Endorsement
Explanation
Brokerage [le courtage] is a contract by which the broker [le courtier] undertakes to direct another party to a means of concluding a specific agreement. The broker can also be an intermediary in contract negotiations in exchange for remuneration [la rémunération].
Brokerage is generally subject to the rules of mandate [le mandat]. This means that the principles governing the relationship of the principal with the agent apply to the relationship of the broker with the parties between whom they mediate.
The broker's remuneration is determined by agreement or by an official tariff. If there is no agreement or tariff, the remuneration is determined according to custom [la coutume] or estimated by the judge according to the circumstances of the case.
The law gave the judge the authority to modify the broker's remuneration. If the agreed remuneration is disproportionate to the effort exerted and the nature of the case, the judge has the right to reduce it to become a fair remuneration.
The forwarding agent [le commissionnaire expéditeur] is the one who undertakes to send or return goods on behalf of their principal [le commettant] in their own name and in exchange for remuneration. This person is considered an intermediary, but in the transport of goods, they are subject to the provisions of the transport contractor.
The cancellation of the mediation entails legal responsibility. If the principal cancels the mediation or the intermediary withdraws from it without a legitimate reason, the breaching party is liable to pay damages [les dommages-intérêts].
Official legal articles
Think deeper
How do you justify giving the judge the authority to reduce the agreed broker's remuneration despite the existence of a contract between the two parties, and how does this relate to the rules of mandate?
Flashcards
What is the brokerage contract?
It is a contract by which the broker undertakes to direct a party to a means of concluding an agreement or to be an intermediary in contract negotiations in exchange for remuneration.
What are the rules that generally apply to brokerage?
The rules of mandate generally apply to it.
How is the broker's remuneration determined if it is not specified by agreement or by an official tariff?
It is determined according to custom or the judge estimates its value according to the circumstances.
Is it permissible for the judge to reduce the agreed broker's remuneration?
Yes, they have the right to reduce it to become fair if it appears that it is disproportionate to the nature of the case and the efforts it requires.
What is the penalty if the intermediary withdraws from the mediation without a legitimate reason?
They are liable to pay damages.
What are the rules to which the forwarding agent is subject in the transport of goods?
They are subject to the provisions to which the transport contractor is subject.
Practice questions
What are the consequences for the principal who cancels the mediation without a legitimate reason?
The principal who cancels the mediation without a legitimate reason is liable to pay damages (Article 289).
Which of the following rules generally apply to brokerage?
The rules of mandate generally apply to the brokerage contract (Article 291).
How is the broker's remuneration estimated in the absence of an agreement and an official tariff?
The remuneration is determined according to custom, or the judge estimates its value according to the circumstances (Article 292).
When does the judge have the right to reduce the broker's remuneration?
The judge has the right to reduce the remuneration to become fair if it is disproportionate to the case and efforts (Article 292).
What are the rules to which the forwarding agent is subject regarding the transport of goods?
The forwarding agent is considered an intermediary, but in the transport of goods, they are subject to the provisions of the transport contractor (Article 290).
Case problems
A merchant agreed with a broker to find a buyer for their goods in exchange for an agreed remuneration. After completing the work, it became apparent that the effort exerted by the broker was very minimal and disproportionate to the high remuneration. Does the merchant have the right to request a reduction of the remuneration?
Model answer
Yes, they have the right to do so.
If it appears that the agreed remuneration is disproportionate to the case and efforts, the judge may reduce it to become fair (Article 292).
Self-grading rubric
A person commissioned a forwarding agent to transport goods to another city in the agent's own name and in exchange for remuneration. A dispute arose over the damage to the goods during transport. What are the provisions that apply to this dispute?
Model answer
This person is considered a forwarding agent (Article 290).
Regarding the transport of goods, the agent is subject to the provisions governing the transport contractor.
Therefore, the provisions of the transport contractor apply to the dispute related to the transport of goods.
Self-grading rubric
An intermediary suddenly withdrew from their mediation without any legitimate reason, which led to harming their principal. Does the intermediary bear any responsibility?
Model answer
Yes, they bear responsibility.
The intermediary who withdraws from the mediation without a legitimate reason is liable to pay damages (Article 289).