Are you a French company developing commercial activity in Spain? Distribution, franchising, partnerships, online sales. Your contracts need to incorporate the mandatory provisions of Spanish law, not just be translated.

Are you a Spanish company setting up in France or entering into commercial relationships with French partners? We support you in structuring contracts suited to French law and market practice.

France · Spain: the differences your contract must anticipate

French and Spanish law share a common European foundation. But on structural points · distributor protection, the status of commercial agents, termination of a business relationship · they diverge significantly. These differences don't show up when reading a translated contract. They surface at the time of a dispute.

Terminating commercial relationships: a Franco-Spanish asymmetry. Under French law, abruptly terminating an established commercial relationship · even without a written contract, even without fault · exposes the party terminating it to damages. The French Commercial Code requires notice proportional to the duration of the relationship. This is a matter of public policy: it applies even if the parties chose a different governing law in their contract. Spanish law has no direct equivalent: terminating a commercial relationship is, in principle, free, unless otherwise agreed contractually or in the event of a clear abuse of right. What this means for you: a French company that terminates a relationship with a Spanish distributor without sufficient notice may incur liability in France if the relationship had a French connection. Conversely, a Spanish company setting up in France must factor this rule into its commercial strategy · it may not be aware of it.

Commercial agents: a protected status on both sides, but differently. In both France and Spain, commercial agents benefit from enhanced legal protection at the end of the contract: goodwill compensation, statutory notice periods. But the calculation methods, exclusion conditions and time limits differ between the two legal systems. What this means for you: if you hire a commercial agent in Spain to develop your network, the contract must be drafted to incorporate the applicable Spanish law · and anticipate the cost of a potential termination. A clause drafted under French law will be unenforceable on certain points.

Payment terms: a mandatory rule in Spain. In Spain, the law against late payment in commercial transactions sets a maximum term of 60 days, which cannot be overridden by contract between businesses. Late payment penalties apply automatically. In France, the rule is similar in principle but differs in its details and sector-specific application. What this means for you: a 90-day payment clause inserted into a contract governed by Spanish law is automatically void. This type of mistake is common in contracts drafted without checking local law.

The contracts we handle

Governing law, jurisdiction, arbitration: choices made at the drafting stage

In an international contract, silence on the applicable law or competent jurisdiction is never neutral. It creates uncertainty · and therefore risk. We advise our clients on three points: the choice of law governing the contract (the Rome I Regulation), the designation of a competent jurisdiction, and whether an arbitration clause is appropriate · particularly in sectors where confidentiality and speed of resolution are priorities. These choices depend on the nature of the contract, the sector, and the balance of power between the parties. There is no standard answer · but there are common mistakes we know well.

Different sectors, the same contractual rigour

We work with French and Spanish companies across sectors as varied as distribution, technology, industry and services. What these matters have in common: commercial relationships that cross the border, contracts that must function within two legal systems, and real economic consequences if something goes wrong.

Understanding the sector is part of the job. Understanding trade practices, business cycles and market conventions allows us to draft contracts that hold up · not just contracts that read well.