Get an immediate estimate of the compensation you may be entitled to –or may owe– following the sudden termination of a commercial relationship
The sudden termination of a commercial relationship can have significant financial consequences. To help businesses and executives assess their situation, we provide a simple, fast, and reliable simulator that estimates the potential amount of compensation.
With this tool, you receive an assessment within seconds, based on the criteria commonly used by courts: duration of the commercial relationship, revenue, contribution margin, and economic dependence.
Our simulator has a dual purpose:
- to inform you, by giving you a realistic indication of the sums at stake;
- to guide you, so you can better prepare for negotiation or legal action.
This tool does not replace legal advice, but it serves as an good starting point to understand your situation and anticipate your strategic options.
For more information on the legal framework governing the sudden termination of established commercial relationships, discover all our articles on the subject:
Are you planning to end an established commercial relationship and want to secure your approach? Are you the victim of a sudden termination and need to assess your compensation rights?
Contact us for a confidential discussion about your situation.
Frequently Asked Questions
What criteria are used to determine compensation for a sudden termination under French law?
Compensation mainly depends on the duration of the commercial relationship, the notice period actually given, the degree of economic dependence, and the financial consequences of the termination for the victim. Courts assess these elements to determine an amount consistent with the reasonable notice that should have been provided.
How is the sufficient notice period determined in cases of sudden termination?
The sufficient notice period is not defined by law. It varies depending on the sector, the stability of the business relationship, the volume of business, and the length of the commercial partnership. Courts evaluate these factors on a case‑by‑case basis to determine the notice that should reasonably have been given before the termination.
Can compensation be awarded if a notice period was given but deemed insufficient?
Yes. Even if notice was provided, the termination may still be considered sudden if the notice period was clearly insufficient given the nature of the commercial relationship. Compensation is then intended to cover the difference between the actual notice and the notice the victim was entitled to.
Can compensation be awarded even if there is no written contract?
Yes. Compensation for sudden termination does not require a written contract. What matters is the existence of an established commercial relationship, even if informal or based on consistent business dealings. Once a stable relationship is recognized, terminating it without sufficient notice may result in liability and compensation.
Does economic dependence on a commercial partner increase the amount of compensation for sudden termination?
Economic dependence is an aggravating factor recognised by the courts, which can have a twofold impact on compensation. First, it may extend the length of the reasonable notice period that the terminating party should have observed: the greater the share of the victim's turnover generated with the departing partner, the more time is needed to find alternatives or reorganise the business, and therefore the longer the expected notice period. Second, economic dependence may broaden the range of compensable heads of loss beyond the mere lost profit during the notice period: internal disruption, unamortised investments made at the request of or exclusively for the partner, and redundancy costs linked to the loss of the contract. It is important, however, to distinguish between economic dependence that was gradually imposed by the dominant partner — and thus not chosen — from dependence that was freely accepted, which may limit the scope of the claim. In all cases, economic dependence must be carefully documented and quantified in order to leverage it fully in negotiations or before the courts.