Do you have distributors who distribute their products through distribution contracts?
They have recently delivered three judgments by the Supreme Court to shed new light on how to interpret the extinction of relations in distribution agreements whether written or verbal, and the conclusion is clear: It is essential to provide in writing the possible extinction of Contracts and corresponding deadlines and advance notice.
The first two judgments, of 15 January and 26 March 2008 refer to two separate cases in which the parties had not agreed deadlines and advance notice in the event of termination of the contract and both the Supreme Court has established the origin of Compensation for customers applying by analogy article 28 of the Law of Agency Agreement. In any case, the previous declaration as proven fact effective contribution of customers by the Distributor and the use of it by the manufacturer or Grantor is required.
But likewise expressly stated left in those judgments that should not be a general analog implementation of the Law on Agency Agreement, so that, where appropriate application, urged not done so mimetic .
And it is following the aforementioned idea of not analogous application of the Law of Agency has ruled on date 9 July 2008 when the Supreme Court is positioned to the Grantor and giving prevalence to the contract agreed by the parties and the possibility provided therein to terminate the contract with a notice period of only 7 days without right to compensation, which accords no place to compensation for the Distributor and declaring inadmissible the application by analogy of the Law on Agency Agreement.
In summary, the contractual forecast of the terms and pre-warnings for the event of extinction of the distribution contracts or sub-distribution law will the courts, but no provision will lead to a clearly favorable to the Distributor or Sub-Distributor analogous application of the Law of Agency.
About the Author:
Marcos Jiménez de Parga
DiG lawyer Lawyers