Public procurement: reminder of the principle of the prohibition against public persons to grant gifts in public contracts, including in the event of termination
CE, June 22, 2012, Chamber of Commerce and Industry of Montpellier, Req. No. 348 676
Under the prohibition on public persons to grant gifts, an administrative contract can not legally provide for a termination or non-renewal indemnity which would be, to the detriment of the public body, manifestly disproportionate to the amount of the loss suffered by the co-contracting party as a result of this termination or non-renewal. In this case, the compensation to be paid by the public body, in the event of non-renewal, was 5 times the annual lump sum provided for in the contract - corresponding for the public body to the revenue that it would have received if the execution of the Convention had continued for five years, without, in particular, accounting for the expenses relating to that execution.