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Sudden Breakdown (Established Commercial Relationship)

By Anonymous writer - Glossary

Sometimes, after a commercial relationship has been established, everything stops going as planned either because the contract was not correctly executed or there has been a breach of contract by one of the parties. In these instances, the other party is forced to end the contractual relationship ‘suddenly’ without prior warning.

This sudden breakdown of an established commercial relationship is provided for in law, notably Article L.442-6, 1, no.5 of the Commercial Code. This provision states that ‘The party bringing the contract to an end in a ‘sudden’ manner is liable for reparation damages to suppliers, industrial merchants or other professionals involved when an established commercial relationship is ended in such a way, even if that is partial, without written notice having regard to the duration of the relationship and respecting the minimal length of notice determined in common business practice or in professional guidelines.’

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