Significant Imbalance in IT Contracts

 

 

June 9th, 2020

 

The pursuit of balance in commercial contracts is becoming increasingly important. Recent reforms in contract law and the Egalim ordinances are clear evidence of this trend.

On September 2, 2019, the Paris Commercial Court ruled that around ten clauses in Amazon’s contracts created a significant imbalance, and ordered the company to pay a €4 million fine.

Termination clauses, contract modification clauses, warranties, and liability exclusions—all were found to create a significant imbalance to the detriment of its business partners.

Tuesday, June 30, 2020
9:00 a.m. – 11:00 a.m.

What constitutes an unbalanced contract under Article 1171 of the French Civil Code and Article L.442-1 of the French Commercial Code?
How should the impact of these provisions be assessed during IT contract negotiations?
What are the consequences of a significant imbalance in the event of litigation?
How can damages be assessed or claims anticipated and mitigated?