Entry into force of the prohibition of unfair terms in B2B contracts: are you ready?

White & Case LLP

White & Case LLP

On 1 December 2020, the prohibition of unfair terms in B2B contracts imposed by the law of 21 March 2019, will enter into force.

From now on, any contractual terms creating a manifest imbalance between the rights and obligations of the parties are prohibited. Further to this general prohibition, the new regime contains a black and grey list of contractual terms that are automatically presumed to be abusive. This new regime will certainly impact existing and future contracting practices, and could give rise to constitutional and EU law issues.

Although much uncertainty remains as to how this new regime will be applied, make sure to take this into account while (re)negotiating B2B contracts in order to reduce the risk of post-signing litigation.

A more detailed briefing on the application of new regime on unfair terms in B2B contracts will follow.

In the meantime, do not hesitate to reach out to us should you need any advice in relation thereof.

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