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Vassali v. Gagnaire

Recueil Dalloz, Jurisprudence 13 (1996)

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Vassali v. Gagnaire

France Court of Cassation
Recueil Dalloz, Jurisprudence 13 (1996)

Facts

Vassali (plaintiff) entered into a franchise contract with Gagnaire (defendant) under which Gagnaire promised to purchase products for his franchise exclusively from Vassali for a period of five years. The contract did not set a specific price for the products to be purchased. Instead, Gagnaire promised in the contract to purchase the products at whatever price Vassali had set at the time of future orders as the catalogue price for all franchisees. Gagnaire petitioned to have the contract invalidated based on Article 1591 of the Civil Code of France, which stated that parties to a contract for the sale of goods must establish and state the price of the sale. The case made its way to a court of appeals, which held the contract to be invalid based on the fact that the contract allowed Vassali, as franchisor, to unilaterally set the price. Vassali appealed to the France Court of Cassation.

Rule of Law

Issue

Holding and Reasoning ()

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