Changes to the pre-contractual information requirement
Do you operate in the franchise, sales concession or distribution sector? Then pay attention, because as of Sept. 1, 2024, the pre-contractual information requirements are changing.
For 20 years, an information requirement has existed in Belgium for commercial cooperation agreements, such as sales concessions, distribution agreements, franchise agreements, commercial agency, commission agents, brokers and mandataries...
According to this obligation, at least one month before the scheduled signing of the commercial cooperation agreement, the client must provide a draft contract and a pre-contractual information document (PID) to the contractor. The latter document included information on important contractual provisions and data for the evaluation of the agreement.
In practice, however, it was found that this initial and legal part of the PID was far too extensive, making it miss its purpose. The new law therefore deletes some disclosure requirements and adds other disclosure requirements such as start-up costs, choice of law and so on.
These changes apply not only to new agreements from Sept. 1, 2024, but also to the simplified PID under amendments and renewals of current agreements from that date.
Do you need to prepare a PID as a result of entering into a commercial cooperation agreement or are you receiving a PID from your future contracting party? Then please do not hesitate to contact Eveline Van Laere or Liz Ackermans by phone (03 369 28 00) or by e-mail (info@bannister.be).
