Commercial Agency, Franchise and Distribution Contracts
Principles of European Law

by Martijn Hesselink, Jacobien W. Rutgers, Odavia Bueno Díaz, Manola Scotton, Muriel Veldmann
Edited by Study Group on a European Civil Code

Principles of European Law
March 2006
XLI, 371 pages

Published in co-operation with Bruylant (Belgium), Oxford University, Press (Great Britain) and Staempfli Publishers (Switzerland).

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Commercial Agency, Franchise and Distribution Contracts
The rules presented in this volume of "Principles of European Law" deal with commercial agency, franchise and distribution contracts, and with other contracts where one party uses the other party's skill and efforts to bring its products to the market. Although these Principles are not directly applicable to other long-term (commercial) contracts, some of the Articles may be applied to such contracts by way of analogy where appropriate.

The economic function of all three contracts is that they are instrumental in bringing products to the market. They are so-called vertical agreements, as they are agreements between economic actors on different levels in the production and distribution chain. Obviously, the economic importance of these contracts is enormous since they form the connection between producers and retailers who sell the products to consumers and other final users. There are only very few economic sectors where producers regularly sell their products directly to final consumer users.

Goodwill compensation after the ending of a distribution contract, the moment at which the agent's commission is due, the franchisor's obligation to maintain the good reputation of the network are but a few examples of issues where specific rules are needed in order to give legal practice some guidance and to provide practitioners with a reasonable degree of legal certainty.

"Die von einer großen Gruppe herausragender Experten erarbeiteten Vertragsmuster, die sich u.a. in englischer, französischer, spanischer, aber auch deutscher Sprache mit einem Mustervertrag zum Handelsvertreter-, Franchise- und Vertriebsvertrag sowie dessen Kommentierung (Letztere in englischer Sprache) befassen, sind für die internationales Wirtschaftspraxis ein besonders wertvolles Arbeitsmittel und eignen sich hervorragend zur Unterstützung der typischen Vertriebsformen internationaler Geschäfte."
Professor Dr. Graf von Bernstorff in AWPrax 2006, 277
"This collection and, indeed, encyclopedia of the law of distribution contracts in the European countries is a treasure which will serve for a long time as the number one source of acadamic knowledge in this intricate field of comparative contract law ()"
Professor Dr. Dr. Dr. h.c. Michael Martinek in GPR 3/07, S. 152

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