Standardisation of Case Law (Acórdão Uniformizador de Jurisprudência) – The application of the goodwill compensation to the commercial concession agreement

On 4 November 2019 the Portuguese Supreme Court Decision no. 6/2019 was published, addressing the right of the concessionaire to a goodwill compensation after the termination of the commercial concession agreement.

Following two contradictory court decisions, the Portuguese Supreme Court harmonised the case law by ruling that the application by analogy of the right to a goodwill compensation – only foreseen in the legal framework of the commercial agency agreement – to the commercial concession agreement depends on the fulfilment of all the requirements set forth in the legal framework of the commercial agency agreement, in particular, that the former concessionaire no longer receives any income resulting from the commercial activity previously carried out.

[Photo: Thomas Martinsen, available at: unsplash.com]