Suppliers and subcontractors of large French groups

Situations handled

General information only; this page is not legal advice.

Practical steps at the first warning signs

1. Review the framework agreement: term, notice, exclusivity, price revision, penalties
2. Secure future deliveries: written and accepted retention of title, guarantees, down payments
3. Document in writing every volume cut, delay or unilateral change
4. Monitor BODACC publications and observe the claim-filing deadline
5. Assess the impact on your own cash position and consider confidential out-of-court proceedings
6. Start commercial diversification before dependence becomes critical

Scope of work

• Audit of framework agreements, general terms and penalty clauses
• Claim filing, reclaiming goods, monitoring ongoing contracts
• Claims for abrupt termination or significant imbalance before the specialised courts
• Debt recovery, rescheduling, dealings with credit insurers and factors
• Out-of-court and court-supervised proceedings for the company itself
• Business transfer or sale plan where the loss of the key account is irreversible

Frequently asked questions

My customer has entered judicial reorganisation: what happens to my claim?

Claims arising before the opening judgment must be filed with the creditors' representative, in principle within two months of publication in the BODACC (four months for creditors domiciled outside metropolitan France). Supplies made after the opening, for the purposes of the proceedings, are in principle paid when due.

Can I stop supplying a customer in insolvency proceedings?

Not unilaterally for ongoing contracts: Article L.622-13 of the Commercial Code gives the court-appointed administrator the option to continue the contract and prohibits termination on the sole ground of the opening. Post-opening supplies must, however, be paid; failure to pay when due can be relied upon.

What if my main customer terminates our relationship without notice?

Article L.442-1, II of the Commercial Code sanctions the abrupt termination of an established commercial relationship without written notice reflecting the duration of the relationship. Damages are in principle based on the margin lost over the notice period that should have been given.

Is economic dependence on one customer unlawful in itself?

No. Dependence is not wrongful as such, but it may form the background for a finding of significant imbalance or abuse, assessed case by case by the courts.

Do construction subcontractors have specific protections?

Yes. Act no. 75-1334 of 31 December 1975 requires the project owner to approve subcontractors and provides for direct payment in public contracts, and for a guarantee or delegation of payment in private contracts.

Related pages

• Listed company restructuring
• Version française
• Groups and holding companies
• All company profiles