Commercial agent or simple service provider? Reality prevails over the contract.

In two recent rulings, the Court of Cassation consistently reiterated that classification depends neither on the contractual designation nor even on the contractual structure of the relationship, but on the reality of the tasks performed, and in particular on the existence of negotiating power, understood broadly. These converging decisions sanction the same error made by …

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Significant imbalance: the absence of economic dependence does not exclude either submission or sanction

In a ruling dated 7 January 2026, the Commercial Chamber confirmed that Article L. 442-6, I, 2° (former) of the Commercial Code does not require any structural asymmetry of economic power between the parties. A distributor may attempt to subject its suppliers to a significant imbalance even when they have strong brands and alternative outlets. …

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Foreign jurisdiction clause: the indivisibility of the dispute is not sufficient to set it aside

Court of Cassation, First Civil Chamber, 8 October 2025, No. 23-16.756 (partial cassation). The Court of Cassation reiterates a principle of private international law: a validly stipulated foreign jurisdiction clause is binding on French courts, even when the dispute is indivisible between several defendants. In other words, the special jurisdiction of the court of the …

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Tortious nature of direct action brought by the sub-purchaser against the manufacturer

In two rulings of 28 May 2025 (No. 23-13.687 and No. 23-20.341), the First Civil Chamber of the Court of Cassation clarified the legal classification applicable under European private international Law to direct action by the sub-purchaser against the manufacturer of a defective product, affirming the tortious nature of this action in accordance with the Rome II Regulation (No. 864/2007).

Jurisdiction clause in the Terms of Use: no French mandatory law for Meta

Cass. 1st civ., 2 April 2025, no. 23-12.384 In a ruling dated 2 April 2025, the Court of Cassation confirmed the effectiveness of a jurisdiction clause included in the terms and conditions of use (TCU) of a professional Instagram account. The Court of Cassation dismissed Article 1171 of the Civil Code, a French protective provision …

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Sudden termination: the CJEU asked about the contractual or tortious nature of the action

Cass. 1st civ., 2 April 2025, no. 23-11.456 In an important ruling on 2 April 2025, the First Civil Chamber of the Court of Cassation decided to suspend its decision in a dispute over the sudden termination of established commercial relations, in order to refer a preliminary question to the Court of Justice of the …

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Liability for cartel: need to prove damage

Court of Cassation, Commercial, Financial and Economic Chamber, ruling of 26 February 2025, appeal no. 23-18.599 In a ruling dated 26 February 2025, the commercial chamber of the Court of Cassation confirmed the strict requirement to prove damage resulting from an anti-competitive agreement before the entry into force of Article L481-7 of the Commercial Code. …

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No breach of a non-competition clause in a franchise agreement for preparatory acts

Cass. com., 19 March 2025, no. 23-22.925, published in the Bulletin The commercial chamber of the Court of Cassation clarifies the scope of non-competition clauses in franchise agreements, while sanctioning an error of law committed by the court of appeal on the effects of a judicial liquidation during the proceedings. The facts: franchise in the …

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Debt and cash management agreement: no automatic transfer of debt between affiliated companies

Cass. com., 12 March 2025, No. 23-23.961 In a ruling dated 12 March 2025, the commercial chamber of the Court of Cassation reiterated that the implementation of a centralised cash pooling agreement, even between companies in the same group, does not in itself allow the transfer of debt from one company to another, unless expressly …

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Termination of established business relationships in sport: absence of sudden termination in the event of a gradual decrease in activity during a long notice period

Cass. com., 19 March 2025, No. 23-23.507, published in the Bulletin In a ruling dated 19 March 2025, the commercial chamber of the Court of Cassation confirmed the absence of a suddentermination in the context of a progressive decrease in business volume over a very long notice period. It thus provides an important clarification on …

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