Section 1: Restrictive competition practices

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Article L442-1

French Commercial codeIn force

Updated 7 Nov 2023

I.-Any person engaged in production, distribution or service activities, in the context of commercial negotiation, the conclusion or performance of a contract, is liable and obliged to compensate the damage caused:

1° Obtaining or attempting to obtain from the other party an advantage corresponding to no consideration or manifestly disproportionate to the value of the consideration given;

2° Subjecting or attempting to subject the other party to obligations creating a significant imbalance in the rights and obligations of the parties;

3° Imposing logistical penalties not complying with Article L. 441-17 ;

4° Discriminating in respect of the other party, or obtaining from it, prices, payment terms, conditions of sale or terms of sale or purchase that are not justified by genuine consideration provided for in the agreement referred to in Article L. 441-4 thereby creating, for that partner, a disadvantage or an advantage in competition;

5° Not having conducted commercial negotiations in good faith in accordance with Article L. 441-4, resulting in the failure to conclude a contract within the deadline set out in Article L. 441-3.

II.-Any person engaged in production, distribution or service activities who abruptly terminates an established commercial relationship, even partially, without giving prior written notice that takes into account, in particular, the duration of the commercial relationship, with reference to trade practices or inter-trade agreements, and, for the purpose of determining the price applicable during the duration of the relationship, the economic conditions of the market on which the parties operate, shall be liable to pay compensation for the damage caused.

In the event of a dispute between the parties over the length of the notice period, the party responsible for the breach cannot be held liable on the grounds of an insufficient length of notice provided that it complied with eighteen months' notice.

The provisions of this II do not preclude the option of termination without notice in the event of non-performance by the other party of its obligations or in the event of force majeure.

III.-Engages the liability of its author and obliges him to compensate the damage caused the fact, by any person offering an online intermediation service within the meaning of Regulation (EU) 2019/1150 of the European Parliament and of the Council of 20 June 2019 promoting fairness and transparency for business users of online intermediation services, of not complying with the obligations expressly provided for by the same Regulation.

Any clause or practice not expressly covered by the said Regulation shall be governed by the other provisions of this Title.

Mariela Petrova

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Common Questions

Working with a corporate lawyer in France — Q&A

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.

Yes — most of our clients are foreign suppliers, investors or holding entities. We bridge the gap between French law and your home jurisdiction's expectations and deliver everything bilingually.

The SAS (Société par Actions Simplifiée) is the default choice for most international structures: flexible governance, single shareholder allowed, no minimum capital, and works cleanly with foreign holding entities. We assess SARL, SA, SCI on the merits when the situation calls for it.

Yes — communications with a French avocat are protected by the secret professionnel (Article 66-5 of the Law of 31 December 1971). This protection is broader than the common-law attorney-client privilege and applies to written and oral exchanges.

We work on fixed fees for clearly scoped engagements (incorporation, contract drafting, audits) and on monthly retainers for ongoing advisory. Hourly billing is the exception, not the default. You always know the cost before work starts.

Typical timeline is 2–3 weeks from KYC kick-off to RCS registration, assuming standard documentation. Holding-company structures, foreign-shareholder identification or in-kind contributions can extend this — we flag the gating items at the first meeting.

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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Communications protected by professional secrecy — secret professionnel de l'avocat, Article 66-5 of the Law of 31 December 1971.

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