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Civil law. Part II. Liability under a commercial concession agreement. Change and termination of the contract (most important)

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118. LIABILITY UNDER A COMMERCIAL CONCESSION AGREEMENT. AMENDMENT AND TERMINATION OF THE AGREEMENT

The liability of the parties under the commercial concession agreement comes regardless of their guilt.

The right holder is responsible not only to the user for improper performance of the contract, but also to third parties - for the inadequate quality of goods (works, services). Such liability can be both subsidiary and joint and several.

The right holder bears subsidiary responsibility for the claims made to the user about the discrepancy between the quality of goods (works, services) sold (performed, rendered) by the user under a commercial concession agreement. According to the requirements for the user as a manufacturer of products (goods) of the right holder, the right holder is jointly and severally liable with the user (Article 1034 of the Civil Code).

Changing the terms of the contract carried out: by agreement of the parties; in court at the request of one of the parties in case of a material breach of the contract by the other party; with a significant change in the circumstances from which the parties proceeded when concluding the contract.

Any changes to the contract are subject to mandatory state registration in the same manner as its conclusion.

The commercial concession agreement is terminated in cases of:

a) unilateral repudiation of an agreement concluded without specifying a term. Each of the parties to the contract has the right to withdraw from it at any time by notifying the other party six months in advance, unless a longer period is provided for by the contract (paragraph 1 of article 1037 of the Civil Code);

b) unilateral refusal of the user from the contract in the event of a change in the commercial designation of the copyright holder (paragraph 2 of article 1037 and article 1039 of the Civil Code);

c) termination of the rights to a trademark, service mark or commercial designation belonging to the copyright holder without replacing them with new similar rights (clause 3 of article 1037 of the Civil Code);

d) the death of the right holder, if the heir does not register as an individual entrepreneur within six months from the date of opening of the inheritance (paragraph 2 of article 1038 of the Civil Code);

e) declaring the right holder or user insolvent (bankrupt) in the prescribed manner (clause 4 of article 1037 of the Civil Code);

e) in other cases provided for in Ch. 26 of the Civil Code, for example. in novation or debt forgiveness.

Termination of a commercial concession agreement is subject to state registration in the same bodies that register the conclusion of this agreement.

In the event of termination of one of the exclusive rights included in the complex of exclusive rights transferred under a commercial concession agreement, the agreement continues to be valid, with the exception of those provisions that relate to the terminated right (Article 1040 of the Civil Code).

<< Back: Varieties of commercial concession (franchising). Subconcession. Restrictions on the rights of the parties under the contract

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