1991
The year France enacted its statutory commercial agency regime, implementing EU Directive 86/653 (C. com. Art. L 134-1 s.)
2 years
Maximum duration of a post-contract non-compete clause; any longer term is deemed unwritten (C. com. Art. L 134-14 and L 134-16)
Quarterly
Commission must be paid no later than the last day of the month following the quarter in which it accrued (C. com. Art. L 134-9)

The commercial agency agreement in France: a contract the parties only partly control

A commercial agency agreement is the contract by which a business entrusts an independent professional, the commercial agent (agent commercial), with negotiating and, where agreed, concluding sale or purchase contracts in its name and on its behalf, on a permanent basis (C. com. Art. L 134-1). France transposed Directive 86/653/EEC by the Law of 25 June 1991, codified at Articles L 134-1 to L 134-17 of the Commercial Code, and the resulting regime is among the most protective in Europe. A large part of it is mandatory: clauses that derogate from the agent's right to a written document, from the reciprocal duties of loyalty and information, from the core commission rules or from the termination indemnity are deemed unwritten (C. com. Art. L 134-16).

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For a foreign company appointing an agent for the French market, and for an agent about to sign, the practical consequence is the same: the contract is only partly what the parties make of it. This article examines when a contract qualifies as a commercial agency, what form and registration require, the clauses that decide how the relationship works in practice (exclusivity, competing lines, commission, sub-agency, assignment, restraints after the contract), the duties neither party can waive, and how duration, renewal and the end of the contract are framed by statute.

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When a contract qualifies as a commercial agency (C. com. Art. L 134-1)

Four elements make an intermediary a commercial agent. The agent is an independent professional, free to organise its own business, which distinguishes it from an employed sales representative (VRP) governed by employment law. It holds a permanent authority: a mandate for a single transaction is not agency. It negotiates, and where empowered concludes, contracts. And it acts in the name and on behalf of the principal (mandant), so title to the goods never passes through it. The contract is a mandate in the common interest of both parties, civil in nature even though both sides are in business.

The definition excludes the other routes to the French market. A distributor buys and resells in its own name and for its own account. A commission agent (commissionnaire) contracts in its own name for the principal's account. A broker (courtier) merely brings the parties together, transaction by transaction. None of them is a commercial agent, and none earns the agent's statutory protection.

Qualification is a matter of substance and public policy (ordre public). Courts look at how the relationship actually operated, not at the label: a contract called a service agreement is requalified as an agency where its holder in fact negotiated permanently in the supplier's name, and a contract called an agency earns no protection where the intermediary did not. Since the Court of Justice ruled on the point, negotiation no longer requires the power to alter prices or terms: an intermediary who durably solicits orders and develops the principal's clientele negotiates within the meaning of the Directive even where every sale is concluded on the principal's standard terms (CJEU, 4 June 2020, C-828/18). Before signing, each side should therefore verify whether the intermediary is really a commercial agent under the negotiation test, because that answer commands the whole regime.

One statutory opt-out exists: where the agency is performed under a written contract whose principal object is another activity, the parties may agree in writing to disapply the regime, and the agent may waive its rights in writing at the end of the contract (C. com. Art. L 134-15). Outside that narrow case, no waiver holds.

Public policy

The statutory regime cannot be avoided by drafting. Whatever the contract is called, the protective provisions, including the termination indemnity, apply to any intermediary that in fact meets the definition of Article L 134-1, and clauses to the contrary are deemed unwritten (C. com. Art. L 134-16).

Form, the right to a written contract and registration

No writing is required for validity: a commercial agency agreement exists as soon as the parties agree on its substance, and courts routinely find agencies that were never signed. What the statute does guarantee is that each party may at any time demand from the other a signed written document recording the terms of the contract and of any later amendment (C. com. Art. L 134-2). That right cannot be waived.

A written contract remains indispensable in practice, because the statute says nothing about the questions that generate disputes: the territory and whether it is exclusive, the products covered, the commission rate and its basis, targets, reporting, intellectual property, governing law. Where the contract is silent, the default rules described below apply, and they are not always what either side expects.

Before taking up the activity, commercial agents established in France must register on the special register of commercial agents (registre spécial des agents commerciaux) kept at the commercial court registry (C. com. Art. R 134-6). Registration is an administrative policing measure, not a condition of the contract: an unregistered agent's contract remains valid and its commission remains due, and a principal that tolerated the situation cannot invoke the missing registration as a serious breach (faute grave) when the relationship ends (CA Rennes, 17 déc. 2024). Agents established abroad who act in France only temporarily or occasionally are exempt.

The clauses that decide how the relationship works

The statute frames the relationship but leaves its economics to the contract. The table summarises the default position where the contract is silent, and what a clause can and cannot achieve.

ClauseDefault rule if the contract is silentWhat a clause can and cannot do
Territory and exclusivityNo exclusivity is implied; but an agent entrusted with a territory or customer group earns commission on every transaction within it, even concluded without its intervention (C. com. Art. L 134-6).Exclusivity may be granted. Even then the principal may deal directly, provided direct sales do not empty the agent's mission of its substance; the commission consequences of direct sales should be spelt out.
Other principalsThe agent may accept new principals without authorisation, but needs the principal's agreement to represent a competitor (C. com. Art. L 134-3).The contract may require consent for any new mandate; it cannot turn the agent into a de facto employee by removing its independence.
Order acceptanceTransactions negotiated by the agent within its authority engage the principal.A clause may reserve the principal's express acceptance of each order; refusals must not be abusive.
Client withdrawalThe principal cannot unilaterally strip the agent of customers or territory without engaging its liability.A clause allowing the principal to withdraw certain customers is valid in principle, but its use must not empty the agency of its substance (Cass. com., 5 oct. 2022, n° 20-16.665).
Del credere (ducroire)The agent does not guarantee that customers will pay.An express clause may make the agent guarantee performance, within limits proportionate to its commission.
Sub-agentsThe agent may in principle appoint sub-agents, who have a direct claim for their remuneration.The contract may exclude sub-agency or subject it to the principal's consent.
AssignmentThe agent cannot assign the contract without the principal's agreement; an agent that assigns loses the termination indemnity (C. com. Art. L 134-13).The contract may organise the presentation of a successor; a refusal of consent must not be abusive.
RemunerationThe customary rate in the sector applies; failing usage, reasonable remuneration (C. com. Art. L 134-5).The rate, basis and payment terms are free, but the acquisition, payment and information rules of Articles L 134-9 and R 134-3 cannot be derogated from to the agent's detriment (C. com. Art. L 134-16).
Post-contract non-competeNone is implied; the former agent is free.Valid only if written, limited to the sector, customers and goods covered by the contract, and no longer than two years (C. com. Art. L 134-14).

The post-contract non-compete clause (C. com. Art. L 134-14)

A restraint on the former agent is valid only on cumulative conditions: it must be in writing; it must concern the geographic sector, or the group of customers, entrusted to the agent, together with the type of goods or services covered by the contract; and it may not exceed two years after the end of the contract, any longer term being deemed unwritten (C. com. Art. L 134-14 and L 134-16). Case law adds two limits and removes one constraint. A clause is void where it prevents the former agent from carrying on any professional activity at all (Cass. com., 17 janv. 2012, n° 10-27.701), and void where the restriction does not correspond to the clientele actually entrusted to the agent (Cass. com., 15 mai 2012, n° 11-18.330). By contrast, unlike an employee's non-compete, no financial consideration is required (Cass. com., 4 déc. 2007, n° 06-15.137). A well-drafted contract treats in the same movement the exclusivity and non-compete clauses of a French commercial agency, the restraints during the relationship and those that survive it.

Commission (C. com. Art. L 134-5 to L 134-10)

During the contract, commission is due on every transaction concluded through the agent's intervention, and on every transaction with a customer the agent previously acquired for business of the same kind; an agent entrusted with a territory or customer group earns commission on all transactions within it (C. com. Art. L 134-6). Commission may also be due on orders placed after the end of the contract where they are principally attributable to the agent's work and concluded within a reasonable time (C. com. Art. L 134-7).

Commission is acquired, at the latest, when the customer performs its side of the transaction or should have performed it had the principal performed its own, and must be paid no later than the last day of the month following the quarter in which it accrued (C. com. Art. L 134-9). The right is lost only where the principal establishes that the contract with the customer will not be performed for reasons not attributable to the principal (C. com. Art. L 134-10). The principal must deliver a quarterly commission statement, and the agent may demand the accounting information needed to verify it, whether or not it enjoys exclusivity (C. com. Art. R 134-3; Cass. com., 17 mai 2023, n° 22-11.463). Clauses derogating from these rules to the agent's detriment are deemed unwritten (C. com. Art. L 134-16). Before fixing the rate, both sides should calculate what the commercial agent's commission in France will actually produce on real order flows, because the statutory basis reaches sales the parties do not always expect to be commissionable.

Choice of law and jurisdiction

Foreign principals regularly submit the contract to their own law, and within limits that choice is effective. Where the agent carries on its activity in the European Union, however, the protective termination provisions derived from Directive 86/653 are internationally mandatory and apply despite the choice of a non-member State's law (CJEU, 9 Nov. 2000, C-381/98, Ingmar). Conversely, an agent performing the contract outside the EU cannot rely on that protection (CJEU, 16 Feb. 2017, C-507/15). Any party negotiating cross-border should therefore determine which law governs its international commercial agency contract before choosing the forum, not after the dispute has arisen.

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Duties neither party can contract away (C. com. Art. L 134-4)

The contract is a mandate of common interest: the agent develops a clientele whose value both parties share. From that flow reciprocal duties of loyalty and information which the contract cannot exclude (C. com. Art. L 134-4 and L 134-16). The agent must perform its mandate as a good professional and comply with the principal's reasonable instructions (C. com. Art. R 134-1); it answers for the damage its own breaches cause the principal.

The principal's side is more demanding than foreign companies often expect. It must put the agent in a position to perform: provide the documentation for the goods and services concerned, supply the information necessary to performance and, notably, warn the agent within a reasonable time where it foresees that the volume of transactions will be significantly lower than the agent could normally have expected. It must also inform the agent of its acceptance, refusal or non-performance of the transactions the agent has procured (C. com. Art. R 134-2). A principal reorganising its distribution, or planning to cut the product range, must anticipate these duties before acting.

Duration, renewal, assignment and the end of the contract

The contract may be concluded for a fixed or an indefinite term (C. com. Art. L 134-11). A fixed-term contract that both parties continue to perform after expiry becomes, by tacit renewal, a contract for an indefinite term. An indefinite-term contract may be terminated unilaterally subject to notice: one month in the first year, two months in the second, three months from the third year onwards. The parties may lengthen these periods but not shorten them, and the notice owed by the principal may never be shorter than that owed by the agent.

The agent cannot assign the contract without the principal's agreement, and an agent that does assign loses its termination indemnity (C. com. Art. L 134-13). The agent's death ends the contract, the claim passing to the heirs (C. com. Art. L 134-12).

Whatever form the end takes, the statutory scheme applies: an indemnity commonly assessed at around two years' gross commission, lost if not claimed from the principal within one year, and excluded only in the cases Article L 134-13 defines, chief among them serious breach (faute grave) by the agent. Even the simple non-renewal of a fixed term opens the right, and an agent who declines to sign a replacement contract at expiry does not thereby forfeit it (Cass. com., 21 juin 2017, n° 15-29.127). Before giving notice, a principal or an agent should measure what terminating a commercial agency agreement in France entails; where a termination is already in prospect, Petroff Avocats acts to claim or defend a commercial agent's termination indemnity in France.

Frequently Asked Questions

Does a French commercial agency agreement have to be in writing?

No. The contract is valid without any writing, and courts regularly recognise agencies that were never signed. Each party may however demand a signed written document recording the terms at any time (C. com. Art. L 134-2), and a written contract is indispensable in practice to fix territory, products, commission and governing law.

Can we submit the contract to a foreign law and avoid the French regime?

Only up to a point. Where the agent operates in the European Union, the protective termination provisions derived from Directive 86/653 apply despite the choice of a non-member State's law (CJEU, 9 Nov. 2000, C-381/98, Ingmar). The choice of law still matters for everything the mandatory rules do not cover, which is why the clause deserves careful drafting rather than omission.

Must the agent be registered, and what happens if it is not?

An agent established in France must register on the special register kept at the commercial court registry (C. com. Art. R 134-6). Registration is an administrative policing measure: its absence does not invalidate the contract, does not deprive the agent of its commission, and cannot be raised as a serious breach by a principal that tolerated it. Foreign agents acting in France temporarily or occasionally are exempt.

Can the agent represent competing brands?

The agent may accept new principals without authorisation, but may not represent a competitor of an existing principal without that principal's agreement (C. com. Art. L 134-3). The contract can tighten this by requiring consent for any new mandate.

Can the principal sell directly to customers in the agent's territory?

In principle yes, even where the agent has exclusivity, provided direct sales do not empty the agent's mission of its substance. But where the agent is entrusted with a territory or customer group, it earns commission on every transaction concluded within it, including sales the principal makes directly (C. com. Art. L 134-6). The contract should say expressly how direct sales are commissioned.

Is a post-contract non-compete clause enforceable against the agent?

Yes, if it is in writing, limited to the sector or customers and the goods covered by the contract, and no longer than two years (C. com. Art. L 134-14). It is void if it prevents the former agent from working at all or does not correspond to the clientele actually entrusted. No financial consideration is required, unlike an employee's non-compete.

What commission is due if the contract says nothing about it?

The agent is entitled to the remuneration customarily allowed in its sector of activity where it operates; failing any usage, to reasonable remuneration taking account of all elements of the transaction (C. com. Art. L 134-5). Silence therefore does not mean no commission; it means a rate fixed by reference points the parties did not choose.

Can the contract exclude the termination indemnity in advance?

No. Any clause derogating from the indemnity to the agent's detriment is deemed unwritten (C. com. Art. L 134-16). The indemnity is excluded only in the cases defined by Article L 134-13: serious breach by the agent, termination initiated by the agent outside specific circumstances, or assignment of the contract by the agent.

Key takeaways on the French commercial agency agreement
Qualification is public policy: the statutory regime applies to any intermediary that in fact negotiates permanently in the principal's name, whatever the contract is called (C. com. Art. L 134-1 and L 134-16).
No writing is required, but each party can demand one: the right to a signed document recording the terms cannot be waived (C. com. Art. L 134-2), and a written contract is where territory, products, commission and governing law get settled.
Registration polices the profession, not the contract: an unregistered agent's contract remains valid and its commission due (C. com. Art. R 134-6).
The commission rules are a floor: acquisition, quarterly payment and the agent's right to verifying information cannot be reduced by contract (C. com. Art. L 134-9, R 134-3 and L 134-16).
A non-compete must be written, correlated and short: sector, customers and goods of the contract only, two years at most, void if it bars all activity (C. com. Art. L 134-14).
The end of the contract is framed by statute: notice of one to three months, an indemnity commonly around two years' gross commission that no clause can exclude, and a one-year deadline to claim it (C. com. Art. L 134-11 and L 134-12).
Drafting, reviewing or about to sign a French commercial agency agreement?

Petroff Avocats advises foreign principals and agents on French agency contracts: qualification of the relationship, drafting and negotiation of the clauses that matter, and the positions to take before signature or termination, with conclusions delivered in English as a written opinion the board can act on. For advice on a specific appointment, contract or dispute, consult our French commercial agency lawyer.

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This article is for general information only and reflects French law as published at the date shown above. It does not constitute legal advice. Always seek qualified advice before acting.