BREAK BUT PREVENT! Updates on the abrupt termination of established business relationships
In a previous Cardinal Point (below), we informed you about the need to give sufficient notice before terminating (even partially) any commercial relationship as soon as it has a certain stability, except in the event of a serious breach by the party suffering the breach (or force majeure).
(…) However, the Government has just amended by ordinance Article L442-6 of the Commercial Code with the intention of restricting the litigation arising from this text (whose abuses have had negative effects to the detriment of competition and consumers ), which has become the new article L442-1 of the Commercial Code (applicable from April 26, 2019), with the major innovation being the fact that henceforth the responsibility of the author of the breach cannot be engaged on the part of an insufficient duration once he has given eighteen months' notice.
In other words,….