Home Blog Sudden Termination Confirmed Despite Change of Contracting Party (Paris Court of Appeal, 23 May 2024, Case No. 21/17982)

Sudden Termination Confirmed Despite Change of Contracting Party (Paris Court of Appeal, 23 May 2024, Case No. 21/17982)

Sudden Termination Confirmed Despite Change of Contracting Party (Paris Court of Appeal, 23 May 2024, Case No. 21/17982)
18 July 2025

1. Established Business Relationship Maintained Despite a Change in Contracting Party
The Court found (as is standard) that JM Services Clés had continued without interruption the services previously performed by Jean-Marc Services Clés for a hotel, following a court-ordered transfer. The contract had the same purpose, schedules, and execution conditions, and the former manager remained the operational contact. This factual continuity established a stable commercial relationship under Article L.442-1, II of the French Commercial Code, interpreted here rather broadly.

2. Price Renegotiation Does Not Break the Continuity
The Court emphasized that a single price renegotiation in 2013 was not enough to characterize the relationship as new. In the absence of evidence of an actual termination of the initial contract or the signing of a new dated agreement, the renegotiation was deemed a minor adjustment within an ongoing business relationship.

3. Brutal Termination Due to Insufficient Notice Period
Given the uninterrupted 15-year relationship, the significant business volume (over 11% of the total turnover), and the absence of any fault on the part of the service provider, the one-month notice given by the hotel was clearly insufficient. A 12-month notice period was required. The Court ordered the hotel to pay €54,962 in damages for the brutal nature of the termination.