8, 2000, and included in the DSA). Some of its provisions, particularly those concerning the application of French law to foreign influencers, could therefore be subject to forthcoming – and welcome – modifications.

Summary

To avoid disputes with important suppliers, it is advisable to plan purchases over the medium and long term and not operate solely on the basis of orders and order confirmations. Planning makes it possible to agree on the duration of the ’supply agreement, minimum volumes of products to be delivered and delivery schedules, prices, and the conditions under which prices can be varied over time.
The use of a framework purchase agreement can help avoid future uncertainties and allows various options to be used to manage commodity price fluctuations depending on the type of products , such as automatic price indexing or agreement to renegotiate in the event of commodity fluctuations beyond a certain set tolerance period.

I read in a press release: “These days, the glass industry is sending wine companies new unilateral contract amendments with price changes of 20%…”

What can one do to avoid the imposition of price increases by suppliers? 

• Know your rights and act in an informed manner
• Plan and organise your supply chain

Does my supplier have the right to increase prices?

If contracts have already been concluded, e.g., orders have already been confirmed by the supplier, the answer is often no.

It is not legitimate to request a price change. It is much less legitimate to communicate it unilaterally, with the threat of cancelling the order or not delivering the goods if the request is not granted.

What if he tells me it is force majeure?

That’s wrong: increased costs are not a force majeure but rather an unforeseen excessive onerousness, which hardly happens.

What if the supplier canceled the order, unilaterally increased the price, or did not deliver the goods?

He would be in breach of contract and liable to pay damages for violating his contractual obligations.

How can one avoid a tug-of-war with suppliers?

The tools are there. You have to know them and use them.

It is necessary to plan purchases in the medium term, agreeing with suppliers on a schedule in which are set out:

• the quantities of products to be ordered
• the delivery terms
• the durationof the agreement
• the pricesof the products or raw materials
• the conditions under which prices can be varied

There is a very effective instrument to do so: a framework purchase agreement.

Using a framework purchase agreement, the parties negotiate the above elements, which will be valid for the agreed period.

Once the agreement is concluded, product orders will follow, governed by the framework agreement, without the need to renegotiate the content of individual deliveries each time.

For an in-depth discussion of this contract, see this article.

• “Yes, but my suppliers will never sign it!”

Why not? Ask them to explain the reason.

This type of agreement is in the interest of both parties. It allows planning future orders and grants certainty as to whether, when, and how much the parties can change the price.

In contrast, acting without written agreements forces the parties to operate in an environment of uncertainty. Suppliers can request price increases from one day to the next and refuse supply if the changes are not accepted.

How are price changes for future supplies regulated?

Depending on the type of products or services and the raw materials or energy relevant in determining the final price, there are several possibilities.

• The first option is to index the price automatically. E.g., if the cost of a barrel of Brent oil increases/decreases by 10%, the party concerned is entitled to request a corresponding adjustment of the product’s price in all orders placed as of the following week.
• An alternative is to provide for a price renegotiation in the event of a fluctuation of the reference commodity. E.g., suppose the LME Aluminium index of the London Stock Exchange increases above a certain threshold. In that case, the interested party may request a price renegotiationfor orders in the period following the increase.

What if the parties do not agree on new prices?

It is possible to terminate the contract or refer the price determination to a third party, who would act as arbitrator and set the new prices for future orders.

Summary

The framework supply contract is an agreement that regulates a series of future sales and purchases between two parties (customer and supplier) that take place over a certain period of time. This agreement determines the main elements of future contracts such as price, product volumes, delivery terms, technical or quality specifications, and the duration of the agreement.

The framework contract is useful for ensuring continuity of supply from one or more suppliers of a certain product that is essential for planning industrial or commercial activity. While the general terms and conditions of purchase or sale are the rules that apply to all suppliers or customers of the company. The framework contract is advisable to be concluded with essential suppliers for the continuity of business activity, in general or in relation to a particular project.

What I am talking about in this article:

• What is the supply framework agreement?
• What is the function of the supply framework agreement?
• The difference with the general conditions of sale or purchase
• When to enter a purchase framework agreement?
• When is it beneficial to conclude a sales framework agreement?
• The content of the supply framework agreement
• Price revision clause and hardship
• Delivery terms in the supply framework agreement
• The Force Majeure clause in international sales contracts
• International sales: applicable law and dispute resolution arrangements

What is a framework supply agreement?

It is an agreement that regulates a series of future sales and purchases between two parties (customer and supplier), which will take place over a certain period.

It is therefore referred to as a „framework agreement“ because it is an agreement that establishes the rules of a future series of sales and purchase contracts, determining their primary elements (such as the price, the volumes of products to be sold and purchased, the delivery terms of the products, and the duration of the contract).

After concluding the framework agreement, the parties will exchange orders and order confirmations, entering a series of autonomous sales contracts without re-discussing the covenants already defined in the framework agreement.

Depending on one’s point of view, this agreement is also called a sales framework agreement (if the seller/supplier uses it) or a purchasing framework agreement (if the customer proposes it).

What is the function of the framework supply agreement?

It is helpful to arrange a framework agreement in all cases where the parties intend to proceed with a series of purchases/sales of products over time and are interested in giving stability to the commercial agreement by determining its main elements.

In particular, the purchase framework agreement may be helpful to a company that wishes to ensure continuity of supply from one or more suppliers of a specific product that is essential for planning its industrial or commercial activity (raw material, semi-finished product, component).

By concluding the framework agreement, the company can obtain, for example, a commitment from the supplier to supply a particular minimum volume of products, at a specific price, with agreed terms and technical specifications, for a certain period.

This agreement is also beneficial, at the same time, to the seller/supplier, which can plan sales for that period and organize, in turn, the supply chain that enables it to procure the raw materials and components necessary to produce the products.

What is the difference between a purchase or sales framework agreement and the general terms and conditions?

Whereas the framework agreement is an agreement that is used with one or more suppliers for a specific product and a certain time frame, determining the essential elements of future contracts, the general purchase (or sales) conditions are the rules that apply to all the company’s suppliers (or customers).

The first agreement, therefore, is negotiated and defined on a case-by-case basis. At the same time, the general conditions are prepared unilaterally by the company, and the customers or suppliers (depending on whether they are sales or purchase conditions) adhere to and accept that the general conditions apply to the individual order and/or future contracts.

The two agreements might also co-exist: in that case; it is a good idea to specify which contract should prevail in the event of a discrepancy between the different provisions (usually, this hierarchy is envisaged, ranging from the special to the general: order – order confirmation; framework agreement; general terms and conditions of purchase).

When is it important to conclude a purchase framework agreement?

It is beneficial to conclude this agreement when dealing with a mono-supplier or a supplier that would be very difficult to replace if it stopped selling products to the purchasing company.

The risks one aims to avoid or diminish are so-called stock-outs, i.e., supply interruptions due to the supplier’s lack of availability of products or because the products are available, but the parties cannot agree on the delivery time or sales price.

Another result that can be achieved is to bind a strategic supplier for a certain period by agreeing that it will reserve an agreed share of production for the buyer on predetermined terms and conditions and avoid competition with offers from third parties interested in the products for the duration of the agreement.

When is it helpful to conclude a sales framework agreement?

This agreement allows the seller/supplier to plan sales to a particular customer and thus to plan and organize its production and logistical capacity for the agreed period, avoiding extra costs or delays.

Planning sales also makes it possible to correctly manage financial obligations and cash flows with a medium-term vision, harmonizing commitments and investments with the sales to one’s customers.

What is the content of the supply framework agreement?

There is no standard model of this agreement, which originated from business practice to meet the requirements indicated above.

Generally, the agreement provides for a fixed period (e.g., 12 months) in which the parties undertake to conclude a series of purchases and sales of products, determining the price and terms of supply and the main covenants of future sales contracts.

The most important clauses are:

• the identification of products and technical specifications (often identified in an annex)
• the minimum/maximum volume of supplies
• the possible obligation to purchase/sell a minimum/maximum volume of products
• the schedule of supplies
• the delivery times
• the determination of the price and the conditions for its possible modification (see also the next paragraph)
• impediments to performance (Force Majeure)
• cases of Hardship
• penalties for delay or non-performance or for failure to achieve the agreed volumes
• the hierarchy between the framework agreement and the orders and any other contracts between the parties
• applicable law and dispute resolution (especially in international agreements)

How to handle price revision in a supply contract?

A crucial clause, especially in times of strong fluctuations in the prices of raw materials, transport, and energy, is the price revision clause.

In the absence of an agreement on this issue, the parties bear the risk of a price increase by undertaking to respect the conditions initially agreed upon; except in exceptional cases (where the fluctuation is strong, affects a short period, and is caused by unforeseeable events), it isn’t straightforward to invoke the supervening excessive onerousness, which allows renegotiating the price, or the contract to be terminated.

To avoid the uncertainty generated by price fluctuations, it is advisable to agree in the contract on the mechanisms for revising the price (e.g., automatic indexing following the quotation of raw materials). The so-called Hardship or Excessive Onerousness clause establishes what price fluctuation limits are accepted by the parties and what happens if the variations go beyond these limits, providing for the obligation to renegotiate the price or the termination of the contract if no agreement is reached within a certain period.

How to manage delivery terms in a supply agreement?

Another fundamental pact in a medium to long-term supply relationship concerns delivery terms. In this case, it is necessary to reconcile the purchaser’s interest in respecting the agreed dates with the supplier’s interest in avoiding claims for damages in the event of a delay, especially in the case of sales requiring intercontinental transport.

The first thing to be clarified in this regard concerns the nature of delivery deadlines: are they essential or indicative? In the first case, the party affected has the right to terminate (i.e., wind up) the agreement in the event of non-compliance with the term; in the second case, due diligence, information, and timely notification of delays may be required, whereas termination is not a remedy that may be automatically invoked in the event of a delay.

A useful instrument in this regard is the penalty clause: with this covenant, it is established that for each day/week/month of delay, a sum of money is due by way of damages in favor of the party harmed by the delay.

If quantified correctly and not excessively, the penalty is helpful for both parties because it makes it possible to predict the damages that may be claimed for the delay, quantifying them in a fair and determined sum. Consequently, the seller is not exposed to claims for damages related to factors beyond his control. At the same time, the buyer can easily calculate the compensation for the delay without the need for further proof.

The same mechanism, among other things, may be adopted to govern the buyer’s delay in accepting delivery of the goods.

Finally, it is a good idea to specify the limit of the penalty (e.g.,10 percent of the price of the goods) and a maximum period of grace for the delay, beyond which the party concerned is entitled to terminate the contract by retaining the penalty.

The Force Majeure clause in international sales contracts

A situation that is often confused with excessive onerousness, but is, in fact, quite different, is that of Force Majeure, i.e., the supervening impossibility of performance of the contractual obligation due to any event beyond the reasonable control of the party affected, which could not have been reasonably foreseen and the effects of which cannot be overcome by reasonable efforts.

The function of this clause is to set forth clearly when the parties consider that Force Majeure may be invoked, what specific events are included (e.g., a lock-down of the production plant by order of the authority), and what are the consequences for the parties‘ obligations (e.g., suspension of the obligation for a certain period, as long as the cause of impossibility of performance lasts, after which the party affected by performance may declare its intention to dissolve the contract).

If the wording of this clause is general (as is often the case), the risk is that it will be of little use; it is also advisable to check that the regulation of force majeure complies with the law applicable to the contract (here an in-depth analysis indicating the regime provided for by 42 national laws).

Applicable law and dispute resolution clauses

Suppose the customer or supplier is based abroad. In that case, several significant differences must be borne in mind: the first is the agreement’s language, which must be intelligible to the foreign party, therefore usually in English or another language familiar to the parties, possibly also in two languages with parallel text.

The second issue concerns the applicable law, which should be expressly indicated in the agreement. This subject matter is vast, and here we can say that the decision on the applicable law must be made on a case-by-case basis, intentionally: in fact, it is not always convenient to recall the application of the law of one’s own country.

In most international sales contracts, the 1980 Vienna Convention on the International Sale of Goods („CISG“) applies, a uniform law that is balanced, clear, and easy to understand. Therefore, it is not advisable to exclude it.

Finally, in a supply framework agreement with an international supplier, it is important to identify the method of dispute resolution: no solution fits all. Choosing a country’s jurisdiction is not always the right decision (indeed, it can often prove counterproductive).

A case recently decided by the Italian Supreme Court clarifies what the risks are for those who sell their products abroad without having paid adequate attention to the legal part of the contract (Order, Sec. 2, No. 36144 of 2022, published 12/12/2022).

Why it’s important: in contracts, care must be taken not only with what is written, but also with what is not written, otherwise there is a risk that implied warranties of merchantability will apply, which may make the product unsuitable for use, even if it conforms to the technical specifications agreed upon in the contract.

The international sales contract and the first instance decision

A German company had sued an Italian company in Italy (Court of Chieti) to have it ordered to pay the sales price of two invoices for supplies of goods (steel).

The Italian purchasing company had defended itself by claiming that the two invoices had been deliberately not paid, due to the non-conformity of three previous deliveries by the same German seller. It then counterclaimed for a finding of defects and a reduction in the price, to be set off against the other party’s claim, as well as damages.

In the first instance, the Court of Chieti had partially granted both the German seller’s demand for payment (for about half of the claim) and the buyer’s counterclaim.

The court-appointed technical expertise had found that the steel supplied by the seller, while conforming to the agreed data sheet, had a very low silicon value compared to the values at other manufacturers‘ steel; however, the trial judge ruled out this as a genuine defect.

The judgment of appeal

The Court of Appeals of L’Aquila, appealed to the second instance by the buyer, had reached a different conclusion than the Court of First Instance, significantly reducing the amount owed by the Italian buyer, for the following reasons:

• the regime of „implied warranties“ under Article 35 of the Vienna Convention on the International Sale of Goods of 11.4.80 („CISG,“ ratified in both Italy and Germany) applied, as the companies had business headquarters in two different countries, both of which were parties to the Convention;
• in particular, the chemical composition of the steel supplied by the seller, while not constituting a „defect“ in the product (i.e., an anomaly or imperfection) was nonetheless to be considered a „lack of conformity“ within the meaning of Articles 35(2)(a) and 36(1) of the CISG, as it rendered the steel unsuitable for the use for which goods of the same kind would ordinarily serve (also known as „warranty of merchantability“).

The ruling of the Supreme Court

The German seller then appealed to the Supreme Court against the Court of Appeals‘ ruling, stating in summary that, according to the CISG, the conformity or non-conformity of the goods must be assessed against what was agreed upon in the contract between the parties; and that the „warranty of merchantability“ should apply only in the absence of a precise agreement of the parties on the characteristics that the product must have.

However, the seller’s defense continued, in this case the Italian buyer had sent a data sheet including a summary table of the various chemical elements, where it was stated that silicon should be present in a percentage not exceeding 0.45, but no minimum percentage was indicated.

So, the fact that the percentage of silicon was significantly lower than that found on average in steel from other suppliers could not be considered a conformity defect, since, at the contract negotiation stage, the parties exchanging the data sheet had expressly agreed only on the maximum values, thus not considering the minimum values relevant to conformity.

The Supreme Court, however, disagreed with this reasoning and essentially upheld the Court of Appeals‘ ruling, rejecting the German seller’s appeal.

The Court recalled that, according to Article 35 first paragraph of the CISG, the seller must deliver goods whose quantity, quality and kind correspond to those stipulated in the contract and whose packaging and wrapping correspond to those stipulated in the contract; and that, for the second paragraph, „unless the parties agree otherwise, goods are in conformity with the contract only if: a) they are suitable for the uses for which goods of the same kind would ordinarily serve.“

Other guarantees are enumerated in paragraphs (b) to (d) of the same standard[1] . They are commonly referred to collectively as „implied warranties.“

The Court noted that the warranties in question, including the one of „merchantability“ just referred to, do not stand subordinate or subsidiary to contractual covenants; on the contrary, they apply unless expressly excluded by the parties.

It follows that, according to the Supreme Court, any intention of the parties to a sales contract to disapply the warranty of merchantability must „result from a specific provision agreed upon by the parties.„

In the present case, although the data sheet that was part of the contractual agreements was analytical and had included among the chemical characteristics of the material the percentage of silicon, the fact that only a maximum percentage was indicated and not also the minimum percentage was not sufficient to exclude the fact that, by virtue of the „implied guarantee“ of marketability, the minimum percentage should in any case conform to the average percentage of similar products existing on the market.

Since the „warranty of merchantability“ had not been expressly excluded between the parties by a specific contractual clause, the conformity of the goods to the contract still had to be evaluated in consideration of this implied warranty as well.

Conclusions

What should businesses that sell abroad keep in mind?

• In contracts for the sale of goods between companies based in two different countries, the CISG automatically applies in many cases, in preference to the domestic law of either the seller’s country or the buyer’s country.
• The CISG contains very important rules for the relationship between sellers and buyers, on warranties of conformity of goods with the contract and buyer’s remedies for breach of warranties.
• One can modify or even exclude these rules by drafting appropriate contracts or general conditions in writing.
• Parties may agree not to apply all or some of the „implied warranties“ (possibly replacing them with contractual warranties) just as they may exclude certain remedies (e.g., exclude or limit liability for damages, within certain limits). However, they must do so in clear and explicit clauses.
• For the „warranty of merchantability“ not to apply, according to the reasoning of the Italian Supreme Court, it is not enough not to mention it in the contract.
• It is not sufficient to attach an analytical description of the characteristics of the goods to the contract to exclude certain characteristics not mentioned but nevertheless present in similar products of other manufacturers, which can be used as a parameter for the conformity of the goods.
• Instead, it is necessary to include a clause in the contract expressly excluding this type of guarantee.

In other words, in contracts, one must pay attention not only to what is written but also to what is not written.

This case once again demonstrates the importance of drafting a proper and complete contract not only from a commercial, technical, and financial point of view but also from a legal point of view, using the expertise of a lawyer experienced in international commercial contracts.

Finally, it is important not to overlook applicable law and jurisdiction clauses. These aspects are unfortunately often overlooked, even in high-value negotiations, considering these clauses unimportant or even blocking for negotiation, only to regret them when litigation arises or even threatened. See an in-depth discussion here.

Many people think that the non-disclosure agreement (NDA) is the one and only necessary precaution in a negotiation. This is wrong, because this agreement only refers to a facet of the business relationship that the parties want to discuss or manage.

Why is it important

The function of the NDA is to maintain the confidentiality of certain information that the parties intend to exchange and to prevent it from being used for purposes on which the parties did not agree. However, many aspects of the negotiation are not regulated in the NDA.

The main issues that the parties should agree on in writing are the following:

• why do the parties want to exchange information?
• what is the ultimate scope to be achieved?
• on what general points do the parties already agree?
• how long will negotiations last?
• who will participate in the negotiations, and with what powers?
• what documents and information will be shared?
• are there any exclusivity and/or non-compete obligations during and after the negotiation?
• what law applies to the negotiations and how are potential disputes resolved?

If these questions are not answered, it is likely that misunderstandings and disputes will arise over time, especially in lengthy and complex negotiations with foreign counterparts.

How to proceed?

• It is advisable that the above agreements be set down in a Letter of Intent („LoI“) or Memorandum of Understanding („MoU“). These are preliminary agreements whose function is determining the scope of future negotiations, the timetable, and the rules to be observed during and after the negotiations.

Common objection

„These are non-binding contracts, so what is the point of using them if the parties are free not to comply?

• Some covenants may be binding (exclusivity during negotiation, non-competition, dispute settlement agreements), and some may not (with the freedom to conclude or not to conclude the agreement).
• In any case, agreeing on the negotiating roadmap is an advantage over operating without having set the negotiating guidelines.

What happens if no agreement is reached?

• The MoU usually expressly provides for each party to be free not to finalize the negotiation as long as that party behaves, keeps acting in good faith during the negotiations and preserves the other party’s rights.
• It should be noted that in case of early or unjustified termination of the negotiations by one of the parties, the other party may be entitled to damages (so-called pre-contractual liability) if the agreement and/or the law applicable to the contract so provide.

Then, when should a non-disclosure agreement be concluded?

• It can be executed at the same time as the MoU / LoI or immediately afterwards so that the specification of confidential information, the way it is used, the duration of confidentiality obligations, etc. are defined in a way that is consistent with the project the parties have agreed upon.

For more information on the content of confidentiality agreements, see this article.

Nach mehr als 30 Jahren Verhandlungen blickt die Welt nun auf das erste panafrikanische Handelsabkommen, welches 2019 in Kraft getreten ist: Die Afrikanische Kontinentale Freihandelszone (African Continental Free Trade Area – AfCFTA).

Afrika ist mit seinen 55 Ländern und rund 1,3 Milliarden Einwohnern nach Asien der zweitgrößte Kontinent der Welt. Das Potenzial des Kontinents ist enorm: Mehr als 50 % der afrikanischen Bevölkerung ist unter 20 Jahre alt, und die Bevölkerung wächst weltweit am schnellsten. Bis 2050 wird voraussichtlich jedes vierte Neugeborene aus Afrika stammen. Darüber hinaus ist der Kontinent reich an fruchtbaren Böden und Rohstoffen.

Für westliche Investoren hat Afrika in den letzten Jahren erheblich an Bedeutung gewonnen. So ist ein beachtliches internationales Handelsvolumen entstanden, das nicht zuletzt durch die 2017 von den G20-Staaten verabschiedete Initiative „Compact with Africa“, auch bekannt als „Marshallplan mit Afrika“, gefördert wird. Der Fokus liegt auf dem Ausbau der wirtschaftlichen Zusammenarbeit Afrikas mit den G20-Ländern durch die Stärkung privater Investitionen.

Zugleich stagnierte bislang jedoch der innerafrikanische Handel: Teilweise noch bestehende hohe innerafrikanische Zölle, nichttarifäre Handelshemmnisse (non-tariff barriers – NTBs), schwache Infrastruktur, Korruption, schwerfällige Bürokratie sowie intransparente und inkonsistente Regulierungen sorgten dafür, dass sich die interregionalen Exporte kaum entwickeln konnten und zuletzt nur 17 % des innerafrikanischen Handels und nur 0,36 % des Welthandels ausmachten. Schon lange hatte sich deshalb die Afrikanische Union (AU) die Schaffung einer gemeinsamen Handelszone auf ihre Agenda gesetzt.

Was verbirgt sich hinter AfCFTA?

Der Errichtung einer panafrikanischen Handelszone gingen jahrzehntelange Verhandlungen voraus, welche schließlich in das Inkrafttreten des AfCFTA am 30. Mai 2019 mündeten.

Das AfCFTA ist eine von ihren Mitgliedern errichtete Freihandelszone, die (mit Ausnahme Eritreas) den gesamten afrikanischen Kontinent umfasst und damit, gemessen an der Zahl der Mitgliedsstaaten nach der Welthandelsorganisation (World Trade Organization – WTO) die größte Freihandelszone der Welt ist.

Die Ausgestaltung des gemeinsamen Marktes war Gegenstand mehrerer Einzelverhandlungen, die in den Phasen I und II geführt wurden.

Phase I umfasst die Verhandlungen zu drei Protokollen und ist nahezu abgeschlossen.

Das Protokoll über den Handel mit Waren

Dieses Protokoll sieht die Abschaffung von 90 % aller innerafrikanischen Zölle in allen Warenkategorien innerhalb von fünf Jahren nach Inkrafttreten vor. Davon können bis zu 7 % der Waren als sensible Waren eingestuft werden, für die ein Zeitraum von zehn Jahren für die Beseitigung der Zölle gilt. Für die am wenigsten entwickelten Länder (Least Developed Countries – LDCs) wird die Vorbereitungszeit von fünf auf zehn Jahre und für sensible Waren von zehn auf dreizehn Jahre verlängert, sofern sie ihren Bedarf nachweisen. Die restlichen 3 % der Zölle sind vollständig vom Zollabbau ausgenommen.

Voraussetzung für den Zollabbau ist die klare Abgrenzung der Ursprungsregeln. Andernfalls könnten Einfuhren aus Drittländern von den ausgehandelten Zollvorteilen profitieren. Über die meisten Ursprungsregeln ist bereits eine Einigung erzielt worden.

Das Protokoll über den Handel mit Dienstleistungen

Die AU-Generalversammlung hat sich bisher auf fünf Schwerpunktbereiche (Verkehr, Kommunikation, Tourismus, Finanz- und Unternehmensdienstleistungen) und Leitlinien für die entsprechenden Verpflichtungen geeinigt. 47 AU-Mitgliedsstaaten haben bereits ihre Angebote für spezifische Verpflichtungen vorgelegt und die Überprüfung von 28 von ihnen ist abgeschlossen. Darüber hinaus sind die Verhandlungen, beispielsweise über die Anerkennung von Berufsqualifikationen, noch nicht abgeschlossen.

Das Protokoll über die Streitbeilegung

Mit dem Protokoll über Regeln und Verfahren für die Streitbeilegung schafft das AfCFTA ein Streitbeilegungssystem nach dem Vorbild der WTO-Streitbeilegungsvereinbarung. Das Streitbeilegungsgremium (Dispute Settlement Body – DSB) verwaltet das AfCFTA-Streitbeilegungsprotokoll und setzt ein Schiedsgericht (Adjudicating Panel – Panel) und ein Berufungsgremium (Appellate Body – AB) ein. Das DSB setzt sich aus einem Vertreter jedes Mitgliedstaates zusammen und wird tätig, sobald es zwischen den Vertragsstaaten Meinungsverschiedenheiten über die Auslegung und/oder Anwendung des Abkommens in Bezug auf ihre Rechte und Pflichten gibt.

Für die verbleibende Phase II sind Verhandlungen über Investitions- und Wettbewerbspolitik, Fragen des geistigen Eigentums, Online-Handel sowie Frauen und Jugend im Handel geplant, deren Ergebnisse in weitere Protokolle einfließen werden.

Die Umsetzung des AfCFTA

Grundsätzlich kann der Handel im Rahmen eines Handelsabkommens erst dann beginnen, wenn der rechtliche Rahmen endgültig steht. Die Staats- und Regierungschefs der AU haben jedoch im Dezember 2020 vereinbart, dass der Handel mit solchen Waren, für die die Verhandlungen abgeschlossen sind, beginnen kann. Im Rahmen dieser Übergangsregelung fand nach einer pandemiebedingten Verschiebung am 4. Januar 2021 die erste AfCFTA-Handelsabwicklung von Ghana nach Südafrika statt.

Bausteine der AfCFTA

Alle 55 Mitglieder der AU waren an den AfCFTA-Verhandlungen beteiligt. Davon gehören 47 zu mindestens einer der anerkannten Regionalen Wirtschaftsgemeinschaften (Regional Economic Communities – RECs), die gemäß der Präambel des AfCFTA-Abkommens weiterhin als Bausteine des Handelsabkommens dienen sollen. Folglich waren es die RECs, welche bei den AfCFTA-Verhandlungen für ihre jeweiligen Mitglieder auftraten. Das AfCFTA-Abkommen sieht vor, dass die RECs ihre Rechtsinstrumente, Institutionen und Streitbeilegungsmechanismen beibehalten.

Innerhalb der AU gibt es acht anerkannte regionale Wirtschaftsgemeinschaften, die sich in einigen Ländern überschneiden und bei denen es sich entweder um präferenzielle Handelsabkommen (Freihandelsabkommen) oder Zollunionen handelt.

Im Rahmen der AfCFTA haben die RECs verschiedene Aufgaben. Diese sind insbesondere:

• Koordinierung der Verhandlungspositionen und Unterstützung der Mitgliedsstaaten bei der Umsetzung des Abkommens
• Lösungsorientierte Mediation bei Unstimmigkeiten zwischen den Mitgliedsstaaten
• Unterstützung der Mitgliedsstaaten bei der Harmonisierung von Zöllen und anderen Grenzschutzbestimmungen
• Förderung der Nutzung des AfCFTA-Meldeverfahrens zum Abbau von NTBs

Ausblick auf das AfCFTA

Das AfCFTA hat das Potenzial, die Integration Afrikas in die Weltwirtschaft zu erleichtern und schafft die reale Möglichkeit einer Neuausrichtung der internationalen Integrations- und Kooperationsmuster.

Ein Handelsabkommen allein ist noch keine Garantie für wirtschaftlichen Erfolg. Damit das Abkommen den prognostizierten Durchbruch erzielt, müssen die Mitgliedstaaten den politischen Willen haben, die neuen Regeln konsequent umzusetzen und die dafür notwendigen Kapazitäten zu schaffen. Insbesondere die kurzfristige Beseitigung von Handelshemmnissen und die Schaffung einer nachhaltigen physischen und digitalen Infrastruktur dürften entscheidend sein.

Wenn Sie sich für das AfCFTA interessieren, können Sie hier eine erweiterte Version dieses Artikels lesen.

Der Legalmondo African Desk

Mit unseren Experten in Ägypten, Marokko, Algerien, Tunesien, Libyen, Sudan, Kamerun, Côte d’Ivoire, Ghana, Senegal und Malawi unterstützen wir Unternehmen bei Investitionen und Geschäftsvorhaben in Afrika.

Ausländische Unternehmen in afrikanischen Ländern, in denen wir nicht direkt mit einem Büro vertreten sind, können wir auch über unser Netzwerk von lokalen Partnern unterstützen.

Wie es funktioniert

• Wir vereinbaren ein Treffen (persönlich oder online) mit einem unserer Experten, um die Bedürfnisse des Mandanten zu verstehen.
• Sobald wir die Zusammenarbeit aufgenommen haben, begleiten wir den Mandanten mit einem Rechtsanwalt bei all seinen rechtlichen Angelegenheiten (einzelne Fälle oder laufende rechtliche Unterstützung)

Nehmen Sie Kontakt auf, um mehr zu erfahren.

Zusammenfassung

Anhand der Geschichte von Nike, die sich aus der Biografie des Gründers Phil Knight ableitet, lassen sich einige Lehren  für internationale Vertriebsverträge ziehen: Wie man den Vertrag aushandelt, die Vertragsdauer festlegt, die Exklusivität und die Geschäftsziele definiert und die richtige Art der Streitschlichtung bestimmt.

Worüber ich in diesem Artikel spreche

• Der Streit zwischen Blue Ribbon und Onitsuka Tiger und die Geburt von Nike
• Wie man eine internationale Vertriebsvereinbarung aushandelt
• Vertragliche Exklusivität in einer Handelsvertriebsvereinbarung
• Mindestumsatzklauseln in Vertriebsverträgen
• Vertragsdauer  und Kündigungsfrist
• Eigentum an Marken in Handelsverträgen
• Die Bedeutung der Mediation bei internationalen Handelsverträgen
• Streitbeilegungsklauseln in internationalen Verträgen
• Wie wir Ihnen helfen können

Der Streit zwischen Blue Ribbon und Onitsuka Tiger und die Geburt von Nike

Warum ist die berühmteste Sportbekleidungsmarke der Welt Nike und nicht Onitsuka Tiger?
Die Biographie des Nike-Schöpfers Phil Knight mit dem Titel “Shoe Dog” gibt hierauf antworten und ist nicht nur für Liebhaber des Genres eine absolut empfehlenswerte Lektüre.

Bewegt von seiner Leidenschaft für den Laufsport und seiner Intuition, dass es auf dem amerikanischen Sportschuhmarkt, der damals von Adidas dominiert wurde, eine Lücke gab, importierte Knight 1964 als erster überhaupt eine japanische Sportschuhmarke, Onitsuka Tiger, in die USA.  Mit diesen Sportschuhen konnte sich Knight innerhalb von 6 Jahren einen Marktanteil von satten 70 % sichern.

Das von Knight und seinem ehemaligen College-Trainer Bill Bowerman gegründete Unternehmen hieß damals noch Blue Ribbon Sports.

Die Geschäftsbeziehung zwischen Blue Ribbon-Nike und dem japanischen Hersteller Onitsuka Tiger  gestaltete sich trotz der sehr guten Verkaufszahlen und den postiven Wachstumsaussichten von  Beginn an als sehr turbulent.

Als Knight dann kurz nach der Vertragsverlängerung mit dem japanischen Hersteller erfuhr, dass Onitsuka in den USA nach einem anderen Vertriebspartner Ausschau hielt , beschloss Knight  – aus Angst, vom Markt ausgeschlossen zu  werden –  sich seinerseits mit einem anderen japanischen Lieferanten zusammenzutun und seine eigene Marke zu gründen. Damit war die spätere Weltmarke Nike geboren.

Als der japanische Hersteller Onitsuka von dem Nike-Projekt erfuhr, verklagte dieser  Blue Ribbon wegen  Verstoß gegen das Wettbewerbsverbot,  welches dem Vertriebshändler die Einfuhr anderer in Japan hergestellter Produkte untersagte, und beendete die Geschäftsbeziehung mit sofortiger Wirkung.

Blue Ribbon führte hiergegen an, dass der Verstoß von dem Hersteller Onitsuka Tiger ausging, der  sich bereits als der Vertrag noch in Kraft war und die Geschäfte mehr als gut liefen mit anderen potenziellen Vertriebshändlern getroffen hatte.

Diese Auseinandersetzung führte zu zwei Gerichtsverfahren, eines in Japan und eines in den USA, die der Geschichte von Nike ein vorzeitiges Ende hätten setzen können.

Zum Glück (für Nike) entschied der amerikanische Richter zu Gunsten des Händlers und der Streit wurde mit einem Vergleich beendet: Damit begann für Nike die Reise, die sie 15 Jahre später zur wichtigsten Sportartikelmarke der Welt machen sollte.

Wir werden sehen, was uns die Geschichte von Nike lehrt und welche Fehler bei einem internationalen Vertriebsvertrag tunlichst vermieden werden sollten.

Wie verhandelt man eine internationale Handelsvertriebsvereinbarung?

In seiner Biografie schreibt Knight, dass er bald bedauerte, die Zukunft seines Unternehmens an eine eilig verfasste, wenige Zeilen umfassende Handelsvereinbarung gebunden zu haben, die am Ende einer Sitzung zur Aushandlung der Erneuerung des Vertriebsvertrags geschlossen wurde.

Was beinhaltete diese Vereinbarung?

Die Vereinbarung sah lediglich die Verlängerung des Rechts von Blue Ribbon vor, die Produkte in den USA exklusiv zu vertreiben, und zwar für weitere drei Jahre.

In der Praxis kommt es  häufig vor, dass sich internationale Vertriebsverträge auf mündliche Vereinbarungen oder sehr einfache Vertragswerke mit kurzer Dauer beschränken. Die übliche Erklärung dafür ist, dass es auf diese Weise möglich ist, die Geschäftsbeziehung zu testen, ohne die vertragliche Bindung zu eng werden zu lassen.

Diese Art, Geschäfte zu machen, ist jedoch nicht zu empfehlen  und kann sogar gefährlich werden: Ein  Vertrag sollte niemals  als Last oder Zwang angesehen werden, sondern als Garantie für die Rechte beider Parteien. Einen schriftlichen Vertrag nicht oder nur sehr übereilt abzuschließen, bedeutet, grundlegende Elemente der künftigen Beziehung, wie die, die zum Streit zwischen Blue Ribbon und Onitsuka Tiger führten, ohne klare Vereinbarungen zu belassen: Hierzu gehören Aspekte wie Handelsziele, Investitionen, das Eigentum an Marken – um nur einige zu benennen.

Handelt es sich zudem um einen internationalen Vertrag, ist die Notwendigkeit einer vollständigen und ausgewogenen Vereinbarung noch größer, da in Ermangelung von Vereinbarungen zwischen den Parteien oder in Ergänzung zu diesen Vereinbarungen ein Recht zur Anwendung kommt, mit dem eine der Parteien nicht vertraut ist, d. h. im Allgemeinen das Recht des Landes, in dem der Händler seinen Sitz hat.

Auch wenn Sie sich nicht in einer Blue-Ribbon-Situation befinden, in der es sich um einen Vertrag handelt, von dem die Existenz des Unternehmens abhängt, sollten internationale Verträge stets mit Hilfe eines fachkundigen Anwalts besprochen und ausgehandelt werden, der das auf den Vertrag anwendbare Recht kennt und dem Unternehmer helfen kann, die wichtigen Vertragsklauseln zu ermitteln und auszuhandeln.

Territoriale Exklusivität, kommerzielle Ziele und Mindestumsatzziele

Anlass für den Konflikt zwischen Blue Ribbon und Onitsuka Tiger war zunächst einmal die Bewertung der Absatzentwicklung auf dem US-Markt.

Onitsuka argumentierte, dass der Umsatz unter dem Potenzial des US-Marktes liege, während nach Angaben von Blue Ribbon die Verkaufsentwicklung sehr positiv sei, da sich der Umsatz bis zu diesem Zeitpunkt jedes Jahr verdoppelt habe und ein bedeutender Anteil des Marktsektors erobert worden sei.

Als Blue Ribbon erfuhr, dass Onituska andere Kandidaten für den Vertrieb seiner Produkte in den USA prüfte, und befürchtete, damit bald vom Markt verdrängt zu werden , bereitete Blue Ribbon die Marke Nike als Plan B vor: Als der  japanische Hersteller diese Marke entdeckte , kam es zu einem Rechtsstreit zwischen den Parteien, der zu einem Eklat führte.

Der Streit hätte vielleicht vermieden werden können, wenn sich die Parteien auf kommerzielle Ziele geeinigt hätten und der Vertrag eine in Alleinvertriebsvereinbarungen übliche Klausel enthalten hätte, d.h. ein Mindestabsatzziel für den Vertriebshändler.

In einer Alleinvertriebsvereinbarung gewährt der Hersteller dem Händler einen starken Gebietsschutz für die Investitionen, die der Händler zur Erschließung des zugewiesenen Marktes tätigt.

Um dieses  Zugeständnis der Exklusivität auszugleichen, ist es üblich, dass der Hersteller vom Vertriebshändler einen so genannten garantierten Mindestumsatz oder ein Mindestziel verlangt, das der Vertriebshändler jedes Jahr erreichen muss, um den ihm gewährten privilegierten Status zu behalten.

Für den Fall, dass das Mindestziel nicht erreicht wird, sieht der Vertrag dann in der Regel vor, dass der Hersteller das Recht hat, vom Vertrag zurückzutreten (bei einem unbefristeten Vertrag) oder den Vertrag nicht zu verlängern (bei einem befristeten Vertrag) oder aber auch die Gebietsexklusivität aufzuheben bzw.  einzuschränken.

Der Vertrag zwischen Blue Ribbon und Onitsuka Tiger sah derartige  Zielvorgaben nicht vor – und das nachdem er gerade erst um drei Jahre verlängert wurde. Hinzukam, dass sich die Parteien bei der Bewertung der Ergebnisse des Vertriebshändlers nicht einig waren. Es stellt sich daher die Frage: Wie können in einem Mehrjahresvertrag Mindestumsatzziele vorgesehen werden?

In Ermangelung zuverlässiger Daten verlassen sich die Parteien häufig auf vorher festgelegte prozentuale Erhöhungsmechanismen: + 10 % im zweiten Jahr, + 30 % im dritten Jahr, + 50 % im vierten Jahr und so weiter.

Das Problem bei diesem Automatismus ist, dass dadurch  Zielvorgaben vereinbart werden, die nicht auf tatsächlichen Daten über die künftige Entwicklung der Produktverkäufe, der Verkäufe der Wettbewerber und des Marktes im Allgemeinen basieren , und die daher sehr weit von den aktuellen Absatzmöglichkeiten des Händlers entfernt sein können.

So wäre beispielsweise die Anfechtung des Vertriebsunternehmens wegen Nichterfüllung der Zielvorgaben für das zweite oder dritte Jahr in einer rezessiven Wirtschaft sicherlich eine fragwürdige Entscheidung, die wahrscheinlich zu Meinungsverschiedenheiten führen würde.

Besser wäre eine Klausel, mit der Ziele von Jahr zu Jahr einvernehmlich festgelegt werden. Diese besagt, dass die Ziele zwischen den Parteien unter Berücksichtigung der Umsatzentwicklung in den vorangegangenen Monaten und mit einer gewissen Vorlaufzeit vor Ende des laufenden Jahres vereinbart werden.  Für den Fall, dass keine Einigung über die neue Zielvorgabe zustande kommt, kann der Vertrag vorsehen, dass die Zielvorgabe des Vorjahres angewandt wird oder dass die Parteien das Recht haben, den Vertrag unter Einhaltung einer bestimmten Kündigungsfrist zu kündigen.

Andererseits kann die Zielvorgabe auch als Anreiz für den Vertriebshändler dienen: So kann z. B. vorgesehen werden, dass bei Erreichen eines bestimmten Umsatzes die Vereinbarung erneuert, die Gebietsexklusivität verlängert oder ein bestimmter kommerzieller Ausgleich für das folgende Jahr gewährt wird.

Eine letzte Empfehlung ist die korrekte Handhabung der Mindestzielklausel, sofern sie im Vertrag enthalten ist: Es kommt häufig vor, dass der Hersteller die Erreichung des Ziels für ein bestimmtes Jahr bestreitet, nachdem die Jahresziele über einen langen Zeitraum hinweg nicht erreicht oder nicht aktualisiert wurden, ohne dass dies irgendwelche Konsequenzen hatte.

In solchen Fällen ist es möglich, dass der Händler behauptet, dass ein impliziter Verzicht auf diesen vertraglichen Schutz vorliegt und der Widerruf daher nicht gültig ist: Um Streitigkeiten zu diesem Thema zu vermeiden, ist es ratsam, in der Mindestzielklausel ausdrücklich vorzusehen, dass die unterbliebene Anfechtung des Nichterreichens des Ziels während eines bestimmten Zeitraums nicht bedeutet, dass auf das Recht, die Klausel in Zukunft zu aktivieren, verzichtet wird.

Die Kündigungsfrist für die Beendigung eines internationalen Vertriebsvertrags

Der andere Streitpunkt zwischen den Parteien war die Verletzung eines Wettbewerbsverbots: Blue Ribbon verkaufte die Marke Nike , obwohl der Vertrag den Verkauf anderer in Japan hergestellter Schuhe untersagte.

Onitsuka Tiger behauptete, Blue Ribbon habe gegen das Wettbewerbsverbot verstoßen, während der Händler die Ansicht vertrat , dass er angesichts der bevorstehenden Entscheidung des Herstellers, die Vereinbarung zu kündigen, keine andere Wahl hatte.

Diese Art von Streitigkeiten kann vermieden werden, indem für die Beendigung (oder Nichtverlängerung) eine klare Kündigungsfrist festgelegt wird: Diese Frist hat die grundlegende Funktion, den Parteien die Möglichkeit zu geben, sich auf die Beendigung der Beziehung vorzubereiten und ihre Aktivitäten nach der Beendigung neu zu organisieren.

Um insbesondere Streitigkeiten wie die zwischen Blue Ribbon und Onitsuka Tiger zu vermeiden, kann in einem internationalen Vertriebsvertrag vorgesehen werden, dass die Parteien während  der Kündigungsfristmit anderen potenziellen Vertriebshändlern und Herstellern in Kontakt treten können und dass dies nicht gegen die Ausschließlichkeits- und Wettbewerbsverpflichtungen verstößt.

Im Fall von Blue Ribbon war der Händler über die bloße Suche nach einem anderen Lieferanten hinaus sogar noch einen Schritt weiter gegangen, da er begonnen hatte, Nike-Produkte zu verkaufen, während der Vertrag mit Onitsuka noch gültig war. Dieses Verhalten stellt einen schweren Verstoß gegen  die getroffene Ausschließlichkeitsvereinbarung dar.

Ein besonderer Aspekt, der bei der Kündigungsfrist zu berücksichtigen ist, ist die Dauer: Wie lang muss die Kündigungsfrist sein, um als fair zu gelten? Bei langjährigen Geschäftsbeziehungen ist es wichtig, der anderen Partei genügend Zeit einzuräumen, um sich auf dem Markt neu zu positionieren, nach alternativen Vertriebshändlern oder Lieferanten zu suchen oder (wie im Fall von Blue Ribbon/Nike) eine eigene Marke zu schaffen und einzuführen.

Ein weiteres Element, das bei der Mitteilung der Kündigung zu berücksichtigen ist, besteht darin, dass die Kündigungsfrist so bemessen sein muss, dass der Vertriebshändler die zur Erfüllung seiner Verpflichtungen während der Vertragslaufzeit getätigten Investitionen amortisieren kann; im Fall von Blue Ribbon hatte der Vertriebshändler auf ausdrücklichen Wunsch des Herstellers eine Reihe von Einmarkengeschäften sowohl an der West- als auch an der Ostküste der USA eröffnet.

Eine Kündigung des Vertrags kurz nach seiner Verlängerung und mit einer zu kurzen Vorankündigung hätte es dem Vertriebshändler nicht erlaubt, das Vertriebsnetz mit einem Ersatzprodukt neu zu organisieren, was die Schließung der Geschäfte, die die japanischen Schuhe bis zu diesem Zeitpunkt verkauft hatten, erzwungen hätte.

Im Allgemeinen ist es ratsam, eine Kündigungsfrist von mindestens 6 Monaten vorzusehen. Bei internationalen Vertriebsverträgen sollten jedoch neben den von den Parteien getätigten Investitionen auch etwaige spezifische Bestimmungen des auf den Vertrag anwendbaren Rechts (hier z. B. eine eingehende Analyse der plötzlichen Kündigung von Verträgen in Frankreich) oder die Rechtsprechung zum Thema Rücktritt von Geschäftsbeziehungen beachtet werden (in einigen Fällen kann die für einen langfristigen Vertriebskonzessionsvertrag als angemessen erachtete Frist 24 Monate betragen).

Schließlich ist es normal, dass der Händler zum Zeitpunkt des Vertragsabschlusses noch im Besitz von Produktvorräten ist: Dies kann problematisch sein, da der Händler in der Regel die Vorräte auflösen möchte (Blitzverkäufe oder Verkäufe über Internetkanäle mit starken Rabatten), was der Geschäftspolitik des Herstellers und der neuen Händler zuwiderlaufen kann.

Um diese Art von Situation zu vermeiden, kann in den Vertriebsvertrag eine Klausel aufgenommen werden, die das Recht des Herstellers auf Rückkauf der vorhandenen Bestände bei Vertragsende regelt, wobei der Rückkaufpreis bereits festgelegt ist (z. B. in Höhe des Verkaufspreises an den Händler für Produkte der laufenden Saison, mit einem Abschlag von 30 % für Produkte der vorangegangenen Saison und mit einem höheren Abschlag für Produkte, die mehr als 24 Monate zuvor verkauft wurden).

Markeninhaberschaft in einer internationalen Vertriebsvereinbarung

Im Laufe der Vertriebsbeziehung hatte Blue Ribbon eine neuartige Sohle für Laufschuhe entwickelt und die Marken Cortez und Boston für die Spitzenmodelle der Kollektion geprägt, die beim Publikum sehr erfolgreich waren und große Popularität erlangten: Bei Vertragsende beanspruchten nun beide Parteien das Eigentum an den Marken.

Derartige Situationen treten häufig in internationalen Vertriebsbeziehungen auf: Der Händler lässt die Marke des Herstellers in dem Land, in dem er tätig ist, registrieren, um Konkurrenten daran zu hindern, dies zu tun, und um die Marke im Falle des Verkaufs gefälschter Produkte schützen zu können; oder es kommt vor, dass der Händler, wie in dem hier behandelten Streitfall, an der Schaffung neuer, für seinen Markt bestimmter Marken mitwirkt.

Am Ende der Geschäftsbeeziehung, wenn keine klare Vereinbarung zwischen den Parteien vorliegt, kann es zu einem Streit wie im Fall Nike kommen: Wer ist der Eigentümer der Marke – der Hersteller oder der Händler?

Um Missverständnisse zu vermeiden, ist es ratsam, die Marke in allen Ländern zu registrieren, in denen die Produkte vertrieben werden, und nicht nur dort: Im Falle Chinas zum Beispiel ist es ratsam, die Marke auch dann zu registrieren, wenn sie dort nicht vertreiben wird, um zu verhindern, dass Dritte die Marke in böser Absicht übernehmen (weitere Informationen finden Sie in diesem Beitrag auf Legalmondo).

Es ist auch ratsam, in den Vertriebsvertrag eine Klausel aufzunehmen, die dem Händler die Eintragung der Marke (oder ähnlicher Marken) in dem Land, in dem er tätig ist, untersagt und dem Hersteller ausdrücklich das Recht einräumt, die Übertragung der Marke zu verlangen, falls dies dennoch geschieht.

Eine solche Klausel hätte die Entstehung des Rechtsstreits zwischen Blue Ribbon und Onitsuka Tiger verhindert.

Der von uns geschilderte Sachverhalt stammt aus dem Jahr 1976: Heutzutage ist es ratsam, im Vertrag nicht nur die Eigentumsverhältnisse an der Marke und die Art und Weise der Nutzung durch den Händler und sein Vertriebsnetz zu klären, sondern auch die Nutzung der Marke wie auch der Unterscheidungszeichen des Herstellers in den Kommunikationskanälen, insbesondere in den sozialen Medien, zu regeln.

Es ist ratsam, eindeutig festzulegen, dass niemand anderes als der Hersteller Eigentümer der Social-Media-Profile wie auch der erstellten Inhalte und der Daten ist, die durch die Verkaufs-, Marketing- und Kommunikationsaktivitäten in dem Land, in dem der Händler tätig ist, generiert werden, und dass er nur die Lizenz hat, diese gemäß den Anweisungen des Eigentümers zu nutzen.

Darüber hinaus ist es sinnvoll, in der Vereinbarung festzulegen, wie die Marke verwendet wird und welche Kommunikations- und Verkaufsförderungsmaßnahmen auf dem Markt ergriffen werden, um Initiativen zu vermeiden, die negative oder kontraproduktive Auswirkungen haben könnten.

Die Klausel kann auch durch die Festlegung von Vertragsstrafen für den Fall verstärkt werden, dass sich der Händler bei Vertragsende weigert, die Kontrolle über die digitalen Kanäle und die im Rahmen der Geschäftstätigkeit erzeugten Daten zu übertragen.

Mediation in internationalen Handelsverträgen

Ein weiterer interessanter Punkt, der sich am  Fall Blue Ribbon vs. Onitsuka Tiger erläutern lässt , steht im Zusammenhang mit der Bewältigung von Konflikten in internationalen Vertriebsbeziehungen: Situationen wie die, die wir gesehen haben, können durch den Einsatz von Mediation effektiv gelöst werden.

Dabei handelt es sich um einen Schlichtungsversuch, mit dem ein spezialisiertes Gremium oder ein Mediator betraut wird, um eine gütliche Einigung zu erzielen und ein Gerichtsverfahren zu vermeiden.

Die Mediation kann im Vertrag als erster Schritt vor einem eventuellen Gerichts- oder Schiedsverfahren vorgesehen sein oder sie kann freiwillig im Rahmen eines bereits laufenden Gerichts- oder Schiedsverfahrens eingeleitet werden.

Die Vorteile sind vielfältig: Der wichtigste ist die Möglichkeit, eine wirtschaftliche  Lösung zu finden, die die Fortsetzung der Beziehung ermöglicht, anstatt nur nach Wegen zur Beendigung der Geschäftsbeziehung zwischen den Parteien zu suchen.

Ein weiterer interessanter Aspekt der Mediation ist die Überwindung von persönlichen Konflikten: Im Fall Blue Ribbon vs. Onitsuka zum Beispiel war ein entscheidendes Element für die Eskalation der Probleme zwischen den Parteien die schwierige persönliche Beziehung zwischen dem CEO von Blue Ribbon und dem Exportmanager des japanischen Herstellers, die durch starke kulturelle Unterschiede verschärft wurde.

Der Mediationsprozess führt eine dritte Person ein, die in der Lage ist, einen Dialog mit den Parteien zu führen und sie bei der Suche nach Lösungen von gegenseitigem Interesse zu unterstützen, was entscheidend sein kann, um Kommunikationsprobleme oder persönliche Feindseligkeiten zu überwinden.

Für alle, die sich für dieses Thema interessieren, verweisen wir auf den hierzu verfassten  Beitrag auf Legalmondo sowie  auf die Aufzeichnung eines kürzlich durchgeführten Webinars zur Mediation internationaler Konflikte.

Streitbeilegungsklauseln in internationalen Vertriebsvereinbarungen

Der Streit zwischen Blue Ribbon und Onitsuka Tiger führte dazu, dass die Parteien zwei parallele Gerichtsverfahren einleiteten, eines in den USA (durch den  Händler) und eines in Japan (durch den  Hersteller).

Dies war nur deshalb  möglich, weil der Vertrag nicht ausdrücklich vorsah, wie etwaige künftige Streitigkeiten beigelegt werden sollten.  In der Konsequenz führte dies zu einer prozessual sehr komplizierten Situation mit gleich zwei gerichtlichen Fronten in verschiedenen Ländern.

Die Klauseln, die festlegen, welches Recht auf einen Vertrag anwendbar ist und wie Streitigkeiten beigelegt werden, werden in der Praxis als „Mitternachtsklauseln“ bezeichnet, da sie oft die letzten Klauseln im Vertrag sind, die spät in der Nacht ausgehandelt werden.

Es handelt sich hierbei  um sehr wichtige Klauseln, die bewusst gewählt  werden müssen, um unwirksame oder kontraproduktive Lösungen zu vermeiden.

Wie wir Ihnen helfen können

Der Abschluss eines internationalen Handelsvertriebsvertrags ist eine wichtige Investition, denn er regelt die vertragliche Beziehungen zwischen den Parteien verbindlich für die Zukunft  und gibt ihnen die Instrumente an die Hand, um alle Situationen zu bewältigen, die sich aus der künftigen Zusammenarbeit ergeben werden.

Es ist nicht nur wichtig, eine korrekte, vollständige und ausgewogene Vereinbarung auszuhandeln und abzuschließen, sondern auch zu wissen, wie sie im Laufe der Jahre zu handhaben ist, vor allem, wenn Konfliktsituationen auftreten.

Legalmondo bietet Ihnen die Möglichkeit, mit Anwälten zusammenzuarbeiten, die in mehr als 50 Ländern Erfahrung im internationalen Handelsvertrieb haben:  Bei bestehendem Beratungsbedarf schreiben Sie uns.

Article 442-1.II of the French Commercial Code (former Article L. 442-6.I.5 °) sanctions the termination by a trader of a written contract or an informal business relationship without giving sufficient written prior notice. Over the last twenty years, this article became the recurring legal basis for all compensation actions (up to 18 months of gross margin, plus other damages) when a commercial relationship or a contract ends (totally or even partially).

Therefore, a foreign trader who contracts with a French company should try not to fall under the aegis of this rule (part I) and, if it cannot, should understand and control its implementation (part II).

In a nutshell:

How can a foreign company avoid or control the risk linked to the „sudden termination of commercial relations“ set by French law? Foreign companies doing business with a French counterpart should:

– enter, as soon as possible, into a written (frame) agreement with their French suppliers or customers, even for a very simple relation and;

– stipulate a clause in favour of foreign court or arbitration and foreign applicable law while, failing to choose it, they would rather be subject to French courts and laws;

How can a foreign company master the risk linked to the „sudden termination of commercial relations“ set by French law? Foreign companies doing business with a French counterpart should:

• know that this article applies to almost all type of commercial relationship or contracts, whether written or not, fixed-term or not;
• check whether its relation/contract is sufficiently long, regular and significant and whether the other party has a legitimate belief in the continuation of this relation/contract;
• give a written notice of termination or non-renewal (or even of a major modification), which length takes mainly into account the duration of the relation, irrespectively of the length of the contractual notice;
• invoke, with cautiousness, force majeure and gross negligence of the party, to set aside “sudden termination”;
• anticipate, in case of insufficient notice, a compensation which amount is the product of the average monthly gross margin per the length of non-granted prior notice.

How to avoid the application of the French “Sudden Termination” rule?

In international matters, a foreign company must anticipate whether its relationship will be subject or not to French law before terminating a contract or a business relationship and, in case of dispute, whether it will be brought before a French court or not.

What will be the law applicable to “Sudden Termination”?

It is quite difficult for a foreign company to correctly grasp the French legal framework of conflict of laws rules applicable to “sudden termination”. In a ruling of September 19, 2018 (RG 16/05579, DES/ Clarins), the Court of appeal of Paris made, by an implicit reference to the Granarolo EU ruling (07 14 16, N°C196/15) an extension of the contractual qualification to most of the business relationships which will improve foreseeability in order for a foreign company to try to exclude French law and its “sudden termination” rule.

Sudden termination of a written contract or of a „tacit contractual relationship”

According to Rome I Regulation (EC No 593/2008, June 17 2008) on the law applicable to contracts:

– In case of choice of a foreign law by the parties: The clause selecting a foreign applicable law will be valid and respected by French judges (subject to OMR, see below), provided that the choice of law by the parties is express or certain.

– In case of no choice by the parties: French law will likely to be declared applicable as it might be either the law of the country where is based the distributor/franchisee, etc. or the law of the country where the party who is to provide the service features of the contract has its domicile.

Sudden termination of a “non-tacit contractual relationship”

In case of informal relationship (i.e. orders placed from time to time), French judges would retain the tort qualification and will refer to the Rome II Regulation (No 864/2007, July 11 2007) on the law applicable to non-contractual obligations..

– In case of choice of a foreign law by the parties: a properly drafted choice of foreign law clause should be implemented by a French judge, provided that it expressly includes tort cases.

– In case of no choice of law by the parties: French law will likely to be declared applicable as it might be the law of the country where the damage occurs (regardless of the place of the causing event or that of the indirect consequences), which is the place of the head office where the French victim suffers the consequences of the termination.

“Sudden Termination” rule, a French Overriding Mandatory Rule?

The position of French courts is quite vague and unsatisfactory, and this has been the case for a long time. To make it short: the Commercial Court of Paris judges that “sudden termination” is not an OMR, the Court of appeal of Paris (sole French appellate court in charge of “sudden termination” cases) is also not in favour of the OMR qualification on the grounds that the text „protects purely private economic interests“ (CA Paris, pôle 5, ch. 5, Feb 28. 2019, n° 17/16475 / CA Paris, pôle 5, ch. 5, Oct 8. 2020, n°17/19893). Recently, the Paris Court of Appeal reaffirmed that the rules on sudden termination of established commercial relations are not an OMR (Court of appeal Paris, March 11, 2021, n° 18/03112).

The French Supreme Court has never explicitly addressed the issue (OMR or not OMR). Indeed, the French Supreme Court ruled in the Expedia case (Cass. com., July 8, 2020, n°17-31.536) that the provisions of the former article L. 442-6, I, 2º and II, d), about “significant imbalance” (which is in the same set of rules than “Sudden termination”) are OMR. However, this qualification should be limited to the specific action brought by the Ministry of Finance and not be applicable to an action by a private party. Moreover, some courts may be tempted to invoke the provisions of French law n°2023-221 (March 30, 2023, aka Egalim III) to qualify Sudden termination rule as an OMR, however this text (article L 444-1.A Commercial code) does not quote expressly OMR and set no justification whatsoever to set such a qualification.

Consequently, if a claim for “sudden termination” is brought to a French court, there is still a  risk that the latter would exclude the applicable foreign law and replace it with the regime resulting from the „sudden termination“ of Article L 442-1. II. However, to avoid this risk, a foreign company would better not only choose a foreign governing law but also stipulate that the dispute will be brought before a foreign judge or an arbitral tribunal.

How to avoid jurisdiction of French court over a “Sudden Termination” claim?

“Sudden Termination” claim and intra EU co-contractor

The ECJ ruling (Granarolo, July 14, 2016, N°C196/15) created a distinction between claims occurring from:

– written framework contract or tacit contractual relationship (existing only if the body of evidences listed by the ECJ are identified by national judges, i.e. length of relation and commitments recognized to each other, such as exclusivity, special price or terms of delivery or payment, non-competition, etc.): such claim has a contractual nature according to conflict of jurisdiction rules under Brussels I recast Regulation;

– informal relationship which is a non–tacit contractual relationship (i.e. orders placed from time to time): such a request has a tort nature under Brussels I recast ;

To be noted: the so-called Egalim III law has no impact on the EU rules on jurisdiction clauses.

(a) Who is the Judge of the “sudden termination” of a written contract or of a „tacit contractual relationship”?

– Jurisdiction clause for the benefit of a foreign court will be enforced by French courts, even though it is an asymmetrical clause (Court of cassation, October 7, 2015, Ebizcuss.com / Apple Sales International).

– In case of lack of choice of court clause, French courts are likely to have jurisdiction if the French claimant bringing a case based on “sudden termination» is the service provider, such as distributor, agent, etc. (see ECJ Corman Collins case, 19 12 13, C-9/12, and article 7.1.b.2 of Brussels I recast°).

(b) Who is the Judge of the “sudden termination” of a „non- tacit contractual relationship”?

– We believe that French courts may continue to give effect to a jurisdiction clause in tort case, especially when it expressly encompasses tort litigation (Court of cassation, 1° Ch. Civ., January 18, 2017, n° 15-26105, Riviera Motors / Aston Martin Lagonda Ltd).

– In case of lack of choice of court clause, French courts will have jurisdiction over a “sudden termination” claim as the judge of the place where the harmful event occurred (art. 7.3 of Brussels I recast), which is the place where the sudden termination has effect…i.e. in France if the French company is the victim.

“Sudden Termination” claim and Non-EU co-contractor

The Granarolo solution will not ipso facto apply if a French victim brings a claim to French courts, based on a „sudden termination“ made by a non-EU company. In non-EU relations, French judges could continue to retain only the tort qualification. In such a case, French courts may keep their jurisdiction based on the place where the harmful event occurs.

Jurisdiction clause to a foreign court may be recognized in France (even for tort-based claims), provided that this jurisdiction clause is valid according to either a bilateral international convention or to the Hague Convention of 30 June 2005 on choice of court agreements. Otherwise, according to Egalim III law, imperative jurisdiction might be attributable to French courts.

“Sudden Termination” claim and arbitration

Stipulating an ad hoc or institutional arbitration clause is probably the safest solution to avoid the jurisdiction of French courts. Ideally, the clause will fix the seat of the arbitral tribunal outside France. According to the principle of competence-competence of the arbitrators, French courts declare themselves incompetent, unless the arbitration clause is manifestly void or manifestly inapplicable, regardless of contract or tort ground (see, in particular, Paris Court of Appeal, 5 September 2019, n°17/03703). The so-called “Egalim III” law has no impact on arbitration clauses.

Conclusion: Foreign companies should not leave open the Jurisdiction and governing Law issues. They must negotiate a safe harbour, otherwise a French victim of a termination will likely to be entitled to bring a “sudden termination” claim in front of French judges (see what happen below in Part 2)

How to master the “Sudden Termination” French rules?

When French law is applicable, the foreign company will face the legal regime of article L442 -1.II of the French Commercial Code sanctioning “sudden termination”. As a preliminary remark, it is important to know, above all, that the implementation of the liability for „sudden termination“ is the consequence of the lack of a notice or a too short notice. Thus, this scheme does not lay down an automatic compensation rule. In other words, as soon as reasonable notice is given by the author of the termination, liability on that basis can be dismissed.

The prerequisite for “Sudden Termination”: an established commercial relationship

All contracts are covered by this legal regime, except for contracts whose regulations provide for a specific notice of termination, like commercial agency contracts and transport of goods by road subcontracts.

First, there must be a relationship that can be proven by a written contract or de facto, by behaviour of the parties. Article L.442-1 II of the French Commercial Code covers all “commercial” relationships and not only “contractual ones so that such relationship may be based on a succession of tacitly renewed contracts or a regular flow of business, materialized by multiple orders. This was recently recalled by the Supreme Court (Supreme Court, February 16, 2022, n° 20-18.844)

Second, this relationship must have an established character. There is no legal definition, but this notion has been defined year after year by case law which has established an objective criterion and a more subjective one.

(a) The objective criterion implies a sufficiently long, regular and significant relationship between the two parties. The duration of the relationship is the most important criterion. The relationship must also be regular, that is, it must not have been interrupted (too often or too long). The relationship must ultimately be meaningful and represent a serious flow of business between the parties, in volume or value.

(b) The subjective test focuses primarily on the legitimate belief of the victim of the rupture in the continuation of the contract / the relationship that is based on factual elements, such as investment requests, budgets over several years, etc. Conversely, it is on the basis of the finding of a lack of legitimate belief in a common future that the terminating party can prove the absence of a stable character when he has resorted, on several occasions, a call for tenders (unless it is a trick).

Anticipating a “Sudden Termination” claim

(a) The termination may be total or partial

The total rupture is materialized by a complete stop of the relations, for example ending the contract, stopping the sending of orders by the purchaser or the recording of orders by the supplier.

The Supreme Court recently recalled that a significant drop in sales with a partner must be considered as a partial rupture of the relationship (February 16, 2022, n° 20-18.844, cited above). But the most complicated situation to deal with is the so-called partial rupture that will be deduced from a modification of elements that partly impacts the relationship but does not reduce it to nothing (ex.: a price increase or decrease, a change in the terms of payment or delivery).

(b) The termination must be subject to a reasonable written prior notice

The notice must be notified in writing. The absence of written notice is already a breach in itself. The notification must clearly reflect the willingness of a party to sever the relationship in whole or in part, which must be clearly identified. The notification must also clearly identify the date on which the relationship will end.

Thus, an ambiguity on the notice period (e.g if the termination of an agreement is notified, whilst offering to maintain certain prices and payment terms, in the meantime) is considered as an insufficient termination notice (French Supreme Court, January 29, 2013, n° 11-23.676).

Parties must distinguish between the letter of formal notice for default and the subsequent notification of the breach, giving notice (if applicable). During the period of notice, parties must fully comply with all contractual conditions.

This principle also applies to distribution contracts subject to specific French rules imposing annual or multi-year negotiation obligations. In fact, the Court of cassation has ruled that „when the conditions of the commercial relationship established between the parties are subject to annual negotiation, modifications made during the notice period which are not so substantial as to undermine its effectiveness do not constitute a brutal breach of that relationship“ (Cass. com., Dec. 7, 2022, n° 19-22.538).

However, it’s not necessary to mention the reasons why the commercial relationship is terminated is not a fault or breach of the relationship. In fact, French courts consider that “the fact that the given reason to terminate was false does not in any way present the terminating party from terminating the commercial relationship” (Versailles Court of Appeal, June 10, 1999).

The duration of the prior notice to be respected is not defined by French law which did not pose precise rule until the reform 2019. If several criteria are stated by case law, it should be noted that the most important criterion is the duration of the relationship. Judges also take into account the share of turnover achieved by the victim, the existence or not of a territorial exclusivity, the nature of the products and the sector of activity, the importance of the investments made by the victim especially to the relationship in question, and finally the state of economic dependence. Economic dependence is defined as the impossibility for a company to have a solution that is technically and economically equivalent to the contractual relations it has established with another company. Case law considers this to be an aggravating factor justifying a longer termination notice.

The minimum notice period must be notified at the time of notification of termination. As a consequence, events that affect the victim after the notification, both positively (conclusion of a new contract) and negatively (loss of another custome), will not be taken into account by the judge, at the time of ruling, when assessing the “brutality” of the termination.

The length of the notice given by the judges is very variable. The appreciation of notice is made on a case-by-case basis. It is very difficult to give a golden rule, even though roughly for each year of relationship, a month’s notice might be due (to modulate up or down depending on the other criteria in the relationship). But way of illustration, however, the following case law may be cited:

• Paris Court of Appeal , Feb.9, 2022: 16-year relationship with 15 months‘ notice;
• Paris Court of Appeal, Jan.20, 2022: 12-year relationship with 8 months‘ notice;
• Paris Court of Appeal, Oct. 25, 2022: 16-year relationship with 18 months‘ notice;
• Paris Court of Appeal , Feb. 23, 2022: 17-year relationship with 11 months‘ notice;
• Paris Court of Appeal, Sept. 21, 2022: 5-year relationship with 14 months‘ notice.

Since the Order of April 24, 2019, which limits the length of reasonable notice to a maximum of 18 months, if the notice period granted by a party is 18 months, it cannot be held liable for a sudden termination. However, much of the litigation remains uncertain, as only exceptionally long or particularly sensitive relationships led, prior to 019, to the award of more than 18 months‘ notice. Ordinance of April 24, 2019, limits to 18 months the maximum period of notice reasonably due under Article L 442-1.II. But much of the litigation will remain uncertain since only relations of exceptional longevity or particularly sensitive, could have led to the allocation of a notice higher than 18 months.

Judges are not bound by the contractual notices stipulated in the contract. But if the author of the breach also violated the terms and conditions of termination provided for by contract, the victim may seek the responsibility of the author both on the tort basis of the sudden rupture and also on the basis of the breach of a contractual obligation.

Cases in which “Sudden Termination” is ruled out

The legal regime provides for two cases, and the case-law seems to have imposed others.

(a) The two legal exceptions are Force majeure (very rarely consecrated by the courts) and the fault of the victim of the termination, case-law having added that it must be a serious violation (“faute grave”) of a contractual commitment or a legal provision (such as non-respect of an exclusivity, a non-compete, a confidentiality or a change of control duty, or non-payment of amounts due contractually).

The judges consider themselves, of course, not bound by a termination clause defining what constitutes serious misconduct. In any case the party who terminates for serious misconduct must clearly notify it in its letter of termination. Above all, serious misconduct leads to a lack of notice, therefore, if the terminating party alleges serious misconduct but grants notice, whichever it may be, judges may conclude that the fault was not serious enough.

Thus, the seriousness of the misconduct must be motivated by judges in their rulings. Noting that the contract was breached after two formal notices is not sufficient (Cass. com., Feb 16. 2022, n° 20-18.844).

However, the Court of Cassation considers that „even in the case of serious misconduct justifying the immediate termination of the commercial relationship, the other party remains free to give the other party a notice“ (Cass. Com., Oct. 14 2020, n°18-22.119).

(b) In recent years, case-law has added other cases of liability waiver. This is the case when the rupture is the consequence of a cause external to the author of the rupture, such as the economic crisis, the loss of its own customers or suppliers, upstream or downstream.

For example, in 2021 the Court of cassation has ruled that “the business partner is not entitled to an unchanged relationship and cannot refuse any adaptation required by economic changes” (Com, Dec 01, 2021, n°20-19.113). In fact, to be attributable to an economic player, a termination must be free and deliberate. This is not the case if termination is imposed by the economic situation.

However, adding a liability exemption clause in a contract, aimed at waiving destinated to escape the penalties of article L. 442-1, is without consequences on the judge’s appreciation.

Judges have also excluded “sudden termination” in the hypothesis of the end of the first period of a fixed-term contract, whatever its duration is: the first renewal of a contract, constitutes a foreseeable event for the victim of the rupture, which excludes the very notion of brutality; but once the contract has been renewed at least once, judges can subsequently characterize the victim’s legitimate belief in a new tacit renewal.

Compensation for “Sudden Termination”

Judges only compensate for the detrimental consequences of the brutality itself of the breach but do not compensate, at least in the context of article L442 -1.II, for the consequences of the breach itself.

The basic rule is very simple: it is necessary to determine the length of the notice which should have been granted, from which the notice actually granted is deducted. This net notice is multiplied by the average monthly gross margin of the victim, or more often the so called margin on variable costs (i.e. the turnover minus costs disappearing with non-performance of the contract/relation). Defendant should not hesitate to ask for the full accountancy evidences, especially to identify (lower) margin rates, or even for a judicial expertise on those accounting elements. In general, the base of the average monthly margin consists of the last 24 or 36 months.

The compensation calculated on the average margin is, in general, exclusive of any other compensation. However, the victim can prove that it has suffered other losses as a consequence of the brutality of the rupture. Such as dismissals directly caused by this brutality or the depreciation of investments made recently by the victim.

Some practical tips when considering to anticipate “Sudden Termination”

Even though the legal regime is still ambiguous and the case-law terribly casuistic which prevents to release strong guidelines, here are some practical tips when a company plans to terminate a relationship / contract:

• in the case of a fixed-term contract renewable tacitly, the notification of non-renewal must be anticipated well in advance of the beginning of the contractual notice in order to avoid being in a situation where it is necessary to choose between not renewing the contract with a notice that is not sufficient or agree to see the contract renewed itself for a new term;
• commercial teams must be made aware of the risk of partial sudden termination when they change the conditions of execution of a commercial relationship / contract too radically;
• in some cases, it may be useful to send a pre-notice of termination with a “notice proposal” in order to try to validate this notice with the other party;
• it may also be useful, in certain relationships, to notify the end of the relationship with different lengths of notice depending on the nature of the product lines;
• Finally, the best way is to conclude an end-of-relation protocol, fixing the duration of the notice as well as, if necessary, the progressive decline of the orders, the whole within the framework of a settlement agreement which definitively waives any claim, including “sudden termination”.

Sudden termination regime shall be taken into consideration when entering into the final phase of a duration relationship: the way in which the contract (or de facto relationship) is terminated must be carefully planned, in order to manage the risk of causing damages to the counterparty and being sued for compensation.

Given the significance of the influencer market (over €21 billion in 2023), which now encompasses all sectors, and with a view for transparency and consumer protection, France, with the law of June 9, 2023, proposed the world’s first regulation governing the activities of influencers, with the objective of defining and regulating influencer activities on social media platforms.

However, influencers are subject to multiple obligations stemming from various sources, necessitating the utmost vigilance, both in drafting influence agreements (between influencers and agencies or between influencers and advertisers) and in the behaviour they must adopt on social media or online platforms. This vigilance is particularly heightened as existing regulations do not cover the core of influencers‘ activities, especially their status and remuneration, which remain subject to legal ambiguity, posing risks to advertisers as regulatory authorities‘ scrutiny intensifies.

Key points to remember 

• Influencers‘ activity is subject to numerous regulations, including the law of June 9, 2023.
• This law not only regulates the drafting of influence contracts but also the influencer’s behaviour to ensure greater transparency for consumers.
• Every influencer whose audience includes French users is affected by the provisions of the law of June 9, 2023, even if they are not physically present in French territory.
• Both the law of June 9, 2023, and the „Digital Services Act,“ as well as the proposed law on „fast fashion,“ foresee increasing accountability for various actors in the commercial influence sector, particularly influencers and online platforms.
• Despite a plethora of regulations, the status and remuneration of influencers remain unaddressed issues that require special attention from advertisers engaging with influencers.

The law of June 9, 2023, regulating influencer activity  

The definition of influencer professions

The law of June 9, 2023, provides two essential definitions for influencer activities:

• Influencers are defined as ’natural or legal persons who, for consideration, mobilize their notoriety with their audience to communicate to the public, electronically, content aimed at promoting, directly or indirectly, goods, services, or any cause, engaging in commercial influence activities electronically.‘
• The activity of an influencer agent is defined as ‚that which consists of representing, for consideration,‘ the influencer or a possible agent ‚with the aim of promoting, for consideration, goods, services, or any cause‚ (article 7) The influencer agent must take ’necessary measures to ensure the defense of the interests of the persons they represent, to avoid situations of conflict of interest, and to ensure the compliance of their activity‚ with the law of June 9, 2023.

The obligations imposed on commercial messages created by the influencer

The law sets forth obligations that influencers must adhere to regarding their publications: 

• Mandatory particulars: When creating content, this law imposes an obligation on influencers to provide information to consumers, aiming for transparency towards their audience. Thus, influencers are required to clearly, legibly, and identifiably indicate on the influencer’s image or video, regardless of its format and throughout the entire viewing duration (according to modalities to be defined by decree):

  – The mention „advertisement“ or „commercial collaboration.“ Violating this obligation constitutes deceptive commercial practice punishable by two years‘ imprisonment and a fine of €300,000 (Article 5 of the law of June 9, 2023).
  – The mention of „altered images“ (modification by image processing methods aimed at refining or thickening the silhouette or modifying the appearance of the face) or „virtual images“ (images created by artificial intelligence). Failure to do so may result in a one-year prison sentence and a fine of €4,500 (Article 5 of the law of June 9, 2023).

• Prohibited or regulated promotions: This law reminds certain prohibitions, subject to criminal and administrative sanctions, stemming from French law on the direct or indirect promotion of certain categories of products and services, under penalty of criminal or administrative sanctions. This includes the promotion of products and services related to:

  – health: surgery, aesthetic medicine, therapeutic prescriptions, and nicotine products;
  – non-domestic animals, unless it concerns an establishment authorized to hold them;
  – financial: contracts, financial products, and services;
  – sports-related: subscriptions to sports advice or predictions;
  – crypto assets: if not from registered actors or have not received approval from the AMF;
  – gambling: their promotion prohibited for those under 18 years old and regulated by law;
  – professional training: their promotion is not prohibited but regulated.

The accountability of influencer behaviour

The law also holds influencers accountable from the contracting of their relationships and when they act as sellers:

• Regulation of commercial influence agreements: This law imposes, subject to nullity, from a certain threshold of influencer remuneration (defined by decree), the formalization in writing of the agreement between the advertiser and the influencer, but also, if applicable, between the influencer’s agent, and the mandatory stipulation of certain clauses (remuneration, mission description, etc.).
• Influencer responsibility as a cyber seller: Influencers engaging in drop shipping (selling products without handling their delivery, done by the supplier) must provide the buyer with all information in French as required by Article L. 221-5 of the Consumer Code about the product, such as its availability and legality (i.e., guarantee that the product is not counterfeit), applicable product warranty, and supplier identity. Additionally, influencers must ensure the proper delivery and receipt of products and, in case of default, compensate the buyer. Influencers are also logically subject to obligations regarding deceptive commercial practices (for more information, the DGCCRF website explain the dropshipping).

The accountability of other actors in the commercial influence ecosystem

Joint and several liability is set by law, for the advertiser, influencer, or influencer’s agent for damages caused to third parties in the execution of the commercial influence contract, allowing the victim of the damage to act against the most solvent party.

Furthermore, the law introduces accountability for online platforms by partially incorporating the European Regulation 2022/2065 on digital services (known as the „DSA„) of October 19, 2022.

French regulation and international influencers

Influencers established outside the European Union (including also Switzerland and the EEA) who promote products or services to a French audience must obtain professional liability insurance from an insurer established within the EU. They must also designate a legal or natural person providing „a form of representation“ (SIC) within the EU. This representative (whose regime is not very clear) is remunerated to represent the influencer before administrative and judicial authorities and to ensure the compliance of the influencer’s activity with law of June 9, 2023.

Furthermore, according to law of June 9, 2023, when the contract binding the influencer (or their agency) aims to implement a commercial influence activity electronically „targeting in particular an audience established in French territory“ (SIC), this contract should be exclusively subject to French law (including the Consumer Code, the Intellectual Property Code, and the law of June 9, 2023). According to this law, the absence of such a stipulation would be sanctioned by the nullity of the contract. Law of June 9, 2023, seems to be established as an overriding mandatory law capable of setting aside the choice of a foreign law.

However, the legitimacy (what about compliance with the definition of overriding mandatory rules established by Regulation Rome I?) and effectiveness (what if the contract specifies a foreign law and a foreign jurisdiction?) of such a legal provision can be questioned, notably due to its vague and general wording. In fact, it should be the activity deployed by the „foreign“ influencer to their community in France that should be apprehended by French overriding mandatory rules, rather than the content of the agreement concluded with the advertiser (which itself could also be foreign, by the way).

The other regulations governing the activity of influencers

The European regulations

The DSA further holds influencers accountable because, in addition to the reporting mechanism imposed on platforms to report illicit content (thus identifying a failing influencer), platforms must ensure (and will therefore shift this responsibility to the influencer) the identification of commercial communications and specific transparency obligations towards consumers.

The «soft law»

As early as 2015, the Advertising Regulatory Authority („ARPP“) issued recommendations on best practices for digital advertising. Similarly, in March 2023, the French Ministry of Economy published a „code of conduct“ for influencers and content creators. In 2023, the European Commission launched a legal information platform for influencers. Although non-binding, these rules, in addition to existing regulations, serve as guidelines for both influencers and content creators, as well as for judicial and administrative authorities.

The special status of child influencers

The law of October 19, 2020, aimed at regulating the commercial exploitation of children’s images on online platforms, notably opens up the possibility for child influencers to be recognized as salaried workers. However, this law only targeted video-sharing platforms. Article 2 of the law of June 9, 2023, extended the provisions regarding child influencer labor introduced by the 2020 law to all online platforms. Finally, a recent law aimed at ensuring respect for the image rights of children was published on February 19, 2024, introducing a principle of joint and several responsibility of both parents in protecting the minor’s image rights.

The status and remuneration of influencers: uncertainty persists

Despite the diversity of regulations applicable to influencers, none address their status and remuneration.

The status of the influencer

In the absence of regulations governing the status of influencers, a legal ambiguity persists regarding whether the influencer should be considered an independent contractor, an employee (as is partly the case for models or artists), or even as a brand representative (i.e. commercial agent), depending on the missions contractually entrusted to the influencer.

The nature of the contract and the applicable social security regime stem from the missions assigned to the influencer:

• In the case of an employment contract, the influencer will fall under the general regime for employees and assimilated persons, based on Articles L. 311-2 or 311-3 of the French Social Security Code.
• In the case of a service contract, the influencer will fall under the regime for self-employed workers.

The existence of a relationship of subordination between the advertiser and the influencer typically determines the qualification of an employment contract. Subordination is generally characterized when the employer gives orders and directives, has the power to control and sanction, and the influencer follows these directives. However, some activities are subject to a presumption of an employment contract; this is the case (at least in part) for artist contracts under Article L. 7121-3 of the French Labor Code and model contracts under Article L. 7123-2 of the French Labor Code.

The remuneration of the influencer

The influencer can be remunerated in cash (fixed or proportional) and/or in kind (for example: receiving a product from the brand, invitations to private or public events, coverage of travel expenses, etc.). The influencer’s remuneration must be specified in the influencer agreement and is directly impacted by the influencer’s status, as certain obligations (minimum wage, payment of social security contributions, etc.) apply in the case of an employment contract.

Furthermore, the remuneration (for the influencer’s services) must be distinguished from that of the transfer of their copyrights or image rights, which are subject to separate remuneration in exchange for the IP rights transferred.

The influencers… in the spotlight

The law of June 9, 2023, grants the French authority (i.e. the Consumer Affairs, Competition and Fraud Prevention Agency, “DGCCRF”) new injunction powers (with reinforced penalties). This comes in addition to the recent creation of a „commercial influence squad„, within the DGCCRF, tasked with monitoring social networks, and responding to reports received through Signal Conso. The law provides for fines and the possibility of blocking content.

As early as August 2023, the DGCCRF issued warnings to several influencers to comply with the new regulations on commercial influence and imposed on them the obligation to publicly disclose their conviction for non-compliance with the new provisions regarding transparency to consumers on their own social networks, a heavy penalty for actors whose activity relies on their popularity (DGCCRF investigation on the commercial practices of influencers).

On February 14, 2024, the European Commission and the national consumer protection authorities of 22 EU member states, Norway, and Iceland published the results of an analysis conducted on 570 influencers (the so-called „clean-up operation“ of 2023 on influencers): only one in five influencers consistently presented their commercial content as advertising. 

In response to environmental, ethical, and quality concerns related to „fast fashion,“ a draft law aiming to ban advertising for fast fashion brands, including advertising done by influencers (Proposal for a law aiming to reduce the environmental impact of the textile industry), was adopted by the National Assembly on first reading on March 14, 2024.

Lastly, the law of June 9, 2023, has been criticized by the European Commission, which considers that the law would contravene certain principles provided by EU law, notably the principle of „country of origin,“ according to which the company providing a service in other EU countries is exclusively subject to the law of its country of establishment (principle initially provided for by the E-commerce Directive of June 8, 2000, and included in the DSA). Some of its provisions, particularly those concerning the application of French law to foreign influencers, could therefore be subject to forthcoming – and welcome – modifications.

Summary

To avoid disputes with important suppliers, it is advisable to plan purchases over the medium and long term and not operate solely on the basis of orders and order confirmations. Planning makes it possible to agree on the duration of the ’supply agreement, minimum volumes of products to be delivered and delivery schedules, prices, and the conditions under which prices can be varied over time.
The use of a framework purchase agreement can help avoid future uncertainties and allows various options to be used to manage commodity price fluctuations depending on the type of products , such as automatic price indexing or agreement to renegotiate in the event of commodity fluctuations beyond a certain set tolerance period.

I read in a press release: “These days, the glass industry is sending wine companies new unilateral contract amendments with price changes of 20%…”

What can one do to avoid the imposition of price increases by suppliers? 

• Know your rights and act in an informed manner
• Plan and organise your supply chain

Does my supplier have the right to increase prices?

If contracts have already been concluded, e.g., orders have already been confirmed by the supplier, the answer is often no.

It is not legitimate to request a price change. It is much less legitimate to communicate it unilaterally, with the threat of cancelling the order or not delivering the goods if the request is not granted.

What if he tells me it is force majeure?

That’s wrong: increased costs are not a force majeure but rather an unforeseen excessive onerousness, which hardly happens.

What if the supplier canceled the order, unilaterally increased the price, or did not deliver the goods?

He would be in breach of contract and liable to pay damages for violating his contractual obligations.

How can one avoid a tug-of-war with suppliers?

The tools are there. You have to know them and use them.

It is necessary to plan purchases in the medium term, agreeing with suppliers on a schedule in which are set out:

• the quantities of products to be ordered
• the delivery terms
• the durationof the agreement
• the pricesof the products or raw materials
• the conditions under which prices can be varied

There is a very effective instrument to do so: a framework purchase agreement.

Using a framework purchase agreement, the parties negotiate the above elements, which will be valid for the agreed period.

Once the agreement is concluded, product orders will follow, governed by the framework agreement, without the need to renegotiate the content of individual deliveries each time.

For an in-depth discussion of this contract, see this article.

• “Yes, but my suppliers will never sign it!”

Why not? Ask them to explain the reason.

This type of agreement is in the interest of both parties. It allows planning future orders and grants certainty as to whether, when, and how much the parties can change the price.

In contrast, acting without written agreements forces the parties to operate in an environment of uncertainty. Suppliers can request price increases from one day to the next and refuse supply if the changes are not accepted.

How are price changes for future supplies regulated?

Depending on the type of products or services and the raw materials or energy relevant in determining the final price, there are several possibilities.

• The first option is to index the price automatically. E.g., if the cost of a barrel of Brent oil increases/decreases by 10%, the party concerned is entitled to request a corresponding adjustment of the product’s price in all orders placed as of the following week.
• An alternative is to provide for a price renegotiation in the event of a fluctuation of the reference commodity. E.g., suppose the LME Aluminium index of the London Stock Exchange increases above a certain threshold. In that case, the interested party may request a price renegotiationfor orders in the period following the increase.

What if the parties do not agree on new prices?

It is possible to terminate the contract or refer the price determination to a third party, who would act as arbitrator and set the new prices for future orders.

Summary

The framework supply contract is an agreement that regulates a series of future sales and purchases between two parties (customer and supplier) that take place over a certain period of time. This agreement determines the main elements of future contracts such as price, product volumes, delivery terms, technical or quality specifications, and the duration of the agreement.

The framework contract is useful for ensuring continuity of supply from one or more suppliers of a certain product that is essential for planning industrial or commercial activity. While the general terms and conditions of purchase or sale are the rules that apply to all suppliers or customers of the company. The framework contract is advisable to be concluded with essential suppliers for the continuity of business activity, in general or in relation to a particular project.

What I am talking about in this article:

• What is the supply framework agreement?
• What is the function of the supply framework agreement?
• The difference with the general conditions of sale or purchase
• When to enter a purchase framework agreement?
• When is it beneficial to conclude a sales framework agreement?
• The content of the supply framework agreement
• Price revision clause and hardship
• Delivery terms in the supply framework agreement
• The Force Majeure clause in international sales contracts
• International sales: applicable law and dispute resolution arrangements

What is a framework supply agreement?

It is an agreement that regulates a series of future sales and purchases between two parties (customer and supplier), which will take place over a certain period.

It is therefore referred to as a „framework agreement“ because it is an agreement that establishes the rules of a future series of sales and purchase contracts, determining their primary elements (such as the price, the volumes of products to be sold and purchased, the delivery terms of the products, and the duration of the contract).

After concluding the framework agreement, the parties will exchange orders and order confirmations, entering a series of autonomous sales contracts without re-discussing the covenants already defined in the framework agreement.

Depending on one’s point of view, this agreement is also called a sales framework agreement (if the seller/supplier uses it) or a purchasing framework agreement (if the customer proposes it).

What is the function of the framework supply agreement?

It is helpful to arrange a framework agreement in all cases where the parties intend to proceed with a series of purchases/sales of products over time and are interested in giving stability to the commercial agreement by determining its main elements.

In particular, the purchase framework agreement may be helpful to a company that wishes to ensure continuity of supply from one or more suppliers of a specific product that is essential for planning its industrial or commercial activity (raw material, semi-finished product, component).

By concluding the framework agreement, the company can obtain, for example, a commitment from the supplier to supply a particular minimum volume of products, at a specific price, with agreed terms and technical specifications, for a certain period.

This agreement is also beneficial, at the same time, to the seller/supplier, which can plan sales for that period and organize, in turn, the supply chain that enables it to procure the raw materials and components necessary to produce the products.

What is the difference between a purchase or sales framework agreement and the general terms and conditions?

Whereas the framework agreement is an agreement that is used with one or more suppliers for a specific product and a certain time frame, determining the essential elements of future contracts, the general purchase (or sales) conditions are the rules that apply to all the company’s suppliers (or customers).

The first agreement, therefore, is negotiated and defined on a case-by-case basis. At the same time, the general conditions are prepared unilaterally by the company, and the customers or suppliers (depending on whether they are sales or purchase conditions) adhere to and accept that the general conditions apply to the individual order and/or future contracts.

The two agreements might also co-exist: in that case; it is a good idea to specify which contract should prevail in the event of a discrepancy between the different provisions (usually, this hierarchy is envisaged, ranging from the special to the general: order – order confirmation; framework agreement; general terms and conditions of purchase).

When is it important to conclude a purchase framework agreement?

It is beneficial to conclude this agreement when dealing with a mono-supplier or a supplier that would be very difficult to replace if it stopped selling products to the purchasing company.

The risks one aims to avoid or diminish are so-called stock-outs, i.e., supply interruptions due to the supplier’s lack of availability of products or because the products are available, but the parties cannot agree on the delivery time or sales price.

Another result that can be achieved is to bind a strategic supplier for a certain period by agreeing that it will reserve an agreed share of production for the buyer on predetermined terms and conditions and avoid competition with offers from third parties interested in the products for the duration of the agreement.

When is it helpful to conclude a sales framework agreement?

This agreement allows the seller/supplier to plan sales to a particular customer and thus to plan and organize its production and logistical capacity for the agreed period, avoiding extra costs or delays.

Planning sales also makes it possible to correctly manage financial obligations and cash flows with a medium-term vision, harmonizing commitments and investments with the sales to one’s customers.

What is the content of the supply framework agreement?

There is no standard model of this agreement, which originated from business practice to meet the requirements indicated above.

Generally, the agreement provides for a fixed period (e.g., 12 months) in which the parties undertake to conclude a series of purchases and sales of products, determining the price and terms of supply and the main covenants of future sales contracts.

The most important clauses are:

• the identification of products and technical specifications (often identified in an annex)
• the minimum/maximum volume of supplies
• the possible obligation to purchase/sell a minimum/maximum volume of products
• the schedule of supplies
• the delivery times
• the determination of the price and the conditions for its possible modification (see also the next paragraph)
• impediments to performance (Force Majeure)
• cases of Hardship
• penalties for delay or non-performance or for failure to achieve the agreed volumes
• the hierarchy between the framework agreement and the orders and any other contracts between the parties
• applicable law and dispute resolution (especially in international agreements)

How to handle price revision in a supply contract?

A crucial clause, especially in times of strong fluctuations in the prices of raw materials, transport, and energy, is the price revision clause.

In the absence of an agreement on this issue, the parties bear the risk of a price increase by undertaking to respect the conditions initially agreed upon; except in exceptional cases (where the fluctuation is strong, affects a short period, and is caused by unforeseeable events), it isn’t straightforward to invoke the supervening excessive onerousness, which allows renegotiating the price, or the contract to be terminated.

To avoid the uncertainty generated by price fluctuations, it is advisable to agree in the contract on the mechanisms for revising the price (e.g., automatic indexing following the quotation of raw materials). The so-called Hardship or Excessive Onerousness clause establishes what price fluctuation limits are accepted by the parties and what happens if the variations go beyond these limits, providing for the obligation to renegotiate the price or the termination of the contract if no agreement is reached within a certain period.

How to manage delivery terms in a supply agreement?

Another fundamental pact in a medium to long-term supply relationship concerns delivery terms. In this case, it is necessary to reconcile the purchaser’s interest in respecting the agreed dates with the supplier’s interest in avoiding claims for damages in the event of a delay, especially in the case of sales requiring intercontinental transport.

The first thing to be clarified in this regard concerns the nature of delivery deadlines: are they essential or indicative? In the first case, the party affected has the right to terminate (i.e., wind up) the agreement in the event of non-compliance with the term; in the second case, due diligence, information, and timely notification of delays may be required, whereas termination is not a remedy that may be automatically invoked in the event of a delay.

A useful instrument in this regard is the penalty clause: with this covenant, it is established that for each day/week/month of delay, a sum of money is due by way of damages in favor of the party harmed by the delay.

If quantified correctly and not excessively, the penalty is helpful for both parties because it makes it possible to predict the damages that may be claimed for the delay, quantifying them in a fair and determined sum. Consequently, the seller is not exposed to claims for damages related to factors beyond his control. At the same time, the buyer can easily calculate the compensation for the delay without the need for further proof.

The same mechanism, among other things, may be adopted to govern the buyer’s delay in accepting delivery of the goods.

Finally, it is a good idea to specify the limit of the penalty (e.g.,10 percent of the price of the goods) and a maximum period of grace for the delay, beyond which the party concerned is entitled to terminate the contract by retaining the penalty.

The Force Majeure clause in international sales contracts

A situation that is often confused with excessive onerousness, but is, in fact, quite different, is that of Force Majeure, i.e., the supervening impossibility of performance of the contractual obligation due to any event beyond the reasonable control of the party affected, which could not have been reasonably foreseen and the effects of which cannot be overcome by reasonable efforts.

The function of this clause is to set forth clearly when the parties consider that Force Majeure may be invoked, what specific events are included (e.g., a lock-down of the production plant by order of the authority), and what are the consequences for the parties‘ obligations (e.g., suspension of the obligation for a certain period, as long as the cause of impossibility of performance lasts, after which the party affected by performance may declare its intention to dissolve the contract).

If the wording of this clause is general (as is often the case), the risk is that it will be of little use; it is also advisable to check that the regulation of force majeure complies with the law applicable to the contract (here an in-depth analysis indicating the regime provided for by 42 national laws).

Applicable law and dispute resolution clauses

Suppose the customer or supplier is based abroad. In that case, several significant differences must be borne in mind: the first is the agreement’s language, which must be intelligible to the foreign party, therefore usually in English or another language familiar to the parties, possibly also in two languages with parallel text.

The second issue concerns the applicable law, which should be expressly indicated in the agreement. This subject matter is vast, and here we can say that the decision on the applicable law must be made on a case-by-case basis, intentionally: in fact, it is not always convenient to recall the application of the law of one’s own country.

In most international sales contracts, the 1980 Vienna Convention on the International Sale of Goods („CISG“) applies, a uniform law that is balanced, clear, and easy to understand. Therefore, it is not advisable to exclude it.

Finally, in a supply framework agreement with an international supplier, it is important to identify the method of dispute resolution: no solution fits all. Choosing a country’s jurisdiction is not always the right decision (indeed, it can often prove counterproductive).

A case recently decided by the Italian Supreme Court clarifies what the risks are for those who sell their products abroad without having paid adequate attention to the legal part of the contract (Order, Sec. 2, No. 36144 of 2022, published 12/12/2022).

Why it’s important: in contracts, care must be taken not only with what is written, but also with what is not written, otherwise there is a risk that implied warranties of merchantability will apply, which may make the product unsuitable for use, even if it conforms to the technical specifications agreed upon in the contract.

The international sales contract and the first instance decision

A German company had sued an Italian company in Italy (Court of Chieti) to have it ordered to pay the sales price of two invoices for supplies of goods (steel).

The Italian purchasing company had defended itself by claiming that the two invoices had been deliberately not paid, due to the non-conformity of three previous deliveries by the same German seller. It then counterclaimed for a finding of defects and a reduction in the price, to be set off against the other party’s claim, as well as damages.

In the first instance, the Court of Chieti had partially granted both the German seller’s demand for payment (for about half of the claim) and the buyer’s counterclaim.

The court-appointed technical expertise had found that the steel supplied by the seller, while conforming to the agreed data sheet, had a very low silicon value compared to the values at other manufacturers‘ steel; however, the trial judge ruled out this as a genuine defect.

The judgment of appeal

The Court of Appeals of L’Aquila, appealed to the second instance by the buyer, had reached a different conclusion than the Court of First Instance, significantly reducing the amount owed by the Italian buyer, for the following reasons:

• the regime of „implied warranties“ under Article 35 of the Vienna Convention on the International Sale of Goods of 11.4.80 („CISG,“ ratified in both Italy and Germany) applied, as the companies had business headquarters in two different countries, both of which were parties to the Convention;
• in particular, the chemical composition of the steel supplied by the seller, while not constituting a „defect“ in the product (i.e., an anomaly or imperfection) was nonetheless to be considered a „lack of conformity“ within the meaning of Articles 35(2)(a) and 36(1) of the CISG, as it rendered the steel unsuitable for the use for which goods of the same kind would ordinarily serve (also known as „warranty of merchantability“).

The ruling of the Supreme Court

The German seller then appealed to the Supreme Court against the Court of Appeals‘ ruling, stating in summary that, according to the CISG, the conformity or non-conformity of the goods must be assessed against what was agreed upon in the contract between the parties; and that the „warranty of merchantability“ should apply only in the absence of a precise agreement of the parties on the characteristics that the product must have.

However, the seller’s defense continued, in this case the Italian buyer had sent a data sheet including a summary table of the various chemical elements, where it was stated that silicon should be present in a percentage not exceeding 0.45, but no minimum percentage was indicated.

So, the fact that the percentage of silicon was significantly lower than that found on average in steel from other suppliers could not be considered a conformity defect, since, at the contract negotiation stage, the parties exchanging the data sheet had expressly agreed only on the maximum values, thus not considering the minimum values relevant to conformity.

The Supreme Court, however, disagreed with this reasoning and essentially upheld the Court of Appeals‘ ruling, rejecting the German seller’s appeal.

The Court recalled that, according to Article 35 first paragraph of the CISG, the seller must deliver goods whose quantity, quality and kind correspond to those stipulated in the contract and whose packaging and wrapping correspond to those stipulated in the contract; and that, for the second paragraph, „unless the parties agree otherwise, goods are in conformity with the contract only if: a) they are suitable for the uses for which goods of the same kind would ordinarily serve.“

Other guarantees are enumerated in paragraphs (b) to (d) of the same standard[1] . They are commonly referred to collectively as „implied warranties.“

The Court noted that the warranties in question, including the one of „merchantability“ just referred to, do not stand subordinate or subsidiary to contractual covenants; on the contrary, they apply unless expressly excluded by the parties.

It follows that, according to the Supreme Court, any intention of the parties to a sales contract to disapply the warranty of merchantability must „result from a specific provision agreed upon by the parties.„

In the present case, although the data sheet that was part of the contractual agreements was analytical and had included among the chemical characteristics of the material the percentage of silicon, the fact that only a maximum percentage was indicated and not also the minimum percentage was not sufficient to exclude the fact that, by virtue of the „implied guarantee“ of marketability, the minimum percentage should in any case conform to the average percentage of similar products existing on the market.

Since the „warranty of merchantability“ had not been expressly excluded between the parties by a specific contractual clause, the conformity of the goods to the contract still had to be evaluated in consideration of this implied warranty as well.

Conclusions

What should businesses that sell abroad keep in mind?

• In contracts for the sale of goods between companies based in two different countries, the CISG automatically applies in many cases, in preference to the domestic law of either the seller’s country or the buyer’s country.
• The CISG contains very important rules for the relationship between sellers and buyers, on warranties of conformity of goods with the contract and buyer’s remedies for breach of warranties.
• One can modify or even exclude these rules by drafting appropriate contracts or general conditions in writing.
• Parties may agree not to apply all or some of the „implied warranties“ (possibly replacing them with contractual warranties) just as they may exclude certain remedies (e.g., exclude or limit liability for damages, within certain limits). However, they must do so in clear and explicit clauses.
• For the „warranty of merchantability“ not to apply, according to the reasoning of the Italian Supreme Court, it is not enough not to mention it in the contract.
• It is not sufficient to attach an analytical description of the characteristics of the goods to the contract to exclude certain characteristics not mentioned but nevertheless present in similar products of other manufacturers, which can be used as a parameter for the conformity of the goods.
• Instead, it is necessary to include a clause in the contract expressly excluding this type of guarantee.

In other words, in contracts, one must pay attention not only to what is written but also to what is not written.

This case once again demonstrates the importance of drafting a proper and complete contract not only from a commercial, technical, and financial point of view but also from a legal point of view, using the expertise of a lawyer experienced in international commercial contracts.

Finally, it is important not to overlook applicable law and jurisdiction clauses. These aspects are unfortunately often overlooked, even in high-value negotiations, considering these clauses unimportant or even blocking for negotiation, only to regret them when litigation arises or even threatened. See an in-depth discussion here.

Many people think that the non-disclosure agreement (NDA) is the one and only necessary precaution in a negotiation. This is wrong, because this agreement only refers to a facet of the business relationship that the parties want to discuss or manage.

Why is it important

The function of the NDA is to maintain the confidentiality of certain information that the parties intend to exchange and to prevent it from being used for purposes on which the parties did not agree. However, many aspects of the negotiation are not regulated in the NDA.

The main issues that the parties should agree on in writing are the following:

• why do the parties want to exchange information?
• what is the ultimate scope to be achieved?
• on what general points do the parties already agree?
• how long will negotiations last?
• who will participate in the negotiations, and with what powers?
• what documents and information will be shared?
• are there any exclusivity and/or non-compete obligations during and after the negotiation?
• what law applies to the negotiations and how are potential disputes resolved?

If these questions are not answered, it is likely that misunderstandings and disputes will arise over time, especially in lengthy and complex negotiations with foreign counterparts.

How to proceed?

• It is advisable that the above agreements be set down in a Letter of Intent („LoI“) or Memorandum of Understanding („MoU“). These are preliminary agreements whose function is determining the scope of future negotiations, the timetable, and the rules to be observed during and after the negotiations.

Common objection

„These are non-binding contracts, so what is the point of using them if the parties are free not to comply?

• Some covenants may be binding (exclusivity during negotiation, non-competition, dispute settlement agreements), and some may not (with the freedom to conclude or not to conclude the agreement).
• In any case, agreeing on the negotiating roadmap is an advantage over operating without having set the negotiating guidelines.

What happens if no agreement is reached?

• The MoU usually expressly provides for each party to be free not to finalize the negotiation as long as that party behaves, keeps acting in good faith during the negotiations and preserves the other party’s rights.
• It should be noted that in case of early or unjustified termination of the negotiations by one of the parties, the other party may be entitled to damages (so-called pre-contractual liability) if the agreement and/or the law applicable to the contract so provide.

Then, when should a non-disclosure agreement be concluded?

• It can be executed at the same time as the MoU / LoI or immediately afterwards so that the specification of confidential information, the way it is used, the duration of confidentiality obligations, etc. are defined in a way that is consistent with the project the parties have agreed upon.

For more information on the content of confidentiality agreements, see this article.

Nach mehr als 30 Jahren Verhandlungen blickt die Welt nun auf das erste panafrikanische Handelsabkommen, welches 2019 in Kraft getreten ist: Die Afrikanische Kontinentale Freihandelszone (African Continental Free Trade Area – AfCFTA).

Afrika ist mit seinen 55 Ländern und rund 1,3 Milliarden Einwohnern nach Asien der zweitgrößte Kontinent der Welt. Das Potenzial des Kontinents ist enorm: Mehr als 50 % der afrikanischen Bevölkerung ist unter 20 Jahre alt, und die Bevölkerung wächst weltweit am schnellsten. Bis 2050 wird voraussichtlich jedes vierte Neugeborene aus Afrika stammen. Darüber hinaus ist der Kontinent reich an fruchtbaren Böden und Rohstoffen.

Für westliche Investoren hat Afrika in den letzten Jahren erheblich an Bedeutung gewonnen. So ist ein beachtliches internationales Handelsvolumen entstanden, das nicht zuletzt durch die 2017 von den G20-Staaten verabschiedete Initiative „Compact with Africa“, auch bekannt als „Marshallplan mit Afrika“, gefördert wird. Der Fokus liegt auf dem Ausbau der wirtschaftlichen Zusammenarbeit Afrikas mit den G20-Ländern durch die Stärkung privater Investitionen.

Zugleich stagnierte bislang jedoch der innerafrikanische Handel: Teilweise noch bestehende hohe innerafrikanische Zölle, nichttarifäre Handelshemmnisse (non-tariff barriers – NTBs), schwache Infrastruktur, Korruption, schwerfällige Bürokratie sowie intransparente und inkonsistente Regulierungen sorgten dafür, dass sich die interregionalen Exporte kaum entwickeln konnten und zuletzt nur 17 % des innerafrikanischen Handels und nur 0,36 % des Welthandels ausmachten. Schon lange hatte sich deshalb die Afrikanische Union (AU) die Schaffung einer gemeinsamen Handelszone auf ihre Agenda gesetzt.

Was verbirgt sich hinter AfCFTA?

Der Errichtung einer panafrikanischen Handelszone gingen jahrzehntelange Verhandlungen voraus, welche schließlich in das Inkrafttreten des AfCFTA am 30. Mai 2019 mündeten.

Das AfCFTA ist eine von ihren Mitgliedern errichtete Freihandelszone, die (mit Ausnahme Eritreas) den gesamten afrikanischen Kontinent umfasst und damit, gemessen an der Zahl der Mitgliedsstaaten nach der Welthandelsorganisation (World Trade Organization – WTO) die größte Freihandelszone der Welt ist.

Die Ausgestaltung des gemeinsamen Marktes war Gegenstand mehrerer Einzelverhandlungen, die in den Phasen I und II geführt wurden.

Phase I umfasst die Verhandlungen zu drei Protokollen und ist nahezu abgeschlossen.

Das Protokoll über den Handel mit Waren

Dieses Protokoll sieht die Abschaffung von 90 % aller innerafrikanischen Zölle in allen Warenkategorien innerhalb von fünf Jahren nach Inkrafttreten vor. Davon können bis zu 7 % der Waren als sensible Waren eingestuft werden, für die ein Zeitraum von zehn Jahren für die Beseitigung der Zölle gilt. Für die am wenigsten entwickelten Länder (Least Developed Countries – LDCs) wird die Vorbereitungszeit von fünf auf zehn Jahre und für sensible Waren von zehn auf dreizehn Jahre verlängert, sofern sie ihren Bedarf nachweisen. Die restlichen 3 % der Zölle sind vollständig vom Zollabbau ausgenommen.

Voraussetzung für den Zollabbau ist die klare Abgrenzung der Ursprungsregeln. Andernfalls könnten Einfuhren aus Drittländern von den ausgehandelten Zollvorteilen profitieren. Über die meisten Ursprungsregeln ist bereits eine Einigung erzielt worden.

Das Protokoll über den Handel mit Dienstleistungen

Die AU-Generalversammlung hat sich bisher auf fünf Schwerpunktbereiche (Verkehr, Kommunikation, Tourismus, Finanz- und Unternehmensdienstleistungen) und Leitlinien für die entsprechenden Verpflichtungen geeinigt. 47 AU-Mitgliedsstaaten haben bereits ihre Angebote für spezifische Verpflichtungen vorgelegt und die Überprüfung von 28 von ihnen ist abgeschlossen. Darüber hinaus sind die Verhandlungen, beispielsweise über die Anerkennung von Berufsqualifikationen, noch nicht abgeschlossen.

Das Protokoll über die Streitbeilegung

Mit dem Protokoll über Regeln und Verfahren für die Streitbeilegung schafft das AfCFTA ein Streitbeilegungssystem nach dem Vorbild der WTO-Streitbeilegungsvereinbarung. Das Streitbeilegungsgremium (Dispute Settlement Body – DSB) verwaltet das AfCFTA-Streitbeilegungsprotokoll und setzt ein Schiedsgericht (Adjudicating Panel – Panel) und ein Berufungsgremium (Appellate Body – AB) ein. Das DSB setzt sich aus einem Vertreter jedes Mitgliedstaates zusammen und wird tätig, sobald es zwischen den Vertragsstaaten Meinungsverschiedenheiten über die Auslegung und/oder Anwendung des Abkommens in Bezug auf ihre Rechte und Pflichten gibt.

Für die verbleibende Phase II sind Verhandlungen über Investitions- und Wettbewerbspolitik, Fragen des geistigen Eigentums, Online-Handel sowie Frauen und Jugend im Handel geplant, deren Ergebnisse in weitere Protokolle einfließen werden.

Die Umsetzung des AfCFTA

Grundsätzlich kann der Handel im Rahmen eines Handelsabkommens erst dann beginnen, wenn der rechtliche Rahmen endgültig steht. Die Staats- und Regierungschefs der AU haben jedoch im Dezember 2020 vereinbart, dass der Handel mit solchen Waren, für die die Verhandlungen abgeschlossen sind, beginnen kann. Im Rahmen dieser Übergangsregelung fand nach einer pandemiebedingten Verschiebung am 4. Januar 2021 die erste AfCFTA-Handelsabwicklung von Ghana nach Südafrika statt.

Bausteine der AfCFTA

Alle 55 Mitglieder der AU waren an den AfCFTA-Verhandlungen beteiligt. Davon gehören 47 zu mindestens einer der anerkannten Regionalen Wirtschaftsgemeinschaften (Regional Economic Communities – RECs), die gemäß der Präambel des AfCFTA-Abkommens weiterhin als Bausteine des Handelsabkommens dienen sollen. Folglich waren es die RECs, welche bei den AfCFTA-Verhandlungen für ihre jeweiligen Mitglieder auftraten. Das AfCFTA-Abkommen sieht vor, dass die RECs ihre Rechtsinstrumente, Institutionen und Streitbeilegungsmechanismen beibehalten.

Innerhalb der AU gibt es acht anerkannte regionale Wirtschaftsgemeinschaften, die sich in einigen Ländern überschneiden und bei denen es sich entweder um präferenzielle Handelsabkommen (Freihandelsabkommen) oder Zollunionen handelt.

Im Rahmen der AfCFTA haben die RECs verschiedene Aufgaben. Diese sind insbesondere:

• Koordinierung der Verhandlungspositionen und Unterstützung der Mitgliedsstaaten bei der Umsetzung des Abkommens
• Lösungsorientierte Mediation bei Unstimmigkeiten zwischen den Mitgliedsstaaten
• Unterstützung der Mitgliedsstaaten bei der Harmonisierung von Zöllen und anderen Grenzschutzbestimmungen
• Förderung der Nutzung des AfCFTA-Meldeverfahrens zum Abbau von NTBs

Ausblick auf das AfCFTA

Das AfCFTA hat das Potenzial, die Integration Afrikas in die Weltwirtschaft zu erleichtern und schafft die reale Möglichkeit einer Neuausrichtung der internationalen Integrations- und Kooperationsmuster.

Ein Handelsabkommen allein ist noch keine Garantie für wirtschaftlichen Erfolg. Damit das Abkommen den prognostizierten Durchbruch erzielt, müssen die Mitgliedstaaten den politischen Willen haben, die neuen Regeln konsequent umzusetzen und die dafür notwendigen Kapazitäten zu schaffen. Insbesondere die kurzfristige Beseitigung von Handelshemmnissen und die Schaffung einer nachhaltigen physischen und digitalen Infrastruktur dürften entscheidend sein.

Wenn Sie sich für das AfCFTA interessieren, können Sie hier eine erweiterte Version dieses Artikels lesen.

Der Legalmondo African Desk

Mit unseren Experten in Ägypten, Marokko, Algerien, Tunesien, Libyen, Sudan, Kamerun, Côte d’Ivoire, Ghana, Senegal und Malawi unterstützen wir Unternehmen bei Investitionen und Geschäftsvorhaben in Afrika.

Ausländische Unternehmen in afrikanischen Ländern, in denen wir nicht direkt mit einem Büro vertreten sind, können wir auch über unser Netzwerk von lokalen Partnern unterstützen.

Wie es funktioniert

• Wir vereinbaren ein Treffen (persönlich oder online) mit einem unserer Experten, um die Bedürfnisse des Mandanten zu verstehen.
• Sobald wir die Zusammenarbeit aufgenommen haben, begleiten wir den Mandanten mit einem Rechtsanwalt bei all seinen rechtlichen Angelegenheiten (einzelne Fälle oder laufende rechtliche Unterstützung)

Nehmen Sie Kontakt auf, um mehr zu erfahren.

Zusammenfassung

Anhand der Geschichte von Nike, die sich aus der Biografie des Gründers Phil Knight ableitet, lassen sich einige Lehren  für internationale Vertriebsverträge ziehen: Wie man den Vertrag aushandelt, die Vertragsdauer festlegt, die Exklusivität und die Geschäftsziele definiert und die richtige Art der Streitschlichtung bestimmt.

Worüber ich in diesem Artikel spreche

• Der Streit zwischen Blue Ribbon und Onitsuka Tiger und die Geburt von Nike
• Wie man eine internationale Vertriebsvereinbarung aushandelt
• Vertragliche Exklusivität in einer Handelsvertriebsvereinbarung
• Mindestumsatzklauseln in Vertriebsverträgen
• Vertragsdauer  und Kündigungsfrist
• Eigentum an Marken in Handelsverträgen
• Die Bedeutung der Mediation bei internationalen Handelsverträgen
• Streitbeilegungsklauseln in internationalen Verträgen
• Wie wir Ihnen helfen können

Der Streit zwischen Blue Ribbon und Onitsuka Tiger und die Geburt von Nike

Warum ist die berühmteste Sportbekleidungsmarke der Welt Nike und nicht Onitsuka Tiger?
Die Biographie des Nike-Schöpfers Phil Knight mit dem Titel “Shoe Dog” gibt hierauf antworten und ist nicht nur für Liebhaber des Genres eine absolut empfehlenswerte Lektüre.

Bewegt von seiner Leidenschaft für den Laufsport und seiner Intuition, dass es auf dem amerikanischen Sportschuhmarkt, der damals von Adidas dominiert wurde, eine Lücke gab, importierte Knight 1964 als erster überhaupt eine japanische Sportschuhmarke, Onitsuka Tiger, in die USA.  Mit diesen Sportschuhen konnte sich Knight innerhalb von 6 Jahren einen Marktanteil von satten 70 % sichern.

Das von Knight und seinem ehemaligen College-Trainer Bill Bowerman gegründete Unternehmen hieß damals noch Blue Ribbon Sports.

Die Geschäftsbeziehung zwischen Blue Ribbon-Nike und dem japanischen Hersteller Onitsuka Tiger  gestaltete sich trotz der sehr guten Verkaufszahlen und den postiven Wachstumsaussichten von  Beginn an als sehr turbulent.

Als Knight dann kurz nach der Vertragsverlängerung mit dem japanischen Hersteller erfuhr, dass Onitsuka in den USA nach einem anderen Vertriebspartner Ausschau hielt , beschloss Knight  – aus Angst, vom Markt ausgeschlossen zu  werden –  sich seinerseits mit einem anderen japanischen Lieferanten zusammenzutun und seine eigene Marke zu gründen. Damit war die spätere Weltmarke Nike geboren.

Als der japanische Hersteller Onitsuka von dem Nike-Projekt erfuhr, verklagte dieser  Blue Ribbon wegen  Verstoß gegen das Wettbewerbsverbot,  welches dem Vertriebshändler die Einfuhr anderer in Japan hergestellter Produkte untersagte, und beendete die Geschäftsbeziehung mit sofortiger Wirkung.

Blue Ribbon führte hiergegen an, dass der Verstoß von dem Hersteller Onitsuka Tiger ausging, der  sich bereits als der Vertrag noch in Kraft war und die Geschäfte mehr als gut liefen mit anderen potenziellen Vertriebshändlern getroffen hatte.

Diese Auseinandersetzung führte zu zwei Gerichtsverfahren, eines in Japan und eines in den USA, die der Geschichte von Nike ein vorzeitiges Ende hätten setzen können.

Zum Glück (für Nike) entschied der amerikanische Richter zu Gunsten des Händlers und der Streit wurde mit einem Vergleich beendet: Damit begann für Nike die Reise, die sie 15 Jahre später zur wichtigsten Sportartikelmarke der Welt machen sollte.

Wir werden sehen, was uns die Geschichte von Nike lehrt und welche Fehler bei einem internationalen Vertriebsvertrag tunlichst vermieden werden sollten.

Wie verhandelt man eine internationale Handelsvertriebsvereinbarung?

In seiner Biografie schreibt Knight, dass er bald bedauerte, die Zukunft seines Unternehmens an eine eilig verfasste, wenige Zeilen umfassende Handelsvereinbarung gebunden zu haben, die am Ende einer Sitzung zur Aushandlung der Erneuerung des Vertriebsvertrags geschlossen wurde.

Was beinhaltete diese Vereinbarung?

Die Vereinbarung sah lediglich die Verlängerung des Rechts von Blue Ribbon vor, die Produkte in den USA exklusiv zu vertreiben, und zwar für weitere drei Jahre.

In der Praxis kommt es  häufig vor, dass sich internationale Vertriebsverträge auf mündliche Vereinbarungen oder sehr einfache Vertragswerke mit kurzer Dauer beschränken. Die übliche Erklärung dafür ist, dass es auf diese Weise möglich ist, die Geschäftsbeziehung zu testen, ohne die vertragliche Bindung zu eng werden zu lassen.

Diese Art, Geschäfte zu machen, ist jedoch nicht zu empfehlen  und kann sogar gefährlich werden: Ein  Vertrag sollte niemals  als Last oder Zwang angesehen werden, sondern als Garantie für die Rechte beider Parteien. Einen schriftlichen Vertrag nicht oder nur sehr übereilt abzuschließen, bedeutet, grundlegende Elemente der künftigen Beziehung, wie die, die zum Streit zwischen Blue Ribbon und Onitsuka Tiger führten, ohne klare Vereinbarungen zu belassen: Hierzu gehören Aspekte wie Handelsziele, Investitionen, das Eigentum an Marken – um nur einige zu benennen.

Handelt es sich zudem um einen internationalen Vertrag, ist die Notwendigkeit einer vollständigen und ausgewogenen Vereinbarung noch größer, da in Ermangelung von Vereinbarungen zwischen den Parteien oder in Ergänzung zu diesen Vereinbarungen ein Recht zur Anwendung kommt, mit dem eine der Parteien nicht vertraut ist, d. h. im Allgemeinen das Recht des Landes, in dem der Händler seinen Sitz hat.

Auch wenn Sie sich nicht in einer Blue-Ribbon-Situation befinden, in der es sich um einen Vertrag handelt, von dem die Existenz des Unternehmens abhängt, sollten internationale Verträge stets mit Hilfe eines fachkundigen Anwalts besprochen und ausgehandelt werden, der das auf den Vertrag anwendbare Recht kennt und dem Unternehmer helfen kann, die wichtigen Vertragsklauseln zu ermitteln und auszuhandeln.

Territoriale Exklusivität, kommerzielle Ziele und Mindestumsatzziele

Anlass für den Konflikt zwischen Blue Ribbon und Onitsuka Tiger war zunächst einmal die Bewertung der Absatzentwicklung auf dem US-Markt.

Onitsuka argumentierte, dass der Umsatz unter dem Potenzial des US-Marktes liege, während nach Angaben von Blue Ribbon die Verkaufsentwicklung sehr positiv sei, da sich der Umsatz bis zu diesem Zeitpunkt jedes Jahr verdoppelt habe und ein bedeutender Anteil des Marktsektors erobert worden sei.

Als Blue Ribbon erfuhr, dass Onituska andere Kandidaten für den Vertrieb seiner Produkte in den USA prüfte, und befürchtete, damit bald vom Markt verdrängt zu werden , bereitete Blue Ribbon die Marke Nike als Plan B vor: Als der  japanische Hersteller diese Marke entdeckte , kam es zu einem Rechtsstreit zwischen den Parteien, der zu einem Eklat führte.

Der Streit hätte vielleicht vermieden werden können, wenn sich die Parteien auf kommerzielle Ziele geeinigt hätten und der Vertrag eine in Alleinvertriebsvereinbarungen übliche Klausel enthalten hätte, d.h. ein Mindestabsatzziel für den Vertriebshändler.

In einer Alleinvertriebsvereinbarung gewährt der Hersteller dem Händler einen starken Gebietsschutz für die Investitionen, die der Händler zur Erschließung des zugewiesenen Marktes tätigt.

Um dieses  Zugeständnis der Exklusivität auszugleichen, ist es üblich, dass der Hersteller vom Vertriebshändler einen so genannten garantierten Mindestumsatz oder ein Mindestziel verlangt, das der Vertriebshändler jedes Jahr erreichen muss, um den ihm gewährten privilegierten Status zu behalten.

Für den Fall, dass das Mindestziel nicht erreicht wird, sieht der Vertrag dann in der Regel vor, dass der Hersteller das Recht hat, vom Vertrag zurückzutreten (bei einem unbefristeten Vertrag) oder den Vertrag nicht zu verlängern (bei einem befristeten Vertrag) oder aber auch die Gebietsexklusivität aufzuheben bzw.  einzuschränken.

Der Vertrag zwischen Blue Ribbon und Onitsuka Tiger sah derartige  Zielvorgaben nicht vor – und das nachdem er gerade erst um drei Jahre verlängert wurde. Hinzukam, dass sich die Parteien bei der Bewertung der Ergebnisse des Vertriebshändlers nicht einig waren. Es stellt sich daher die Frage: Wie können in einem Mehrjahresvertrag Mindestumsatzziele vorgesehen werden?

In Ermangelung zuverlässiger Daten verlassen sich die Parteien häufig auf vorher festgelegte prozentuale Erhöhungsmechanismen: + 10 % im zweiten Jahr, + 30 % im dritten Jahr, + 50 % im vierten Jahr und so weiter.

Das Problem bei diesem Automatismus ist, dass dadurch  Zielvorgaben vereinbart werden, die nicht auf tatsächlichen Daten über die künftige Entwicklung der Produktverkäufe, der Verkäufe der Wettbewerber und des Marktes im Allgemeinen basieren , und die daher sehr weit von den aktuellen Absatzmöglichkeiten des Händlers entfernt sein können.

So wäre beispielsweise die Anfechtung des Vertriebsunternehmens wegen Nichterfüllung der Zielvorgaben für das zweite oder dritte Jahr in einer rezessiven Wirtschaft sicherlich eine fragwürdige Entscheidung, die wahrscheinlich zu Meinungsverschiedenheiten führen würde.

Besser wäre eine Klausel, mit der Ziele von Jahr zu Jahr einvernehmlich festgelegt werden. Diese besagt, dass die Ziele zwischen den Parteien unter Berücksichtigung der Umsatzentwicklung in den vorangegangenen Monaten und mit einer gewissen Vorlaufzeit vor Ende des laufenden Jahres vereinbart werden.  Für den Fall, dass keine Einigung über die neue Zielvorgabe zustande kommt, kann der Vertrag vorsehen, dass die Zielvorgabe des Vorjahres angewandt wird oder dass die Parteien das Recht haben, den Vertrag unter Einhaltung einer bestimmten Kündigungsfrist zu kündigen.

Andererseits kann die Zielvorgabe auch als Anreiz für den Vertriebshändler dienen: So kann z. B. vorgesehen werden, dass bei Erreichen eines bestimmten Umsatzes die Vereinbarung erneuert, die Gebietsexklusivität verlängert oder ein bestimmter kommerzieller Ausgleich für das folgende Jahr gewährt wird.

Eine letzte Empfehlung ist die korrekte Handhabung der Mindestzielklausel, sofern sie im Vertrag enthalten ist: Es kommt häufig vor, dass der Hersteller die Erreichung des Ziels für ein bestimmtes Jahr bestreitet, nachdem die Jahresziele über einen langen Zeitraum hinweg nicht erreicht oder nicht aktualisiert wurden, ohne dass dies irgendwelche Konsequenzen hatte.

In solchen Fällen ist es möglich, dass der Händler behauptet, dass ein impliziter Verzicht auf diesen vertraglichen Schutz vorliegt und der Widerruf daher nicht gültig ist: Um Streitigkeiten zu diesem Thema zu vermeiden, ist es ratsam, in der Mindestzielklausel ausdrücklich vorzusehen, dass die unterbliebene Anfechtung des Nichterreichens des Ziels während eines bestimmten Zeitraums nicht bedeutet, dass auf das Recht, die Klausel in Zukunft zu aktivieren, verzichtet wird.

Die Kündigungsfrist für die Beendigung eines internationalen Vertriebsvertrags

Der andere Streitpunkt zwischen den Parteien war die Verletzung eines Wettbewerbsverbots: Blue Ribbon verkaufte die Marke Nike , obwohl der Vertrag den Verkauf anderer in Japan hergestellter Schuhe untersagte.

Onitsuka Tiger behauptete, Blue Ribbon habe gegen das Wettbewerbsverbot verstoßen, während der Händler die Ansicht vertrat , dass er angesichts der bevorstehenden Entscheidung des Herstellers, die Vereinbarung zu kündigen, keine andere Wahl hatte.

Diese Art von Streitigkeiten kann vermieden werden, indem für die Beendigung (oder Nichtverlängerung) eine klare Kündigungsfrist festgelegt wird: Diese Frist hat die grundlegende Funktion, den Parteien die Möglichkeit zu geben, sich auf die Beendigung der Beziehung vorzubereiten und ihre Aktivitäten nach der Beendigung neu zu organisieren.

Um insbesondere Streitigkeiten wie die zwischen Blue Ribbon und Onitsuka Tiger zu vermeiden, kann in einem internationalen Vertriebsvertrag vorgesehen werden, dass die Parteien während  der Kündigungsfristmit anderen potenziellen Vertriebshändlern und Herstellern in Kontakt treten können und dass dies nicht gegen die Ausschließlichkeits- und Wettbewerbsverpflichtungen verstößt.

Im Fall von Blue Ribbon war der Händler über die bloße Suche nach einem anderen Lieferanten hinaus sogar noch einen Schritt weiter gegangen, da er begonnen hatte, Nike-Produkte zu verkaufen, während der Vertrag mit Onitsuka noch gültig war. Dieses Verhalten stellt einen schweren Verstoß gegen  die getroffene Ausschließlichkeitsvereinbarung dar.

Ein besonderer Aspekt, der bei der Kündigungsfrist zu berücksichtigen ist, ist die Dauer: Wie lang muss die Kündigungsfrist sein, um als fair zu gelten? Bei langjährigen Geschäftsbeziehungen ist es wichtig, der anderen Partei genügend Zeit einzuräumen, um sich auf dem Markt neu zu positionieren, nach alternativen Vertriebshändlern oder Lieferanten zu suchen oder (wie im Fall von Blue Ribbon/Nike) eine eigene Marke zu schaffen und einzuführen.

Ein weiteres Element, das bei der Mitteilung der Kündigung zu berücksichtigen ist, besteht darin, dass die Kündigungsfrist so bemessen sein muss, dass der Vertriebshändler die zur Erfüllung seiner Verpflichtungen während der Vertragslaufzeit getätigten Investitionen amortisieren kann; im Fall von Blue Ribbon hatte der Vertriebshändler auf ausdrücklichen Wunsch des Herstellers eine Reihe von Einmarkengeschäften sowohl an der West- als auch an der Ostküste der USA eröffnet.

Eine Kündigung des Vertrags kurz nach seiner Verlängerung und mit einer zu kurzen Vorankündigung hätte es dem Vertriebshändler nicht erlaubt, das Vertriebsnetz mit einem Ersatzprodukt neu zu organisieren, was die Schließung der Geschäfte, die die japanischen Schuhe bis zu diesem Zeitpunkt verkauft hatten, erzwungen hätte.

Im Allgemeinen ist es ratsam, eine Kündigungsfrist von mindestens 6 Monaten vorzusehen. Bei internationalen Vertriebsverträgen sollten jedoch neben den von den Parteien getätigten Investitionen auch etwaige spezifische Bestimmungen des auf den Vertrag anwendbaren Rechts (hier z. B. eine eingehende Analyse der plötzlichen Kündigung von Verträgen in Frankreich) oder die Rechtsprechung zum Thema Rücktritt von Geschäftsbeziehungen beachtet werden (in einigen Fällen kann die für einen langfristigen Vertriebskonzessionsvertrag als angemessen erachtete Frist 24 Monate betragen).

Schließlich ist es normal, dass der Händler zum Zeitpunkt des Vertragsabschlusses noch im Besitz von Produktvorräten ist: Dies kann problematisch sein, da der Händler in der Regel die Vorräte auflösen möchte (Blitzverkäufe oder Verkäufe über Internetkanäle mit starken Rabatten), was der Geschäftspolitik des Herstellers und der neuen Händler zuwiderlaufen kann.

Um diese Art von Situation zu vermeiden, kann in den Vertriebsvertrag eine Klausel aufgenommen werden, die das Recht des Herstellers auf Rückkauf der vorhandenen Bestände bei Vertragsende regelt, wobei der Rückkaufpreis bereits festgelegt ist (z. B. in Höhe des Verkaufspreises an den Händler für Produkte der laufenden Saison, mit einem Abschlag von 30 % für Produkte der vorangegangenen Saison und mit einem höheren Abschlag für Produkte, die mehr als 24 Monate zuvor verkauft wurden).

Markeninhaberschaft in einer internationalen Vertriebsvereinbarung

Im Laufe der Vertriebsbeziehung hatte Blue Ribbon eine neuartige Sohle für Laufschuhe entwickelt und die Marken Cortez und Boston für die Spitzenmodelle der Kollektion geprägt, die beim Publikum sehr erfolgreich waren und große Popularität erlangten: Bei Vertragsende beanspruchten nun beide Parteien das Eigentum an den Marken.

Derartige Situationen treten häufig in internationalen Vertriebsbeziehungen auf: Der Händler lässt die Marke des Herstellers in dem Land, in dem er tätig ist, registrieren, um Konkurrenten daran zu hindern, dies zu tun, und um die Marke im Falle des Verkaufs gefälschter Produkte schützen zu können; oder es kommt vor, dass der Händler, wie in dem hier behandelten Streitfall, an der Schaffung neuer, für seinen Markt bestimmter Marken mitwirkt.

Am Ende der Geschäftsbeeziehung, wenn keine klare Vereinbarung zwischen den Parteien vorliegt, kann es zu einem Streit wie im Fall Nike kommen: Wer ist der Eigentümer der Marke – der Hersteller oder der Händler?

Um Missverständnisse zu vermeiden, ist es ratsam, die Marke in allen Ländern zu registrieren, in denen die Produkte vertrieben werden, und nicht nur dort: Im Falle Chinas zum Beispiel ist es ratsam, die Marke auch dann zu registrieren, wenn sie dort nicht vertreiben wird, um zu verhindern, dass Dritte die Marke in böser Absicht übernehmen (weitere Informationen finden Sie in diesem Beitrag auf Legalmondo).

Es ist auch ratsam, in den Vertriebsvertrag eine Klausel aufzunehmen, die dem Händler die Eintragung der Marke (oder ähnlicher Marken) in dem Land, in dem er tätig ist, untersagt und dem Hersteller ausdrücklich das Recht einräumt, die Übertragung der Marke zu verlangen, falls dies dennoch geschieht.

Eine solche Klausel hätte die Entstehung des Rechtsstreits zwischen Blue Ribbon und Onitsuka Tiger verhindert.

Der von uns geschilderte Sachverhalt stammt aus dem Jahr 1976: Heutzutage ist es ratsam, im Vertrag nicht nur die Eigentumsverhältnisse an der Marke und die Art und Weise der Nutzung durch den Händler und sein Vertriebsnetz zu klären, sondern auch die Nutzung der Marke wie auch der Unterscheidungszeichen des Herstellers in den Kommunikationskanälen, insbesondere in den sozialen Medien, zu regeln.

Es ist ratsam, eindeutig festzulegen, dass niemand anderes als der Hersteller Eigentümer der Social-Media-Profile wie auch der erstellten Inhalte und der Daten ist, die durch die Verkaufs-, Marketing- und Kommunikationsaktivitäten in dem Land, in dem der Händler tätig ist, generiert werden, und dass er nur die Lizenz hat, diese gemäß den Anweisungen des Eigentümers zu nutzen.

Darüber hinaus ist es sinnvoll, in der Vereinbarung festzulegen, wie die Marke verwendet wird und welche Kommunikations- und Verkaufsförderungsmaßnahmen auf dem Markt ergriffen werden, um Initiativen zu vermeiden, die negative oder kontraproduktive Auswirkungen haben könnten.

Die Klausel kann auch durch die Festlegung von Vertragsstrafen für den Fall verstärkt werden, dass sich der Händler bei Vertragsende weigert, die Kontrolle über die digitalen Kanäle und die im Rahmen der Geschäftstätigkeit erzeugten Daten zu übertragen.

Mediation in internationalen Handelsverträgen

Ein weiterer interessanter Punkt, der sich am  Fall Blue Ribbon vs. Onitsuka Tiger erläutern lässt , steht im Zusammenhang mit der Bewältigung von Konflikten in internationalen Vertriebsbeziehungen: Situationen wie die, die wir gesehen haben, können durch den Einsatz von Mediation effektiv gelöst werden.

Dabei handelt es sich um einen Schlichtungsversuch, mit dem ein spezialisiertes Gremium oder ein Mediator betraut wird, um eine gütliche Einigung zu erzielen und ein Gerichtsverfahren zu vermeiden.

Die Mediation kann im Vertrag als erster Schritt vor einem eventuellen Gerichts- oder Schiedsverfahren vorgesehen sein oder sie kann freiwillig im Rahmen eines bereits laufenden Gerichts- oder Schiedsverfahrens eingeleitet werden.

Die Vorteile sind vielfältig: Der wichtigste ist die Möglichkeit, eine wirtschaftliche  Lösung zu finden, die die Fortsetzung der Beziehung ermöglicht, anstatt nur nach Wegen zur Beendigung der Geschäftsbeziehung zwischen den Parteien zu suchen.

Ein weiterer interessanter Aspekt der Mediation ist die Überwindung von persönlichen Konflikten: Im Fall Blue Ribbon vs. Onitsuka zum Beispiel war ein entscheidendes Element für die Eskalation der Probleme zwischen den Parteien die schwierige persönliche Beziehung zwischen dem CEO von Blue Ribbon und dem Exportmanager des japanischen Herstellers, die durch starke kulturelle Unterschiede verschärft wurde.

Der Mediationsprozess führt eine dritte Person ein, die in der Lage ist, einen Dialog mit den Parteien zu führen und sie bei der Suche nach Lösungen von gegenseitigem Interesse zu unterstützen, was entscheidend sein kann, um Kommunikationsprobleme oder persönliche Feindseligkeiten zu überwinden.

Für alle, die sich für dieses Thema interessieren, verweisen wir auf den hierzu verfassten  Beitrag auf Legalmondo sowie  auf die Aufzeichnung eines kürzlich durchgeführten Webinars zur Mediation internationaler Konflikte.

Streitbeilegungsklauseln in internationalen Vertriebsvereinbarungen

Der Streit zwischen Blue Ribbon und Onitsuka Tiger führte dazu, dass die Parteien zwei parallele Gerichtsverfahren einleiteten, eines in den USA (durch den  Händler) und eines in Japan (durch den  Hersteller).

Dies war nur deshalb  möglich, weil der Vertrag nicht ausdrücklich vorsah, wie etwaige künftige Streitigkeiten beigelegt werden sollten.  In der Konsequenz führte dies zu einer prozessual sehr komplizierten Situation mit gleich zwei gerichtlichen Fronten in verschiedenen Ländern.

Die Klauseln, die festlegen, welches Recht auf einen Vertrag anwendbar ist und wie Streitigkeiten beigelegt werden, werden in der Praxis als „Mitternachtsklauseln“ bezeichnet, da sie oft die letzten Klauseln im Vertrag sind, die spät in der Nacht ausgehandelt werden.

Es handelt sich hierbei  um sehr wichtige Klauseln, die bewusst gewählt  werden müssen, um unwirksame oder kontraproduktive Lösungen zu vermeiden.

Wie wir Ihnen helfen können

Der Abschluss eines internationalen Handelsvertriebsvertrags ist eine wichtige Investition, denn er regelt die vertragliche Beziehungen zwischen den Parteien verbindlich für die Zukunft  und gibt ihnen die Instrumente an die Hand, um alle Situationen zu bewältigen, die sich aus der künftigen Zusammenarbeit ergeben werden.

Es ist nicht nur wichtig, eine korrekte, vollständige und ausgewogene Vereinbarung auszuhandeln und abzuschließen, sondern auch zu wissen, wie sie im Laufe der Jahre zu handhaben ist, vor allem, wenn Konfliktsituationen auftreten.

Legalmondo bietet Ihnen die Möglichkeit, mit Anwälten zusammenzuarbeiten, die in mehr als 50 Ländern Erfahrung im internationalen Handelsvertrieb haben:  Bei bestehendem Beratungsbedarf schreiben Sie uns.

Article 442-1.II of the French Commercial Code (former Article L. 442-6.I.5 °) sanctions the termination by a trader of a written contract or an informal business relationship without giving sufficient written prior notice. Over the last twenty years, this article became the recurring legal basis for all compensation actions (up to 18 months of gross margin, plus other damages) when a commercial relationship or a contract ends (totally or even partially).

Therefore, a foreign trader who contracts with a French company should try not to fall under the aegis of this rule (part I) and, if it cannot, should understand and control its implementation (part II).

In a nutshell:

How can a foreign company avoid or control the risk linked to the „sudden termination of commercial relations“ set by French law? Foreign companies doing business with a French counterpart should:

– enter, as soon as possible, into a written (frame) agreement with their French suppliers or customers, even for a very simple relation and;

– stipulate a clause in favour of foreign court or arbitration and foreign applicable law while, failing to choose it, they would rather be subject to French courts and laws;

How can a foreign company master the risk linked to the „sudden termination of commercial relations“ set by French law? Foreign companies doing business with a French counterpart should:

• know that this article applies to almost all type of commercial relationship or contracts, whether written or not, fixed-term or not;
• check whether its relation/contract is sufficiently long, regular and significant and whether the other party has a legitimate belief in the continuation of this relation/contract;
• give a written notice of termination or non-renewal (or even of a major modification), which length takes mainly into account the duration of the relation, irrespectively of the length of the contractual notice;
• invoke, with cautiousness, force majeure and gross negligence of the party, to set aside “sudden termination”;
• anticipate, in case of insufficient notice, a compensation which amount is the product of the average monthly gross margin per the length of non-granted prior notice.

How to avoid the application of the French “Sudden Termination” rule?

In international matters, a foreign company must anticipate whether its relationship will be subject or not to French law before terminating a contract or a business relationship and, in case of dispute, whether it will be brought before a French court or not.

What will be the law applicable to “Sudden Termination”?

It is quite difficult for a foreign company to correctly grasp the French legal framework of conflict of laws rules applicable to “sudden termination”. In a ruling of September 19, 2018 (RG 16/05579, DES/ Clarins), the Court of appeal of Paris made, by an implicit reference to the Granarolo EU ruling (07 14 16, N°C196/15) an extension of the contractual qualification to most of the business relationships which will improve foreseeability in order for a foreign company to try to exclude French law and its “sudden termination” rule.

Sudden termination of a written contract or of a „tacit contractual relationship”

According to Rome I Regulation (EC No 593/2008, June 17 2008) on the law applicable to contracts:

– In case of choice of a foreign law by the parties: The clause selecting a foreign applicable law will be valid and respected by French judges (subject to OMR, see below), provided that the choice of law by the parties is express or certain.

– In case of no choice by the parties: French law will likely to be declared applicable as it might be either the law of the country where is based the distributor/franchisee, etc. or the law of the country where the party who is to provide the service features of the contract has its domicile.

Sudden termination of a “non-tacit contractual relationship”

In case of informal relationship (i.e. orders placed from time to time), French judges would retain the tort qualification and will refer to the Rome II Regulation (No 864/2007, July 11 2007) on the law applicable to non-contractual obligations..

– In case of choice of a foreign law by the parties: a properly drafted choice of foreign law clause should be implemented by a French judge, provided that it expressly includes tort cases.

– In case of no choice of law by the parties: French law will likely to be declared applicable as it might be the law of the country where the damage occurs (regardless of the place of the causing event or that of the indirect consequences), which is the place of the head office where the French victim suffers the consequences of the termination.

“Sudden Termination” rule, a French Overriding Mandatory Rule?

The position of French courts is quite vague and unsatisfactory, and this has been the case for a long time. To make it short: the Commercial Court of Paris judges that “sudden termination” is not an OMR, the Court of appeal of Paris (sole French appellate court in charge of “sudden termination” cases) is also not in favour of the OMR qualification on the grounds that the text „protects purely private economic interests“ (CA Paris, pôle 5, ch. 5, Feb 28. 2019, n° 17/16475 / CA Paris, pôle 5, ch. 5, Oct 8. 2020, n°17/19893). Recently, the Paris Court of Appeal reaffirmed that the rules on sudden termination of established commercial relations are not an OMR (Court of appeal Paris, March 11, 2021, n° 18/03112).

The French Supreme Court has never explicitly addressed the issue (OMR or not OMR). Indeed, the French Supreme Court ruled in the Expedia case (Cass. com., July 8, 2020, n°17-31.536) that the provisions of the former article L. 442-6, I, 2º and II, d), about “significant imbalance” (which is in the same set of rules than “Sudden termination”) are OMR. However, this qualification should be limited to the specific action brought by the Ministry of Finance and not be applicable to an action by a private party. Moreover, some courts may be tempted to invoke the provisions of French law n°2023-221 (March 30, 2023, aka Egalim III) to qualify Sudden termination rule as an OMR, however this text (article L 444-1.A Commercial code) does not quote expressly OMR and set no justification whatsoever to set such a qualification.

Consequently, if a claim for “sudden termination” is brought to a French court, there is still a  risk that the latter would exclude the applicable foreign law and replace it with the regime resulting from the „sudden termination“ of Article L 442-1. II. However, to avoid this risk, a foreign company would better not only choose a foreign governing law but also stipulate that the dispute will be brought before a foreign judge or an arbitral tribunal.

How to avoid jurisdiction of French court over a “Sudden Termination” claim?

“Sudden Termination” claim and intra EU co-contractor

The ECJ ruling (Granarolo, July 14, 2016, N°C196/15) created a distinction between claims occurring from:

– written framework contract or tacit contractual relationship (existing only if the body of evidences listed by the ECJ are identified by national judges, i.e. length of relation and commitments recognized to each other, such as exclusivity, special price or terms of delivery or payment, non-competition, etc.): such claim has a contractual nature according to conflict of jurisdiction rules under Brussels I recast Regulation;

– informal relationship which is a non–tacit contractual relationship (i.e. orders placed from time to time): such a request has a tort nature under Brussels I recast ;

To be noted: the so-called Egalim III law has no impact on the EU rules on jurisdiction clauses.

(a) Who is the Judge of the “sudden termination” of a written contract or of a „tacit contractual relationship”?

– Jurisdiction clause for the benefit of a foreign court will be enforced by French courts, even though it is an asymmetrical clause (Court of cassation, October 7, 2015, Ebizcuss.com / Apple Sales International).

– In case of lack of choice of court clause, French courts are likely to have jurisdiction if the French claimant bringing a case based on “sudden termination» is the service provider, such as distributor, agent, etc. (see ECJ Corman Collins case, 19 12 13, C-9/12, and article 7.1.b.2 of Brussels I recast°).

(b) Who is the Judge of the “sudden termination” of a „non- tacit contractual relationship”?

– We believe that French courts may continue to give effect to a jurisdiction clause in tort case, especially when it expressly encompasses tort litigation (Court of cassation, 1° Ch. Civ., January 18, 2017, n° 15-26105, Riviera Motors / Aston Martin Lagonda Ltd).

– In case of lack of choice of court clause, French courts will have jurisdiction over a “sudden termination” claim as the judge of the place where the harmful event occurred (art. 7.3 of Brussels I recast), which is the place where the sudden termination has effect…i.e. in France if the French company is the victim.

“Sudden Termination” claim and Non-EU co-contractor

The Granarolo solution will not ipso facto apply if a French victim brings a claim to French courts, based on a „sudden termination“ made by a non-EU company. In non-EU relations, French judges could continue to retain only the tort qualification. In such a case, French courts may keep their jurisdiction based on the place where the harmful event occurs.

Jurisdiction clause to a foreign court may be recognized in France (even for tort-based claims), provided that this jurisdiction clause is valid according to either a bilateral international convention or to the Hague Convention of 30 June 2005 on choice of court agreements. Otherwise, according to Egalim III law, imperative jurisdiction might be attributable to French courts.

“Sudden Termination” claim and arbitration

Stipulating an ad hoc or institutional arbitration clause is probably the safest solution to avoid the jurisdiction of French courts. Ideally, the clause will fix the seat of the arbitral tribunal outside France. According to the principle of competence-competence of the arbitrators, French courts declare themselves incompetent, unless the arbitration clause is manifestly void or manifestly inapplicable, regardless of contract or tort ground (see, in particular, Paris Court of Appeal, 5 September 2019, n°17/03703). The so-called “Egalim III” law has no impact on arbitration clauses.

Conclusion: Foreign companies should not leave open the Jurisdiction and governing Law issues. They must negotiate a safe harbour, otherwise a French victim of a termination will likely to be entitled to bring a “sudden termination” claim in front of French judges (see what happen below in Part 2)

How to master the “Sudden Termination” French rules?

When French law is applicable, the foreign company will face the legal regime of article L442 -1.II of the French Commercial Code sanctioning “sudden termination”. As a preliminary remark, it is important to know, above all, that the implementation of the liability for „sudden termination“ is the consequence of the lack of a notice or a too short notice. Thus, this scheme does not lay down an automatic compensation rule. In other words, as soon as reasonable notice is given by the author of the termination, liability on that basis can be dismissed.

The prerequisite for “Sudden Termination”: an established commercial relationship

All contracts are covered by this legal regime, except for contracts whose regulations provide for a specific notice of termination, like commercial agency contracts and transport of goods by road subcontracts.

First, there must be a relationship that can be proven by a written contract or de facto, by behaviour of the parties. Article L.442-1 II of the French Commercial Code covers all “commercial” relationships and not only “contractual ones so that such relationship may be based on a succession of tacitly renewed contracts or a regular flow of business, materialized by multiple orders. This was recently recalled by the Supreme Court (Supreme Court, February 16, 2022, n° 20-18.844)

Second, this relationship must have an established character. There is no legal definition, but this notion has been defined year after year by case law which has established an objective criterion and a more subjective one.

(a) The objective criterion implies a sufficiently long, regular and significant relationship between the two parties. The duration of the relationship is the most important criterion. The relationship must also be regular, that is, it must not have been interrupted (too often or too long). The relationship must ultimately be meaningful and represent a serious flow of business between the parties, in volume or value.

(b) The subjective test focuses primarily on the legitimate belief of the victim of the rupture in the continuation of the contract / the relationship that is based on factual elements, such as investment requests, budgets over several years, etc. Conversely, it is on the basis of the finding of a lack of legitimate belief in a common future that the terminating party can prove the absence of a stable character when he has resorted, on several occasions, a call for tenders (unless it is a trick).

Anticipating a “Sudden Termination” claim

(a) The termination may be total or partial

The total rupture is materialized by a complete stop of the relations, for example ending the contract, stopping the sending of orders by the purchaser or the recording of orders by the supplier.

The Supreme Court recently recalled that a significant drop in sales with a partner must be considered as a partial rupture of the relationship (February 16, 2022, n° 20-18.844, cited above). But the most complicated situation to deal with is the so-called partial rupture that will be deduced from a modification of elements that partly impacts the relationship but does not reduce it to nothing (ex.: a price increase or decrease, a change in the terms of payment or delivery).

(b) The termination must be subject to a reasonable written prior notice

The notice must be notified in writing. The absence of written notice is already a breach in itself. The notification must clearly reflect the willingness of a party to sever the relationship in whole or in part, which must be clearly identified. The notification must also clearly identify the date on which the relationship will end.

Thus, an ambiguity on the notice period (e.g if the termination of an agreement is notified, whilst offering to maintain certain prices and payment terms, in the meantime) is considered as an insufficient termination notice (French Supreme Court, January 29, 2013, n° 11-23.676).

Parties must distinguish between the letter of formal notice for default and the subsequent notification of the breach, giving notice (if applicable). During the period of notice, parties must fully comply with all contractual conditions.

This principle also applies to distribution contracts subject to specific French rules imposing annual or multi-year negotiation obligations. In fact, the Court of cassation has ruled that „when the conditions of the commercial relationship established between the parties are subject to annual negotiation, modifications made during the notice period which are not so substantial as to undermine its effectiveness do not constitute a brutal breach of that relationship“ (Cass. com., Dec. 7, 2022, n° 19-22.538).

However, it’s not necessary to mention the reasons why the commercial relationship is terminated is not a fault or breach of the relationship. In fact, French courts consider that “the fact that the given reason to terminate was false does not in any way present the terminating party from terminating the commercial relationship” (Versailles Court of Appeal, June 10, 1999).

The duration of the prior notice to be respected is not defined by French law which did not pose precise rule until the reform 2019. If several criteria are stated by case law, it should be noted that the most important criterion is the duration of the relationship. Judges also take into account the share of turnover achieved by the victim, the existence or not of a territorial exclusivity, the nature of the products and the sector of activity, the importance of the investments made by the victim especially to the relationship in question, and finally the state of economic dependence. Economic dependence is defined as the impossibility for a company to have a solution that is technically and economically equivalent to the contractual relations it has established with another company. Case law considers this to be an aggravating factor justifying a longer termination notice.

The minimum notice period must be notified at the time of notification of termination. As a consequence, events that affect the victim after the notification, both positively (conclusion of a new contract) and negatively (loss of another custome), will not be taken into account by the judge, at the time of ruling, when assessing the “brutality” of the termination.

The length of the notice given by the judges is very variable. The appreciation of notice is made on a case-by-case basis. It is very difficult to give a golden rule, even though roughly for each year of relationship, a month’s notice might be due (to modulate up or down depending on the other criteria in the relationship). But way of illustration, however, the following case law may be cited:

• Paris Court of Appeal , Feb.9, 2022: 16-year relationship with 15 months‘ notice;
• Paris Court of Appeal, Jan.20, 2022: 12-year relationship with 8 months‘ notice;
• Paris Court of Appeal, Oct. 25, 2022: 16-year relationship with 18 months‘ notice;
• Paris Court of Appeal , Feb. 23, 2022: 17-year relationship with 11 months‘ notice;
• Paris Court of Appeal, Sept. 21, 2022: 5-year relationship with 14 months‘ notice.

Since the Order of April 24, 2019, which limits the length of reasonable notice to a maximum of 18 months, if the notice period granted by a party is 18 months, it cannot be held liable for a sudden termination. However, much of the litigation remains uncertain, as only exceptionally long or particularly sensitive relationships led, prior to 019, to the award of more than 18 months‘ notice. Ordinance of April 24, 2019, limits to 18 months the maximum period of notice reasonably due under Article L 442-1.II. But much of the litigation will remain uncertain since only relations of exceptional longevity or particularly sensitive, could have led to the allocation of a notice higher than 18 months.

Judges are not bound by the contractual notices stipulated in the contract. But if the author of the breach also violated the terms and conditions of termination provided for by contract, the victim may seek the responsibility of the author both on the tort basis of the sudden rupture and also on the basis of the breach of a contractual obligation.

Cases in which “Sudden Termination” is ruled out

The legal regime provides for two cases, and the case-law seems to have imposed others.

(a) The two legal exceptions are Force majeure (very rarely consecrated by the courts) and the fault of the victim of the termination, case-law having added that it must be a serious violation (“faute grave”) of a contractual commitment or a legal provision (such as non-respect of an exclusivity, a non-compete, a confidentiality or a change of control duty, or non-payment of amounts due contractually).

The judges consider themselves, of course, not bound by a termination clause defining what constitutes serious misconduct. In any case the party who terminates for serious misconduct must clearly notify it in its letter of termination. Above all, serious misconduct leads to a lack of notice, therefore, if the terminating party alleges serious misconduct but grants notice, whichever it may be, judges may conclude that the fault was not serious enough.

Thus, the seriousness of the misconduct must be motivated by judges in their rulings. Noting that the contract was breached after two formal notices is not sufficient (Cass. com., Feb 16. 2022, n° 20-18.844).

However, the Court of Cassation considers that „even in the case of serious misconduct justifying the immediate termination of the commercial relationship, the other party remains free to give the other party a notice“ (Cass. Com., Oct. 14 2020, n°18-22.119).

(b) In recent years, case-law has added other cases of liability waiver. This is the case when the rupture is the consequence of a cause external to the author of the rupture, such as the economic crisis, the loss of its own customers or suppliers, upstream or downstream.

For example, in 2021 the Court of cassation has ruled that “the business partner is not entitled to an unchanged relationship and cannot refuse any adaptation required by economic changes” (Com, Dec 01, 2021, n°20-19.113). In fact, to be attributable to an economic player, a termination must be free and deliberate. This is not the case if termination is imposed by the economic situation.

However, adding a liability exemption clause in a contract, aimed at waiving destinated to escape the penalties of article L. 442-1, is without consequences on the judge’s appreciation.

Judges have also excluded “sudden termination” in the hypothesis of the end of the first period of a fixed-term contract, whatever its duration is: the first renewal of a contract, constitutes a foreseeable event for the victim of the rupture, which excludes the very notion of brutality; but once the contract has been renewed at least once, judges can subsequently characterize the victim’s legitimate belief in a new tacit renewal.

Compensation for “Sudden Termination”

Judges only compensate for the detrimental consequences of the brutality itself of the breach but do not compensate, at least in the context of article L442 -1.II, for the consequences of the breach itself.

The basic rule is very simple: it is necessary to determine the length of the notice which should have been granted, from which the notice actually granted is deducted. This net notice is multiplied by the average monthly gross margin of the victim, or more often the so called margin on variable costs (i.e. the turnover minus costs disappearing with non-performance of the contract/relation). Defendant should not hesitate to ask for the full accountancy evidences, especially to identify (lower) margin rates, or even for a judicial expertise on those accounting elements. In general, the base of the average monthly margin consists of the last 24 or 36 months.

The compensation calculated on the average margin is, in general, exclusive of any other compensation. However, the victim can prove that it has suffered other losses as a consequence of the brutality of the rupture. Such as dismissals directly caused by this brutality or the depreciation of investments made recently by the victim.

Some practical tips when considering to anticipate “Sudden Termination”

Even though the legal regime is still ambiguous and the case-law terribly casuistic which prevents to release strong guidelines, here are some practical tips when a company plans to terminate a relationship / contract:

• in the case of a fixed-term contract renewable tacitly, the notification of non-renewal must be anticipated well in advance of the beginning of the contractual notice in order to avoid being in a situation where it is necessary to choose between not renewing the contract with a notice that is not sufficient or agree to see the contract renewed itself for a new term;
• commercial teams must be made aware of the risk of partial sudden termination when they change the conditions of execution of a commercial relationship / contract too radically;
• in some cases, it may be useful to send a pre-notice of termination with a “notice proposal” in order to try to validate this notice with the other party;
• it may also be useful, in certain relationships, to notify the end of the relationship with different lengths of notice depending on the nature of the product lines;
• Finally, the best way is to conclude an end-of-relation protocol, fixing the duration of the notice as well as, if necessary, the progressive decline of the orders, the whole within the framework of a settlement agreement which definitively waives any claim, including “sudden termination”.

Sudden termination regime shall be taken into consideration when entering into the final phase of a duration relationship: the way in which the contract (or de facto relationship) is terminated must be carefully planned, in order to manage the risk of causing damages to the counterparty and being sued for compensation.

Given the significance of the influencer market (over €21 billion in 2023), which now encompasses all sectors, and with a view for transparency and consumer protection, France, with the law of June 9, 2023, proposed the world’s first regulation governing the activities of influencers, with the objective of defining and regulating influencer activities on social media platforms.

However, influencers are subject to multiple obligations stemming from various sources, necessitating the utmost vigilance, both in drafting influence agreements (between influencers and agencies or between influencers and advertisers) and in the behaviour they must adopt on social media or online platforms. This vigilance is particularly heightened as existing regulations do not cover the core of influencers‘ activities, especially their status and remuneration, which remain subject to legal ambiguity, posing risks to advertisers as regulatory authorities‘ scrutiny intensifies.

Key points to remember 

• Influencers‘ activity is subject to numerous regulations, including the law of June 9, 2023.
• This law not only regulates the drafting of influence contracts but also the influencer’s behaviour to ensure greater transparency for consumers.
• Every influencer whose audience includes French users is affected by the provisions of the law of June 9, 2023, even if they are not physically present in French territory.
• Both the law of June 9, 2023, and the „Digital Services Act,“ as well as the proposed law on „fast fashion,“ foresee increasing accountability for various actors in the commercial influence sector, particularly influencers and online platforms.
• Despite a plethora of regulations, the status and remuneration of influencers remain unaddressed issues that require special attention from advertisers engaging with influencers.

The law of June 9, 2023, regulating influencer activity  

The definition of influencer professions

The law of June 9, 2023, provides two essential definitions for influencer activities:

• Influencers are defined as ’natural or legal persons who, for consideration, mobilize their notoriety with their audience to communicate to the public, electronically, content aimed at promoting, directly or indirectly, goods, services, or any cause, engaging in commercial influence activities electronically.‘
• The activity of an influencer agent is defined as ‚that which consists of representing, for consideration,‘ the influencer or a possible agent ‚with the aim of promoting, for consideration, goods, services, or any cause‚ (article 7) The influencer agent must take ’necessary measures to ensure the defense of the interests of the persons they represent, to avoid situations of conflict of interest, and to ensure the compliance of their activity‚ with the law of June 9, 2023.

The obligations imposed on commercial messages created by the influencer

The law sets forth obligations that influencers must adhere to regarding their publications: 

• Mandatory particulars: When creating content, this law imposes an obligation on influencers to provide information to consumers, aiming for transparency towards their audience. Thus, influencers are required to clearly, legibly, and identifiably indicate on the influencer’s image or video, regardless of its format and throughout the entire viewing duration (according to modalities to be defined by decree):

  – The mention „advertisement“ or „commercial collaboration.“ Violating this obligation constitutes deceptive commercial practice punishable by two years‘ imprisonment and a fine of €300,000 (Article 5 of the law of June 9, 2023).
  – The mention of „altered images“ (modification by image processing methods aimed at refining or thickening the silhouette or modifying the appearance of the face) or „virtual images“ (images created by artificial intelligence). Failure to do so may result in a one-year prison sentence and a fine of €4,500 (Article 5 of the law of June 9, 2023).

• Prohibited or regulated promotions: This law reminds certain prohibitions, subject to criminal and administrative sanctions, stemming from French law on the direct or indirect promotion of certain categories of products and services, under penalty of criminal or administrative sanctions. This includes the promotion of products and services related to:

  – health: surgery, aesthetic medicine, therapeutic prescriptions, and nicotine products;
  – non-domestic animals, unless it concerns an establishment authorized to hold them;
  – financial: contracts, financial products, and services;
  – sports-related: subscriptions to sports advice or predictions;
  – crypto assets: if not from registered actors or have not received approval from the AMF;
  – gambling: their promotion prohibited for those under 18 years old and regulated by law;
  – professional training: their promotion is not prohibited but regulated.

The accountability of influencer behaviour

The law also holds influencers accountable from the contracting of their relationships and when they act as sellers:

• Regulation of commercial influence agreements: This law imposes, subject to nullity, from a certain threshold of influencer remuneration (defined by decree), the formalization in writing of the agreement between the advertiser and the influencer, but also, if applicable, between the influencer’s agent, and the mandatory stipulation of certain clauses (remuneration, mission description, etc.).
• Influencer responsibility as a cyber seller: Influencers engaging in drop shipping (selling products without handling their delivery, done by the supplier) must provide the buyer with all information in French as required by Article L. 221-5 of the Consumer Code about the product, such as its availability and legality (i.e., guarantee that the product is not counterfeit), applicable product warranty, and supplier identity. Additionally, influencers must ensure the proper delivery and receipt of products and, in case of default, compensate the buyer. Influencers are also logically subject to obligations regarding deceptive commercial practices (for more information, the DGCCRF website explain the dropshipping).

The accountability of other actors in the commercial influence ecosystem

Joint and several liability is set by law, for the advertiser, influencer, or influencer’s agent for damages caused to third parties in the execution of the commercial influence contract, allowing the victim of the damage to act against the most solvent party.

Furthermore, the law introduces accountability for online platforms by partially incorporating the European Regulation 2022/2065 on digital services (known as the „DSA„) of October 19, 2022.

French regulation and international influencers

Influencers established outside the European Union (including also Switzerland and the EEA) who promote products or services to a French audience must obtain professional liability insurance from an insurer established within the EU. They must also designate a legal or natural person providing „a form of representation“ (SIC) within the EU. This representative (whose regime is not very clear) is remunerated to represent the influencer before administrative and judicial authorities and to ensure the compliance of the influencer’s activity with law of June 9, 2023.

Furthermore, according to law of June 9, 2023, when the contract binding the influencer (or their agency) aims to implement a commercial influence activity electronically „targeting in particular an audience established in French territory“ (SIC), this contract should be exclusively subject to French law (including the Consumer Code, the Intellectual Property Code, and the law of June 9, 2023). According to this law, the absence of such a stipulation would be sanctioned by the nullity of the contract. Law of June 9, 2023, seems to be established as an overriding mandatory law capable of setting aside the choice of a foreign law.

However, the legitimacy (what about compliance with the definition of overriding mandatory rules established by Regulation Rome I?) and effectiveness (what if the contract specifies a foreign law and a foreign jurisdiction?) of such a legal provision can be questioned, notably due to its vague and general wording. In fact, it should be the activity deployed by the „foreign“ influencer to their community in France that should be apprehended by French overriding mandatory rules, rather than the content of the agreement concluded with the advertiser (which itself could also be foreign, by the way).

The other regulations governing the activity of influencers

The European regulations

The DSA further holds influencers accountable because, in addition to the reporting mechanism imposed on platforms to report illicit content (thus identifying a failing influencer), platforms must ensure (and will therefore shift this responsibility to the influencer) the identification of commercial communications and specific transparency obligations towards consumers.

The «soft law»

As early as 2015, the Advertising Regulatory Authority („ARPP“) issued recommendations on best practices for digital advertising. Similarly, in March 2023, the French Ministry of Economy published a „code of conduct“ for influencers and content creators. In 2023, the European Commission launched a legal information platform for influencers. Although non-binding, these rules, in addition to existing regulations, serve as guidelines for both influencers and content creators, as well as for judicial and administrative authorities.

The special status of child influencers

The law of October 19, 2020, aimed at regulating the commercial exploitation of children’s images on online platforms, notably opens up the possibility for child influencers to be recognized as salaried workers. However, this law only targeted video-sharing platforms. Article 2 of the law of June 9, 2023, extended the provisions regarding child influencer labor introduced by the 2020 law to all online platforms. Finally, a recent law aimed at ensuring respect for the image rights of children was published on February 19, 2024, introducing a principle of joint and several responsibility of both parents in protecting the minor’s image rights.

The status and remuneration of influencers: uncertainty persists

Despite the diversity of regulations applicable to influencers, none address their status and remuneration.

The status of the influencer

In the absence of regulations governing the status of influencers, a legal ambiguity persists regarding whether the influencer should be considered an independent contractor, an employee (as is partly the case for models or artists), or even as a brand representative (i.e. commercial agent), depending on the missions contractually entrusted to the influencer.

The nature of the contract and the applicable social security regime stem from the missions assigned to the influencer:

• In the case of an employment contract, the influencer will fall under the general regime for employees and assimilated persons, based on Articles L. 311-2 or 311-3 of the French Social Security Code.
• In the case of a service contract, the influencer will fall under the regime for self-employed workers.

The existence of a relationship of subordination between the advertiser and the influencer typically determines the qualification of an employment contract. Subordination is generally characterized when the employer gives orders and directives, has the power to control and sanction, and the influencer follows these directives. However, some activities are subject to a presumption of an employment contract; this is the case (at least in part) for artist contracts under Article L. 7121-3 of the French Labor Code and model contracts under Article L. 7123-2 of the French Labor Code.

The remuneration of the influencer

The influencer can be remunerated in cash (fixed or proportional) and/or in kind (for example: receiving a product from the brand, invitations to private or public events, coverage of travel expenses, etc.). The influencer’s remuneration must be specified in the influencer agreement and is directly impacted by the influencer’s status, as certain obligations (minimum wage, payment of social security contributions, etc.) apply in the case of an employment contract.

Furthermore, the remuneration (for the influencer’s services) must be distinguished from that of the transfer of their copyrights or image rights, which are subject to separate remuneration in exchange for the IP rights transferred.

The influencers… in the spotlight

The law of June 9, 2023, grants the French authority (i.e. the Consumer Affairs, Competition and Fraud Prevention Agency, “DGCCRF”) new injunction powers (with reinforced penalties). This comes in addition to the recent creation of a „commercial influence squad„, within the DGCCRF, tasked with monitoring social networks, and responding to reports received through Signal Conso. The law provides for fines and the possibility of blocking content.

As early as August 2023, the DGCCRF issued warnings to several influencers to comply with the new regulations on commercial influence and imposed on them the obligation to publicly disclose their conviction for non-compliance with the new provisions regarding transparency to consumers on their own social networks, a heavy penalty for actors whose activity relies on their popularity (DGCCRF investigation on the commercial practices of influencers).

On February 14, 2024, the European Commission and the national consumer protection authorities of 22 EU member states, Norway, and Iceland published the results of an analysis conducted on 570 influencers (the so-called „clean-up operation“ of 2023 on influencers): only one in five influencers consistently presented their commercial content as advertising. 

In response to environmental, ethical, and quality concerns related to „fast fashion,“ a draft law aiming to ban advertising for fast fashion brands, including advertising done by influencers (Proposal for a law aiming to reduce the environmental impact of the textile industry), was adopted by the National Assembly on first reading on March 14, 2024.

Lastly, the law of June 9, 2023, has been criticized by the European Commission, which considers that the law would contravene certain principles provided by EU law, notably the principle of „country of origin,“ according to which the company providing a service in other EU countries is exclusively subject to the law of its country of establishment (principle initially provided for by the E-commerce Directive of June 8, 2000, and included in the DSA). Some of its provisions, particularly those concerning the application of French law to foreign influencers, could therefore be subject to forthcoming – and welcome – modifications.

Summary

To avoid disputes with important suppliers, it is advisable to plan purchases over the medium and long term and not operate solely on the basis of orders and order confirmations. Planning makes it possible to agree on the duration of the ’supply agreement, minimum volumes of products to be delivered and delivery schedules, prices, and the conditions under which prices can be varied over time.
The use of a framework purchase agreement can help avoid future uncertainties and allows various options to be used to manage commodity price fluctuations depending on the type of products , such as automatic price indexing or agreement to renegotiate in the event of commodity fluctuations beyond a certain set tolerance period.

I read in a press release: “These days, the glass industry is sending wine companies new unilateral contract amendments with price changes of 20%…”

What can one do to avoid the imposition of price increases by suppliers? 

• Know your rights and act in an informed manner
• Plan and organise your supply chain

Does my supplier have the right to increase prices?

If contracts have already been concluded, e.g., orders have already been confirmed by the supplier, the answer is often no.

It is not legitimate to request a price change. It is much less legitimate to communicate it unilaterally, with the threat of cancelling the order or not delivering the goods if the request is not granted.

What if he tells me it is force majeure?

That’s wrong: increased costs are not a force majeure but rather an unforeseen excessive onerousness, which hardly happens.

What if the supplier canceled the order, unilaterally increased the price, or did not deliver the goods?

He would be in breach of contract and liable to pay damages for violating his contractual obligations.

How can one avoid a tug-of-war with suppliers?

The tools are there. You have to know them and use them.

It is necessary to plan purchases in the medium term, agreeing with suppliers on a schedule in which are set out:

• the quantities of products to be ordered
• the delivery terms
• the durationof the agreement
• the pricesof the products or raw materials
• the conditions under which prices can be varied

There is a very effective instrument to do so: a framework purchase agreement.

Using a framework purchase agreement, the parties negotiate the above elements, which will be valid for the agreed period.

Once the agreement is concluded, product orders will follow, governed by the framework agreement, without the need to renegotiate the content of individual deliveries each time.

For an in-depth discussion of this contract, see this article.

• “Yes, but my suppliers will never sign it!”

Why not? Ask them to explain the reason.

This type of agreement is in the interest of both parties. It allows planning future orders and grants certainty as to whether, when, and how much the parties can change the price.

In contrast, acting without written agreements forces the parties to operate in an environment of uncertainty. Suppliers can request price increases from one day to the next and refuse supply if the changes are not accepted.

How are price changes for future supplies regulated?

Depending on the type of products or services and the raw materials or energy relevant in determining the final price, there are several possibilities.

• The first option is to index the price automatically. E.g., if the cost of a barrel of Brent oil increases/decreases by 10%, the party concerned is entitled to request a corresponding adjustment of the product’s price in all orders placed as of the following week.
• An alternative is to provide for a price renegotiation in the event of a fluctuation of the reference commodity. E.g., suppose the LME Aluminium index of the London Stock Exchange increases above a certain threshold. In that case, the interested party may request a price renegotiationfor orders in the period following the increase.

What if the parties do not agree on new prices?

It is possible to terminate the contract or refer the price determination to a third party, who would act as arbitrator and set the new prices for future orders.

Summary

The framework supply contract is an agreement that regulates a series of future sales and purchases between two parties (customer and supplier) that take place over a certain period of time. This agreement determines the main elements of future contracts such as price, product volumes, delivery terms, technical or quality specifications, and the duration of the agreement.

The framework contract is useful for ensuring continuity of supply from one or more suppliers of a certain product that is essential for planning industrial or commercial activity. While the general terms and conditions of purchase or sale are the rules that apply to all suppliers or customers of the company. The framework contract is advisable to be concluded with essential suppliers for the continuity of business activity, in general or in relation to a particular project.

What I am talking about in this article:

• What is the supply framework agreement?
• What is the function of the supply framework agreement?
• The difference with the general conditions of sale or purchase
• When to enter a purchase framework agreement?
• When is it beneficial to conclude a sales framework agreement?
• The content of the supply framework agreement
• Price revision clause and hardship
• Delivery terms in the supply framework agreement
• The Force Majeure clause in international sales contracts
• International sales: applicable law and dispute resolution arrangements

What is a framework supply agreement?

It is an agreement that regulates a series of future sales and purchases between two parties (customer and supplier), which will take place over a certain period.

It is therefore referred to as a „framework agreement“ because it is an agreement that establishes the rules of a future series of sales and purchase contracts, determining their primary elements (such as the price, the volumes of products to be sold and purchased, the delivery terms of the products, and the duration of the contract).

After concluding the framework agreement, the parties will exchange orders and order confirmations, entering a series of autonomous sales contracts without re-discussing the covenants already defined in the framework agreement.

Depending on one’s point of view, this agreement is also called a sales framework agreement (if the seller/supplier uses it) or a purchasing framework agreement (if the customer proposes it).

What is the function of the framework supply agreement?

It is helpful to arrange a framework agreement in all cases where the parties intend to proceed with a series of purchases/sales of products over time and are interested in giving stability to the commercial agreement by determining its main elements.

In particular, the purchase framework agreement may be helpful to a company that wishes to ensure continuity of supply from one or more suppliers of a specific product that is essential for planning its industrial or commercial activity (raw material, semi-finished product, component).

By concluding the framework agreement, the company can obtain, for example, a commitment from the supplier to supply a particular minimum volume of products, at a specific price, with agreed terms and technical specifications, for a certain period.

This agreement is also beneficial, at the same time, to the seller/supplier, which can plan sales for that period and organize, in turn, the supply chain that enables it to procure the raw materials and components necessary to produce the products.

What is the difference between a purchase or sales framework agreement and the general terms and conditions?

Whereas the framework agreement is an agreement that is used with one or more suppliers for a specific product and a certain time frame, determining the essential elements of future contracts, the general purchase (or sales) conditions are the rules that apply to all the company’s suppliers (or customers).

The first agreement, therefore, is negotiated and defined on a case-by-case basis. At the same time, the general conditions are prepared unilaterally by the company, and the customers or suppliers (depending on whether they are sales or purchase conditions) adhere to and accept that the general conditions apply to the individual order and/or future contracts.

The two agreements might also co-exist: in that case; it is a good idea to specify which contract should prevail in the event of a discrepancy between the different provisions (usually, this hierarchy is envisaged, ranging from the special to the general: order – order confirmation; framework agreement; general terms and conditions of purchase).

When is it important to conclude a purchase framework agreement?

It is beneficial to conclude this agreement when dealing with a mono-supplier or a supplier that would be very difficult to replace if it stopped selling products to the purchasing company.

The risks one aims to avoid or diminish are so-called stock-outs, i.e., supply interruptions due to the supplier’s lack of availability of products or because the products are available, but the parties cannot agree on the delivery time or sales price.

Another result that can be achieved is to bind a strategic supplier for a certain period by agreeing that it will reserve an agreed share of production for the buyer on predetermined terms and conditions and avoid competition with offers from third parties interested in the products for the duration of the agreement.

When is it helpful to conclude a sales framework agreement?

This agreement allows the seller/supplier to plan sales to a particular customer and thus to plan and organize its production and logistical capacity for the agreed period, avoiding extra costs or delays.

Planning sales also makes it possible to correctly manage financial obligations and cash flows with a medium-term vision, harmonizing commitments and investments with the sales to one’s customers.

What is the content of the supply framework agreement?

There is no standard model of this agreement, which originated from business practice to meet the requirements indicated above.

Generally, the agreement provides for a fixed period (e.g., 12 months) in which the parties undertake to conclude a series of purchases and sales of products, determining the price and terms of supply and the main covenants of future sales contracts.

The most important clauses are:

• the identification of products and technical specifications (often identified in an annex)
• the minimum/maximum volume of supplies
• the possible obligation to purchase/sell a minimum/maximum volume of products
• the schedule of supplies
• the delivery times
• the determination of the price and the conditions for its possible modification (see also the next paragraph)
• impediments to performance (Force Majeure)
• cases of Hardship
• penalties for delay or non-performance or for failure to achieve the agreed volumes
• the hierarchy between the framework agreement and the orders and any other contracts between the parties
• applicable law and dispute resolution (especially in international agreements)

How to handle price revision in a supply contract?

A crucial clause, especially in times of strong fluctuations in the prices of raw materials, transport, and energy, is the price revision clause.

In the absence of an agreement on this issue, the parties bear the risk of a price increase by undertaking to respect the conditions initially agreed upon; except in exceptional cases (where the fluctuation is strong, affects a short period, and is caused by unforeseeable events), it isn’t straightforward to invoke the supervening excessive onerousness, which allows renegotiating the price, or the contract to be terminated.

To avoid the uncertainty generated by price fluctuations, it is advisable to agree in the contract on the mechanisms for revising the price (e.g., automatic indexing following the quotation of raw materials). The so-called Hardship or Excessive Onerousness clause establishes what price fluctuation limits are accepted by the parties and what happens if the variations go beyond these limits, providing for the obligation to renegotiate the price or the termination of the contract if no agreement is reached within a certain period.

How to manage delivery terms in a supply agreement?

Another fundamental pact in a medium to long-term supply relationship concerns delivery terms. In this case, it is necessary to reconcile the purchaser’s interest in respecting the agreed dates with the supplier’s interest in avoiding claims for damages in the event of a delay, especially in the case of sales requiring intercontinental transport.

The first thing to be clarified in this regard concerns the nature of delivery deadlines: are they essential or indicative? In the first case, the party affected has the right to terminate (i.e., wind up) the agreement in the event of non-compliance with the term; in the second case, due diligence, information, and timely notification of delays may be required, whereas termination is not a remedy that may be automatically invoked in the event of a delay.

A useful instrument in this regard is the penalty clause: with this covenant, it is established that for each day/week/month of delay, a sum of money is due by way of damages in favor of the party harmed by the delay.

If quantified correctly and not excessively, the penalty is helpful for both parties because it makes it possible to predict the damages that may be claimed for the delay, quantifying them in a fair and determined sum. Consequently, the seller is not exposed to claims for damages related to factors beyond his control. At the same time, the buyer can easily calculate the compensation for the delay without the need for further proof.

The same mechanism, among other things, may be adopted to govern the buyer’s delay in accepting delivery of the goods.

Finally, it is a good idea to specify the limit of the penalty (e.g.,10 percent of the price of the goods) and a maximum period of grace for the delay, beyond which the party concerned is entitled to terminate the contract by retaining the penalty.

The Force Majeure clause in international sales contracts

A situation that is often confused with excessive onerousness, but is, in fact, quite different, is that of Force Majeure, i.e., the supervening impossibility of performance of the contractual obligation due to any event beyond the reasonable control of the party affected, which could not have been reasonably foreseen and the effects of which cannot be overcome by reasonable efforts.

The function of this clause is to set forth clearly when the parties consider that Force Majeure may be invoked, what specific events are included (e.g., a lock-down of the production plant by order of the authority), and what are the consequences for the parties‘ obligations (e.g., suspension of the obligation for a certain period, as long as the cause of impossibility of performance lasts, after which the party affected by performance may declare its intention to dissolve the contract).

If the wording of this clause is general (as is often the case), the risk is that it will be of little use; it is also advisable to check that the regulation of force majeure complies with the law applicable to the contract (here an in-depth analysis indicating the regime provided for by 42 national laws).

Applicable law and dispute resolution clauses

Suppose the customer or supplier is based abroad. In that case, several significant differences must be borne in mind: the first is the agreement’s language, which must be intelligible to the foreign party, therefore usually in English or another language familiar to the parties, possibly also in two languages with parallel text.

The second issue concerns the applicable law, which should be expressly indicated in the agreement. This subject matter is vast, and here we can say that the decision on the applicable law must be made on a case-by-case basis, intentionally: in fact, it is not always convenient to recall the application of the law of one’s own country.

In most international sales contracts, the 1980 Vienna Convention on the International Sale of Goods („CISG“) applies, a uniform law that is balanced, clear, and easy to understand. Therefore, it is not advisable to exclude it.

Finally, in a supply framework agreement with an international supplier, it is important to identify the method of dispute resolution: no solution fits all. Choosing a country’s jurisdiction is not always the right decision (indeed, it can often prove counterproductive).

A case recently decided by the Italian Supreme Court clarifies what the risks are for those who sell their products abroad without having paid adequate attention to the legal part of the contract (Order, Sec. 2, No. 36144 of 2022, published 12/12/2022).

Why it’s important: in contracts, care must be taken not only with what is written, but also with what is not written, otherwise there is a risk that implied warranties of merchantability will apply, which may make the product unsuitable for use, even if it conforms to the technical specifications agreed upon in the contract.

The international sales contract and the first instance decision

A German company had sued an Italian company in Italy (Court of Chieti) to have it ordered to pay the sales price of two invoices for supplies of goods (steel).

The Italian purchasing company had defended itself by claiming that the two invoices had been deliberately not paid, due to the non-conformity of three previous deliveries by the same German seller. It then counterclaimed for a finding of defects and a reduction in the price, to be set off against the other party’s claim, as well as damages.

In the first instance, the Court of Chieti had partially granted both the German seller’s demand for payment (for about half of the claim) and the buyer’s counterclaim.

The court-appointed technical expertise had found that the steel supplied by the seller, while conforming to the agreed data sheet, had a very low silicon value compared to the values at other manufacturers‘ steel; however, the trial judge ruled out this as a genuine defect.

The judgment of appeal

The Court of Appeals of L’Aquila, appealed to the second instance by the buyer, had reached a different conclusion than the Court of First Instance, significantly reducing the amount owed by the Italian buyer, for the following reasons:

• the regime of „implied warranties“ under Article 35 of the Vienna Convention on the International Sale of Goods of 11.4.80 („CISG,“ ratified in both Italy and Germany) applied, as the companies had business headquarters in two different countries, both of which were parties to the Convention;
• in particular, the chemical composition of the steel supplied by the seller, while not constituting a „defect“ in the product (i.e., an anomaly or imperfection) was nonetheless to be considered a „lack of conformity“ within the meaning of Articles 35(2)(a) and 36(1) of the CISG, as it rendered the steel unsuitable for the use for which goods of the same kind would ordinarily serve (also known as „warranty of merchantability“).

The ruling of the Supreme Court

The German seller then appealed to the Supreme Court against the Court of Appeals‘ ruling, stating in summary that, according to the CISG, the conformity or non-conformity of the goods must be assessed against what was agreed upon in the contract between the parties; and that the „warranty of merchantability“ should apply only in the absence of a precise agreement of the parties on the characteristics that the product must have.

However, the seller’s defense continued, in this case the Italian buyer had sent a data sheet including a summary table of the various chemical elements, where it was stated that silicon should be present in a percentage not exceeding 0.45, but no minimum percentage was indicated.

So, the fact that the percentage of silicon was significantly lower than that found on average in steel from other suppliers could not be considered a conformity defect, since, at the contract negotiation stage, the parties exchanging the data sheet had expressly agreed only on the maximum values, thus not considering the minimum values relevant to conformity.

The Supreme Court, however, disagreed with this reasoning and essentially upheld the Court of Appeals‘ ruling, rejecting the German seller’s appeal.

The Court recalled that, according to Article 35 first paragraph of the CISG, the seller must deliver goods whose quantity, quality and kind correspond to those stipulated in the contract and whose packaging and wrapping correspond to those stipulated in the contract; and that, for the second paragraph, „unless the parties agree otherwise, goods are in conformity with the contract only if: a) they are suitable for the uses for which goods of the same kind would ordinarily serve.“

Other guarantees are enumerated in paragraphs (b) to (d) of the same standard[1] . They are commonly referred to collectively as „implied warranties.“

The Court noted that the warranties in question, including the one of „merchantability“ just referred to, do not stand subordinate or subsidiary to contractual covenants; on the contrary, they apply unless expressly excluded by the parties.

It follows that, according to the Supreme Court, any intention of the parties to a sales contract to disapply the warranty of merchantability must „result from a specific provision agreed upon by the parties.„

In the present case, although the data sheet that was part of the contractual agreements was analytical and had included among the chemical characteristics of the material the percentage of silicon, the fact that only a maximum percentage was indicated and not also the minimum percentage was not sufficient to exclude the fact that, by virtue of the „implied guarantee“ of marketability, the minimum percentage should in any case conform to the average percentage of similar products existing on the market.

Since the „warranty of merchantability“ had not been expressly excluded between the parties by a specific contractual clause, the conformity of the goods to the contract still had to be evaluated in consideration of this implied warranty as well.

Conclusions

What should businesses that sell abroad keep in mind?

• In contracts for the sale of goods between companies based in two different countries, the CISG automatically applies in many cases, in preference to the domestic law of either the seller’s country or the buyer’s country.
• The CISG contains very important rules for the relationship between sellers and buyers, on warranties of conformity of goods with the contract and buyer’s remedies for breach of warranties.
• One can modify or even exclude these rules by drafting appropriate contracts or general conditions in writing.
• Parties may agree not to apply all or some of the „implied warranties“ (possibly replacing them with contractual warranties) just as they may exclude certain remedies (e.g., exclude or limit liability for damages, within certain limits). However, they must do so in clear and explicit clauses.
• For the „warranty of merchantability“ not to apply, according to the reasoning of the Italian Supreme Court, it is not enough not to mention it in the contract.
• It is not sufficient to attach an analytical description of the characteristics of the goods to the contract to exclude certain characteristics not mentioned but nevertheless present in similar products of other manufacturers, which can be used as a parameter for the conformity of the goods.
• Instead, it is necessary to include a clause in the contract expressly excluding this type of guarantee.

In other words, in contracts, one must pay attention not only to what is written but also to what is not written.

This case once again demonstrates the importance of drafting a proper and complete contract not only from a commercial, technical, and financial point of view but also from a legal point of view, using the expertise of a lawyer experienced in international commercial contracts.

Finally, it is important not to overlook applicable law and jurisdiction clauses. These aspects are unfortunately often overlooked, even in high-value negotiations, considering these clauses unimportant or even blocking for negotiation, only to regret them when litigation arises or even threatened. See an in-depth discussion here.

Many people think that the non-disclosure agreement (NDA) is the one and only necessary precaution in a negotiation. This is wrong, because this agreement only refers to a facet of the business relationship that the parties want to discuss or manage.

Why is it important

The function of the NDA is to maintain the confidentiality of certain information that the parties intend to exchange and to prevent it from being used for purposes on which the parties did not agree. However, many aspects of the negotiation are not regulated in the NDA.

The main issues that the parties should agree on in writing are the following:

• why do the parties want to exchange information?
• what is the ultimate scope to be achieved?
• on what general points do the parties already agree?
• how long will negotiations last?
• who will participate in the negotiations, and with what powers?
• what documents and information will be shared?
• are there any exclusivity and/or non-compete obligations during and after the negotiation?
• what law applies to the negotiations and how are potential disputes resolved?

If these questions are not answered, it is likely that misunderstandings and disputes will arise over time, especially in lengthy and complex negotiations with foreign counterparts.

How to proceed?

• It is advisable that the above agreements be set down in a Letter of Intent („LoI“) or Memorandum of Understanding („MoU“). These are preliminary agreements whose function is determining the scope of future negotiations, the timetable, and the rules to be observed during and after the negotiations.

Common objection

„These are non-binding contracts, so what is the point of using them if the parties are free not to comply?

• Some covenants may be binding (exclusivity during negotiation, non-competition, dispute settlement agreements), and some may not (with the freedom to conclude or not to conclude the agreement).
• In any case, agreeing on the negotiating roadmap is an advantage over operating without having set the negotiating guidelines.

What happens if no agreement is reached?

• The MoU usually expressly provides for each party to be free not to finalize the negotiation as long as that party behaves, keeps acting in good faith during the negotiations and preserves the other party’s rights.
• It should be noted that in case of early or unjustified termination of the negotiations by one of the parties, the other party may be entitled to damages (so-called pre-contractual liability) if the agreement and/or the law applicable to the contract so provide.

Then, when should a non-disclosure agreement be concluded?

• It can be executed at the same time as the MoU / LoI or immediately afterwards so that the specification of confidential information, the way it is used, the duration of confidentiality obligations, etc. are defined in a way that is consistent with the project the parties have agreed upon.

For more information on the content of confidentiality agreements, see this article.

Nach mehr als 30 Jahren Verhandlungen blickt die Welt nun auf das erste panafrikanische Handelsabkommen, welches 2019 in Kraft getreten ist: Die Afrikanische Kontinentale Freihandelszone (African Continental Free Trade Area – AfCFTA).

Afrika ist mit seinen 55 Ländern und rund 1,3 Milliarden Einwohnern nach Asien der zweitgrößte Kontinent der Welt. Das Potenzial des Kontinents ist enorm: Mehr als 50 % der afrikanischen Bevölkerung ist unter 20 Jahre alt, und die Bevölkerung wächst weltweit am schnellsten. Bis 2050 wird voraussichtlich jedes vierte Neugeborene aus Afrika stammen. Darüber hinaus ist der Kontinent reich an fruchtbaren Böden und Rohstoffen.

Für westliche Investoren hat Afrika in den letzten Jahren erheblich an Bedeutung gewonnen. So ist ein beachtliches internationales Handelsvolumen entstanden, das nicht zuletzt durch die 2017 von den G20-Staaten verabschiedete Initiative „Compact with Africa“, auch bekannt als „Marshallplan mit Afrika“, gefördert wird. Der Fokus liegt auf dem Ausbau der wirtschaftlichen Zusammenarbeit Afrikas mit den G20-Ländern durch die Stärkung privater Investitionen.

Zugleich stagnierte bislang jedoch der innerafrikanische Handel: Teilweise noch bestehende hohe innerafrikanische Zölle, nichttarifäre Handelshemmnisse (non-tariff barriers – NTBs), schwache Infrastruktur, Korruption, schwerfällige Bürokratie sowie intransparente und inkonsistente Regulierungen sorgten dafür, dass sich die interregionalen Exporte kaum entwickeln konnten und zuletzt nur 17 % des innerafrikanischen Handels und nur 0,36 % des Welthandels ausmachten. Schon lange hatte sich deshalb die Afrikanische Union (AU) die Schaffung einer gemeinsamen Handelszone auf ihre Agenda gesetzt.

Was verbirgt sich hinter AfCFTA?

Der Errichtung einer panafrikanischen Handelszone gingen jahrzehntelange Verhandlungen voraus, welche schließlich in das Inkrafttreten des AfCFTA am 30. Mai 2019 mündeten.

Das AfCFTA ist eine von ihren Mitgliedern errichtete Freihandelszone, die (mit Ausnahme Eritreas) den gesamten afrikanischen Kontinent umfasst und damit, gemessen an der Zahl der Mitgliedsstaaten nach der Welthandelsorganisation (World Trade Organization – WTO) die größte Freihandelszone der Welt ist.

Die Ausgestaltung des gemeinsamen Marktes war Gegenstand mehrerer Einzelverhandlungen, die in den Phasen I und II geführt wurden.

Phase I umfasst die Verhandlungen zu drei Protokollen und ist nahezu abgeschlossen.

Das Protokoll über den Handel mit Waren

Dieses Protokoll sieht die Abschaffung von 90 % aller innerafrikanischen Zölle in allen Warenkategorien innerhalb von fünf Jahren nach Inkrafttreten vor. Davon können bis zu 7 % der Waren als sensible Waren eingestuft werden, für die ein Zeitraum von zehn Jahren für die Beseitigung der Zölle gilt. Für die am wenigsten entwickelten Länder (Least Developed Countries – LDCs) wird die Vorbereitungszeit von fünf auf zehn Jahre und für sensible Waren von zehn auf dreizehn Jahre verlängert, sofern sie ihren Bedarf nachweisen. Die restlichen 3 % der Zölle sind vollständig vom Zollabbau ausgenommen.

Voraussetzung für den Zollabbau ist die klare Abgrenzung der Ursprungsregeln. Andernfalls könnten Einfuhren aus Drittländern von den ausgehandelten Zollvorteilen profitieren. Über die meisten Ursprungsregeln ist bereits eine Einigung erzielt worden.

Das Protokoll über den Handel mit Dienstleistungen

Die AU-Generalversammlung hat sich bisher auf fünf Schwerpunktbereiche (Verkehr, Kommunikation, Tourismus, Finanz- und Unternehmensdienstleistungen) und Leitlinien für die entsprechenden Verpflichtungen geeinigt. 47 AU-Mitgliedsstaaten haben bereits ihre Angebote für spezifische Verpflichtungen vorgelegt und die Überprüfung von 28 von ihnen ist abgeschlossen. Darüber hinaus sind die Verhandlungen, beispielsweise über die Anerkennung von Berufsqualifikationen, noch nicht abgeschlossen.

Das Protokoll über die Streitbeilegung

Mit dem Protokoll über Regeln und Verfahren für die Streitbeilegung schafft das AfCFTA ein Streitbeilegungssystem nach dem Vorbild der WTO-Streitbeilegungsvereinbarung. Das Streitbeilegungsgremium (Dispute Settlement Body – DSB) verwaltet das AfCFTA-Streitbeilegungsprotokoll und setzt ein Schiedsgericht (Adjudicating Panel – Panel) und ein Berufungsgremium (Appellate Body – AB) ein. Das DSB setzt sich aus einem Vertreter jedes Mitgliedstaates zusammen und wird tätig, sobald es zwischen den Vertragsstaaten Meinungsverschiedenheiten über die Auslegung und/oder Anwendung des Abkommens in Bezug auf ihre Rechte und Pflichten gibt.

Für die verbleibende Phase II sind Verhandlungen über Investitions- und Wettbewerbspolitik, Fragen des geistigen Eigentums, Online-Handel sowie Frauen und Jugend im Handel geplant, deren Ergebnisse in weitere Protokolle einfließen werden.

Die Umsetzung des AfCFTA

Grundsätzlich kann der Handel im Rahmen eines Handelsabkommens erst dann beginnen, wenn der rechtliche Rahmen endgültig steht. Die Staats- und Regierungschefs der AU haben jedoch im Dezember 2020 vereinbart, dass der Handel mit solchen Waren, für die die Verhandlungen abgeschlossen sind, beginnen kann. Im Rahmen dieser Übergangsregelung fand nach einer pandemiebedingten Verschiebung am 4. Januar 2021 die erste AfCFTA-Handelsabwicklung von Ghana nach Südafrika statt.

Bausteine der AfCFTA

Alle 55 Mitglieder der AU waren an den AfCFTA-Verhandlungen beteiligt. Davon gehören 47 zu mindestens einer der anerkannten Regionalen Wirtschaftsgemeinschaften (Regional Economic Communities – RECs), die gemäß der Präambel des AfCFTA-Abkommens weiterhin als Bausteine des Handelsabkommens dienen sollen. Folglich waren es die RECs, welche bei den AfCFTA-Verhandlungen für ihre jeweiligen Mitglieder auftraten. Das AfCFTA-Abkommen sieht vor, dass die RECs ihre Rechtsinstrumente, Institutionen und Streitbeilegungsmechanismen beibehalten.

Innerhalb der AU gibt es acht anerkannte regionale Wirtschaftsgemeinschaften, die sich in einigen Ländern überschneiden und bei denen es sich entweder um präferenzielle Handelsabkommen (Freihandelsabkommen) oder Zollunionen handelt.

Im Rahmen der AfCFTA haben die RECs verschiedene Aufgaben. Diese sind insbesondere:

• Koordinierung der Verhandlungspositionen und Unterstützung der Mitgliedsstaaten bei der Umsetzung des Abkommens
• Lösungsorientierte Mediation bei Unstimmigkeiten zwischen den Mitgliedsstaaten
• Unterstützung der Mitgliedsstaaten bei der Harmonisierung von Zöllen und anderen Grenzschutzbestimmungen
• Förderung der Nutzung des AfCFTA-Meldeverfahrens zum Abbau von NTBs

Ausblick auf das AfCFTA

Das AfCFTA hat das Potenzial, die Integration Afrikas in die Weltwirtschaft zu erleichtern und schafft die reale Möglichkeit einer Neuausrichtung der internationalen Integrations- und Kooperationsmuster.

Ein Handelsabkommen allein ist noch keine Garantie für wirtschaftlichen Erfolg. Damit das Abkommen den prognostizierten Durchbruch erzielt, müssen die Mitgliedstaaten den politischen Willen haben, die neuen Regeln konsequent umzusetzen und die dafür notwendigen Kapazitäten zu schaffen. Insbesondere die kurzfristige Beseitigung von Handelshemmnissen und die Schaffung einer nachhaltigen physischen und digitalen Infrastruktur dürften entscheidend sein.

Wenn Sie sich für das AfCFTA interessieren, können Sie hier eine erweiterte Version dieses Artikels lesen.

Der Legalmondo African Desk

Mit unseren Experten in Ägypten, Marokko, Algerien, Tunesien, Libyen, Sudan, Kamerun, Côte d’Ivoire, Ghana, Senegal und Malawi unterstützen wir Unternehmen bei Investitionen und Geschäftsvorhaben in Afrika.

Ausländische Unternehmen in afrikanischen Ländern, in denen wir nicht direkt mit einem Büro vertreten sind, können wir auch über unser Netzwerk von lokalen Partnern unterstützen.

Wie es funktioniert

• Wir vereinbaren ein Treffen (persönlich oder online) mit einem unserer Experten, um die Bedürfnisse des Mandanten zu verstehen.
• Sobald wir die Zusammenarbeit aufgenommen haben, begleiten wir den Mandanten mit einem Rechtsanwalt bei all seinen rechtlichen Angelegenheiten (einzelne Fälle oder laufende rechtliche Unterstützung)

Nehmen Sie Kontakt auf, um mehr zu erfahren.

Zusammenfassung

Anhand der Geschichte von Nike, die sich aus der Biografie des Gründers Phil Knight ableitet, lassen sich einige Lehren  für internationale Vertriebsverträge ziehen: Wie man den Vertrag aushandelt, die Vertragsdauer festlegt, die Exklusivität und die Geschäftsziele definiert und die richtige Art der Streitschlichtung bestimmt.

Worüber ich in diesem Artikel spreche

• Der Streit zwischen Blue Ribbon und Onitsuka Tiger und die Geburt von Nike
• Wie man eine internationale Vertriebsvereinbarung aushandelt
• Vertragliche Exklusivität in einer Handelsvertriebsvereinbarung
• Mindestumsatzklauseln in Vertriebsverträgen
• Vertragsdauer  und Kündigungsfrist
• Eigentum an Marken in Handelsverträgen
• Die Bedeutung der Mediation bei internationalen Handelsverträgen
• Streitbeilegungsklauseln in internationalen Verträgen
• Wie wir Ihnen helfen können

Der Streit zwischen Blue Ribbon und Onitsuka Tiger und die Geburt von Nike

Warum ist die berühmteste Sportbekleidungsmarke der Welt Nike und nicht Onitsuka Tiger?
Die Biographie des Nike-Schöpfers Phil Knight mit dem Titel “Shoe Dog” gibt hierauf antworten und ist nicht nur für Liebhaber des Genres eine absolut empfehlenswerte Lektüre.

Bewegt von seiner Leidenschaft für den Laufsport und seiner Intuition, dass es auf dem amerikanischen Sportschuhmarkt, der damals von Adidas dominiert wurde, eine Lücke gab, importierte Knight 1964 als erster überhaupt eine japanische Sportschuhmarke, Onitsuka Tiger, in die USA.  Mit diesen Sportschuhen konnte sich Knight innerhalb von 6 Jahren einen Marktanteil von satten 70 % sichern.

Das von Knight und seinem ehemaligen College-Trainer Bill Bowerman gegründete Unternehmen hieß damals noch Blue Ribbon Sports.

Die Geschäftsbeziehung zwischen Blue Ribbon-Nike und dem japanischen Hersteller Onitsuka Tiger  gestaltete sich trotz der sehr guten Verkaufszahlen und den postiven Wachstumsaussichten von  Beginn an als sehr turbulent.

Als Knight dann kurz nach der Vertragsverlängerung mit dem japanischen Hersteller erfuhr, dass Onitsuka in den USA nach einem anderen Vertriebspartner Ausschau hielt , beschloss Knight  – aus Angst, vom Markt ausgeschlossen zu  werden –  sich seinerseits mit einem anderen japanischen Lieferanten zusammenzutun und seine eigene Marke zu gründen. Damit war die spätere Weltmarke Nike geboren.

Als der japanische Hersteller Onitsuka von dem Nike-Projekt erfuhr, verklagte dieser  Blue Ribbon wegen  Verstoß gegen das Wettbewerbsverbot,  welches dem Vertriebshändler die Einfuhr anderer in Japan hergestellter Produkte untersagte, und beendete die Geschäftsbeziehung mit sofortiger Wirkung.

Blue Ribbon führte hiergegen an, dass der Verstoß von dem Hersteller Onitsuka Tiger ausging, der  sich bereits als der Vertrag noch in Kraft war und die Geschäfte mehr als gut liefen mit anderen potenziellen Vertriebshändlern getroffen hatte.

Diese Auseinandersetzung führte zu zwei Gerichtsverfahren, eines in Japan und eines in den USA, die der Geschichte von Nike ein vorzeitiges Ende hätten setzen können.

Zum Glück (für Nike) entschied der amerikanische Richter zu Gunsten des Händlers und der Streit wurde mit einem Vergleich beendet: Damit begann für Nike die Reise, die sie 15 Jahre später zur wichtigsten Sportartikelmarke der Welt machen sollte.

Wir werden sehen, was uns die Geschichte von Nike lehrt und welche Fehler bei einem internationalen Vertriebsvertrag tunlichst vermieden werden sollten.

Wie verhandelt man eine internationale Handelsvertriebsvereinbarung?

In seiner Biografie schreibt Knight, dass er bald bedauerte, die Zukunft seines Unternehmens an eine eilig verfasste, wenige Zeilen umfassende Handelsvereinbarung gebunden zu haben, die am Ende einer Sitzung zur Aushandlung der Erneuerung des Vertriebsvertrags geschlossen wurde.

Was beinhaltete diese Vereinbarung?

Die Vereinbarung sah lediglich die Verlängerung des Rechts von Blue Ribbon vor, die Produkte in den USA exklusiv zu vertreiben, und zwar für weitere drei Jahre.

In der Praxis kommt es  häufig vor, dass sich internationale Vertriebsverträge auf mündliche Vereinbarungen oder sehr einfache Vertragswerke mit kurzer Dauer beschränken. Die übliche Erklärung dafür ist, dass es auf diese Weise möglich ist, die Geschäftsbeziehung zu testen, ohne die vertragliche Bindung zu eng werden zu lassen.

Diese Art, Geschäfte zu machen, ist jedoch nicht zu empfehlen  und kann sogar gefährlich werden: Ein  Vertrag sollte niemals  als Last oder Zwang angesehen werden, sondern als Garantie für die Rechte beider Parteien. Einen schriftlichen Vertrag nicht oder nur sehr übereilt abzuschließen, bedeutet, grundlegende Elemente der künftigen Beziehung, wie die, die zum Streit zwischen Blue Ribbon und Onitsuka Tiger führten, ohne klare Vereinbarungen zu belassen: Hierzu gehören Aspekte wie Handelsziele, Investitionen, das Eigentum an Marken – um nur einige zu benennen.

Handelt es sich zudem um einen internationalen Vertrag, ist die Notwendigkeit einer vollständigen und ausgewogenen Vereinbarung noch größer, da in Ermangelung von Vereinbarungen zwischen den Parteien oder in Ergänzung zu diesen Vereinbarungen ein Recht zur Anwendung kommt, mit dem eine der Parteien nicht vertraut ist, d. h. im Allgemeinen das Recht des Landes, in dem der Händler seinen Sitz hat.

Auch wenn Sie sich nicht in einer Blue-Ribbon-Situation befinden, in der es sich um einen Vertrag handelt, von dem die Existenz des Unternehmens abhängt, sollten internationale Verträge stets mit Hilfe eines fachkundigen Anwalts besprochen und ausgehandelt werden, der das auf den Vertrag anwendbare Recht kennt und dem Unternehmer helfen kann, die wichtigen Vertragsklauseln zu ermitteln und auszuhandeln.

Territoriale Exklusivität, kommerzielle Ziele und Mindestumsatzziele

Anlass für den Konflikt zwischen Blue Ribbon und Onitsuka Tiger war zunächst einmal die Bewertung der Absatzentwicklung auf dem US-Markt.

Onitsuka argumentierte, dass der Umsatz unter dem Potenzial des US-Marktes liege, während nach Angaben von Blue Ribbon die Verkaufsentwicklung sehr positiv sei, da sich der Umsatz bis zu diesem Zeitpunkt jedes Jahr verdoppelt habe und ein bedeutender Anteil des Marktsektors erobert worden sei.

Als Blue Ribbon erfuhr, dass Onituska andere Kandidaten für den Vertrieb seiner Produkte in den USA prüfte, und befürchtete, damit bald vom Markt verdrängt zu werden , bereitete Blue Ribbon die Marke Nike als Plan B vor: Als der  japanische Hersteller diese Marke entdeckte , kam es zu einem Rechtsstreit zwischen den Parteien, der zu einem Eklat führte.

Der Streit hätte vielleicht vermieden werden können, wenn sich die Parteien auf kommerzielle Ziele geeinigt hätten und der Vertrag eine in Alleinvertriebsvereinbarungen übliche Klausel enthalten hätte, d.h. ein Mindestabsatzziel für den Vertriebshändler.

In einer Alleinvertriebsvereinbarung gewährt der Hersteller dem Händler einen starken Gebietsschutz für die Investitionen, die der Händler zur Erschließung des zugewiesenen Marktes tätigt.

Um dieses  Zugeständnis der Exklusivität auszugleichen, ist es üblich, dass der Hersteller vom Vertriebshändler einen so genannten garantierten Mindestumsatz oder ein Mindestziel verlangt, das der Vertriebshändler jedes Jahr erreichen muss, um den ihm gewährten privilegierten Status zu behalten.

Für den Fall, dass das Mindestziel nicht erreicht wird, sieht der Vertrag dann in der Regel vor, dass der Hersteller das Recht hat, vom Vertrag zurückzutreten (bei einem unbefristeten Vertrag) oder den Vertrag nicht zu verlängern (bei einem befristeten Vertrag) oder aber auch die Gebietsexklusivität aufzuheben bzw.  einzuschränken.

Der Vertrag zwischen Blue Ribbon und Onitsuka Tiger sah derartige  Zielvorgaben nicht vor – und das nachdem er gerade erst um drei Jahre verlängert wurde. Hinzukam, dass sich die Parteien bei der Bewertung der Ergebnisse des Vertriebshändlers nicht einig waren. Es stellt sich daher die Frage: Wie können in einem Mehrjahresvertrag Mindestumsatzziele vorgesehen werden?

In Ermangelung zuverlässiger Daten verlassen sich die Parteien häufig auf vorher festgelegte prozentuale Erhöhungsmechanismen: + 10 % im zweiten Jahr, + 30 % im dritten Jahr, + 50 % im vierten Jahr und so weiter.

Das Problem bei diesem Automatismus ist, dass dadurch  Zielvorgaben vereinbart werden, die nicht auf tatsächlichen Daten über die künftige Entwicklung der Produktverkäufe, der Verkäufe der Wettbewerber und des Marktes im Allgemeinen basieren , und die daher sehr weit von den aktuellen Absatzmöglichkeiten des Händlers entfernt sein können.

So wäre beispielsweise die Anfechtung des Vertriebsunternehmens wegen Nichterfüllung der Zielvorgaben für das zweite oder dritte Jahr in einer rezessiven Wirtschaft sicherlich eine fragwürdige Entscheidung, die wahrscheinlich zu Meinungsverschiedenheiten führen würde.

Besser wäre eine Klausel, mit der Ziele von Jahr zu Jahr einvernehmlich festgelegt werden. Diese besagt, dass die Ziele zwischen den Parteien unter Berücksichtigung der Umsatzentwicklung in den vorangegangenen Monaten und mit einer gewissen Vorlaufzeit vor Ende des laufenden Jahres vereinbart werden.  Für den Fall, dass keine Einigung über die neue Zielvorgabe zustande kommt, kann der Vertrag vorsehen, dass die Zielvorgabe des Vorjahres angewandt wird oder dass die Parteien das Recht haben, den Vertrag unter Einhaltung einer bestimmten Kündigungsfrist zu kündigen.

Andererseits kann die Zielvorgabe auch als Anreiz für den Vertriebshändler dienen: So kann z. B. vorgesehen werden, dass bei Erreichen eines bestimmten Umsatzes die Vereinbarung erneuert, die Gebietsexklusivität verlängert oder ein bestimmter kommerzieller Ausgleich für das folgende Jahr gewährt wird.

Eine letzte Empfehlung ist die korrekte Handhabung der Mindestzielklausel, sofern sie im Vertrag enthalten ist: Es kommt häufig vor, dass der Hersteller die Erreichung des Ziels für ein bestimmtes Jahr bestreitet, nachdem die Jahresziele über einen langen Zeitraum hinweg nicht erreicht oder nicht aktualisiert wurden, ohne dass dies irgendwelche Konsequenzen hatte.

In solchen Fällen ist es möglich, dass der Händler behauptet, dass ein impliziter Verzicht auf diesen vertraglichen Schutz vorliegt und der Widerruf daher nicht gültig ist: Um Streitigkeiten zu diesem Thema zu vermeiden, ist es ratsam, in der Mindestzielklausel ausdrücklich vorzusehen, dass die unterbliebene Anfechtung des Nichterreichens des Ziels während eines bestimmten Zeitraums nicht bedeutet, dass auf das Recht, die Klausel in Zukunft zu aktivieren, verzichtet wird.

Die Kündigungsfrist für die Beendigung eines internationalen Vertriebsvertrags

Der andere Streitpunkt zwischen den Parteien war die Verletzung eines Wettbewerbsverbots: Blue Ribbon verkaufte die Marke Nike , obwohl der Vertrag den Verkauf anderer in Japan hergestellter Schuhe untersagte.

Onitsuka Tiger behauptete, Blue Ribbon habe gegen das Wettbewerbsverbot verstoßen, während der Händler die Ansicht vertrat , dass er angesichts der bevorstehenden Entscheidung des Herstellers, die Vereinbarung zu kündigen, keine andere Wahl hatte.

Diese Art von Streitigkeiten kann vermieden werden, indem für die Beendigung (oder Nichtverlängerung) eine klare Kündigungsfrist festgelegt wird: Diese Frist hat die grundlegende Funktion, den Parteien die Möglichkeit zu geben, sich auf die Beendigung der Beziehung vorzubereiten und ihre Aktivitäten nach der Beendigung neu zu organisieren.

Um insbesondere Streitigkeiten wie die zwischen Blue Ribbon und Onitsuka Tiger zu vermeiden, kann in einem internationalen Vertriebsvertrag vorgesehen werden, dass die Parteien während  der Kündigungsfristmit anderen potenziellen Vertriebshändlern und Herstellern in Kontakt treten können und dass dies nicht gegen die Ausschließlichkeits- und Wettbewerbsverpflichtungen verstößt.

Im Fall von Blue Ribbon war der Händler über die bloße Suche nach einem anderen Lieferanten hinaus sogar noch einen Schritt weiter gegangen, da er begonnen hatte, Nike-Produkte zu verkaufen, während der Vertrag mit Onitsuka noch gültig war. Dieses Verhalten stellt einen schweren Verstoß gegen  die getroffene Ausschließlichkeitsvereinbarung dar.

Ein besonderer Aspekt, der bei der Kündigungsfrist zu berücksichtigen ist, ist die Dauer: Wie lang muss die Kündigungsfrist sein, um als fair zu gelten? Bei langjährigen Geschäftsbeziehungen ist es wichtig, der anderen Partei genügend Zeit einzuräumen, um sich auf dem Markt neu zu positionieren, nach alternativen Vertriebshändlern oder Lieferanten zu suchen oder (wie im Fall von Blue Ribbon/Nike) eine eigene Marke zu schaffen und einzuführen.

Ein weiteres Element, das bei der Mitteilung der Kündigung zu berücksichtigen ist, besteht darin, dass die Kündigungsfrist so bemessen sein muss, dass der Vertriebshändler die zur Erfüllung seiner Verpflichtungen während der Vertragslaufzeit getätigten Investitionen amortisieren kann; im Fall von Blue Ribbon hatte der Vertriebshändler auf ausdrücklichen Wunsch des Herstellers eine Reihe von Einmarkengeschäften sowohl an der West- als auch an der Ostküste der USA eröffnet.

Eine Kündigung des Vertrags kurz nach seiner Verlängerung und mit einer zu kurzen Vorankündigung hätte es dem Vertriebshändler nicht erlaubt, das Vertriebsnetz mit einem Ersatzprodukt neu zu organisieren, was die Schließung der Geschäfte, die die japanischen Schuhe bis zu diesem Zeitpunkt verkauft hatten, erzwungen hätte.

Im Allgemeinen ist es ratsam, eine Kündigungsfrist von mindestens 6 Monaten vorzusehen. Bei internationalen Vertriebsverträgen sollten jedoch neben den von den Parteien getätigten Investitionen auch etwaige spezifische Bestimmungen des auf den Vertrag anwendbaren Rechts (hier z. B. eine eingehende Analyse der plötzlichen Kündigung von Verträgen in Frankreich) oder die Rechtsprechung zum Thema Rücktritt von Geschäftsbeziehungen beachtet werden (in einigen Fällen kann die für einen langfristigen Vertriebskonzessionsvertrag als angemessen erachtete Frist 24 Monate betragen).

Schließlich ist es normal, dass der Händler zum Zeitpunkt des Vertragsabschlusses noch im Besitz von Produktvorräten ist: Dies kann problematisch sein, da der Händler in der Regel die Vorräte auflösen möchte (Blitzverkäufe oder Verkäufe über Internetkanäle mit starken Rabatten), was der Geschäftspolitik des Herstellers und der neuen Händler zuwiderlaufen kann.

Um diese Art von Situation zu vermeiden, kann in den Vertriebsvertrag eine Klausel aufgenommen werden, die das Recht des Herstellers auf Rückkauf der vorhandenen Bestände bei Vertragsende regelt, wobei der Rückkaufpreis bereits festgelegt ist (z. B. in Höhe des Verkaufspreises an den Händler für Produkte der laufenden Saison, mit einem Abschlag von 30 % für Produkte der vorangegangenen Saison und mit einem höheren Abschlag für Produkte, die mehr als 24 Monate zuvor verkauft wurden).

Markeninhaberschaft in einer internationalen Vertriebsvereinbarung

Im Laufe der Vertriebsbeziehung hatte Blue Ribbon eine neuartige Sohle für Laufschuhe entwickelt und die Marken Cortez und Boston für die Spitzenmodelle der Kollektion geprägt, die beim Publikum sehr erfolgreich waren und große Popularität erlangten: Bei Vertragsende beanspruchten nun beide Parteien das Eigentum an den Marken.

Derartige Situationen treten häufig in internationalen Vertriebsbeziehungen auf: Der Händler lässt die Marke des Herstellers in dem Land, in dem er tätig ist, registrieren, um Konkurrenten daran zu hindern, dies zu tun, und um die Marke im Falle des Verkaufs gefälschter Produkte schützen zu können; oder es kommt vor, dass der Händler, wie in dem hier behandelten Streitfall, an der Schaffung neuer, für seinen Markt bestimmter Marken mitwirkt.

Am Ende der Geschäftsbeeziehung, wenn keine klare Vereinbarung zwischen den Parteien vorliegt, kann es zu einem Streit wie im Fall Nike kommen: Wer ist der Eigentümer der Marke – der Hersteller oder der Händler?

Um Missverständnisse zu vermeiden, ist es ratsam, die Marke in allen Ländern zu registrieren, in denen die Produkte vertrieben werden, und nicht nur dort: Im Falle Chinas zum Beispiel ist es ratsam, die Marke auch dann zu registrieren, wenn sie dort nicht vertreiben wird, um zu verhindern, dass Dritte die Marke in böser Absicht übernehmen (weitere Informationen finden Sie in diesem Beitrag auf Legalmondo).

Es ist auch ratsam, in den Vertriebsvertrag eine Klausel aufzunehmen, die dem Händler die Eintragung der Marke (oder ähnlicher Marken) in dem Land, in dem er tätig ist, untersagt und dem Hersteller ausdrücklich das Recht einräumt, die Übertragung der Marke zu verlangen, falls dies dennoch geschieht.

Eine solche Klausel hätte die Entstehung des Rechtsstreits zwischen Blue Ribbon und Onitsuka Tiger verhindert.

Der von uns geschilderte Sachverhalt stammt aus dem Jahr 1976: Heutzutage ist es ratsam, im Vertrag nicht nur die Eigentumsverhältnisse an der Marke und die Art und Weise der Nutzung durch den Händler und sein Vertriebsnetz zu klären, sondern auch die Nutzung der Marke wie auch der Unterscheidungszeichen des Herstellers in den Kommunikationskanälen, insbesondere in den sozialen Medien, zu regeln.

Es ist ratsam, eindeutig festzulegen, dass niemand anderes als der Hersteller Eigentümer der Social-Media-Profile wie auch der erstellten Inhalte und der Daten ist, die durch die Verkaufs-, Marketing- und Kommunikationsaktivitäten in dem Land, in dem der Händler tätig ist, generiert werden, und dass er nur die Lizenz hat, diese gemäß den Anweisungen des Eigentümers zu nutzen.

Darüber hinaus ist es sinnvoll, in der Vereinbarung festzulegen, wie die Marke verwendet wird und welche Kommunikations- und Verkaufsförderungsmaßnahmen auf dem Markt ergriffen werden, um Initiativen zu vermeiden, die negative oder kontraproduktive Auswirkungen haben könnten.

Die Klausel kann auch durch die Festlegung von Vertragsstrafen für den Fall verstärkt werden, dass sich der Händler bei Vertragsende weigert, die Kontrolle über die digitalen Kanäle und die im Rahmen der Geschäftstätigkeit erzeugten Daten zu übertragen.

Mediation in internationalen Handelsverträgen

Ein weiterer interessanter Punkt, der sich am  Fall Blue Ribbon vs. Onitsuka Tiger erläutern lässt , steht im Zusammenhang mit der Bewältigung von Konflikten in internationalen Vertriebsbeziehungen: Situationen wie die, die wir gesehen haben, können durch den Einsatz von Mediation effektiv gelöst werden.

Dabei handelt es sich um einen Schlichtungsversuch, mit dem ein spezialisiertes Gremium oder ein Mediator betraut wird, um eine gütliche Einigung zu erzielen und ein Gerichtsverfahren zu vermeiden.

Die Mediation kann im Vertrag als erster Schritt vor einem eventuellen Gerichts- oder Schiedsverfahren vorgesehen sein oder sie kann freiwillig im Rahmen eines bereits laufenden Gerichts- oder Schiedsverfahrens eingeleitet werden.

Die Vorteile sind vielfältig: Der wichtigste ist die Möglichkeit, eine wirtschaftliche  Lösung zu finden, die die Fortsetzung der Beziehung ermöglicht, anstatt nur nach Wegen zur Beendigung der Geschäftsbeziehung zwischen den Parteien zu suchen.

Ein weiterer interessanter Aspekt der Mediation ist die Überwindung von persönlichen Konflikten: Im Fall Blue Ribbon vs. Onitsuka zum Beispiel war ein entscheidendes Element für die Eskalation der Probleme zwischen den Parteien die schwierige persönliche Beziehung zwischen dem CEO von Blue Ribbon und dem Exportmanager des japanischen Herstellers, die durch starke kulturelle Unterschiede verschärft wurde.

Der Mediationsprozess führt eine dritte Person ein, die in der Lage ist, einen Dialog mit den Parteien zu führen und sie bei der Suche nach Lösungen von gegenseitigem Interesse zu unterstützen, was entscheidend sein kann, um Kommunikationsprobleme oder persönliche Feindseligkeiten zu überwinden.

Für alle, die sich für dieses Thema interessieren, verweisen wir auf den hierzu verfassten  Beitrag auf Legalmondo sowie  auf die Aufzeichnung eines kürzlich durchgeführten Webinars zur Mediation internationaler Konflikte.

Streitbeilegungsklauseln in internationalen Vertriebsvereinbarungen

Der Streit zwischen Blue Ribbon und Onitsuka Tiger führte dazu, dass die Parteien zwei parallele Gerichtsverfahren einleiteten, eines in den USA (durch den  Händler) und eines in Japan (durch den  Hersteller).

Dies war nur deshalb  möglich, weil der Vertrag nicht ausdrücklich vorsah, wie etwaige künftige Streitigkeiten beigelegt werden sollten.  In der Konsequenz führte dies zu einer prozessual sehr komplizierten Situation mit gleich zwei gerichtlichen Fronten in verschiedenen Ländern.

Die Klauseln, die festlegen, welches Recht auf einen Vertrag anwendbar ist und wie Streitigkeiten beigelegt werden, werden in der Praxis als „Mitternachtsklauseln“ bezeichnet, da sie oft die letzten Klauseln im Vertrag sind, die spät in der Nacht ausgehandelt werden.

Es handelt sich hierbei  um sehr wichtige Klauseln, die bewusst gewählt  werden müssen, um unwirksame oder kontraproduktive Lösungen zu vermeiden.

Wie wir Ihnen helfen können

Der Abschluss eines internationalen Handelsvertriebsvertrags ist eine wichtige Investition, denn er regelt die vertragliche Beziehungen zwischen den Parteien verbindlich für die Zukunft  und gibt ihnen die Instrumente an die Hand, um alle Situationen zu bewältigen, die sich aus der künftigen Zusammenarbeit ergeben werden.

Es ist nicht nur wichtig, eine korrekte, vollständige und ausgewogene Vereinbarung auszuhandeln und abzuschließen, sondern auch zu wissen, wie sie im Laufe der Jahre zu handhaben ist, vor allem, wenn Konfliktsituationen auftreten.

Legalmondo bietet Ihnen die Möglichkeit, mit Anwälten zusammenzuarbeiten, die in mehr als 50 Ländern Erfahrung im internationalen Handelsvertrieb haben:  Bei bestehendem Beratungsbedarf schreiben Sie uns.

Article 442-1.II of the French Commercial Code (former Article L. 442-6.I.5 °) sanctions the termination by a trader of a written contract or an informal business relationship without giving sufficient written prior notice. Over the last twenty years, this article became the recurring legal basis for all compensation actions (up to 18 months of gross margin, plus other damages) when a commercial relationship or a contract ends (totally or even partially).

Therefore, a foreign trader who contracts with a French company should try not to fall under the aegis of this rule (part I) and, if it cannot, should understand and control its implementation (part II).

In a nutshell:

How can a foreign company avoid or control the risk linked to the „sudden termination of commercial relations“ set by French law? Foreign companies doing business with a French counterpart should:

– enter, as soon as possible, into a written (frame) agreement with their French suppliers or customers, even for a very simple relation and;

– stipulate a clause in favour of foreign court or arbitration and foreign applicable law while, failing to choose it, they would rather be subject to French courts and laws;

How can a foreign company master the risk linked to the „sudden termination of commercial relations“ set by French law? Foreign companies doing business with a French counterpart should:

• know that this article applies to almost all type of commercial relationship or contracts, whether written or not, fixed-term or not;
• check whether its relation/contract is sufficiently long, regular and significant and whether the other party has a legitimate belief in the continuation of this relation/contract;
• give a written notice of termination or non-renewal (or even of a major modification), which length takes mainly into account the duration of the relation, irrespectively of the length of the contractual notice;
• invoke, with cautiousness, force majeure and gross negligence of the party, to set aside “sudden termination”;
• anticipate, in case of insufficient notice, a compensation which amount is the product of the average monthly gross margin per the length of non-granted prior notice.

How to avoid the application of the French “Sudden Termination” rule?

In international matters, a foreign company must anticipate whether its relationship will be subject or not to French law before terminating a contract or a business relationship and, in case of dispute, whether it will be brought before a French court or not.

What will be the law applicable to “Sudden Termination”?

It is quite difficult for a foreign company to correctly grasp the French legal framework of conflict of laws rules applicable to “sudden termination”. In a ruling of September 19, 2018 (RG 16/05579, DES/ Clarins), the Court of appeal of Paris made, by an implicit reference to the Granarolo EU ruling (07 14 16, N°C196/15) an extension of the contractual qualification to most of the business relationships which will improve foreseeability in order for a foreign company to try to exclude French law and its “sudden termination” rule.

Sudden termination of a written contract or of a „tacit contractual relationship”

According to Rome I Regulation (EC No 593/2008, June 17 2008) on the law applicable to contracts:

– In case of choice of a foreign law by the parties: The clause selecting a foreign applicable law will be valid and respected by French judges (subject to OMR, see below), provided that the choice of law by the parties is express or certain.

– In case of no choice by the parties: French law will likely to be declared applicable as it might be either the law of the country where is based the distributor/franchisee, etc. or the law of the country where the party who is to provide the service features of the contract has its domicile.

Sudden termination of a “non-tacit contractual relationship”

In case of informal relationship (i.e. orders placed from time to time), French judges would retain the tort qualification and will refer to the Rome II Regulation (No 864/2007, July 11 2007) on the law applicable to non-contractual obligations..

– In case of choice of a foreign law by the parties: a properly drafted choice of foreign law clause should be implemented by a French judge, provided that it expressly includes tort cases.

– In case of no choice of law by the parties: French law will likely to be declared applicable as it might be the law of the country where the damage occurs (regardless of the place of the causing event or that of the indirect consequences), which is the place of the head office where the French victim suffers the consequences of the termination.

“Sudden Termination” rule, a French Overriding Mandatory Rule?

The position of French courts is quite vague and unsatisfactory, and this has been the case for a long time. To make it short: the Commercial Court of Paris judges that “sudden termination” is not an OMR, the Court of appeal of Paris (sole French appellate court in charge of “sudden termination” cases) is also not in favour of the OMR qualification on the grounds that the text „protects purely private economic interests“ (CA Paris, pôle 5, ch. 5, Feb 28. 2019, n° 17/16475 / CA Paris, pôle 5, ch. 5, Oct 8. 2020, n°17/19893). Recently, the Paris Court of Appeal reaffirmed that the rules on sudden termination of established commercial relations are not an OMR (Court of appeal Paris, March 11, 2021, n° 18/03112).

The French Supreme Court has never explicitly addressed the issue (OMR or not OMR). Indeed, the French Supreme Court ruled in the Expedia case (Cass. com., July 8, 2020, n°17-31.536) that the provisions of the former article L. 442-6, I, 2º and II, d), about “significant imbalance” (which is in the same set of rules than “Sudden termination”) are OMR. However, this qualification should be limited to the specific action brought by the Ministry of Finance and not be applicable to an action by a private party. Moreover, some courts may be tempted to invoke the provisions of French law n°2023-221 (March 30, 2023, aka Egalim III) to qualify Sudden termination rule as an OMR, however this text (article L 444-1.A Commercial code) does not quote expressly OMR and set no justification whatsoever to set such a qualification.

Consequently, if a claim for “sudden termination” is brought to a French court, there is still a  risk that the latter would exclude the applicable foreign law and replace it with the regime resulting from the „sudden termination“ of Article L 442-1. II. However, to avoid this risk, a foreign company would better not only choose a foreign governing law but also stipulate that the dispute will be brought before a foreign judge or an arbitral tribunal.

How to avoid jurisdiction of French court over a “Sudden Termination” claim?

“Sudden Termination” claim and intra EU co-contractor

The ECJ ruling (Granarolo, July 14, 2016, N°C196/15) created a distinction between claims occurring from:

– written framework contract or tacit contractual relationship (existing only if the body of evidences listed by the ECJ are identified by national judges, i.e. length of relation and commitments recognized to each other, such as exclusivity, special price or terms of delivery or payment, non-competition, etc.): such claim has a contractual nature according to conflict of jurisdiction rules under Brussels I recast Regulation;

– informal relationship which is a non–tacit contractual relationship (i.e. orders placed from time to time): such a request has a tort nature under Brussels I recast ;

To be noted: the so-called Egalim III law has no impact on the EU rules on jurisdiction clauses.

(a) Who is the Judge of the “sudden termination” of a written contract or of a „tacit contractual relationship”?

– Jurisdiction clause for the benefit of a foreign court will be enforced by French courts, even though it is an asymmetrical clause (Court of cassation, October 7, 2015, Ebizcuss.com / Apple Sales International).

– In case of lack of choice of court clause, French courts are likely to have jurisdiction if the French claimant bringing a case based on “sudden termination» is the service provider, such as distributor, agent, etc. (see ECJ Corman Collins case, 19 12 13, C-9/12, and article 7.1.b.2 of Brussels I recast°).

(b) Who is the Judge of the “sudden termination” of a „non- tacit contractual relationship”?

– We believe that French courts may continue to give effect to a jurisdiction clause in tort case, especially when it expressly encompasses tort litigation (Court of cassation, 1° Ch. Civ., January 18, 2017, n° 15-26105, Riviera Motors / Aston Martin Lagonda Ltd).

– In case of lack of choice of court clause, French courts will have jurisdiction over a “sudden termination” claim as the judge of the place where the harmful event occurred (art. 7.3 of Brussels I recast), which is the place where the sudden termination has effect…i.e. in France if the French company is the victim.

“Sudden Termination” claim and Non-EU co-contractor

The Granarolo solution will not ipso facto apply if a French victim brings a claim to French courts, based on a „sudden termination“ made by a non-EU company. In non-EU relations, French judges could continue to retain only the tort qualification. In such a case, French courts may keep their jurisdiction based on the place where the harmful event occurs.

Jurisdiction clause to a foreign court may be recognized in France (even for tort-based claims), provided that this jurisdiction clause is valid according to either a bilateral international convention or to the Hague Convention of 30 June 2005 on choice of court agreements. Otherwise, according to Egalim III law, imperative jurisdiction might be attributable to French courts.

“Sudden Termination” claim and arbitration

Stipulating an ad hoc or institutional arbitration clause is probably the safest solution to avoid the jurisdiction of French courts. Ideally, the clause will fix the seat of the arbitral tribunal outside France. According to the principle of competence-competence of the arbitrators, French courts declare themselves incompetent, unless the arbitration clause is manifestly void or manifestly inapplicable, regardless of contract or tort ground (see, in particular, Paris Court of Appeal, 5 September 2019, n°17/03703). The so-called “Egalim III” law has no impact on arbitration clauses.

Conclusion: Foreign companies should not leave open the Jurisdiction and governing Law issues. They must negotiate a safe harbour, otherwise a French victim of a termination will likely to be entitled to bring a “sudden termination” claim in front of French judges (see what happen below in Part 2)

How to master the “Sudden Termination” French rules?

When French law is applicable, the foreign company will face the legal regime of article L442 -1.II of the French Commercial Code sanctioning “sudden termination”. As a preliminary remark, it is important to know, above all, that the implementation of the liability for „sudden termination“ is the consequence of the lack of a notice or a too short notice. Thus, this scheme does not lay down an automatic compensation rule. In other words, as soon as reasonable notice is given by the author of the termination, liability on that basis can be dismissed.

The prerequisite for “Sudden Termination”: an established commercial relationship

All contracts are covered by this legal regime, except for contracts whose regulations provide for a specific notice of termination, like commercial agency contracts and transport of goods by road subcontracts.

First, there must be a relationship that can be proven by a written contract or de facto, by behaviour of the parties. Article L.442-1 II of the French Commercial Code covers all “commercial” relationships and not only “contractual ones so that such relationship may be based on a succession of tacitly renewed contracts or a regular flow of business, materialized by multiple orders. This was recently recalled by the Supreme Court (Supreme Court, February 16, 2022, n° 20-18.844)

Second, this relationship must have an established character. There is no legal definition, but this notion has been defined year after year by case law which has established an objective criterion and a more subjective one.

(a) The objective criterion implies a sufficiently long, regular and significant relationship between the two parties. The duration of the relationship is the most important criterion. The relationship must also be regular, that is, it must not have been interrupted (too often or too long). The relationship must ultimately be meaningful and represent a serious flow of business between the parties, in volume or value.

(b) The subjective test focuses primarily on the legitimate belief of the victim of the rupture in the continuation of the contract / the relationship that is based on factual elements, such as investment requests, budgets over several years, etc. Conversely, it is on the basis of the finding of a lack of legitimate belief in a common future that the terminating party can prove the absence of a stable character when he has resorted, on several occasions, a call for tenders (unless it is a trick).

Anticipating a “Sudden Termination” claim

(a) The termination may be total or partial

The total rupture is materialized by a complete stop of the relations, for example ending the contract, stopping the sending of orders by the purchaser or the recording of orders by the supplier.

The Supreme Court recently recalled that a significant drop in sales with a partner must be considered as a partial rupture of the relationship (February 16, 2022, n° 20-18.844, cited above). But the most complicated situation to deal with is the so-called partial rupture that will be deduced from a modification of elements that partly impacts the relationship but does not reduce it to nothing (ex.: a price increase or decrease, a change in the terms of payment or delivery).

(b) The termination must be subject to a reasonable written prior notice

The notice must be notified in writing. The absence of written notice is already a breach in itself. The notification must clearly reflect the willingness of a party to sever the relationship in whole or in part, which must be clearly identified. The notification must also clearly identify the date on which the relationship will end.

Thus, an ambiguity on the notice period (e.g if the termination of an agreement is notified, whilst offering to maintain certain prices and payment terms, in the meantime) is considered as an insufficient termination notice (French Supreme Court, January 29, 2013, n° 11-23.676).

Parties must distinguish between the letter of formal notice for default and the subsequent notification of the breach, giving notice (if applicable). During the period of notice, parties must fully comply with all contractual conditions.

This principle also applies to distribution contracts subject to specific French rules imposing annual or multi-year negotiation obligations. In fact, the Court of cassation has ruled that „when the conditions of the commercial relationship established between the parties are subject to annual negotiation, modifications made during the notice period which are not so substantial as to undermine its effectiveness do not constitute a brutal breach of that relationship“ (Cass. com., Dec. 7, 2022, n° 19-22.538).

However, it’s not necessary to mention the reasons why the commercial relationship is terminated is not a fault or breach of the relationship. In fact, French courts consider that “the fact that the given reason to terminate was false does not in any way present the terminating party from terminating the commercial relationship” (Versailles Court of Appeal, June 10, 1999).

The duration of the prior notice to be respected is not defined by French law which did not pose precise rule until the reform 2019. If several criteria are stated by case law, it should be noted that the most important criterion is the duration of the relationship. Judges also take into account the share of turnover achieved by the victim, the existence or not of a territorial exclusivity, the nature of the products and the sector of activity, the importance of the investments made by the victim especially to the relationship in question, and finally the state of economic dependence. Economic dependence is defined as the impossibility for a company to have a solution that is technically and economically equivalent to the contractual relations it has established with another company. Case law considers this to be an aggravating factor justifying a longer termination notice.

The minimum notice period must be notified at the time of notification of termination. As a consequence, events that affect the victim after the notification, both positively (conclusion of a new contract) and negatively (loss of another custome), will not be taken into account by the judge, at the time of ruling, when assessing the “brutality” of the termination.

The length of the notice given by the judges is very variable. The appreciation of notice is made on a case-by-case basis. It is very difficult to give a golden rule, even though roughly for each year of relationship, a month’s notice might be due (to modulate up or down depending on the other criteria in the relationship). But way of illustration, however, the following case law may be cited:

• Paris Court of Appeal , Feb.9, 2022: 16-year relationship with 15 months‘ notice;
• Paris Court of Appeal, Jan.20, 2022: 12-year relationship with 8 months‘ notice;
• Paris Court of Appeal, Oct. 25, 2022: 16-year relationship with 18 months‘ notice;
• Paris Court of Appeal , Feb. 23, 2022: 17-year relationship with 11 months‘ notice;
• Paris Court of Appeal, Sept. 21, 2022: 5-year relationship with 14 months‘ notice.

Since the Order of April 24, 2019, which limits the length of reasonable notice to a maximum of 18 months, if the notice period granted by a party is 18 months, it cannot be held liable for a sudden termination. However, much of the litigation remains uncertain, as only exceptionally long or particularly sensitive relationships led, prior to 019, to the award of more than 18 months‘ notice. Ordinance of April 24, 2019, limits to 18 months the maximum period of notice reasonably due under Article L 442-1.II. But much of the litigation will remain uncertain since only relations of exceptional longevity or particularly sensitive, could have led to the allocation of a notice higher than 18 months.

Judges are not bound by the contractual notices stipulated in the contract. But if the author of the breach also violated the terms and conditions of termination provided for by contract, the victim may seek the responsibility of the author both on the tort basis of the sudden rupture and also on the basis of the breach of a contractual obligation.

Cases in which “Sudden Termination” is ruled out

The legal regime provides for two cases, and the case-law seems to have imposed others.

(a) The two legal exceptions are Force majeure (very rarely consecrated by the courts) and the fault of the victim of the termination, case-law having added that it must be a serious violation (“faute grave”) of a contractual commitment or a legal provision (such as non-respect of an exclusivity, a non-compete, a confidentiality or a change of control duty, or non-payment of amounts due contractually).

The judges consider themselves, of course, not bound by a termination clause defining what constitutes serious misconduct. In any case the party who terminates for serious misconduct must clearly notify it in its letter of termination. Above all, serious misconduct leads to a lack of notice, therefore, if the terminating party alleges serious misconduct but grants notice, whichever it may be, judges may conclude that the fault was not serious enough.

Thus, the seriousness of the misconduct must be motivated by judges in their rulings. Noting that the contract was breached after two formal notices is not sufficient (Cass. com., Feb 16. 2022, n° 20-18.844).

However, the Court of Cassation considers that „even in the case of serious misconduct justifying the immediate termination of the commercial relationship, the other party remains free to give the other party a notice“ (Cass. Com., Oct. 14 2020, n°18-22.119).

(b) In recent years, case-law has added other cases of liability waiver. This is the case when the rupture is the consequence of a cause external to the author of the rupture, such as the economic crisis, the loss of its own customers or suppliers, upstream or downstream.

For example, in 2021 the Court of cassation has ruled that “the business partner is not entitled to an unchanged relationship and cannot refuse any adaptation required by economic changes” (Com, Dec 01, 2021, n°20-19.113). In fact, to be attributable to an economic player, a termination must be free and deliberate. This is not the case if termination is imposed by the economic situation.

However, adding a liability exemption clause in a contract, aimed at waiving destinated to escape the penalties of article L. 442-1, is without consequences on the judge’s appreciation.

Judges have also excluded “sudden termination” in the hypothesis of the end of the first period of a fixed-term contract, whatever its duration is: the first renewal of a contract, constitutes a foreseeable event for the victim of the rupture, which excludes the very notion of brutality; but once the contract has been renewed at least once, judges can subsequently characterize the victim’s legitimate belief in a new tacit renewal.

Compensation for “Sudden Termination”

Judges only compensate for the detrimental consequences of the brutality itself of the breach but do not compensate, at least in the context of article L442 -1.II, for the consequences of the breach itself.

The basic rule is very simple: it is necessary to determine the length of the notice which should have been granted, from which the notice actually granted is deducted. This net notice is multiplied by the average monthly gross margin of the victim, or more often the so called margin on variable costs (i.e. the turnover minus costs disappearing with non-performance of the contract/relation). Defendant should not hesitate to ask for the full accountancy evidences, especially to identify (lower) margin rates, or even for a judicial expertise on those accounting elements. In general, the base of the average monthly margin consists of the last 24 or 36 months.

The compensation calculated on the average margin is, in general, exclusive of any other compensation. However, the victim can prove that it has suffered other losses as a consequence of the brutality of the rupture. Such as dismissals directly caused by this brutality or the depreciation of investments made recently by the victim.

Some practical tips when considering to anticipate “Sudden Termination”

Even though the legal regime is still ambiguous and the case-law terribly casuistic which prevents to release strong guidelines, here are some practical tips when a company plans to terminate a relationship / contract:

• in the case of a fixed-term contract renewable tacitly, the notification of non-renewal must be anticipated well in advance of the beginning of the contractual notice in order to avoid being in a situation where it is necessary to choose between not renewing the contract with a notice that is not sufficient or agree to see the contract renewed itself for a new term;
• commercial teams must be made aware of the risk of partial sudden termination when they change the conditions of execution of a commercial relationship / contract too radically;
• in some cases, it may be useful to send a pre-notice of termination with a “notice proposal” in order to try to validate this notice with the other party;
• it may also be useful, in certain relationships, to notify the end of the relationship with different lengths of notice depending on the nature of the product lines;
• Finally, the best way is to conclude an end-of-relation protocol, fixing the duration of the notice as well as, if necessary, the progressive decline of the orders, the whole within the framework of a settlement agreement which definitively waives any claim, including “sudden termination”.

Sudden termination regime shall be taken into consideration when entering into the final phase of a duration relationship: the way in which the contract (or de facto relationship) is terminated must be carefully planned, in order to manage the risk of causing damages to the counterparty and being sued for compensation.

Given the significance of the influencer market (over €21 billion in 2023), which now encompasses all sectors, and with a view for transparency and consumer protection, France, with the law of June 9, 2023, proposed the world’s first regulation governing the activities of influencers, with the objective of defining and regulating influencer activities on social media platforms.

However, influencers are subject to multiple obligations stemming from various sources, necessitating the utmost vigilance, both in drafting influence agreements (between influencers and agencies or between influencers and advertisers) and in the behaviour they must adopt on social media or online platforms. This vigilance is particularly heightened as existing regulations do not cover the core of influencers‘ activities, especially their status and remuneration, which remain subject to legal ambiguity, posing risks to advertisers as regulatory authorities‘ scrutiny intensifies.

Key points to remember 

• Influencers‘ activity is subject to numerous regulations, including the law of June 9, 2023.
• This law not only regulates the drafting of influence contracts but also the influencer’s behaviour to ensure greater transparency for consumers.
• Every influencer whose audience includes French users is affected by the provisions of the law of June 9, 2023, even if they are not physically present in French territory.
• Both the law of June 9, 2023, and the „Digital Services Act,“ as well as the proposed law on „fast fashion,“ foresee increasing accountability for various actors in the commercial influence sector, particularly influencers and online platforms.
• Despite a plethora of regulations, the status and remuneration of influencers remain unaddressed issues that require special attention from advertisers engaging with influencers.

The law of June 9, 2023, regulating influencer activity  

The definition of influencer professions

The law of June 9, 2023, provides two essential definitions for influencer activities:

• Influencers are defined as ’natural or legal persons who, for consideration, mobilize their notoriety with their audience to communicate to the public, electronically, content aimed at promoting, directly or indirectly, goods, services, or any cause, engaging in commercial influence activities electronically.‘
• The activity of an influencer agent is defined as ‚that which consists of representing, for consideration,‘ the influencer or a possible agent ‚with the aim of promoting, for consideration, goods, services, or any cause‚ (article 7) The influencer agent must take ’necessary measures to ensure the defense of the interests of the persons they represent, to avoid situations of conflict of interest, and to ensure the compliance of their activity‚ with the law of June 9, 2023.

The obligations imposed on commercial messages created by the influencer

The law sets forth obligations that influencers must adhere to regarding their publications: 

• Mandatory particulars: When creating content, this law imposes an obligation on influencers to provide information to consumers, aiming for transparency towards their audience. Thus, influencers are required to clearly, legibly, and identifiably indicate on the influencer’s image or video, regardless of its format and throughout the entire viewing duration (according to modalities to be defined by decree):

  – The mention „advertisement“ or „commercial collaboration.“ Violating this obligation constitutes deceptive commercial practice punishable by two years‘ imprisonment and a fine of €300,000 (Article 5 of the law of June 9, 2023).
  – The mention of „altered images“ (modification by image processing methods aimed at refining or thickening the silhouette or modifying the appearance of the face) or „virtual images“ (images created by artificial intelligence). Failure to do so may result in a one-year prison sentence and a fine of €4,500 (Article 5 of the law of June 9, 2023).

• Prohibited or regulated promotions: This law reminds certain prohibitions, subject to criminal and administrative sanctions, stemming from French law on the direct or indirect promotion of certain categories of products and services, under penalty of criminal or administrative sanctions. This includes the promotion of products and services related to:

  – health: surgery, aesthetic medicine, therapeutic prescriptions, and nicotine products;
  – non-domestic animals, unless it concerns an establishment authorized to hold them;
  – financial: contracts, financial products, and services;
  – sports-related: subscriptions to sports advice or predictions;
  – crypto assets: if not from registered actors or have not received approval from the AMF;
  – gambling: their promotion prohibited for those under 18 years old and regulated by law;
  – professional training: their promotion is not prohibited but regulated.

The accountability of influencer behaviour

The law also holds influencers accountable from the contracting of their relationships and when they act as sellers:

• Regulation of commercial influence agreements: This law imposes, subject to nullity, from a certain threshold of influencer remuneration (defined by decree), the formalization in writing of the agreement between the advertiser and the influencer, but also, if applicable, between the influencer’s agent, and the mandatory stipulation of certain clauses (remuneration, mission description, etc.).
• Influencer responsibility as a cyber seller: Influencers engaging in drop shipping (selling products without handling their delivery, done by the supplier) must provide the buyer with all information in French as required by Article L. 221-5 of the Consumer Code about the product, such as its availability and legality (i.e., guarantee that the product is not counterfeit), applicable product warranty, and supplier identity. Additionally, influencers must ensure the proper delivery and receipt of products and, in case of default, compensate the buyer. Influencers are also logically subject to obligations regarding deceptive commercial practices (for more information, the DGCCRF website explain the dropshipping).

The accountability of other actors in the commercial influence ecosystem

Joint and several liability is set by law, for the advertiser, influencer, or influencer’s agent for damages caused to third parties in the execution of the commercial influence contract, allowing the victim of the damage to act against the most solvent party.

Furthermore, the law introduces accountability for online platforms by partially incorporating the European Regulation 2022/2065 on digital services (known as the „DSA„) of October 19, 2022.

French regulation and international influencers

Influencers established outside the European Union (including also Switzerland and the EEA) who promote products or services to a French audience must obtain professional liability insurance from an insurer established within the EU. They must also designate a legal or natural person providing „a form of representation“ (SIC) within the EU. This representative (whose regime is not very clear) is remunerated to represent the influencer before administrative and judicial authorities and to ensure the compliance of the influencer’s activity with law of June 9, 2023.

Furthermore, according to law of June 9, 2023, when the contract binding the influencer (or their agency) aims to implement a commercial influence activity electronically „targeting in particular an audience established in French territory“ (SIC), this contract should be exclusively subject to French law (including the Consumer Code, the Intellectual Property Code, and the law of June 9, 2023). According to this law, the absence of such a stipulation would be sanctioned by the nullity of the contract. Law of June 9, 2023, seems to be established as an overriding mandatory law capable of setting aside the choice of a foreign law.

However, the legitimacy (what about compliance with the definition of overriding mandatory rules established by Regulation Rome I?) and effectiveness (what if the contract specifies a foreign law and a foreign jurisdiction?) of such a legal provision can be questioned, notably due to its vague and general wording. In fact, it should be the activity deployed by the „foreign“ influencer to their community in France that should be apprehended by French overriding mandatory rules, rather than the content of the agreement concluded with the advertiser (which itself could also be foreign, by the way).

The other regulations governing the activity of influencers

The European regulations

The DSA further holds influencers accountable because, in addition to the reporting mechanism imposed on platforms to report illicit content (thus identifying a failing influencer), platforms must ensure (and will therefore shift this responsibility to the influencer) the identification of commercial communications and specific transparency obligations towards consumers.

The «soft law»

As early as 2015, the Advertising Regulatory Authority („ARPP“) issued recommendations on best practices for digital advertising. Similarly, in March 2023, the French Ministry of Economy published a „code of conduct“ for influencers and content creators. In 2023, the European Commission launched a legal information platform for influencers. Although non-binding, these rules, in addition to existing regulations, serve as guidelines for both influencers and content creators, as well as for judicial and administrative authorities.

The special status of child influencers

The law of October 19, 2020, aimed at regulating the commercial exploitation of children’s images on online platforms, notably opens up the possibility for child influencers to be recognized as salaried workers. However, this law only targeted video-sharing platforms. Article 2 of the law of June 9, 2023, extended the provisions regarding child influencer labor introduced by the 2020 law to all online platforms. Finally, a recent law aimed at ensuring respect for the image rights of children was published on February 19, 2024, introducing a principle of joint and several responsibility of both parents in protecting the minor’s image rights.

The status and remuneration of influencers: uncertainty persists

Despite the diversity of regulations applicable to influencers, none address their status and remuneration.

The status of the influencer

In the absence of regulations governing the status of influencers, a legal ambiguity persists regarding whether the influencer should be considered an independent contractor, an employee (as is partly the case for models or artists), or even as a brand representative (i.e. commercial agent), depending on the missions contractually entrusted to the influencer.

The nature of the contract and the applicable social security regime stem from the missions assigned to the influencer:

• In the case of an employment contract, the influencer will fall under the general regime for employees and assimilated persons, based on Articles L. 311-2 or 311-3 of the French Social Security Code.
• In the case of a service contract, the influencer will fall under the regime for self-employed workers.

The existence of a relationship of subordination between the advertiser and the influencer typically determines the qualification of an employment contract. Subordination is generally characterized when the employer gives orders and directives, has the power to control and sanction, and the influencer follows these directives. However, some activities are subject to a presumption of an employment contract; this is the case (at least in part) for artist contracts under Article L. 7121-3 of the French Labor Code and model contracts under Article L. 7123-2 of the French Labor Code.

The remuneration of the influencer

The influencer can be remunerated in cash (fixed or proportional) and/or in kind (for example: receiving a product from the brand, invitations to private or public events, coverage of travel expenses, etc.). The influencer’s remuneration must be specified in the influencer agreement and is directly impacted by the influencer’s status, as certain obligations (minimum wage, payment of social security contributions, etc.) apply in the case of an employment contract.

Furthermore, the remuneration (for the influencer’s services) must be distinguished from that of the transfer of their copyrights or image rights, which are subject to separate remuneration in exchange for the IP rights transferred.

The influencers… in the spotlight

The law of June 9, 2023, grants the French authority (i.e. the Consumer Affairs, Competition and Fraud Prevention Agency, “DGCCRF”) new injunction powers (with reinforced penalties). This comes in addition to the recent creation of a „commercial influence squad„, within the DGCCRF, tasked with monitoring social networks, and responding to reports received through Signal Conso. The law provides for fines and the possibility of blocking content.

As early as August 2023, the DGCCRF issued warnings to several influencers to comply with the new regulations on commercial influence and imposed on them the obligation to publicly disclose their conviction for non-compliance with the new provisions regarding transparency to consumers on their own social networks, a heavy penalty for actors whose activity relies on their popularity (DGCCRF investigation on the commercial practices of influencers).

On February 14, 2024, the European Commission and the national consumer protection authorities of 22 EU member states, Norway, and Iceland published the results of an analysis conducted on 570 influencers (the so-called „clean-up operation“ of 2023 on influencers): only one in five influencers consistently presented their commercial content as advertising. 

In response to environmental, ethical, and quality concerns related to „fast fashion,“ a draft law aiming to ban advertising for fast fashion brands, including advertising done by influencers (Proposal for a law aiming to reduce the environmental impact of the textile industry), was adopted by the National Assembly on first reading on March 14, 2024.

Lastly, the law of June 9, 2023, has been criticized by the European Commission, which considers that the law would contravene certain principles provided by EU law, notably the principle of „country of origin,“ according to which the company providing a service in other EU countries is exclusively subject to the law of its country of establishment (principle initially provided for by the E-commerce Directive of June 8, 2000, and included in the DSA). Some of its provisions, particularly those concerning the application of French law to foreign influencers, could therefore be subject to forthcoming – and welcome – modifications.

Summary

To avoid disputes with important suppliers, it is advisable to plan purchases over the medium and long term and not operate solely on the basis of orders and order confirmations. Planning makes it possible to agree on the duration of the ’supply agreement, minimum volumes of products to be delivered and delivery schedules, prices, and the conditions under which prices can be varied over time.
The use of a framework purchase agreement can help avoid future uncertainties and allows various options to be used to manage commodity price fluctuations depending on the type of products , such as automatic price indexing or agreement to renegotiate in the event of commodity fluctuations beyond a certain set tolerance period.

I read in a press release: “These days, the glass industry is sending wine companies new unilateral contract amendments with price changes of 20%…”

What can one do to avoid the imposition of price increases by suppliers? 

• Know your rights and act in an informed manner
• Plan and organise your supply chain

Does my supplier have the right to increase prices?

If contracts have already been concluded, e.g., orders have already been confirmed by the supplier, the answer is often no.

It is not legitimate to request a price change. It is much less legitimate to communicate it unilaterally, with the threat of cancelling the order or not delivering the goods if the request is not granted.

What if he tells me it is force majeure?

That’s wrong: increased costs are not a force majeure but rather an unforeseen excessive onerousness, which hardly happens.

What if the supplier canceled the order, unilaterally increased the price, or did not deliver the goods?

He would be in breach of contract and liable to pay damages for violating his contractual obligations.

How can one avoid a tug-of-war with suppliers?

The tools are there. You have to know them and use them.

It is necessary to plan purchases in the medium term, agreeing with suppliers on a schedule in which are set out:

• the quantities of products to be ordered
• the delivery terms
• the durationof the agreement
• the pricesof the products or raw materials
• the conditions under which prices can be varied

There is a very effective instrument to do so: a framework purchase agreement.

Using a framework purchase agreement, the parties negotiate the above elements, which will be valid for the agreed period.

Once the agreement is concluded, product orders will follow, governed by the framework agreement, without the need to renegotiate the content of individual deliveries each time.

For an in-depth discussion of this contract, see this article.

• “Yes, but my suppliers will never sign it!”

Why not? Ask them to explain the reason.

This type of agreement is in the interest of both parties. It allows planning future orders and grants certainty as to whether, when, and how much the parties can change the price.

In contrast, acting without written agreements forces the parties to operate in an environment of uncertainty. Suppliers can request price increases from one day to the next and refuse supply if the changes are not accepted.

How are price changes for future supplies regulated?

Depending on the type of products or services and the raw materials or energy relevant in determining the final price, there are several possibilities.

• The first option is to index the price automatically. E.g., if the cost of a barrel of Brent oil increases/decreases by 10%, the party concerned is entitled to request a corresponding adjustment of the product’s price in all orders placed as of the following week.
• An alternative is to provide for a price renegotiation in the event of a fluctuation of the reference commodity. E.g., suppose the LME Aluminium index of the London Stock Exchange increases above a certain threshold. In that case, the interested party may request a price renegotiationfor orders in the period following the increase.

What if the parties do not agree on new prices?

It is possible to terminate the contract or refer the price determination to a third party, who would act as arbitrator and set the new prices for future orders.

Summary

The framework supply contract is an agreement that regulates a series of future sales and purchases between two parties (customer and supplier) that take place over a certain period of time. This agreement determines the main elements of future contracts such as price, product volumes, delivery terms, technical or quality specifications, and the duration of the agreement.

The framework contract is useful for ensuring continuity of supply from one or more suppliers of a certain product that is essential for planning industrial or commercial activity. While the general terms and conditions of purchase or sale are the rules that apply to all suppliers or customers of the company. The framework contract is advisable to be concluded with essential suppliers for the continuity of business activity, in general or in relation to a particular project.

What I am talking about in this article:

• What is the supply framework agreement?
• What is the function of the supply framework agreement?
• The difference with the general conditions of sale or purchase
• When to enter a purchase framework agreement?
• When is it beneficial to conclude a sales framework agreement?
• The content of the supply framework agreement
• Price revision clause and hardship
• Delivery terms in the supply framework agreement
• The Force Majeure clause in international sales contracts
• International sales: applicable law and dispute resolution arrangements

What is a framework supply agreement?

It is an agreement that regulates a series of future sales and purchases between two parties (customer and supplier), which will take place over a certain period.

It is therefore referred to as a „framework agreement“ because it is an agreement that establishes the rules of a future series of sales and purchase contracts, determining their primary elements (such as the price, the volumes of products to be sold and purchased, the delivery terms of the products, and the duration of the contract).

After concluding the framework agreement, the parties will exchange orders and order confirmations, entering a series of autonomous sales contracts without re-discussing the covenants already defined in the framework agreement.

Depending on one’s point of view, this agreement is also called a sales framework agreement (if the seller/supplier uses it) or a purchasing framework agreement (if the customer proposes it).

What is the function of the framework supply agreement?

It is helpful to arrange a framework agreement in all cases where the parties intend to proceed with a series of purchases/sales of products over time and are interested in giving stability to the commercial agreement by determining its main elements.

In particular, the purchase framework agreement may be helpful to a company that wishes to ensure continuity of supply from one or more suppliers of a specific product that is essential for planning its industrial or commercial activity (raw material, semi-finished product, component).

By concluding the framework agreement, the company can obtain, for example, a commitment from the supplier to supply a particular minimum volume of products, at a specific price, with agreed terms and technical specifications, for a certain period.

This agreement is also beneficial, at the same time, to the seller/supplier, which can plan sales for that period and organize, in turn, the supply chain that enables it to procure the raw materials and components necessary to produce the products.

What is the difference between a purchase or sales framework agreement and the general terms and conditions?

Whereas the framework agreement is an agreement that is used with one or more suppliers for a specific product and a certain time frame, determining the essential elements of future contracts, the general purchase (or sales) conditions are the rules that apply to all the company’s suppliers (or customers).

The first agreement, therefore, is negotiated and defined on a case-by-case basis. At the same time, the general conditions are prepared unilaterally by the company, and the customers or suppliers (depending on whether they are sales or purchase conditions) adhere to and accept that the general conditions apply to the individual order and/or future contracts.

The two agreements might also co-exist: in that case; it is a good idea to specify which contract should prevail in the event of a discrepancy between the different provisions (usually, this hierarchy is envisaged, ranging from the special to the general: order – order confirmation; framework agreement; general terms and conditions of purchase).

When is it important to conclude a purchase framework agreement?

It is beneficial to conclude this agreement when dealing with a mono-supplier or a supplier that would be very difficult to replace if it stopped selling products to the purchasing company.

The risks one aims to avoid or diminish are so-called stock-outs, i.e., supply interruptions due to the supplier’s lack of availability of products or because the products are available, but the parties cannot agree on the delivery time or sales price.

Another result that can be achieved is to bind a strategic supplier for a certain period by agreeing that it will reserve an agreed share of production for the buyer on predetermined terms and conditions and avoid competition with offers from third parties interested in the products for the duration of the agreement.

When is it helpful to conclude a sales framework agreement?

This agreement allows the seller/supplier to plan sales to a particular customer and thus to plan and organize its production and logistical capacity for the agreed period, avoiding extra costs or delays.

Planning sales also makes it possible to correctly manage financial obligations and cash flows with a medium-term vision, harmonizing commitments and investments with the sales to one’s customers.

What is the content of the supply framework agreement?

There is no standard model of this agreement, which originated from business practice to meet the requirements indicated above.

Generally, the agreement provides for a fixed period (e.g., 12 months) in which the parties undertake to conclude a series of purchases and sales of products, determining the price and terms of supply and the main covenants of future sales contracts.

The most important clauses are:

• the identification of products and technical specifications (often identified in an annex)
• the minimum/maximum volume of supplies
• the possible obligation to purchase/sell a minimum/maximum volume of products
• the schedule of supplies
• the delivery times
• the determination of the price and the conditions for its possible modification (see also the next paragraph)
• impediments to performance (Force Majeure)
• cases of Hardship
• penalties for delay or non-performance or for failure to achieve the agreed volumes
• the hierarchy between the framework agreement and the orders and any other contracts between the parties
• applicable law and dispute resolution (especially in international agreements)

How to handle price revision in a supply contract?

A crucial clause, especially in times of strong fluctuations in the prices of raw materials, transport, and energy, is the price revision clause.

In the absence of an agreement on this issue, the parties bear the risk of a price increase by undertaking to respect the conditions initially agreed upon; except in exceptional cases (where the fluctuation is strong, affects a short period, and is caused by unforeseeable events), it isn’t straightforward to invoke the supervening excessive onerousness, which allows renegotiating the price, or the contract to be terminated.

To avoid the uncertainty generated by price fluctuations, it is advisable to agree in the contract on the mechanisms for revising the price (e.g., automatic indexing following the quotation of raw materials). The so-called Hardship or Excessive Onerousness clause establishes what price fluctuation limits are accepted by the parties and what happens if the variations go beyond these limits, providing for the obligation to renegotiate the price or the termination of the contract if no agreement is reached within a certain period.

How to manage delivery terms in a supply agreement?

Another fundamental pact in a medium to long-term supply relationship concerns delivery terms. In this case, it is necessary to reconcile the purchaser’s interest in respecting the agreed dates with the supplier’s interest in avoiding claims for damages in the event of a delay, especially in the case of sales requiring intercontinental transport.

The first thing to be clarified in this regard concerns the nature of delivery deadlines: are they essential or indicative? In the first case, the party affected has the right to terminate (i.e., wind up) the agreement in the event of non-compliance with the term; in the second case, due diligence, information, and timely notification of delays may be required, whereas termination is not a remedy that may be automatically invoked in the event of a delay.

A useful instrument in this regard is the penalty clause: with this covenant, it is established that for each day/week/month of delay, a sum of money is due by way of damages in favor of the party harmed by the delay.

If quantified correctly and not excessively, the penalty is helpful for both parties because it makes it possible to predict the damages that may be claimed for the delay, quantifying them in a fair and determined sum. Consequently, the seller is not exposed to claims for damages related to factors beyond his control. At the same time, the buyer can easily calculate the compensation for the delay without the need for further proof.

The same mechanism, among other things, may be adopted to govern the buyer’s delay in accepting delivery of the goods.

Finally, it is a good idea to specify the limit of the penalty (e.g.,10 percent of the price of the goods) and a maximum period of grace for the delay, beyond which the party concerned is entitled to terminate the contract by retaining the penalty.

The Force Majeure clause in international sales contracts

A situation that is often confused with excessive onerousness, but is, in fact, quite different, is that of Force Majeure, i.e., the supervening impossibility of performance of the contractual obligation due to any event beyond the reasonable control of the party affected, which could not have been reasonably foreseen and the effects of which cannot be overcome by reasonable efforts.

The function of this clause is to set forth clearly when the parties consider that Force Majeure may be invoked, what specific events are included (e.g., a lock-down of the production plant by order of the authority), and what are the consequences for the parties‘ obligations (e.g., suspension of the obligation for a certain period, as long as the cause of impossibility of performance lasts, after which the party affected by performance may declare its intention to dissolve the contract).

If the wording of this clause is general (as is often the case), the risk is that it will be of little use; it is also advisable to check that the regulation of force majeure complies with the law applicable to the contract (here an in-depth analysis indicating the regime provided for by 42 national laws).

Applicable law and dispute resolution clauses

Suppose the customer or supplier is based abroad. In that case, several significant differences must be borne in mind: the first is the agreement’s language, which must be intelligible to the foreign party, therefore usually in English or another language familiar to the parties, possibly also in two languages with parallel text.

The second issue concerns the applicable law, which should be expressly indicated in the agreement. This subject matter is vast, and here we can say that the decision on the applicable law must be made on a case-by-case basis, intentionally: in fact, it is not always convenient to recall the application of the law of one’s own country.

In most international sales contracts, the 1980 Vienna Convention on the International Sale of Goods („CISG“) applies, a uniform law that is balanced, clear, and easy to understand. Therefore, it is not advisable to exclude it.

Finally, in a supply framework agreement with an international supplier, it is important to identify the method of dispute resolution: no solution fits all. Choosing a country’s jurisdiction is not always the right decision (indeed, it can often prove counterproductive).

A case recently decided by the Italian Supreme Court clarifies what the risks are for those who sell their products abroad without having paid adequate attention to the legal part of the contract (Order, Sec. 2, No. 36144 of 2022, published 12/12/2022).

Why it’s important: in contracts, care must be taken not only with what is written, but also with what is not written, otherwise there is a risk that implied warranties of merchantability will apply, which may make the product unsuitable for use, even if it conforms to the technical specifications agreed upon in the contract.

The international sales contract and the first instance decision

A German company had sued an Italian company in Italy (Court of Chieti) to have it ordered to pay the sales price of two invoices for supplies of goods (steel).

The Italian purchasing company had defended itself by claiming that the two invoices had been deliberately not paid, due to the non-conformity of three previous deliveries by the same German seller. It then counterclaimed for a finding of defects and a reduction in the price, to be set off against the other party’s claim, as well as damages.

In the first instance, the Court of Chieti had partially granted both the German seller’s demand for payment (for about half of the claim) and the buyer’s counterclaim.

The court-appointed technical expertise had found that the steel supplied by the seller, while conforming to the agreed data sheet, had a very low silicon value compared to the values at other manufacturers‘ steel; however, the trial judge ruled out this as a genuine defect.

The judgment of appeal

The Court of Appeals of L’Aquila, appealed to the second instance by the buyer, had reached a different conclusion than the Court of First Instance, significantly reducing the amount owed by the Italian buyer, for the following reasons:

• the regime of „implied warranties“ under Article 35 of the Vienna Convention on the International Sale of Goods of 11.4.80 („CISG,“ ratified in both Italy and Germany) applied, as the companies had business headquarters in two different countries, both of which were parties to the Convention;
• in particular, the chemical composition of the steel supplied by the seller, while not constituting a „defect“ in the product (i.e., an anomaly or imperfection) was nonetheless to be considered a „lack of conformity“ within the meaning of Articles 35(2)(a) and 36(1) of the CISG, as it rendered the steel unsuitable for the use for which goods of the same kind would ordinarily serve (also known as „warranty of merchantability“).

The ruling of the Supreme Court

The German seller then appealed to the Supreme Court against the Court of Appeals‘ ruling, stating in summary that, according to the CISG, the conformity or non-conformity of the goods must be assessed against what was agreed upon in the contract between the parties; and that the „warranty of merchantability“ should apply only in the absence of a precise agreement of the parties on the characteristics that the product must have.

However, the seller’s defense continued, in this case the Italian buyer had sent a data sheet including a summary table of the various chemical elements, where it was stated that silicon should be present in a percentage not exceeding 0.45, but no minimum percentage was indicated.

So, the fact that the percentage of silicon was significantly lower than that found on average in steel from other suppliers could not be considered a conformity defect, since, at the contract negotiation stage, the parties exchanging the data sheet had expressly agreed only on the maximum values, thus not considering the minimum values relevant to conformity.

The Supreme Court, however, disagreed with this reasoning and essentially upheld the Court of Appeals‘ ruling, rejecting the German seller’s appeal.

The Court recalled that, according to Article 35 first paragraph of the CISG, the seller must deliver goods whose quantity, quality and kind correspond to those stipulated in the contract and whose packaging and wrapping correspond to those stipulated in the contract; and that, for the second paragraph, „unless the parties agree otherwise, goods are in conformity with the contract only if: a) they are suitable for the uses for which goods of the same kind would ordinarily serve.“

Other guarantees are enumerated in paragraphs (b) to (d) of the same standard[1] . They are commonly referred to collectively as „implied warranties.“

The Court noted that the warranties in question, including the one of „merchantability“ just referred to, do not stand subordinate or subsidiary to contractual covenants; on the contrary, they apply unless expressly excluded by the parties.

It follows that, according to the Supreme Court, any intention of the parties to a sales contract to disapply the warranty of merchantability must „result from a specific provision agreed upon by the parties.„

In the present case, although the data sheet that was part of the contractual agreements was analytical and had included among the chemical characteristics of the material the percentage of silicon, the fact that only a maximum percentage was indicated and not also the minimum percentage was not sufficient to exclude the fact that, by virtue of the „implied guarantee“ of marketability, the minimum percentage should in any case conform to the average percentage of similar products existing on the market.

Since the „warranty of merchantability“ had not been expressly excluded between the parties by a specific contractual clause, the conformity of the goods to the contract still had to be evaluated in consideration of this implied warranty as well.

Conclusions

What should businesses that sell abroad keep in mind?

• In contracts for the sale of goods between companies based in two different countries, the CISG automatically applies in many cases, in preference to the domestic law of either the seller’s country or the buyer’s country.
• The CISG contains very important rules for the relationship between sellers and buyers, on warranties of conformity of goods with the contract and buyer’s remedies for breach of warranties.
• One can modify or even exclude these rules by drafting appropriate contracts or general conditions in writing.
• Parties may agree not to apply all or some of the „implied warranties“ (possibly replacing them with contractual warranties) just as they may exclude certain remedies (e.g., exclude or limit liability for damages, within certain limits). However, they must do so in clear and explicit clauses.
• For the „warranty of merchantability“ not to apply, according to the reasoning of the Italian Supreme Court, it is not enough not to mention it in the contract.
• It is not sufficient to attach an analytical description of the characteristics of the goods to the contract to exclude certain characteristics not mentioned but nevertheless present in similar products of other manufacturers, which can be used as a parameter for the conformity of the goods.
• Instead, it is necessary to include a clause in the contract expressly excluding this type of guarantee.

In other words, in contracts, one must pay attention not only to what is written but also to what is not written.

This case once again demonstrates the importance of drafting a proper and complete contract not only from a commercial, technical, and financial point of view but also from a legal point of view, using the expertise of a lawyer experienced in international commercial contracts.

Finally, it is important not to overlook applicable law and jurisdiction clauses. These aspects are unfortunately often overlooked, even in high-value negotiations, considering these clauses unimportant or even blocking for negotiation, only to regret them when litigation arises or even threatened. See an in-depth discussion here.

Many people think that the non-disclosure agreement (NDA) is the one and only necessary precaution in a negotiation. This is wrong, because this agreement only refers to a facet of the business relationship that the parties want to discuss or manage.

Why is it important

The function of the NDA is to maintain the confidentiality of certain information that the parties intend to exchange and to prevent it from being used for purposes on which the parties did not agree. However, many aspects of the negotiation are not regulated in the NDA.

The main issues that the parties should agree on in writing are the following:

• why do the parties want to exchange information?
• what is the ultimate scope to be achieved?
• on what general points do the parties already agree?
• how long will negotiations last?
• who will participate in the negotiations, and with what powers?
• what documents and information will be shared?
• are there any exclusivity and/or non-compete obligations during and after the negotiation?
• what law applies to the negotiations and how are potential disputes resolved?

If these questions are not answered, it is likely that misunderstandings and disputes will arise over time, especially in lengthy and complex negotiations with foreign counterparts.

How to proceed?

• It is advisable that the above agreements be set down in a Letter of Intent („LoI“) or Memorandum of Understanding („MoU“). These are preliminary agreements whose function is determining the scope of future negotiations, the timetable, and the rules to be observed during and after the negotiations.

Common objection

„These are non-binding contracts, so what is the point of using them if the parties are free not to comply?

• Some covenants may be binding (exclusivity during negotiation, non-competition, dispute settlement agreements), and some may not (with the freedom to conclude or not to conclude the agreement).
• In any case, agreeing on the negotiating roadmap is an advantage over operating without having set the negotiating guidelines.

What happens if no agreement is reached?

• The MoU usually expressly provides for each party to be free not to finalize the negotiation as long as that party behaves, keeps acting in good faith during the negotiations and preserves the other party’s rights.
• It should be noted that in case of early or unjustified termination of the negotiations by one of the parties, the other party may be entitled to damages (so-called pre-contractual liability) if the agreement and/or the law applicable to the contract so provide.

Then, when should a non-disclosure agreement be concluded?

• It can be executed at the same time as the MoU / LoI or immediately afterwards so that the specification of confidential information, the way it is used, the duration of confidentiality obligations, etc. are defined in a way that is consistent with the project the parties have agreed upon.

For more information on the content of confidentiality agreements, see this article.

Nach mehr als 30 Jahren Verhandlungen blickt die Welt nun auf das erste panafrikanische Handelsabkommen, welches 2019 in Kraft getreten ist: Die Afrikanische Kontinentale Freihandelszone (African Continental Free Trade Area – AfCFTA).

Afrika ist mit seinen 55 Ländern und rund 1,3 Milliarden Einwohnern nach Asien der zweitgrößte Kontinent der Welt. Das Potenzial des Kontinents ist enorm: Mehr als 50 % der afrikanischen Bevölkerung ist unter 20 Jahre alt, und die Bevölkerung wächst weltweit am schnellsten. Bis 2050 wird voraussichtlich jedes vierte Neugeborene aus Afrika stammen. Darüber hinaus ist der Kontinent reich an fruchtbaren Böden und Rohstoffen.

Für westliche Investoren hat Afrika in den letzten Jahren erheblich an Bedeutung gewonnen. So ist ein beachtliches internationales Handelsvolumen entstanden, das nicht zuletzt durch die 2017 von den G20-Staaten verabschiedete Initiative „Compact with Africa“, auch bekannt als „Marshallplan mit Afrika“, gefördert wird. Der Fokus liegt auf dem Ausbau der wirtschaftlichen Zusammenarbeit Afrikas mit den G20-Ländern durch die Stärkung privater Investitionen.

Zugleich stagnierte bislang jedoch der innerafrikanische Handel: Teilweise noch bestehende hohe innerafrikanische Zölle, nichttarifäre Handelshemmnisse (non-tariff barriers – NTBs), schwache Infrastruktur, Korruption, schwerfällige Bürokratie sowie intransparente und inkonsistente Regulierungen sorgten dafür, dass sich die interregionalen Exporte kaum entwickeln konnten und zuletzt nur 17 % des innerafrikanischen Handels und nur 0,36 % des Welthandels ausmachten. Schon lange hatte sich deshalb die Afrikanische Union (AU) die Schaffung einer gemeinsamen Handelszone auf ihre Agenda gesetzt.

Was verbirgt sich hinter AfCFTA?

Der Errichtung einer panafrikanischen Handelszone gingen jahrzehntelange Verhandlungen voraus, welche schließlich in das Inkrafttreten des AfCFTA am 30. Mai 2019 mündeten.

Das AfCFTA ist eine von ihren Mitgliedern errichtete Freihandelszone, die (mit Ausnahme Eritreas) den gesamten afrikanischen Kontinent umfasst und damit, gemessen an der Zahl der Mitgliedsstaaten nach der Welthandelsorganisation (World Trade Organization – WTO) die größte Freihandelszone der Welt ist.

Die Ausgestaltung des gemeinsamen Marktes war Gegenstand mehrerer Einzelverhandlungen, die in den Phasen I und II geführt wurden.

Phase I umfasst die Verhandlungen zu drei Protokollen und ist nahezu abgeschlossen.

Das Protokoll über den Handel mit Waren

Dieses Protokoll sieht die Abschaffung von 90 % aller innerafrikanischen Zölle in allen Warenkategorien innerhalb von fünf Jahren nach Inkrafttreten vor. Davon können bis zu 7 % der Waren als sensible Waren eingestuft werden, für die ein Zeitraum von zehn Jahren für die Beseitigung der Zölle gilt. Für die am wenigsten entwickelten Länder (Least Developed Countries – LDCs) wird die Vorbereitungszeit von fünf auf zehn Jahre und für sensible Waren von zehn auf dreizehn Jahre verlängert, sofern sie ihren Bedarf nachweisen. Die restlichen 3 % der Zölle sind vollständig vom Zollabbau ausgenommen.

Voraussetzung für den Zollabbau ist die klare Abgrenzung der Ursprungsregeln. Andernfalls könnten Einfuhren aus Drittländern von den ausgehandelten Zollvorteilen profitieren. Über die meisten Ursprungsregeln ist bereits eine Einigung erzielt worden.

Das Protokoll über den Handel mit Dienstleistungen

Die AU-Generalversammlung hat sich bisher auf fünf Schwerpunktbereiche (Verkehr, Kommunikation, Tourismus, Finanz- und Unternehmensdienstleistungen) und Leitlinien für die entsprechenden Verpflichtungen geeinigt. 47 AU-Mitgliedsstaaten haben bereits ihre Angebote für spezifische Verpflichtungen vorgelegt und die Überprüfung von 28 von ihnen ist abgeschlossen. Darüber hinaus sind die Verhandlungen, beispielsweise über die Anerkennung von Berufsqualifikationen, noch nicht abgeschlossen.

Das Protokoll über die Streitbeilegung

Mit dem Protokoll über Regeln und Verfahren für die Streitbeilegung schafft das AfCFTA ein Streitbeilegungssystem nach dem Vorbild der WTO-Streitbeilegungsvereinbarung. Das Streitbeilegungsgremium (Dispute Settlement Body – DSB) verwaltet das AfCFTA-Streitbeilegungsprotokoll und setzt ein Schiedsgericht (Adjudicating Panel – Panel) und ein Berufungsgremium (Appellate Body – AB) ein. Das DSB setzt sich aus einem Vertreter jedes Mitgliedstaates zusammen und wird tätig, sobald es zwischen den Vertragsstaaten Meinungsverschiedenheiten über die Auslegung und/oder Anwendung des Abkommens in Bezug auf ihre Rechte und Pflichten gibt.

Für die verbleibende Phase II sind Verhandlungen über Investitions- und Wettbewerbspolitik, Fragen des geistigen Eigentums, Online-Handel sowie Frauen und Jugend im Handel geplant, deren Ergebnisse in weitere Protokolle einfließen werden.

Die Umsetzung des AfCFTA

Grundsätzlich kann der Handel im Rahmen eines Handelsabkommens erst dann beginnen, wenn der rechtliche Rahmen endgültig steht. Die Staats- und Regierungschefs der AU haben jedoch im Dezember 2020 vereinbart, dass der Handel mit solchen Waren, für die die Verhandlungen abgeschlossen sind, beginnen kann. Im Rahmen dieser Übergangsregelung fand nach einer pandemiebedingten Verschiebung am 4. Januar 2021 die erste AfCFTA-Handelsabwicklung von Ghana nach Südafrika statt.

Bausteine der AfCFTA

Alle 55 Mitglieder der AU waren an den AfCFTA-Verhandlungen beteiligt. Davon gehören 47 zu mindestens einer der anerkannten Regionalen Wirtschaftsgemeinschaften (Regional Economic Communities – RECs), die gemäß der Präambel des AfCFTA-Abkommens weiterhin als Bausteine des Handelsabkommens dienen sollen. Folglich waren es die RECs, welche bei den AfCFTA-Verhandlungen für ihre jeweiligen Mitglieder auftraten. Das AfCFTA-Abkommen sieht vor, dass die RECs ihre Rechtsinstrumente, Institutionen und Streitbeilegungsmechanismen beibehalten.

Innerhalb der AU gibt es acht anerkannte regionale Wirtschaftsgemeinschaften, die sich in einigen Ländern überschneiden und bei denen es sich entweder um präferenzielle Handelsabkommen (Freihandelsabkommen) oder Zollunionen handelt.

Im Rahmen der AfCFTA haben die RECs verschiedene Aufgaben. Diese sind insbesondere:

• Koordinierung der Verhandlungspositionen und Unterstützung der Mitgliedsstaaten bei der Umsetzung des Abkommens
• Lösungsorientierte Mediation bei Unstimmigkeiten zwischen den Mitgliedsstaaten
• Unterstützung der Mitgliedsstaaten bei der Harmonisierung von Zöllen und anderen Grenzschutzbestimmungen
• Förderung der Nutzung des AfCFTA-Meldeverfahrens zum Abbau von NTBs

Ausblick auf das AfCFTA

Das AfCFTA hat das Potenzial, die Integration Afrikas in die Weltwirtschaft zu erleichtern und schafft die reale Möglichkeit einer Neuausrichtung der internationalen Integrations- und Kooperationsmuster.

Ein Handelsabkommen allein ist noch keine Garantie für wirtschaftlichen Erfolg. Damit das Abkommen den prognostizierten Durchbruch erzielt, müssen die Mitgliedstaaten den politischen Willen haben, die neuen Regeln konsequent umzusetzen und die dafür notwendigen Kapazitäten zu schaffen. Insbesondere die kurzfristige Beseitigung von Handelshemmnissen und die Schaffung einer nachhaltigen physischen und digitalen Infrastruktur dürften entscheidend sein.

Wenn Sie sich für das AfCFTA interessieren, können Sie hier eine erweiterte Version dieses Artikels lesen.

Der Legalmondo African Desk

Mit unseren Experten in Ägypten, Marokko, Algerien, Tunesien, Libyen, Sudan, Kamerun, Côte d’Ivoire, Ghana, Senegal und Malawi unterstützen wir Unternehmen bei Investitionen und Geschäftsvorhaben in Afrika.

Ausländische Unternehmen in afrikanischen Ländern, in denen wir nicht direkt mit einem Büro vertreten sind, können wir auch über unser Netzwerk von lokalen Partnern unterstützen.

Wie es funktioniert

• Wir vereinbaren ein Treffen (persönlich oder online) mit einem unserer Experten, um die Bedürfnisse des Mandanten zu verstehen.
• Sobald wir die Zusammenarbeit aufgenommen haben, begleiten wir den Mandanten mit einem Rechtsanwalt bei all seinen rechtlichen Angelegenheiten (einzelne Fälle oder laufende rechtliche Unterstützung)

Nehmen Sie Kontakt auf, um mehr zu erfahren.

Zusammenfassung

Anhand der Geschichte von Nike, die sich aus der Biografie des Gründers Phil Knight ableitet, lassen sich einige Lehren  für internationale Vertriebsverträge ziehen: Wie man den Vertrag aushandelt, die Vertragsdauer festlegt, die Exklusivität und die Geschäftsziele definiert und die richtige Art der Streitschlichtung bestimmt.

Worüber ich in diesem Artikel spreche

• Der Streit zwischen Blue Ribbon und Onitsuka Tiger und die Geburt von Nike
• Wie man eine internationale Vertriebsvereinbarung aushandelt
• Vertragliche Exklusivität in einer Handelsvertriebsvereinbarung
• Mindestumsatzklauseln in Vertriebsverträgen
• Vertragsdauer  und Kündigungsfrist
• Eigentum an Marken in Handelsverträgen
• Die Bedeutung der Mediation bei internationalen Handelsverträgen
• Streitbeilegungsklauseln in internationalen Verträgen
• Wie wir Ihnen helfen können

Der Streit zwischen Blue Ribbon und Onitsuka Tiger und die Geburt von Nike

Warum ist die berühmteste Sportbekleidungsmarke der Welt Nike und nicht Onitsuka Tiger?
Die Biographie des Nike-Schöpfers Phil Knight mit dem Titel “Shoe Dog” gibt hierauf antworten und ist nicht nur für Liebhaber des Genres eine absolut empfehlenswerte Lektüre.

Bewegt von seiner Leidenschaft für den Laufsport und seiner Intuition, dass es auf dem amerikanischen Sportschuhmarkt, der damals von Adidas dominiert wurde, eine Lücke gab, importierte Knight 1964 als erster überhaupt eine japanische Sportschuhmarke, Onitsuka Tiger, in die USA.  Mit diesen Sportschuhen konnte sich Knight innerhalb von 6 Jahren einen Marktanteil von satten 70 % sichern.

Das von Knight und seinem ehemaligen College-Trainer Bill Bowerman gegründete Unternehmen hieß damals noch Blue Ribbon Sports.

Die Geschäftsbeziehung zwischen Blue Ribbon-Nike und dem japanischen Hersteller Onitsuka Tiger  gestaltete sich trotz der sehr guten Verkaufszahlen und den postiven Wachstumsaussichten von  Beginn an als sehr turbulent.

Als Knight dann kurz nach der Vertragsverlängerung mit dem japanischen Hersteller erfuhr, dass Onitsuka in den USA nach einem anderen Vertriebspartner Ausschau hielt , beschloss Knight  – aus Angst, vom Markt ausgeschlossen zu  werden –  sich seinerseits mit einem anderen japanischen Lieferanten zusammenzutun und seine eigene Marke zu gründen. Damit war die spätere Weltmarke Nike geboren.

Als der japanische Hersteller Onitsuka von dem Nike-Projekt erfuhr, verklagte dieser  Blue Ribbon wegen  Verstoß gegen das Wettbewerbsverbot,  welches dem Vertriebshändler die Einfuhr anderer in Japan hergestellter Produkte untersagte, und beendete die Geschäftsbeziehung mit sofortiger Wirkung.

Blue Ribbon führte hiergegen an, dass der Verstoß von dem Hersteller Onitsuka Tiger ausging, der  sich bereits als der Vertrag noch in Kraft war und die Geschäfte mehr als gut liefen mit anderen potenziellen Vertriebshändlern getroffen hatte.

Diese Auseinandersetzung führte zu zwei Gerichtsverfahren, eines in Japan und eines in den USA, die der Geschichte von Nike ein vorzeitiges Ende hätten setzen können.

Zum Glück (für Nike) entschied der amerikanische Richter zu Gunsten des Händlers und der Streit wurde mit einem Vergleich beendet: Damit begann für Nike die Reise, die sie 15 Jahre später zur wichtigsten Sportartikelmarke der Welt machen sollte.

Wir werden sehen, was uns die Geschichte von Nike lehrt und welche Fehler bei einem internationalen Vertriebsvertrag tunlichst vermieden werden sollten.

Wie verhandelt man eine internationale Handelsvertriebsvereinbarung?

In seiner Biografie schreibt Knight, dass er bald bedauerte, die Zukunft seines Unternehmens an eine eilig verfasste, wenige Zeilen umfassende Handelsvereinbarung gebunden zu haben, die am Ende einer Sitzung zur Aushandlung der Erneuerung des Vertriebsvertrags geschlossen wurde.

Was beinhaltete diese Vereinbarung?

Die Vereinbarung sah lediglich die Verlängerung des Rechts von Blue Ribbon vor, die Produkte in den USA exklusiv zu vertreiben, und zwar für weitere drei Jahre.

In der Praxis kommt es  häufig vor, dass sich internationale Vertriebsverträge auf mündliche Vereinbarungen oder sehr einfache Vertragswerke mit kurzer Dauer beschränken. Die übliche Erklärung dafür ist, dass es auf diese Weise möglich ist, die Geschäftsbeziehung zu testen, ohne die vertragliche Bindung zu eng werden zu lassen.

Diese Art, Geschäfte zu machen, ist jedoch nicht zu empfehlen  und kann sogar gefährlich werden: Ein  Vertrag sollte niemals  als Last oder Zwang angesehen werden, sondern als Garantie für die Rechte beider Parteien. Einen schriftlichen Vertrag nicht oder nur sehr übereilt abzuschließen, bedeutet, grundlegende Elemente der künftigen Beziehung, wie die, die zum Streit zwischen Blue Ribbon und Onitsuka Tiger führten, ohne klare Vereinbarungen zu belassen: Hierzu gehören Aspekte wie Handelsziele, Investitionen, das Eigentum an Marken – um nur einige zu benennen.

Handelt es sich zudem um einen internationalen Vertrag, ist die Notwendigkeit einer vollständigen und ausgewogenen Vereinbarung noch größer, da in Ermangelung von Vereinbarungen zwischen den Parteien oder in Ergänzung zu diesen Vereinbarungen ein Recht zur Anwendung kommt, mit dem eine der Parteien nicht vertraut ist, d. h. im Allgemeinen das Recht des Landes, in dem der Händler seinen Sitz hat.

Auch wenn Sie sich nicht in einer Blue-Ribbon-Situation befinden, in der es sich um einen Vertrag handelt, von dem die Existenz des Unternehmens abhängt, sollten internationale Verträge stets mit Hilfe eines fachkundigen Anwalts besprochen und ausgehandelt werden, der das auf den Vertrag anwendbare Recht kennt und dem Unternehmer helfen kann, die wichtigen Vertragsklauseln zu ermitteln und auszuhandeln.

Territoriale Exklusivität, kommerzielle Ziele und Mindestumsatzziele

Anlass für den Konflikt zwischen Blue Ribbon und Onitsuka Tiger war zunächst einmal die Bewertung der Absatzentwicklung auf dem US-Markt.

Onitsuka argumentierte, dass der Umsatz unter dem Potenzial des US-Marktes liege, während nach Angaben von Blue Ribbon die Verkaufsentwicklung sehr positiv sei, da sich der Umsatz bis zu diesem Zeitpunkt jedes Jahr verdoppelt habe und ein bedeutender Anteil des Marktsektors erobert worden sei.

Als Blue Ribbon erfuhr, dass Onituska andere Kandidaten für den Vertrieb seiner Produkte in den USA prüfte, und befürchtete, damit bald vom Markt verdrängt zu werden , bereitete Blue Ribbon die Marke Nike als Plan B vor: Als der  japanische Hersteller diese Marke entdeckte , kam es zu einem Rechtsstreit zwischen den Parteien, der zu einem Eklat führte.

Der Streit hätte vielleicht vermieden werden können, wenn sich die Parteien auf kommerzielle Ziele geeinigt hätten und der Vertrag eine in Alleinvertriebsvereinbarungen übliche Klausel enthalten hätte, d.h. ein Mindestabsatzziel für den Vertriebshändler.

In einer Alleinvertriebsvereinbarung gewährt der Hersteller dem Händler einen starken Gebietsschutz für die Investitionen, die der Händler zur Erschließung des zugewiesenen Marktes tätigt.

Um dieses  Zugeständnis der Exklusivität auszugleichen, ist es üblich, dass der Hersteller vom Vertriebshändler einen so genannten garantierten Mindestumsatz oder ein Mindestziel verlangt, das der Vertriebshändler jedes Jahr erreichen muss, um den ihm gewährten privilegierten Status zu behalten.

Für den Fall, dass das Mindestziel nicht erreicht wird, sieht der Vertrag dann in der Regel vor, dass der Hersteller das Recht hat, vom Vertrag zurückzutreten (bei einem unbefristeten Vertrag) oder den Vertrag nicht zu verlängern (bei einem befristeten Vertrag) oder aber auch die Gebietsexklusivität aufzuheben bzw.  einzuschränken.

Der Vertrag zwischen Blue Ribbon und Onitsuka Tiger sah derartige  Zielvorgaben nicht vor – und das nachdem er gerade erst um drei Jahre verlängert wurde. Hinzukam, dass sich die Parteien bei der Bewertung der Ergebnisse des Vertriebshändlers nicht einig waren. Es stellt sich daher die Frage: Wie können in einem Mehrjahresvertrag Mindestumsatzziele vorgesehen werden?

In Ermangelung zuverlässiger Daten verlassen sich die Parteien häufig auf vorher festgelegte prozentuale Erhöhungsmechanismen: + 10 % im zweiten Jahr, + 30 % im dritten Jahr, + 50 % im vierten Jahr und so weiter.

Das Problem bei diesem Automatismus ist, dass dadurch  Zielvorgaben vereinbart werden, die nicht auf tatsächlichen Daten über die künftige Entwicklung der Produktverkäufe, der Verkäufe der Wettbewerber und des Marktes im Allgemeinen basieren , und die daher sehr weit von den aktuellen Absatzmöglichkeiten des Händlers entfernt sein können.

So wäre beispielsweise die Anfechtung des Vertriebsunternehmens wegen Nichterfüllung der Zielvorgaben für das zweite oder dritte Jahr in einer rezessiven Wirtschaft sicherlich eine fragwürdige Entscheidung, die wahrscheinlich zu Meinungsverschiedenheiten führen würde.

Besser wäre eine Klausel, mit der Ziele von Jahr zu Jahr einvernehmlich festgelegt werden. Diese besagt, dass die Ziele zwischen den Parteien unter Berücksichtigung der Umsatzentwicklung in den vorangegangenen Monaten und mit einer gewissen Vorlaufzeit vor Ende des laufenden Jahres vereinbart werden.  Für den Fall, dass keine Einigung über die neue Zielvorgabe zustande kommt, kann der Vertrag vorsehen, dass die Zielvorgabe des Vorjahres angewandt wird oder dass die Parteien das Recht haben, den Vertrag unter Einhaltung einer bestimmten Kündigungsfrist zu kündigen.

Andererseits kann die Zielvorgabe auch als Anreiz für den Vertriebshändler dienen: So kann z. B. vorgesehen werden, dass bei Erreichen eines bestimmten Umsatzes die Vereinbarung erneuert, die Gebietsexklusivität verlängert oder ein bestimmter kommerzieller Ausgleich für das folgende Jahr gewährt wird.

Eine letzte Empfehlung ist die korrekte Handhabung der Mindestzielklausel, sofern sie im Vertrag enthalten ist: Es kommt häufig vor, dass der Hersteller die Erreichung des Ziels für ein bestimmtes Jahr bestreitet, nachdem die Jahresziele über einen langen Zeitraum hinweg nicht erreicht oder nicht aktualisiert wurden, ohne dass dies irgendwelche Konsequenzen hatte.

In solchen Fällen ist es möglich, dass der Händler behauptet, dass ein impliziter Verzicht auf diesen vertraglichen Schutz vorliegt und der Widerruf daher nicht gültig ist: Um Streitigkeiten zu diesem Thema zu vermeiden, ist es ratsam, in der Mindestzielklausel ausdrücklich vorzusehen, dass die unterbliebene Anfechtung des Nichterreichens des Ziels während eines bestimmten Zeitraums nicht bedeutet, dass auf das Recht, die Klausel in Zukunft zu aktivieren, verzichtet wird.

Die Kündigungsfrist für die Beendigung eines internationalen Vertriebsvertrags

Der andere Streitpunkt zwischen den Parteien war die Verletzung eines Wettbewerbsverbots: Blue Ribbon verkaufte die Marke Nike , obwohl der Vertrag den Verkauf anderer in Japan hergestellter Schuhe untersagte.

Onitsuka Tiger behauptete, Blue Ribbon habe gegen das Wettbewerbsverbot verstoßen, während der Händler die Ansicht vertrat , dass er angesichts der bevorstehenden Entscheidung des Herstellers, die Vereinbarung zu kündigen, keine andere Wahl hatte.

Diese Art von Streitigkeiten kann vermieden werden, indem für die Beendigung (oder Nichtverlängerung) eine klare Kündigungsfrist festgelegt wird: Diese Frist hat die grundlegende Funktion, den Parteien die Möglichkeit zu geben, sich auf die Beendigung der Beziehung vorzubereiten und ihre Aktivitäten nach der Beendigung neu zu organisieren.

Um insbesondere Streitigkeiten wie die zwischen Blue Ribbon und Onitsuka Tiger zu vermeiden, kann in einem internationalen Vertriebsvertrag vorgesehen werden, dass die Parteien während  der Kündigungsfristmit anderen potenziellen Vertriebshändlern und Herstellern in Kontakt treten können und dass dies nicht gegen die Ausschließlichkeits- und Wettbewerbsverpflichtungen verstößt.

Im Fall von Blue Ribbon war der Händler über die bloße Suche nach einem anderen Lieferanten hinaus sogar noch einen Schritt weiter gegangen, da er begonnen hatte, Nike-Produkte zu verkaufen, während der Vertrag mit Onitsuka noch gültig war. Dieses Verhalten stellt einen schweren Verstoß gegen  die getroffene Ausschließlichkeitsvereinbarung dar.

Ein besonderer Aspekt, der bei der Kündigungsfrist zu berücksichtigen ist, ist die Dauer: Wie lang muss die Kündigungsfrist sein, um als fair zu gelten? Bei langjährigen Geschäftsbeziehungen ist es wichtig, der anderen Partei genügend Zeit einzuräumen, um sich auf dem Markt neu zu positionieren, nach alternativen Vertriebshändlern oder Lieferanten zu suchen oder (wie im Fall von Blue Ribbon/Nike) eine eigene Marke zu schaffen und einzuführen.

Ein weiteres Element, das bei der Mitteilung der Kündigung zu berücksichtigen ist, besteht darin, dass die Kündigungsfrist so bemessen sein muss, dass der Vertriebshändler die zur Erfüllung seiner Verpflichtungen während der Vertragslaufzeit getätigten Investitionen amortisieren kann; im Fall von Blue Ribbon hatte der Vertriebshändler auf ausdrücklichen Wunsch des Herstellers eine Reihe von Einmarkengeschäften sowohl an der West- als auch an der Ostküste der USA eröffnet.

Eine Kündigung des Vertrags kurz nach seiner Verlängerung und mit einer zu kurzen Vorankündigung hätte es dem Vertriebshändler nicht erlaubt, das Vertriebsnetz mit einem Ersatzprodukt neu zu organisieren, was die Schließung der Geschäfte, die die japanischen Schuhe bis zu diesem Zeitpunkt verkauft hatten, erzwungen hätte.

Im Allgemeinen ist es ratsam, eine Kündigungsfrist von mindestens 6 Monaten vorzusehen. Bei internationalen Vertriebsverträgen sollten jedoch neben den von den Parteien getätigten Investitionen auch etwaige spezifische Bestimmungen des auf den Vertrag anwendbaren Rechts (hier z. B. eine eingehende Analyse der plötzlichen Kündigung von Verträgen in Frankreich) oder die Rechtsprechung zum Thema Rücktritt von Geschäftsbeziehungen beachtet werden (in einigen Fällen kann die für einen langfristigen Vertriebskonzessionsvertrag als angemessen erachtete Frist 24 Monate betragen).

Schließlich ist es normal, dass der Händler zum Zeitpunkt des Vertragsabschlusses noch im Besitz von Produktvorräten ist: Dies kann problematisch sein, da der Händler in der Regel die Vorräte auflösen möchte (Blitzverkäufe oder Verkäufe über Internetkanäle mit starken Rabatten), was der Geschäftspolitik des Herstellers und der neuen Händler zuwiderlaufen kann.

Um diese Art von Situation zu vermeiden, kann in den Vertriebsvertrag eine Klausel aufgenommen werden, die das Recht des Herstellers auf Rückkauf der vorhandenen Bestände bei Vertragsende regelt, wobei der Rückkaufpreis bereits festgelegt ist (z. B. in Höhe des Verkaufspreises an den Händler für Produkte der laufenden Saison, mit einem Abschlag von 30 % für Produkte der vorangegangenen Saison und mit einem höheren Abschlag für Produkte, die mehr als 24 Monate zuvor verkauft wurden).

Markeninhaberschaft in einer internationalen Vertriebsvereinbarung

Im Laufe der Vertriebsbeziehung hatte Blue Ribbon eine neuartige Sohle für Laufschuhe entwickelt und die Marken Cortez und Boston für die Spitzenmodelle der Kollektion geprägt, die beim Publikum sehr erfolgreich waren und große Popularität erlangten: Bei Vertragsende beanspruchten nun beide Parteien das Eigentum an den Marken.

Derartige Situationen treten häufig in internationalen Vertriebsbeziehungen auf: Der Händler lässt die Marke des Herstellers in dem Land, in dem er tätig ist, registrieren, um Konkurrenten daran zu hindern, dies zu tun, und um die Marke im Falle des Verkaufs gefälschter Produkte schützen zu können; oder es kommt vor, dass der Händler, wie in dem hier behandelten Streitfall, an der Schaffung neuer, für seinen Markt bestimmter Marken mitwirkt.

Am Ende der Geschäftsbeeziehung, wenn keine klare Vereinbarung zwischen den Parteien vorliegt, kann es zu einem Streit wie im Fall Nike kommen: Wer ist der Eigentümer der Marke – der Hersteller oder der Händler?

Um Missverständnisse zu vermeiden, ist es ratsam, die Marke in allen Ländern zu registrieren, in denen die Produkte vertrieben werden, und nicht nur dort: Im Falle Chinas zum Beispiel ist es ratsam, die Marke auch dann zu registrieren, wenn sie dort nicht vertreiben wird, um zu verhindern, dass Dritte die Marke in böser Absicht übernehmen (weitere Informationen finden Sie in diesem Beitrag auf Legalmondo).

Es ist auch ratsam, in den Vertriebsvertrag eine Klausel aufzunehmen, die dem Händler die Eintragung der Marke (oder ähnlicher Marken) in dem Land, in dem er tätig ist, untersagt und dem Hersteller ausdrücklich das Recht einräumt, die Übertragung der Marke zu verlangen, falls dies dennoch geschieht.

Eine solche Klausel hätte die Entstehung des Rechtsstreits zwischen Blue Ribbon und Onitsuka Tiger verhindert.

Der von uns geschilderte Sachverhalt stammt aus dem Jahr 1976: Heutzutage ist es ratsam, im Vertrag nicht nur die Eigentumsverhältnisse an der Marke und die Art und Weise der Nutzung durch den Händler und sein Vertriebsnetz zu klären, sondern auch die Nutzung der Marke wie auch der Unterscheidungszeichen des Herstellers in den Kommunikationskanälen, insbesondere in den sozialen Medien, zu regeln.

Es ist ratsam, eindeutig festzulegen, dass niemand anderes als der Hersteller Eigentümer der Social-Media-Profile wie auch der erstellten Inhalte und der Daten ist, die durch die Verkaufs-, Marketing- und Kommunikationsaktivitäten in dem Land, in dem der Händler tätig ist, generiert werden, und dass er nur die Lizenz hat, diese gemäß den Anweisungen des Eigentümers zu nutzen.

Darüber hinaus ist es sinnvoll, in der Vereinbarung festzulegen, wie die Marke verwendet wird und welche Kommunikations- und Verkaufsförderungsmaßnahmen auf dem Markt ergriffen werden, um Initiativen zu vermeiden, die negative oder kontraproduktive Auswirkungen haben könnten.

Die Klausel kann auch durch die Festlegung von Vertragsstrafen für den Fall verstärkt werden, dass sich der Händler bei Vertragsende weigert, die Kontrolle über die digitalen Kanäle und die im Rahmen der Geschäftstätigkeit erzeugten Daten zu übertragen.

Mediation in internationalen Handelsverträgen

Ein weiterer interessanter Punkt, der sich am  Fall Blue Ribbon vs. Onitsuka Tiger erläutern lässt , steht im Zusammenhang mit der Bewältigung von Konflikten in internationalen Vertriebsbeziehungen: Situationen wie die, die wir gesehen haben, können durch den Einsatz von Mediation effektiv gelöst werden.

Dabei handelt es sich um einen Schlichtungsversuch, mit dem ein spezialisiertes Gremium oder ein Mediator betraut wird, um eine gütliche Einigung zu erzielen und ein Gerichtsverfahren zu vermeiden.

Die Mediation kann im Vertrag als erster Schritt vor einem eventuellen Gerichts- oder Schiedsverfahren vorgesehen sein oder sie kann freiwillig im Rahmen eines bereits laufenden Gerichts- oder Schiedsverfahrens eingeleitet werden.

Die Vorteile sind vielfältig: Der wichtigste ist die Möglichkeit, eine wirtschaftliche  Lösung zu finden, die die Fortsetzung der Beziehung ermöglicht, anstatt nur nach Wegen zur Beendigung der Geschäftsbeziehung zwischen den Parteien zu suchen.

Ein weiterer interessanter Aspekt der Mediation ist die Überwindung von persönlichen Konflikten: Im Fall Blue Ribbon vs. Onitsuka zum Beispiel war ein entscheidendes Element für die Eskalation der Probleme zwischen den Parteien die schwierige persönliche Beziehung zwischen dem CEO von Blue Ribbon und dem Exportmanager des japanischen Herstellers, die durch starke kulturelle Unterschiede verschärft wurde.

Der Mediationsprozess führt eine dritte Person ein, die in der Lage ist, einen Dialog mit den Parteien zu führen und sie bei der Suche nach Lösungen von gegenseitigem Interesse zu unterstützen, was entscheidend sein kann, um Kommunikationsprobleme oder persönliche Feindseligkeiten zu überwinden.

Für alle, die sich für dieses Thema interessieren, verweisen wir auf den hierzu verfassten  Beitrag auf Legalmondo sowie  auf die Aufzeichnung eines kürzlich durchgeführten Webinars zur Mediation internationaler Konflikte.

Streitbeilegungsklauseln in internationalen Vertriebsvereinbarungen

Der Streit zwischen Blue Ribbon und Onitsuka Tiger führte dazu, dass die Parteien zwei parallele Gerichtsverfahren einleiteten, eines in den USA (durch den  Händler) und eines in Japan (durch den  Hersteller).

Dies war nur deshalb  möglich, weil der Vertrag nicht ausdrücklich vorsah, wie etwaige künftige Streitigkeiten beigelegt werden sollten.  In der Konsequenz führte dies zu einer prozessual sehr komplizierten Situation mit gleich zwei gerichtlichen Fronten in verschiedenen Ländern.

Die Klauseln, die festlegen, welches Recht auf einen Vertrag anwendbar ist und wie Streitigkeiten beigelegt werden, werden in der Praxis als „Mitternachtsklauseln“ bezeichnet, da sie oft die letzten Klauseln im Vertrag sind, die spät in der Nacht ausgehandelt werden.

Es handelt sich hierbei  um sehr wichtige Klauseln, die bewusst gewählt  werden müssen, um unwirksame oder kontraproduktive Lösungen zu vermeiden.

Wie wir Ihnen helfen können

Der Abschluss eines internationalen Handelsvertriebsvertrags ist eine wichtige Investition, denn er regelt die vertragliche Beziehungen zwischen den Parteien verbindlich für die Zukunft  und gibt ihnen die Instrumente an die Hand, um alle Situationen zu bewältigen, die sich aus der künftigen Zusammenarbeit ergeben werden.

Es ist nicht nur wichtig, eine korrekte, vollständige und ausgewogene Vereinbarung auszuhandeln und abzuschließen, sondern auch zu wissen, wie sie im Laufe der Jahre zu handhaben ist, vor allem, wenn Konfliktsituationen auftreten.

Legalmondo bietet Ihnen die Möglichkeit, mit Anwälten zusammenzuarbeiten, die in mehr als 50 Ländern Erfahrung im internationalen Handelsvertrieb haben:  Bei bestehendem Beratungsbedarf schreiben Sie uns.

Article 442-1.II of the French Commercial Code (former Article L. 442-6.I.5 °) sanctions the termination by a trader of a written contract or an informal business relationship without giving sufficient written prior notice. Over the last twenty years, this article became the recurring legal basis for all compensation actions (up to 18 months of gross margin, plus other damages) when a commercial relationship or a contract ends (totally or even partially).

Therefore, a foreign trader who contracts with a French company should try not to fall under the aegis of this rule (part I) and, if it cannot, should understand and control its implementation (part II).

In a nutshell:

How can a foreign company avoid or control the risk linked to the „sudden termination of commercial relations“ set by French law? Foreign companies doing business with a French counterpart should:

– enter, as soon as possible, into a written (frame) agreement with their French suppliers or customers, even for a very simple relation and;

– stipulate a clause in favour of foreign court or arbitration and foreign applicable law while, failing to choose it, they would rather be subject to French courts and laws;

How can a foreign company master the risk linked to the „sudden termination of commercial relations“ set by French law? Foreign companies doing business with a French counterpart should:

• know that this article applies to almost all type of commercial relationship or contracts, whether written or not, fixed-term or not;
• check whether its relation/contract is sufficiently long, regular and significant and whether the other party has a legitimate belief in the continuation of this relation/contract;
• give a written notice of termination or non-renewal (or even of a major modification), which length takes mainly into account the duration of the relation, irrespectively of the length of the contractual notice;
• invoke, with cautiousness, force majeure and gross negligence of the party, to set aside “sudden termination”;
• anticipate, in case of insufficient notice, a compensation which amount is the product of the average monthly gross margin per the length of non-granted prior notice.

How to avoid the application of the French “Sudden Termination” rule?

In international matters, a foreign company must anticipate whether its relationship will be subject or not to French law before terminating a contract or a business relationship and, in case of dispute, whether it will be brought before a French court or not.

What will be the law applicable to “Sudden Termination”?

It is quite difficult for a foreign company to correctly grasp the French legal framework of conflict of laws rules applicable to “sudden termination”. In a ruling of September 19, 2018 (RG 16/05579, DES/ Clarins), the Court of appeal of Paris made, by an implicit reference to the Granarolo EU ruling (07 14 16, N°C196/15) an extension of the contractual qualification to most of the business relationships which will improve foreseeability in order for a foreign company to try to exclude French law and its “sudden termination” rule.

Sudden termination of a written contract or of a „tacit contractual relationship”

According to Rome I Regulation (EC No 593/2008, June 17 2008) on the law applicable to contracts:

– In case of choice of a foreign law by the parties: The clause selecting a foreign applicable law will be valid and respected by French judges (subject to OMR, see below), provided that the choice of law by the parties is express or certain.

– In case of no choice by the parties: French law will likely to be declared applicable as it might be either the law of the country where is based the distributor/franchisee, etc. or the law of the country where the party who is to provide the service features of the contract has its domicile.

Sudden termination of a “non-tacit contractual relationship”

In case of informal relationship (i.e. orders placed from time to time), French judges would retain the tort qualification and will refer to the Rome II Regulation (No 864/2007, July 11 2007) on the law applicable to non-contractual obligations..

– In case of choice of a foreign law by the parties: a properly drafted choice of foreign law clause should be implemented by a French judge, provided that it expressly includes tort cases.

– In case of no choice of law by the parties: French law will likely to be declared applicable as it might be the law of the country where the damage occurs (regardless of the place of the causing event or that of the indirect consequences), which is the place of the head office where the French victim suffers the consequences of the termination.

“Sudden Termination” rule, a French Overriding Mandatory Rule?

The position of French courts is quite vague and unsatisfactory, and this has been the case for a long time. To make it short: the Commercial Court of Paris judges that “sudden termination” is not an OMR, the Court of appeal of Paris (sole French appellate court in charge of “sudden termination” cases) is also not in favour of the OMR qualification on the grounds that the text „protects purely private economic interests“ (CA Paris, pôle 5, ch. 5, Feb 28. 2019, n° 17/16475 / CA Paris, pôle 5, ch. 5, Oct 8. 2020, n°17/19893). Recently, the Paris Court of Appeal reaffirmed that the rules on sudden termination of established commercial relations are not an OMR (Court of appeal Paris, March 11, 2021, n° 18/03112).

The French Supreme Court has never explicitly addressed the issue (OMR or not OMR). Indeed, the French Supreme Court ruled in the Expedia case (Cass. com., July 8, 2020, n°17-31.536) that the provisions of the former article L. 442-6, I, 2º and II, d), about “significant imbalance” (which is in the same set of rules than “Sudden termination”) are OMR. However, this qualification should be limited to the specific action brought by the Ministry of Finance and not be applicable to an action by a private party. Moreover, some courts may be tempted to invoke the provisions of French law n°2023-221 (March 30, 2023, aka Egalim III) to qualify Sudden termination rule as an OMR, however this text (article L 444-1.A Commercial code) does not quote expressly OMR and set no justification whatsoever to set such a qualification.

Consequently, if a claim for “sudden termination” is brought to a French court, there is still a  risk that the latter would exclude the applicable foreign law and replace it with the regime resulting from the „sudden termination“ of Article L 442-1. II. However, to avoid this risk, a foreign company would better not only choose a foreign governing law but also stipulate that the dispute will be brought before a foreign judge or an arbitral tribunal.

How to avoid jurisdiction of French court over a “Sudden Termination” claim?

“Sudden Termination” claim and intra EU co-contractor

The ECJ ruling (Granarolo, July 14, 2016, N°C196/15) created a distinction between claims occurring from:

– written framework contract or tacit contractual relationship (existing only if the body of evidences listed by the ECJ are identified by national judges, i.e. length of relation and commitments recognized to each other, such as exclusivity, special price or terms of delivery or payment, non-competition, etc.): such claim has a contractual nature according to conflict of jurisdiction rules under Brussels I recast Regulation;

– informal relationship which is a non–tacit contractual relationship (i.e. orders placed from time to time): such a request has a tort nature under Brussels I recast ;

To be noted: the so-called Egalim III law has no impact on the EU rules on jurisdiction clauses.

(a) Who is the Judge of the “sudden termination” of a written contract or of a „tacit contractual relationship”?

– Jurisdiction clause for the benefit of a foreign court will be enforced by French courts, even though it is an asymmetrical clause (Court of cassation, October 7, 2015, Ebizcuss.com / Apple Sales International).

– In case of lack of choice of court clause, French courts are likely to have jurisdiction if the French claimant bringing a case based on “sudden termination» is the service provider, such as distributor, agent, etc. (see ECJ Corman Collins case, 19 12 13, C-9/12, and article 7.1.b.2 of Brussels I recast°).

(b) Who is the Judge of the “sudden termination” of a „non- tacit contractual relationship”?

– We believe that French courts may continue to give effect to a jurisdiction clause in tort case, especially when it expressly encompasses tort litigation (Court of cassation, 1° Ch. Civ., January 18, 2017, n° 15-26105, Riviera Motors / Aston Martin Lagonda Ltd).

– In case of lack of choice of court clause, French courts will have jurisdiction over a “sudden termination” claim as the judge of the place where the harmful event occurred (art. 7.3 of Brussels I recast), which is the place where the sudden termination has effect…i.e. in France if the French company is the victim.

“Sudden Termination” claim and Non-EU co-contractor

The Granarolo solution will not ipso facto apply if a French victim brings a claim to French courts, based on a „sudden termination“ made by a non-EU company. In non-EU relations, French judges could continue to retain only the tort qualification. In such a case, French courts may keep their jurisdiction based on the place where the harmful event occurs.

Jurisdiction clause to a foreign court may be recognized in France (even for tort-based claims), provided that this jurisdiction clause is valid according to either a bilateral international convention or to the Hague Convention of 30 June 2005 on choice of court agreements. Otherwise, according to Egalim III law, imperative jurisdiction might be attributable to French courts.

“Sudden Termination” claim and arbitration

Stipulating an ad hoc or institutional arbitration clause is probably the safest solution to avoid the jurisdiction of French courts. Ideally, the clause will fix the seat of the arbitral tribunal outside France. According to the principle of competence-competence of the arbitrators, French courts declare themselves incompetent, unless the arbitration clause is manifestly void or manifestly inapplicable, regardless of contract or tort ground (see, in particular, Paris Court of Appeal, 5 September 2019, n°17/03703). The so-called “Egalim III” law has no impact on arbitration clauses.

Conclusion: Foreign companies should not leave open the Jurisdiction and governing Law issues. They must negotiate a safe harbour, otherwise a French victim of a termination will likely to be entitled to bring a “sudden termination” claim in front of French judges (see what happen below in Part 2)

How to master the “Sudden Termination” French rules?

When French law is applicable, the foreign company will face the legal regime of article L442 -1.II of the French Commercial Code sanctioning “sudden termination”. As a preliminary remark, it is important to know, above all, that the implementation of the liability for „sudden termination“ is the consequence of the lack of a notice or a too short notice. Thus, this scheme does not lay down an automatic compensation rule. In other words, as soon as reasonable notice is given by the author of the termination, liability on that basis can be dismissed.

The prerequisite for “Sudden Termination”: an established commercial relationship

All contracts are covered by this legal regime, except for contracts whose regulations provide for a specific notice of termination, like commercial agency contracts and transport of goods by road subcontracts.

First, there must be a relationship that can be proven by a written contract or de facto, by behaviour of the parties. Article L.442-1 II of the French Commercial Code covers all “commercial” relationships and not only “contractual ones so that such relationship may be based on a succession of tacitly renewed contracts or a regular flow of business, materialized by multiple orders. This was recently recalled by the Supreme Court (Supreme Court, February 16, 2022, n° 20-18.844)

Second, this relationship must have an established character. There is no legal definition, but this notion has been defined year after year by case law which has established an objective criterion and a more subjective one.

(a) The objective criterion implies a sufficiently long, regular and significant relationship between the two parties. The duration of the relationship is the most important criterion. The relationship must also be regular, that is, it must not have been interrupted (too often or too long). The relationship must ultimately be meaningful and represent a serious flow of business between the parties, in volume or value.

(b) The subjective test focuses primarily on the legitimate belief of the victim of the rupture in the continuation of the contract / the relationship that is based on factual elements, such as investment requests, budgets over several years, etc. Conversely, it is on the basis of the finding of a lack of legitimate belief in a common future that the terminating party can prove the absence of a stable character when he has resorted, on several occasions, a call for tenders (unless it is a trick).

Anticipating a “Sudden Termination” claim

(a) The termination may be total or partial

The total rupture is materialized by a complete stop of the relations, for example ending the contract, stopping the sending of orders by the purchaser or the recording of orders by the supplier.

The Supreme Court recently recalled that a significant drop in sales with a partner must be considered as a partial rupture of the relationship (February 16, 2022, n° 20-18.844, cited above). But the most complicated situation to deal with is the so-called partial rupture that will be deduced from a modification of elements that partly impacts the relationship but does not reduce it to nothing (ex.: a price increase or decrease, a change in the terms of payment or delivery).

(b) The termination must be subject to a reasonable written prior notice

The notice must be notified in writing. The absence of written notice is already a breach in itself. The notification must clearly reflect the willingness of a party to sever the relationship in whole or in part, which must be clearly identified. The notification must also clearly identify the date on which the relationship will end.

Thus, an ambiguity on the notice period (e.g if the termination of an agreement is notified, whilst offering to maintain certain prices and payment terms, in the meantime) is considered as an insufficient termination notice (French Supreme Court, January 29, 2013, n° 11-23.676).

Parties must distinguish between the letter of formal notice for default and the subsequent notification of the breach, giving notice (if applicable). During the period of notice, parties must fully comply with all contractual conditions.

This principle also applies to distribution contracts subject to specific French rules imposing annual or multi-year negotiation obligations. In fact, the Court of cassation has ruled that „when the conditions of the commercial relationship established between the parties are subject to annual negotiation, modifications made during the notice period which are not so substantial as to undermine its effectiveness do not constitute a brutal breach of that relationship“ (Cass. com., Dec. 7, 2022, n° 19-22.538).

However, it’s not necessary to mention the reasons why the commercial relationship is terminated is not a fault or breach of the relationship. In fact, French courts consider that “the fact that the given reason to terminate was false does not in any way present the terminating party from terminating the commercial relationship” (Versailles Court of Appeal, June 10, 1999).

The duration of the prior notice to be respected is not defined by French law which did not pose precise rule until the reform 2019. If several criteria are stated by case law, it should be noted that the most important criterion is the duration of the relationship. Judges also take into account the share of turnover achieved by the victim, the existence or not of a territorial exclusivity, the nature of the products and the sector of activity, the importance of the investments made by the victim especially to the relationship in question, and finally the state of economic dependence. Economic dependence is defined as the impossibility for a company to have a solution that is technically and economically equivalent to the contractual relations it has established with another company. Case law considers this to be an aggravating factor justifying a longer termination notice.

The minimum notice period must be notified at the time of notification of termination. As a consequence, events that affect the victim after the notification, both positively (conclusion of a new contract) and negatively (loss of another custome), will not be taken into account by the judge, at the time of ruling, when assessing the “brutality” of the termination.

The length of the notice given by the judges is very variable. The appreciation of notice is made on a case-by-case basis. It is very difficult to give a golden rule, even though roughly for each year of relationship, a month’s notice might be due (to modulate up or down depending on the other criteria in the relationship). But way of illustration, however, the following case law may be cited:

• Paris Court of Appeal , Feb.9, 2022: 16-year relationship with 15 months‘ notice;
• Paris Court of Appeal, Jan.20, 2022: 12-year relationship with 8 months‘ notice;
• Paris Court of Appeal, Oct. 25, 2022: 16-year relationship with 18 months‘ notice;
• Paris Court of Appeal , Feb. 23, 2022: 17-year relationship with 11 months‘ notice;
• Paris Court of Appeal, Sept. 21, 2022: 5-year relationship with 14 months‘ notice.

Since the Order of April 24, 2019, which limits the length of reasonable notice to a maximum of 18 months, if the notice period granted by a party is 18 months, it cannot be held liable for a sudden termination. However, much of the litigation remains uncertain, as only exceptionally long or particularly sensitive relationships led, prior to 019, to the award of more than 18 months‘ notice. Ordinance of April 24, 2019, limits to 18 months the maximum period of notice reasonably due under Article L 442-1.II. But much of the litigation will remain uncertain since only relations of exceptional longevity or particularly sensitive, could have led to the allocation of a notice higher than 18 months.

Judges are not bound by the contractual notices stipulated in the contract. But if the author of the breach also violated the terms and conditions of termination provided for by contract, the victim may seek the responsibility of the author both on the tort basis of the sudden rupture and also on the basis of the breach of a contractual obligation.

Cases in which “Sudden Termination” is ruled out

The legal regime provides for two cases, and the case-law seems to have imposed others.

(a) The two legal exceptions are Force majeure (very rarely consecrated by the courts) and the fault of the victim of the termination, case-law having added that it must be a serious violation (“faute grave”) of a contractual commitment or a legal provision (such as non-respect of an exclusivity, a non-compete, a confidentiality or a change of control duty, or non-payment of amounts due contractually).

The judges consider themselves, of course, not bound by a termination clause defining what constitutes serious misconduct. In any case the party who terminates for serious misconduct must clearly notify it in its letter of termination. Above all, serious misconduct leads to a lack of notice, therefore, if the terminating party alleges serious misconduct but grants notice, whichever it may be, judges may conclude that the fault was not serious enough.

Thus, the seriousness of the misconduct must be motivated by judges in their rulings. Noting that the contract was breached after two formal notices is not sufficient (Cass. com., Feb 16. 2022, n° 20-18.844).

However, the Court of Cassation considers that „even in the case of serious misconduct justifying the immediate termination of the commercial relationship, the other party remains free to give the other party a notice“ (Cass. Com., Oct. 14 2020, n°18-22.119).

(b) In recent years, case-law has added other cases of liability waiver. This is the case when the rupture is the consequence of a cause external to the author of the rupture, such as the economic crisis, the loss of its own customers or suppliers, upstream or downstream.

For example, in 2021 the Court of cassation has ruled that “the business partner is not entitled to an unchanged relationship and cannot refuse any adaptation required by economic changes” (Com, Dec 01, 2021, n°20-19.113). In fact, to be attributable to an economic player, a termination must be free and deliberate. This is not the case if termination is imposed by the economic situation.

However, adding a liability exemption clause in a contract, aimed at waiving destinated to escape the penalties of article L. 442-1, is without consequences on the judge’s appreciation.

Judges have also excluded “sudden termination” in the hypothesis of the end of the first period of a fixed-term contract, whatever its duration is: the first renewal of a contract, constitutes a foreseeable event for the victim of the rupture, which excludes the very notion of brutality; but once the contract has been renewed at least once, judges can subsequently characterize the victim’s legitimate belief in a new tacit renewal.

Compensation for “Sudden Termination”

Judges only compensate for the detrimental consequences of the brutality itself of the breach but do not compensate, at least in the context of article L442 -1.II, for the consequences of the breach itself.

The basic rule is very simple: it is necessary to determine the length of the notice which should have been granted, from which the notice actually granted is deducted. This net notice is multiplied by the average monthly gross margin of the victim, or more often the so called margin on variable costs (i.e. the turnover minus costs disappearing with non-performance of the contract/relation). Defendant should not hesitate to ask for the full accountancy evidences, especially to identify (lower) margin rates, or even for a judicial expertise on those accounting elements. In general, the base of the average monthly margin consists of the last 24 or 36 months.

The compensation calculated on the average margin is, in general, exclusive of any other compensation. However, the victim can prove that it has suffered other losses as a consequence of the brutality of the rupture. Such as dismissals directly caused by this brutality or the depreciation of investments made recently by the victim.

Some practical tips when considering to anticipate “Sudden Termination”

Even though the legal regime is still ambiguous and the case-law terribly casuistic which prevents to release strong guidelines, here are some practical tips when a company plans to terminate a relationship / contract:

• in the case of a fixed-term contract renewable tacitly, the notification of non-renewal must be anticipated well in advance of the beginning of the contractual notice in order to avoid being in a situation where it is necessary to choose between not renewing the contract with a notice that is not sufficient or agree to see the contract renewed itself for a new term;
• commercial teams must be made aware of the risk of partial sudden termination when they change the conditions of execution of a commercial relationship / contract too radically;
• in some cases, it may be useful to send a pre-notice of termination with a “notice proposal” in order to try to validate this notice with the other party;
• it may also be useful, in certain relationships, to notify the end of the relationship with different lengths of notice depending on the nature of the product lines;
• Finally, the best way is to conclude an end-of-relation protocol, fixing the duration of the notice as well as, if necessary, the progressive decline of the orders, the whole within the framework of a settlement agreement which definitively waives any claim, including “sudden termination”.

Sudden termination regime shall be taken into consideration when entering into the final phase of a duration relationship: the way in which the contract (or de facto relationship) is terminated must be carefully planned, in order to manage the risk of causing damages to the counterparty and being sued for compensation.

Given the significance of the influencer market (over €21 billion in 2023), which now encompasses all sectors, and with a view for transparency and consumer protection, France, with the law of June 9, 2023, proposed the world’s first regulation governing the activities of influencers, with the objective of defining and regulating influencer activities on social media platforms.

However, influencers are subject to multiple obligations stemming from various sources, necessitating the utmost vigilance, both in drafting influence agreements (between influencers and agencies or between influencers and advertisers) and in the behaviour they must adopt on social media or online platforms. This vigilance is particularly heightened as existing regulations do not cover the core of influencers‘ activities, especially their status and remuneration, which remain subject to legal ambiguity, posing risks to advertisers as regulatory authorities‘ scrutiny intensifies.

Key points to remember 

• Influencers‘ activity is subject to numerous regulations, including the law of June 9, 2023.
• This law not only regulates the drafting of influence contracts but also the influencer’s behaviour to ensure greater transparency for consumers.
• Every influencer whose audience includes French users is affected by the provisions of the law of June 9, 2023, even if they are not physically present in French territory.
• Both the law of June 9, 2023, and the „Digital Services Act,“ as well as the proposed law on „fast fashion,“ foresee increasing accountability for various actors in the commercial influence sector, particularly influencers and online platforms.
• Despite a plethora of regulations, the status and remuneration of influencers remain unaddressed issues that require special attention from advertisers engaging with influencers.

The law of June 9, 2023, regulating influencer activity  

The definition of influencer professions

The law of June 9, 2023, provides two essential definitions for influencer activities:

• Influencers are defined as ’natural or legal persons who, for consideration, mobilize their notoriety with their audience to communicate to the public, electronically, content aimed at promoting, directly or indirectly, goods, services, or any cause, engaging in commercial influence activities electronically.‘
• The activity of an influencer agent is defined as ‚that which consists of representing, for consideration,‘ the influencer or a possible agent ‚with the aim of promoting, for consideration, goods, services, or any cause‚ (article 7) The influencer agent must take ’necessary measures to ensure the defense of the interests of the persons they represent, to avoid situations of conflict of interest, and to ensure the compliance of their activity‚ with the law of June 9, 2023.

The obligations imposed on commercial messages created by the influencer

The law sets forth obligations that influencers must adhere to regarding their publications: 

• Mandatory particulars: When creating content, this law imposes an obligation on influencers to provide information to consumers, aiming for transparency towards their audience. Thus, influencers are required to clearly, legibly, and identifiably indicate on the influencer’s image or video, regardless of its format and throughout the entire viewing duration (according to modalities to be defined by decree):

  – The mention „advertisement“ or „commercial collaboration.“ Violating this obligation constitutes deceptive commercial practice punishable by two years‘ imprisonment and a fine of €300,000 (Article 5 of the law of June 9, 2023).
  – The mention of „altered images“ (modification by image processing methods aimed at refining or thickening the silhouette or modifying the appearance of the face) or „virtual images“ (images created by artificial intelligence). Failure to do so may result in a one-year prison sentence and a fine of €4,500 (Article 5 of the law of June 9, 2023).

• Prohibited or regulated promotions: This law reminds certain prohibitions, subject to criminal and administrative sanctions, stemming from French law on the direct or indirect promotion of certain categories of products and services, under penalty of criminal or administrative sanctions. This includes the promotion of products and services related to:

  – health: surgery, aesthetic medicine, therapeutic prescriptions, and nicotine products;
  – non-domestic animals, unless it concerns an establishment authorized to hold them;
  – financial: contracts, financial products, and services;
  – sports-related: subscriptions to sports advice or predictions;
  – crypto assets: if not from registered actors or have not received approval from the AMF;
  – gambling: their promotion prohibited for those under 18 years old and regulated by law;
  – professional training: their promotion is not prohibited but regulated.

The accountability of influencer behaviour

The law also holds influencers accountable from the contracting of their relationships and when they act as sellers:

• Regulation of commercial influence agreements: This law imposes, subject to nullity, from a certain threshold of influencer remuneration (defined by decree), the formalization in writing of the agreement between the advertiser and the influencer, but also, if applicable, between the influencer’s agent, and the mandatory stipulation of certain clauses (remuneration, mission description, etc.).
• Influencer responsibility as a cyber seller: Influencers engaging in drop shipping (selling products without handling their delivery, done by the supplier) must provide the buyer with all information in French as required by Article L. 221-5 of the Consumer Code about the product, such as its availability and legality (i.e., guarantee that the product is not counterfeit), applicable product warranty, and supplier identity. Additionally, influencers must ensure the proper delivery and receipt of products and, in case of default, compensate the buyer. Influencers are also logically subject to obligations regarding deceptive commercial practices (for more information, the DGCCRF website explain the dropshipping).

The accountability of other actors in the commercial influence ecosystem

Joint and several liability is set by law, for the advertiser, influencer, or influencer’s agent for damages caused to third parties in the execution of the commercial influence contract, allowing the victim of the damage to act against the most solvent party.

Furthermore, the law introduces accountability for online platforms by partially incorporating the European Regulation 2022/2065 on digital services (known as the „DSA„) of October 19, 2022.

French regulation and international influencers

Influencers established outside the European Union (including also Switzerland and the EEA) who promote products or services to a French audience must obtain professional liability insurance from an insurer established within the EU. They must also designate a legal or natural person providing „a form of representation“ (SIC) within the EU. This representative (whose regime is not very clear) is remunerated to represent the influencer before administrative and judicial authorities and to ensure the compliance of the influencer’s activity with law of June 9, 2023.

Furthermore, according to law of June 9, 2023, when the contract binding the influencer (or their agency) aims to implement a commercial influence activity electronically „targeting in particular an audience established in French territory“ (SIC), this contract should be exclusively subject to French law (including the Consumer Code, the Intellectual Property Code, and the law of June 9, 2023). According to this law, the absence of such a stipulation would be sanctioned by the nullity of the contract. Law of June 9, 2023, seems to be established as an overriding mandatory law capable of setting aside the choice of a foreign law.

However, the legitimacy (what about compliance with the definition of overriding mandatory rules established by Regulation Rome I?) and effectiveness (what if the contract specifies a foreign law and a foreign jurisdiction?) of such a legal provision can be questioned, notably due to its vague and general wording. In fact, it should be the activity deployed by the „foreign“ influencer to their community in France that should be apprehended by French overriding mandatory rules, rather than the content of the agreement concluded with the advertiser (which itself could also be foreign, by the way).

The other regulations governing the activity of influencers

The European regulations

The DSA further holds influencers accountable because, in addition to the reporting mechanism imposed on platforms to report illicit content (thus identifying a failing influencer), platforms must ensure (and will therefore shift this responsibility to the influencer) the identification of commercial communications and specific transparency obligations towards consumers.

The «soft law»

As early as 2015, the Advertising Regulatory Authority („ARPP“) issued recommendations on best practices for digital advertising. Similarly, in March 2023, the French Ministry of Economy published a „code of conduct“ for influencers and content creators. In 2023, the European Commission launched a legal information platform for influencers. Although non-binding, these rules, in addition to existing regulations, serve as guidelines for both influencers and content creators, as well as for judicial and administrative authorities.

The special status of child influencers

The law of October 19, 2020, aimed at regulating the commercial exploitation of children’s images on online platforms, notably opens up the possibility for child influencers to be recognized as salaried workers. However, this law only targeted video-sharing platforms. Article 2 of the law of June 9, 2023, extended the provisions regarding child influencer labor introduced by the 2020 law to all online platforms. Finally, a recent law aimed at ensuring respect for the image rights of children was published on February 19, 2024, introducing a principle of joint and several responsibility of both parents in protecting the minor’s image rights.

The status and remuneration of influencers: uncertainty persists

Despite the diversity of regulations applicable to influencers, none address their status and remuneration.

The status of the influencer

In the absence of regulations governing the status of influencers, a legal ambiguity persists regarding whether the influencer should be considered an independent contractor, an employee (as is partly the case for models or artists), or even as a brand representative (i.e. commercial agent), depending on the missions contractually entrusted to the influencer.

The nature of the contract and the applicable social security regime stem from the missions assigned to the influencer:

• In the case of an employment contract, the influencer will fall under the general regime for employees and assimilated persons, based on Articles L. 311-2 or 311-3 of the French Social Security Code.
• In the case of a service contract, the influencer will fall under the regime for self-employed workers.

The existence of a relationship of subordination between the advertiser and the influencer typically determines the qualification of an employment contract. Subordination is generally characterized when the employer gives orders and directives, has the power to control and sanction, and the influencer follows these directives. However, some activities are subject to a presumption of an employment contract; this is the case (at least in part) for artist contracts under Article L. 7121-3 of the French Labor Code and model contracts under Article L. 7123-2 of the French Labor Code.

The remuneration of the influencer

The influencer can be remunerated in cash (fixed or proportional) and/or in kind (for example: receiving a product from the brand, invitations to private or public events, coverage of travel expenses, etc.). The influencer’s remuneration must be specified in the influencer agreement and is directly impacted by the influencer’s status, as certain obligations (minimum wage, payment of social security contributions, etc.) apply in the case of an employment contract.

Furthermore, the remuneration (for the influencer’s services) must be distinguished from that of the transfer of their copyrights or image rights, which are subject to separate remuneration in exchange for the IP rights transferred.

The influencers… in the spotlight

The law of June 9, 2023, grants the French authority (i.e. the Consumer Affairs, Competition and Fraud Prevention Agency, “DGCCRF”) new injunction powers (with reinforced penalties). This comes in addition to the recent creation of a „commercial influence squad„, within the DGCCRF, tasked with monitoring social networks, and responding to reports received through Signal Conso. The law provides for fines and the possibility of blocking content.

As early as August 2023, the DGCCRF issued warnings to several influencers to comply with the new regulations on commercial influence and imposed on them the obligation to publicly disclose their conviction for non-compliance with the new provisions regarding transparency to consumers on their own social networks, a heavy penalty for actors whose activity relies on their popularity (DGCCRF investigation on the commercial practices of influencers).

On February 14, 2024, the European Commission and the national consumer protection authorities of 22 EU member states, Norway, and Iceland published the results of an analysis conducted on 570 influencers (the so-called „clean-up operation“ of 2023 on influencers): only one in five influencers consistently presented their commercial content as advertising. 

In response to environmental, ethical, and quality concerns related to „fast fashion,“ a draft law aiming to ban advertising for fast fashion brands, including advertising done by influencers (Proposal for a law aiming to reduce the environmental impact of the textile industry), was adopted by the National Assembly on first reading on March 14, 2024.

Lastly, the law of June 9, 2023, has been criticized by the European Commission, which considers that the law would contravene certain principles provided by EU law, notably the principle of „country of origin,“ according to which the company providing a service in other EU countries is exclusively subject to the law of its country of establishment (principle initially provided for by the E-commerce Directive of June 8, 2000, and included in the DSA). Some of its provisions, particularly those concerning the application of French law to foreign influencers, could therefore be subject to forthcoming – and welcome – modifications.

Summary

To avoid disputes with important suppliers, it is advisable to plan purchases over the medium and long term and not operate solely on the basis of orders and order confirmations. Planning makes it possible to agree on the duration of the ’supply agreement, minimum volumes of products to be delivered and delivery schedules, prices, and the conditions under which prices can be varied over time.
The use of a framework purchase agreement can help avoid future uncertainties and allows various options to be used to manage commodity price fluctuations depending on the type of products , such as automatic price indexing or agreement to renegotiate in the event of commodity fluctuations beyond a certain set tolerance period.

I read in a press release: “These days, the glass industry is sending wine companies new unilateral contract amendments with price changes of 20%…”

What can one do to avoid the imposition of price increases by suppliers? 

• Know your rights and act in an informed manner
• Plan and organise your supply chain

Does my supplier have the right to increase prices?

If contracts have already been concluded, e.g., orders have already been confirmed by the supplier, the answer is often no.

It is not legitimate to request a price change. It is much less legitimate to communicate it unilaterally, with the threat of cancelling the order or not delivering the goods if the request is not granted.

What if he tells me it is force majeure?

That’s wrong: increased costs are not a force majeure but rather an unforeseen excessive onerousness, which hardly happens.

What if the supplier canceled the order, unilaterally increased the price, or did not deliver the goods?

He would be in breach of contract and liable to pay damages for violating his contractual obligations.

How can one avoid a tug-of-war with suppliers?

The tools are there. You have to know them and use them.

It is necessary to plan purchases in the medium term, agreeing with suppliers on a schedule in which are set out:

• the quantities of products to be ordered
• the delivery terms
• the durationof the agreement
• the pricesof the products or raw materials
• the conditions under which prices can be varied

There is a very effective instrument to do so: a framework purchase agreement.

Using a framework purchase agreement, the parties negotiate the above elements, which will be valid for the agreed period.

Once the agreement is concluded, product orders will follow, governed by the framework agreement, without the need to renegotiate the content of individual deliveries each time.

For an in-depth discussion of this contract, see this article.

• “Yes, but my suppliers will never sign it!”

Why not? Ask them to explain the reason.

This type of agreement is in the interest of both parties. It allows planning future orders and grants certainty as to whether, when, and how much the parties can change the price.

In contrast, acting without written agreements forces the parties to operate in an environment of uncertainty. Suppliers can request price increases from one day to the next and refuse supply if the changes are not accepted.

How are price changes for future supplies regulated?

Depending on the type of products or services and the raw materials or energy relevant in determining the final price, there are several possibilities.

• The first option is to index the price automatically. E.g., if the cost of a barrel of Brent oil increases/decreases by 10%, the party concerned is entitled to request a corresponding adjustment of the product’s price in all orders placed as of the following week.
• An alternative is to provide for a price renegotiation in the event of a fluctuation of the reference commodity. E.g., suppose the LME Aluminium index of the London Stock Exchange increases above a certain threshold. In that case, the interested party may request a price renegotiationfor orders in the period following the increase.

What if the parties do not agree on new prices?

It is possible to terminate the contract or refer the price determination to a third party, who would act as arbitrator and set the new prices for future orders.

Summary

The framework supply contract is an agreement that regulates a series of future sales and purchases between two parties (customer and supplier) that take place over a certain period of time. This agreement determines the main elements of future contracts such as price, product volumes, delivery terms, technical or quality specifications, and the duration of the agreement.

The framework contract is useful for ensuring continuity of supply from one or more suppliers of a certain product that is essential for planning industrial or commercial activity. While the general terms and conditions of purchase or sale are the rules that apply to all suppliers or customers of the company. The framework contract is advisable to be concluded with essential suppliers for the continuity of business activity, in general or in relation to a particular project.

What I am talking about in this article:

• What is the supply framework agreement?
• What is the function of the supply framework agreement?
• The difference with the general conditions of sale or purchase
• When to enter a purchase framework agreement?
• When is it beneficial to conclude a sales framework agreement?
• The content of the supply framework agreement
• Price revision clause and hardship
• Delivery terms in the supply framework agreement
• The Force Majeure clause in international sales contracts
• International sales: applicable law and dispute resolution arrangements

What is a framework supply agreement?

It is an agreement that regulates a series of future sales and purchases between two parties (customer and supplier), which will take place over a certain period.

It is therefore referred to as a „framework agreement“ because it is an agreement that establishes the rules of a future series of sales and purchase contracts, determining their primary elements (such as the price, the volumes of products to be sold and purchased, the delivery terms of the products, and the duration of the contract).

After concluding the framework agreement, the parties will exchange orders and order confirmations, entering a series of autonomous sales contracts without re-discussing the covenants already defined in the framework agreement.

Depending on one’s point of view, this agreement is also called a sales framework agreement (if the seller/supplier uses it) or a purchasing framework agreement (if the customer proposes it).

What is the function of the framework supply agreement?

It is helpful to arrange a framework agreement in all cases where the parties intend to proceed with a series of purchases/sales of products over time and are interested in giving stability to the commercial agreement by determining its main elements.

In particular, the purchase framework agreement may be helpful to a company that wishes to ensure continuity of supply from one or more suppliers of a specific product that is essential for planning its industrial or commercial activity (raw material, semi-finished product, component).

By concluding the framework agreement, the company can obtain, for example, a commitment from the supplier to supply a particular minimum volume of products, at a specific price, with agreed terms and technical specifications, for a certain period.

This agreement is also beneficial, at the same time, to the seller/supplier, which can plan sales for that period and organize, in turn, the supply chain that enables it to procure the raw materials and components necessary to produce the products.

What is the difference between a purchase or sales framework agreement and the general terms and conditions?

Whereas the framework agreement is an agreement that is used with one or more suppliers for a specific product and a certain time frame, determining the essential elements of future contracts, the general purchase (or sales) conditions are the rules that apply to all the company’s suppliers (or customers).

The first agreement, therefore, is negotiated and defined on a case-by-case basis. At the same time, the general conditions are prepared unilaterally by the company, and the customers or suppliers (depending on whether they are sales or purchase conditions) adhere to and accept that the general conditions apply to the individual order and/or future contracts.

The two agreements might also co-exist: in that case; it is a good idea to specify which contract should prevail in the event of a discrepancy between the different provisions (usually, this hierarchy is envisaged, ranging from the special to the general: order – order confirmation; framework agreement; general terms and conditions of purchase).

When is it important to conclude a purchase framework agreement?

It is beneficial to conclude this agreement when dealing with a mono-supplier or a supplier that would be very difficult to replace if it stopped selling products to the purchasing company.

The risks one aims to avoid or diminish are so-called stock-outs, i.e., supply interruptions due to the supplier’s lack of availability of products or because the products are available, but the parties cannot agree on the delivery time or sales price.

Another result that can be achieved is to bind a strategic supplier for a certain period by agreeing that it will reserve an agreed share of production for the buyer on predetermined terms and conditions and avoid competition with offers from third parties interested in the products for the duration of the agreement.

When is it helpful to conclude a sales framework agreement?

This agreement allows the seller/supplier to plan sales to a particular customer and thus to plan and organize its production and logistical capacity for the agreed period, avoiding extra costs or delays.

Planning sales also makes it possible to correctly manage financial obligations and cash flows with a medium-term vision, harmonizing commitments and investments with the sales to one’s customers.

What is the content of the supply framework agreement?

There is no standard model of this agreement, which originated from business practice to meet the requirements indicated above.

Generally, the agreement provides for a fixed period (e.g., 12 months) in which the parties undertake to conclude a series of purchases and sales of products, determining the price and terms of supply and the main covenants of future sales contracts.

The most important clauses are:

• the identification of products and technical specifications (often identified in an annex)
• the minimum/maximum volume of supplies
• the possible obligation to purchase/sell a minimum/maximum volume of products
• the schedule of supplies
• the delivery times
• the determination of the price and the conditions for its possible modification (see also the next paragraph)
• impediments to performance (Force Majeure)
• cases of Hardship
• penalties for delay or non-performance or for failure to achieve the agreed volumes
• the hierarchy between the framework agreement and the orders and any other contracts between the parties
• applicable law and dispute resolution (especially in international agreements)

How to handle price revision in a supply contract?

A crucial clause, especially in times of strong fluctuations in the prices of raw materials, transport, and energy, is the price revision clause.

In the absence of an agreement on this issue, the parties bear the risk of a price increase by undertaking to respect the conditions initially agreed upon; except in exceptional cases (where the fluctuation is strong, affects a short period, and is caused by unforeseeable events), it isn’t straightforward to invoke the supervening excessive onerousness, which allows renegotiating the price, or the contract to be terminated.

To avoid the uncertainty generated by price fluctuations, it is advisable to agree in the contract on the mechanisms for revising the price (e.g., automatic indexing following the quotation of raw materials). The so-called Hardship or Excessive Onerousness clause establishes what price fluctuation limits are accepted by the parties and what happens if the variations go beyond these limits, providing for the obligation to renegotiate the price or the termination of the contract if no agreement is reached within a certain period.

How to manage delivery terms in a supply agreement?

Another fundamental pact in a medium to long-term supply relationship concerns delivery terms. In this case, it is necessary to reconcile the purchaser’s interest in respecting the agreed dates with the supplier’s interest in avoiding claims for damages in the event of a delay, especially in the case of sales requiring intercontinental transport.

The first thing to be clarified in this regard concerns the nature of delivery deadlines: are they essential or indicative? In the first case, the party affected has the right to terminate (i.e., wind up) the agreement in the event of non-compliance with the term; in the second case, due diligence, information, and timely notification of delays may be required, whereas termination is not a remedy that may be automatically invoked in the event of a delay.

A useful instrument in this regard is the penalty clause: with this covenant, it is established that for each day/week/month of delay, a sum of money is due by way of damages in favor of the party harmed by the delay.

If quantified correctly and not excessively, the penalty is helpful for both parties because it makes it possible to predict the damages that may be claimed for the delay, quantifying them in a fair and determined sum. Consequently, the seller is not exposed to claims for damages related to factors beyond his control. At the same time, the buyer can easily calculate the compensation for the delay without the need for further proof.

The same mechanism, among other things, may be adopted to govern the buyer’s delay in accepting delivery of the goods.

Finally, it is a good idea to specify the limit of the penalty (e.g.,10 percent of the price of the goods) and a maximum period of grace for the delay, beyond which the party concerned is entitled to terminate the contract by retaining the penalty.

The Force Majeure clause in international sales contracts

A situation that is often confused with excessive onerousness, but is, in fact, quite different, is that of Force Majeure, i.e., the supervening impossibility of performance of the contractual obligation due to any event beyond the reasonable control of the party affected, which could not have been reasonably foreseen and the effects of which cannot be overcome by reasonable efforts.

The function of this clause is to set forth clearly when the parties consider that Force Majeure may be invoked, what specific events are included (e.g., a lock-down of the production plant by order of the authority), and what are the consequences for the parties‘ obligations (e.g., suspension of the obligation for a certain period, as long as the cause of impossibility of performance lasts, after which the party affected by performance may declare its intention to dissolve the contract).

If the wording of this clause is general (as is often the case), the risk is that it will be of little use; it is also advisable to check that the regulation of force majeure complies with the law applicable to the contract (here an in-depth analysis indicating the regime provided for by 42 national laws).

Applicable law and dispute resolution clauses

Suppose the customer or supplier is based abroad. In that case, several significant differences must be borne in mind: the first is the agreement’s language, which must be intelligible to the foreign party, therefore usually in English or another language familiar to the parties, possibly also in two languages with parallel text.

The second issue concerns the applicable law, which should be expressly indicated in the agreement. This subject matter is vast, and here we can say that the decision on the applicable law must be made on a case-by-case basis, intentionally: in fact, it is not always convenient to recall the application of the law of one’s own country.

In most international sales contracts, the 1980 Vienna Convention on the International Sale of Goods („CISG“) applies, a uniform law that is balanced, clear, and easy to understand. Therefore, it is not advisable to exclude it.

Finally, in a supply framework agreement with an international supplier, it is important to identify the method of dispute resolution: no solution fits all. Choosing a country’s jurisdiction is not always the right decision (indeed, it can often prove counterproductive).

A case recently decided by the Italian Supreme Court clarifies what the risks are for those who sell their products abroad without having paid adequate attention to the legal part of the contract (Order, Sec. 2, No. 36144 of 2022, published 12/12/2022).

Why it’s important: in contracts, care must be taken not only with what is written, but also with what is not written, otherwise there is a risk that implied warranties of merchantability will apply, which may make the product unsuitable for use, even if it conforms to the technical specifications agreed upon in the contract.

The international sales contract and the first instance decision

A German company had sued an Italian company in Italy (Court of Chieti) to have it ordered to pay the sales price of two invoices for supplies of goods (steel).

The Italian purchasing company had defended itself by claiming that the two invoices had been deliberately not paid, due to the non-conformity of three previous deliveries by the same German seller. It then counterclaimed for a finding of defects and a reduction in the price, to be set off against the other party’s claim, as well as damages.

In the first instance, the Court of Chieti had partially granted both the German seller’s demand for payment (for about half of the claim) and the buyer’s counterclaim.

The court-appointed technical expertise had found that the steel supplied by the seller, while conforming to the agreed data sheet, had a very low silicon value compared to the values at other manufacturers‘ steel; however, the trial judge ruled out this as a genuine defect.

The judgment of appeal

The Court of Appeals of L’Aquila, appealed to the second instance by the buyer, had reached a different conclusion than the Court of First Instance, significantly reducing the amount owed by the Italian buyer, for the following reasons:

• the regime of „implied warranties“ under Article 35 of the Vienna Convention on the International Sale of Goods of 11.4.80 („CISG,“ ratified in both Italy and Germany) applied, as the companies had business headquarters in two different countries, both of which were parties to the Convention;
• in particular, the chemical composition of the steel supplied by the seller, while not constituting a „defect“ in the product (i.e., an anomaly or imperfection) was nonetheless to be considered a „lack of conformity“ within the meaning of Articles 35(2)(a) and 36(1) of the CISG, as it rendered the steel unsuitable for the use for which goods of the same kind would ordinarily serve (also known as „warranty of merchantability“).

The ruling of the Supreme Court

The German seller then appealed to the Supreme Court against the Court of Appeals‘ ruling, stating in summary that, according to the CISG, the conformity or non-conformity of the goods must be assessed against what was agreed upon in the contract between the parties; and that the „warranty of merchantability“ should apply only in the absence of a precise agreement of the parties on the characteristics that the product must have.

However, the seller’s defense continued, in this case the Italian buyer had sent a data sheet including a summary table of the various chemical elements, where it was stated that silicon should be present in a percentage not exceeding 0.45, but no minimum percentage was indicated.

So, the fact that the percentage of silicon was significantly lower than that found on average in steel from other suppliers could not be considered a conformity defect, since, at the contract negotiation stage, the parties exchanging the data sheet had expressly agreed only on the maximum values, thus not considering the minimum values relevant to conformity.

The Supreme Court, however, disagreed with this reasoning and essentially upheld the Court of Appeals‘ ruling, rejecting the German seller’s appeal.

The Court recalled that, according to Article 35 first paragraph of the CISG, the seller must deliver goods whose quantity, quality and kind correspond to those stipulated in the contract and whose packaging and wrapping correspond to those stipulated in the contract; and that, for the second paragraph, „unless the parties agree otherwise, goods are in conformity with the contract only if: a) they are suitable for the uses for which goods of the same kind would ordinarily serve.“

Other guarantees are enumerated in paragraphs (b) to (d) of the same standard[1] . They are commonly referred to collectively as „implied warranties.“

The Court noted that the warranties in question, including the one of „merchantability“ just referred to, do not stand subordinate or subsidiary to contractual covenants; on the contrary, they apply unless expressly excluded by the parties.

It follows that, according to the Supreme Court, any intention of the parties to a sales contract to disapply the warranty of merchantability must „result from a specific provision agreed upon by the parties.„

In the present case, although the data sheet that was part of the contractual agreements was analytical and had included among the chemical characteristics of the material the percentage of silicon, the fact that only a maximum percentage was indicated and not also the minimum percentage was not sufficient to exclude the fact that, by virtue of the „implied guarantee“ of marketability, the minimum percentage should in any case conform to the average percentage of similar products existing on the market.

Since the „warranty of merchantability“ had not been expressly excluded between the parties by a specific contractual clause, the conformity of the goods to the contract still had to be evaluated in consideration of this implied warranty as well.

Conclusions

What should businesses that sell abroad keep in mind?

• In contracts for the sale of goods between companies based in two different countries, the CISG automatically applies in many cases, in preference to the domestic law of either the seller’s country or the buyer’s country.
• The CISG contains very important rules for the relationship between sellers and buyers, on warranties of conformity of goods with the contract and buyer’s remedies for breach of warranties.
• One can modify or even exclude these rules by drafting appropriate contracts or general conditions in writing.
• Parties may agree not to apply all or some of the „implied warranties“ (possibly replacing them with contractual warranties) just as they may exclude certain remedies (e.g., exclude or limit liability for damages, within certain limits). However, they must do so in clear and explicit clauses.
• For the „warranty of merchantability“ not to apply, according to the reasoning of the Italian Supreme Court, it is not enough not to mention it in the contract.
• It is not sufficient to attach an analytical description of the characteristics of the goods to the contract to exclude certain characteristics not mentioned but nevertheless present in similar products of other manufacturers, which can be used as a parameter for the conformity of the goods.
• Instead, it is necessary to include a clause in the contract expressly excluding this type of guarantee.

In other words, in contracts, one must pay attention not only to what is written but also to what is not written.

This case once again demonstrates the importance of drafting a proper and complete contract not only from a commercial, technical, and financial point of view but also from a legal point of view, using the expertise of a lawyer experienced in international commercial contracts.

Finally, it is important not to overlook applicable law and jurisdiction clauses. These aspects are unfortunately often overlooked, even in high-value negotiations, considering these clauses unimportant or even blocking for negotiation, only to regret them when litigation arises or even threatened. See an in-depth discussion here.

Many people think that the non-disclosure agreement (NDA) is the one and only necessary precaution in a negotiation. This is wrong, because this agreement only refers to a facet of the business relationship that the parties want to discuss or manage.

Why is it important

The function of the NDA is to maintain the confidentiality of certain information that the parties intend to exchange and to prevent it from being used for purposes on which the parties did not agree. However, many aspects of the negotiation are not regulated in the NDA.

The main issues that the parties should agree on in writing are the following:

• why do the parties want to exchange information?
• what is the ultimate scope to be achieved?
• on what general points do the parties already agree?
• how long will negotiations last?
• who will participate in the negotiations, and with what powers?
• what documents and information will be shared?
• are there any exclusivity and/or non-compete obligations during and after the negotiation?
• what law applies to the negotiations and how are potential disputes resolved?

If these questions are not answered, it is likely that misunderstandings and disputes will arise over time, especially in lengthy and complex negotiations with foreign counterparts.

How to proceed?

• It is advisable that the above agreements be set down in a Letter of Intent („LoI“) or Memorandum of Understanding („MoU“). These are preliminary agreements whose function is determining the scope of future negotiations, the timetable, and the rules to be observed during and after the negotiations.

Common objection

„These are non-binding contracts, so what is the point of using them if the parties are free not to comply?

• Some covenants may be binding (exclusivity during negotiation, non-competition, dispute settlement agreements), and some may not (with the freedom to conclude or not to conclude the agreement).
• In any case, agreeing on the negotiating roadmap is an advantage over operating without having set the negotiating guidelines.

What happens if no agreement is reached?

• The MoU usually expressly provides for each party to be free not to finalize the negotiation as long as that party behaves, keeps acting in good faith during the negotiations and preserves the other party’s rights.
• It should be noted that in case of early or unjustified termination of the negotiations by one of the parties, the other party may be entitled to damages (so-called pre-contractual liability) if the agreement and/or the law applicable to the contract so provide.

Then, when should a non-disclosure agreement be concluded?

• It can be executed at the same time as the MoU / LoI or immediately afterwards so that the specification of confidential information, the way it is used, the duration of confidentiality obligations, etc. are defined in a way that is consistent with the project the parties have agreed upon.

For more information on the content of confidentiality agreements, see this article.

Nach mehr als 30 Jahren Verhandlungen blickt die Welt nun auf das erste panafrikanische Handelsabkommen, welches 2019 in Kraft getreten ist: Die Afrikanische Kontinentale Freihandelszone (African Continental Free Trade Area – AfCFTA).

Afrika ist mit seinen 55 Ländern und rund 1,3 Milliarden Einwohnern nach Asien der zweitgrößte Kontinent der Welt. Das Potenzial des Kontinents ist enorm: Mehr als 50 % der afrikanischen Bevölkerung ist unter 20 Jahre alt, und die Bevölkerung wächst weltweit am schnellsten. Bis 2050 wird voraussichtlich jedes vierte Neugeborene aus Afrika stammen. Darüber hinaus ist der Kontinent reich an fruchtbaren Böden und Rohstoffen.

Für westliche Investoren hat Afrika in den letzten Jahren erheblich an Bedeutung gewonnen. So ist ein beachtliches internationales Handelsvolumen entstanden, das nicht zuletzt durch die 2017 von den G20-Staaten verabschiedete Initiative „Compact with Africa“, auch bekannt als „Marshallplan mit Afrika“, gefördert wird. Der Fokus liegt auf dem A