Companies frequently use “sales concessions” to market and/or distribute their products. The sales concession differs essentially from other forms of commercial distribution by the fact that the economic risk is borne by the dealer to which the right is granted to sell, in their own name and for their own account, the licensor’s products.
A licensor, whether a Belgian or foreign company, intending to unilaterally terminate a sales concession must, however, pay particular attention to the Belgian Code of Economic Law which provides that, besides the case of a serious breach from the dealer of its obligations, certain sales concessions can be terminated only with reasonable period of notice or a fair compensation to be determined by the parties at the time of the termination of the contract.
