Commercial contracts: B2B negotiation and defence
Commercial contracts lawyer Paris: negotiating, securing and defending your B2B relationships.
A good contract starts from the business model: who carries the margin, who takes the risk, who depends on whom. As a commercial contracts lawyer in Paris, the firm drafts and negotiates with real-world performance in mind — the day the other party stops paying or delivering.
Ending an established commercial relationship without sufficient notice exposes you to paying for the lost margin over the missing notice period, whether or not there is a written contract. The exit has to be prepared before the termination letter.
Commercial contracts · Paris
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Contract to draft, relationship to secure or termination to manage: send the contract, the correspondence and the history of the relationship. The firm replies within 24 business hours.
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Kohen Avocats, Paris 17
Commercial contracts: what really decides the case
Business law · Paris 17th arrondissement
What a commercial contracts lawyer in Paris does
- Paris Bar
- Business law
- Firm in Paris 17th
Lawyer at the Paris Bar — commercial contracts, distribution and franchise.
The binding force of the contract, set out in Article 1103 of the French Civil Code (Code civil), is supplemented by enforcement tools: the defence of non-performance, unilateral termination and contractual liability. Ending an established commercial relationship requires notice that takes account of its length and of economic dependence, even where there is no written contract. In franchising, the pre-contractual information document is handed over twenty days before signing. The limitation period between traders is five years (Article L. 110-4).
Send what you have, even if incomplete: the firm will prioritise and complete the file with you. In an emergency, call +33 6 46 60 58 22.
Official profile in the directory of French lawyers (CNB)Firm at 11 rue Margueritte, 75017 Paris
Three distribution frameworks
Exclusive or selective distribution, franchise with a pre-contractual information document (DIP) handed over twenty days before signing (Article L. 330-3), commercial agency: the choice has consequences for tax, employment law and the terms of exit.
Clauses designed for performance
Price and price review, deadlines and penalties, exclusivity, exit: Article 1219 of the Civil Code allows suspension for non-performance, and Article 1226 allows unilateral termination after formal notice.
Sudden termination, within limits
Reasonable notice depending on the length of the relationship, the volume of business and dependence — with no liability for insufficient notice where eighteen months' notice has been given (Article L. 442-1, II of the Commercial Code).
The framework
From the business model to the clause that works
Four rules shape B2B contract litigation.
- The contract has the force of law between the parties (Article 1103 of the Civil Code); a clause that deprives the essential obligation of its substance is deemed unwritten.
- The choice of framework — distribution, franchise, agency — determines the exit: a DIP twenty days before signing in franchising (Article L. 330-3), and the agent's end-of-contract indemnity.
- Performance can be defended: suspension for non-performance (Article 1219), unilateral termination after formal notice (Article 1226), contractual penalties.
- Ending an established commercial relationship requires notice that is sufficient given the length of the relationship — including under a management mandate (Cass. com., 2 October 2019, No. 18-15.676).
Economic dependence is the hidden variable: a distributor that makes more than 30% of its turnover with a single partner calls for notice indexed to the length of the relationship and the dependence, and for an audit clause. A party that has given eighteen months' notice cannot be held liable for insufficient notice (Article L. 442-1, II).
Your documents
What to send for the audit
The contract is read together with the actual correspondence and the customer account.
Position A
Drafting / negotiation
- Business model: margins, risks, dependencies
- Existing contracts and general terms of sale, amendments
- DIP and operating manual for the franchise
- Timetable and objectives of the relationship
Position B
Disputes
- Contract, amendments, written correspondence
- Customer account, payment and delivery incidents
- Formal notices already exchanged
- History of the relationship: length, volumes, dependence
Frequent mistakes: tacitly renewing a fixed-term contract for years — it can be requalified as an open-ended contract; ending the relationship without notice proportionate to its length.
The firm also drafts:
- Framework distribution agreement
- Franchise and DIP
- B2B services agreement
- Jurisdiction clauses and arbitration
The method
How the firm supports you
Formal notice is a precondition for several remedies: never skip it.
Step 1
Audit of the contract and the relationship
Contract, amendments, general terms of sale (CGV), correspondence, customer account, past incidents.
Step 2
Choice of remedy
Defence of non-performance, unilateral termination, contractual liability, sudden termination, agent's indemnity.
Step 3
Formal notice and negotiation
Reasoned registered letter with a quantified claim, a window for an amicable solution, settlement agreement.
Step 4
Litigation
Writ of summons before the Paris commercial court or the designated court, oral argument, enforcement.
Key points: DIP twenty days before signing; eighteen months' notice rules out liability for insufficient notice; five-year limitation period.
The timetable
The timeline of a contract matter
From audit to enforcement, in drafting and in litigation alike.
Review
Weeks 1-2. Contract, correspondence, customer account, incidents: mapping the available remedies.
Remedy
Weeks 2-3. Legal characterisation: non-performance, sudden termination, requalification, indemnity.
Formal notice
Weeks 3-4. Reasoned and quantified formal step, interruption of the limitation period, reasonable time limit.
Negotiation
Months 2-3. Settlement agreement where the economic balance sheet justifies it.
Writ of summons
Months 3-6. Commercial court, written submissions, expert assessment if needed.
Proceedings and aftermath
Oral argument, judgment, enforcement if necessary.
The checks
What the firm checks before you sign or act
No signature and no termination without having validated these points.
- The real nature of the relationship: distribution, franchise, agency — substance prevails over the label.
- Performance clauses: price and price review, deadlines, penalties, exclusivity.
- Exit clauses: notice, indemnity, fate of stock and know-how.
- Economic dependence measured and notice proportionate to it.
- Complete DIP, handed over on time for a franchise.
- Consistency between the contract, the general terms of sale and the sales teams' actual practices.
Summary
Situation, risk, document, decision
The most frequent trade-offs seen at the firm in contract matters.
Situation
Distributor dependent on a single partner for more than 30% of turnover
Main risk: Sudden termination of an established commercial relationship.
Document to prepare: Framework agreement with quantified notice and an audit clause.
Recommended decision: Index the notice period to the length of the relationship and the dependence.
Situation
Franchise without a complete DIP handed over twenty days beforehand
Main risk: Annulment of the contract for defective consent.
Document to prepare: DIP and a dated acknowledgement of receipt.
Recommended decision: Postpone signing and complete the DIP.
Situation
Commercial agent prospecting an exclusive territory
Main risk: End-of-contract indemnity of two years of commissions.
Document to prepare: Agency contract and commission history.
Recommended decision: Provision for the indemnity in the accounts from the outset.
Situation
General terms of sale (CGV) not communicated to the professional buyer
Main risk: Unenforceability, administrative fine of up to €75,000.
Document to prepare: Up-to-date CGV and a record of delivery on any durable medium.
Recommended decision: Annex the CGV to the quotation and the purchase order.
Situation
Broad limitation-of-liability clause
Main risk: Deemed unwritten if it empties the essential obligation of its substance.
Document to prepare: A clause calibrated to the real stakes.
Recommended decision: Cap the liability by amount and exclude gross negligence.
Situation
Persistent non-payment by a professional customer
Main risk: Risk of the five-year limitation period running out and of insolvency proceedings.
Document to prepare: Detailed formal notice and an up-to-date customer account.
Recommended decision: Start the payment order procedure before any negotiation.
Frequently asked questions
Your questions: commercial contracts
What is the difference between a commercial agent, a distributor and a franchisee?
Three distinct legal statuses. A commercial agent is an independent agent who negotiates or concludes contracts in the name of the principal and earns a commission (Article L. 134-1 of the Commercial Code). A distributor buys the products on its own account and resells them, bearing the commercial risk. A franchisee operates a concept and a brand under the franchisor's banner, paying an entry fee and a royalty. The real nature of the relationship prevails over the label in the contract.
Should a contract be for a fixed term or an indefinite term?
It depends on the business model. An indefinite-term contract is appropriate for a long distribution relationship, with reasonable notice on termination. A fixed-term contract is justified for a specific project or a trial. Beware of the trap of a fixed-term contract tacitly renewed over several years: the judge may requalify it as an indefinite-term contract and apply the rules on sudden termination (Article L. 442-1, II of the Commercial Code).
What are the criteria for sudden termination of an established commercial relationship?
Three conditions: an established commercial relationship (continuous, stable, genuine and lasting), a termination (total or partial), and notice that is insufficient given the length of the relationship, the volume of business and the dependence. It makes no difference whether there is a written contract. In Cass. com. 2 October 2019, No. 18-15.676, the Court of Cassation confirms that these rules apply even to a special contract (management mandate) whose special regime does not govern the length of the notice period.
What is a reasonable notice period for termination?
There is no absolute statutory scale. On average, judges allow one month of notice per year of the relationship for an ordinary relationship, and more where there is strong economic dependence or product specificity. Article L. 442-1, II of the Commercial Code does, however, rule out liability for insufficient notice on the part of the party ending the relationship who has given eighteen months' notice. The firm calculates the appropriate length by projecting the lost margins.
Is the DIP under the Doubin law really mandatory?
Yes, where the contract imposes exclusivity or quasi-exclusivity of a banner or brand (Article L. 330-3 of the Commercial Code). The document must be handed over at least twenty days before signing and must set out, among other things, the franchisor's experience, the state of the local market, the network, and the duration and renewal conditions. An incomplete or late DIP may lead to nullity of the contract for defective consent and to repayment of the entry fee.
Are my general terms of sale enforceable against my professional B2B customers?
Yes, provided they were communicated before the contract was concluded and accepted, at least tacitly, by the buyer. Article L. 441-1 of the Commercial Code requires them to be communicated on request to any professional buyer, on any durable medium. A note on the back of a later invoice is not enough. Best practice: annex the general terms of sale to the signed quotation and the purchase order, and keep the acknowledgement of receipt.
Is a jurisdiction clause designating a court valid?
Between traders, yes, provided it is stipulated in a very prominent and clear way in the contract (Article 48 of the French Code of Civil Procedure, the Code de procédure civile). The designated court must have subject-matter jurisdiction. A clause giving jurisdiction to the Paris commercial court is customary for domestic contracts signed in Paris. An arbitration clause is also possible and departs from the jurisdiction of the courts.
Can I suspend performance if the other party does not pay?
Yes, subject to conditions. Article 1219 of the Civil Code allows a party to refuse to perform its obligation where the other party fails to perform its own and the failure is sufficiently serious. Seriousness is assessed case by case. Prior formal notice is preferable, and the default must be documented. An abusive suspension may itself engage your contractual liability.
How can a contract be terminated unilaterally?
Article 1226 of the Civil Code allows the creditor to terminate unilaterally after formal notice to the debtor has gone unanswered. The notice must expressly state that, failing performance within a reasonable time, the creditor will be entitled to terminate the contract. The debtor may challenge this before the judge, and it is then for the creditor to prove the seriousness of the non-performance. Unilateral termination is at the creditor's own risk.
What indemnity is a commercial agent entitled to at the end of the contract?
Article L. 134-12 of the Commercial Code provides for compensation for the loss suffered, traditionally assessed at two years of gross commissions. This indemnity is a matter of public policy and cannot be excluded by contract. The Court of Cassation has even held that it is due where the termination occurs during the trial period (Cass. com. 23 January 2019, No. 15-14.212). The agent must notify the claim within one year of the end of the contract.
Is a limitation-of-liability clause always valid?
No. Article 1170 of the Civil Code provides that any clause that deprives the debtor's essential obligation of its substance is deemed unwritten. A clause that caps liability at a derisory amount in relation to the stakes will be deemed unwritten. The clause remains valid if it is calibrated and does not empty the main performance of all meaning. Gross negligence or fraudulent misconduct can never be covered.
How do you prove sudden termination where there is no written contract?
By any means. The court looks at the length of the relationship, the volume of business, purchase orders, invoices, correspondence and economic dependence. The older and more continuous the trail, the more likely the relationship is to be treated as established. The firm helps to reconstruct the body of evidence: emails, visit reports, the accounting record of the customer account and, where available, witness statements.
What is the time limit for taking action in a contractual dispute?
The ordinary limitation period in commercial matters is five years (Article L. 110-4 of the Commercial Code). It runs from the day the right-holder knew, or should have known, the facts enabling them to act. For sudden termination, it is the date of notification of the termination that starts the period. For latent defects, the period is two years from discovery of the defect.
Do you always have to go to court, or can mediation be enough?
Mediation and contractual conciliation often avoid lengthy proceedings. They are recommended where the relationship is meant to continue or where the dispute concerns an amount below €50,000. A settlement approved by the judge is enforceable. By contrast, where the other party acts in bad faith or is at risk of insolvency, a writ of summons remains the only useful option.
How can I protect my trade secrets in a partnership contract?
Through a well-drafted confidentiality clause (precise subject matter, duration, quantified sanctions) and, where appropriate, a separate non-disclosure agreement (NDA) signed before negotiations begin. The law of 30 July 2018 transposing the trade secrets directive also allows action on the basis of Article L. 151-1 et seq. of the Commercial Code. The firm drafts NDAs and brings actions to stop unlawful use.
Sources and related pages
Official texts and related pages
The sources for this page and the firm's related areas of practice.
Further reading
Page updated on 11 June 2026.
Let us discuss your contract matter.
Contract to draft, relationship to secure or termination to manage: send the contract, the correspondence and the history of the relationship. The firm replies within 24 business hours.
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