Exclusive Distribution Agreement Fixed Term Breach

A lower court found that an agreement, where one party was granted the exclusive right to sell certain products in a defined territory for a specific duration, without any clause allowing for its unilateral termination by the granting party, constituted a contract for a fixed term, and therefore, its premature termination by the granting party without serious fault from the other party constituted a breach of contract, holding the terminating party liable for damages. The highest court upheld this decision, reasoning that the absence of a termination clause permitting unilateral rescission implied a commitment for the entire duration stipulated, meaning the contract could not be arbitrarily dissolved before its term expired without incurring liability for damages.