FRENCH CODE OF COMMERCE Article L441-6
(Law no 2001-420 dated 15 May 2001 art, 53 II Official Journal dated 16 May 2001)
(Ordinance no 2000-916 dated 19 September 2000 art. 3 Official Journal dated 22 September 2000
in effect since the 1st January 2002)
(Law no 2005-882 dated 2 August 2005 art. 41 Official Journal dated 3 August 2005)
(Law no 2006-10 dated 5 January 2006 art. 26 Official Journal dated 6 January 2006)
Book IV - About freedom of prices and competition
Title IV - About transparency, restrictive practices of competition and other prohibited practices
Chapter I - About transparency
Article L.441-6
All producers, service providers, wholesalers or importers have to inform all buyers of products or of services for a given professional activity requiring it, about his general conditions of sales. They are the basis of a commercial negotiation. They include :
- the conditions of sale
- unit price list
- price rebates
- payment terms
General conditions of sales can be different depending on the categories of buyers of products or buyers of services, particularly between wholesalers and retailers. The conditions in which these categories are defined are determined legally according to turnover, nature of clients and means of distribution.
In this case the obligation of communication prescribed in the first paragraph only applies to buyers of products or buyers of services of a same category. Furthermore any producer, service provider, wholesaler or importer can agree with a buyer of products or a buyer of services on certain sales conditions justified by the type of services rendered which are not subject to the obligation of communication.
Unless otherwise stated in the sales conditions agreed on by the parties, the payment terms of amounts due are on the thirtieth day following the date of receipt of the goods or of the completion of the required service.
Contrary to provisions in the previous paragraph concerning road transport of goods, rental of vehicles with or without a driver , transport commission agents as well as for activities concerning freight forwarders, shipping and air freight agents, freight brokers and customs agents, agreed terms of payment can in no way exceed 30 days from the date of issue of the invoice.
The payment terms have to specify the conditions of enforcement and the interest rate of late payment penalties due the day after the payment due date as shown on the invoice if the required payment is settled after this date. An otherwise stated condition can not however determine an interest rate below one and a half that of a legal interest rate, this rate being equal to the interest rate applied by the central European bank in its most recent refinancing operation raised by 7 percentage points. Late payment penalties are due without a necessary reminder. Communication as mentioned in the first paragraph is carried out under customary conditions of the trade.
Any infringement to the above stated provisions is punishable by a fine of 15000 Euros. Moral persons are declared legally responsible under the conditions stated in the article 121-2 of the penal code.
Punishment incurred by the moral parties is a fine according to the terms stated in the article 131 – 38 of the said code.