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Do you want to break a contract with a customer or a supplier ? Be aware that this process cannot be improvised and that it varies depending on whether you have a written or oral contract, or with a commercial agent .
THE VERBAL CONTRACT
In commercial matters, there is always a contract, whether written or oral (writing is not mandatory in this matter). First of all, it is necessary to establish the traceability of the contract, by collecting evidence: purchase orders, delivery notes, letters, emails, and technical or visit reports… Once it has been demonstrated that the contract existed in time,
in all cases, a period of three to six months must be respected before terminating it.
THE WRITTEN CONTRACT
In this case, reference is made to the termination clauses stipulated in the contract. For example, within the framework of a traditional contract of two or three years renewable, whose execution is normal but whose parts want to separate, one will generally have to respect a notice period of three months.
In the event of non-performance of the contractual obligations, the commercial contracts provide that the co-contracting party asks the “offending” co-contracting party by registered letter to remedy the breach within a period of one month. If this deadline is not respected, a second registered letter may be sent to him. If it is still inactive, the contract may then be terminated after three months’ notice.
THE CONTRACT WITH A COMMERCIAL AGENT
The commercial agent is subject to specific regulations. First of all, he must be registered in a special register of the commercial court of his domicile, a formality to be renewed every five years. Then, even if it is not mandatory, a commercial contract must be produced if a party requests it. Finally, in the event of default, the commercial agent will be compensated for all the work carried out, during and after the contract.
Regarding the notice of termination of the contract, it is at least one month per year of exercise. In addition, a commercial agent loses his rights if he does not assert them after one year.
DAMY law firm , Nice, how to break a contract? 2022 Update