Recent case law puts an end to “early settlements” during the notice period and forces companies to rethink their exit strategies
The termination of a commercial agency agreement is often the point at which the greatest financial risks materialise. Until recently, it was common practice to opt for a swift amicable settlement during the notice period in order to avoid uncertainty and disputes.
However, a recent judgment of 23 April 2026 of the Court of Justice of the European Union (C-204/25) fundamentally overturns that practice.
The Court makes it clear that such “early settlements” may be legally highly risky and in many cases even void.
In this article, we outline the core findings of the judgment and, above all, discuss its practical impact, with particular attention to the pitfalls associated with concluding termination agreements.
Author:
Daan De Jaeger
Willem De Vos