The circumstances of termination of an undetermined term contract


The Court of appeal of Douai issued a decision relating to the termination of an undetermined term contract. 
 
In this case, two retailers signed an affiliation agreement to set up a central purchasing body. One party had brought an action against its business partner. The claimant considered that the early termination constituted a breach of the contract, despite the fact that the period of notice was respected.
 
In its decision, the Court of appeal recalled that a undetermined term contract can be freely terminated when the period of notice is respected.
 
The Court of appeal ruled that the alleged victim needs to prove that there was an abuse in the circumstances of the termination, to claim damages.
 
In this case, the claimant did not prove that the conduct of its business partner was unfair and that it made investments in the central purchasing body which were not amortized.

Pascal WILHELM
Emilie DUMUR

20/12/2017