Section 1: General terms and conditions of sale

Articles in this section · 4

Article L441-1-1

French Commercial codeIn force

Updated 7 Nov 2023

I.-For food products and products intended for pet food, the general conditions of sale, at the supplier's decision and without the purchaser being able to interfere in this choice:

1° Either present, for each of the agricultural raw materials and for each of the processed products composed of more than 50% of agricultural raw materials that go into the composition of the product referred to in the first paragraph of this I, their share in the composition of the said product, in the form of a percentage by volume and a percentage of the supplier's price list;

2° Or present the aggregated share of agricultural raw materials and processed products composed of more than 50% agricultural raw materials that enter into the composition of the product mentioned in the same first paragraph, in the form of a percentage by volume and a percentage of the supplier's tariff ;

3° Or provide, provided that they show a change in the supplier's price for the product mentioned in the said first paragraph compared with the previous year, for the intervention, at the supplier's expense, of an independent third party responsible for certifying the proportion of this change that results from the change in the price of the agricultural raw materials or processed products mentioned in the same first paragraph. In this case, the supplier provides the independent third party with the documents required for this attestation, in particular the methodology used to determine the impact on its tariff of changes in the price of the said agricultural raw materials or processed products. The certificate is provided by the supplier to the distributor in the month following the dispatch of the general terms and conditions of sale. Under this option, the independent third party is also responsible for certifying at the end of the negotiation that, in accordance with II of Article L. 443-8, the negotiation did not relate to the portion of the change in the supplier's price that results from the change in the price of the agricultural raw materials or processed products mentioned in the first paragraph of this I. In the absence of a certificate within one month of the conclusion of the contract, the parties who wish to continue their contractual relationship shall amend their contract within two months of the signature of the initial contract.

The independent third party is bound by professional secrecy for the facts, acts and information of which he has knowledge by reason of his duties. The use of an independent third party does not exempt the supplier from keeping a copy of the supporting documents in order to respond, if necessary, to requests from the administration.

A failure to comply with this I is subject to an administrative fine under the conditions set out in VI of Article L. 443-8.

A decree may provide that the obligation laid down in this I does not apply to food products or products intended for pet food whose aggregate share of agricultural raw materials and processed products composed of more than 50% agricultural raw materials, making up these products, is less than or equal to a threshold which may not exceed 25%.

II.-A.-For the application of 1° of I, the purchaser may, at its own expense, ask the supplier to appoint an independent third party to certify the accuracy of the information contained in the general terms and conditions of sale. In this case, the supplier shall send the independent third party, within ten days, the documents justifying the accuracy of these elements.

B.-For the application of 2° of I, the purchaser may, at its own expense, ask the supplier to appoint an independent third party to certify the accuracy of the elements appearing in the general terms and conditions of sale. In the event of inaccuracy or wilful deception on the part of the supplier with regard to the aggregate share of agricultural raw materials in the volume of the product or in its supplier price list, established by the independent third party and resulting in the impossibility of issuing the certificate referred to in the first sentence of this B, the costs of the intervention of the independent third party shall be borne by the supplier.

C.-.In the context of the application of 1° and 2° of I, the mission of the independent third party consists exclusively, on the basis of a contract concluded with the supplier, of receiving the documents transmitted by the supplier and the supporting documents, certifying the accuracy of the information transmitted, in particular the determination of the unit or aggregate share of agricultural raw materials and processed products in the supplier's price list, and transmitting this certification to the purchaser within ten days of receipt of the documents mentioned in this C.

D.-The independent third party is bound by professional secrecy for the facts, acts and information of which he has knowledge by reason of his duties.

The use of an independent third party does not exempt the supplier from keeping a copy of the supporting documents in order to respond, if necessary, to requests from the administration.

III.-The price of the agricultural raw material is that paid for the delivery of agricultural products, within the meaning of Articles 148 and 168 of Regulation (EU) No 1308/2013 of the European Parliament and of the Council of 17 December 2013 on the common organisation of the markets in agricultural products and repealing Council Regulations (EEC) No 922/72, (EEC) No 234/79, (EC) No 1037/2001 and (EC) No 1234/2007, by a first buyer, by a producer organisation with transfer of ownership or by an agricultural cooperative.

IV.-The general terms and conditions of sale shall indicate whether a contract of sale, concluded pursuant to Article L. 631-24 of the French Rural and Maritime Fishing Code, relating to the agricultural raw materials used in the composition of the food product or product intended for pet food has already been concluded.

V.-This article does not apply to wholesalers as defined in I of article L. 441-1-2 for their acts of purchase and resale, or to certain food products, categories of food products or products intended for pet food, the list of which is defined by a decree issued after consultation with the inter-professional organisations concerned, due to the specific features of their production sector.

VI.-A decree may set the list of professions presumed to present the guarantees to carry out the mission of independent third party.

Mariela Petrova

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Any time a strategic decision changes how the company is owned, governed or contractually bound — incorporation, fundraising, M&A, restructuring, shareholder agreements, or major commercial contracts. Earlier engagement always costs less than later remediation.

A notary (notaire) is a public officer who authenticates specific deeds (mainly real-estate transfers and certain family-law acts). A corporate lawyer (avocat) advises on strategy, negotiates and drafts company documents, and represents you in disputes. The two roles complement rather than overlap.

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Absolutely. We routinely coordinate with your in-house counsel, expert-comptable or notaire — pragmatic collaboration is the norm, not the exception. We send them everything they need to do their part without duplicating work.

Mariela Petrova

Mariela Petrova

Avocate au Barreau de Paris

Toque #C2396

15+ Years In Corporate Practice

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