Preference agreement, contractual liability, breach of contract, Civil Code Article 1123, Court of Cassation ruling, contractual obligation, nullity of contract, damages, substitution of contract
This case study examines the breach of a preference agreement between Alexandre and Luisa, and its implications on the sale of a building to Céline, a third party.
[...] Luisa, believing she has been deprived of her right of first refusal to buy, would like to substitute Céline as the beneficiary of the unilateral promise.acquguilty of the property or, failing that, obtain damages and interest due to Alexandre's breach of the agreement. On can therefore legitimately wonder if : 1. Luisa can be substituted for Céline in qualityis the buyer of the property, despite the fact that the sale took place afters the expiration of the preference agreement ? If not, 2. [...]
[...] If Luisa can demonstrate that Céline was aware of the existence of the preference agreement and her intention to rely on it, she could ask to be substituted for Céline.line in qualityis the buyer of the property. This substitution would be possible if these two conditions are met, which would allow Luisa toacqutransfer the property under the same conditions as those provided between Alexandre and Céline. If Luisa cannot prove that Céline knew of the existence of the pact or her intention to invoke it, she will still be able to obtain damages and interest. [...]
[...] Or, in this case, Léa made an offer to Xavier proposing to buy his computer for the sum of 1200 euros with a two-month deadline for him to accept or not. This offer is sufficiently precise as required by Article 1114 of the Civil Code, in addition, it manifests a firm will to conclude the sale under the sole condition of Xavier's acceptance. Léa had however withdrawn her offer before the end of the two-month deadline, informing Xavier, however, according to Article 1116 of the Civil Code, an offer cannot be withdrawn before the expiration of the deadline set by theoffering Thus, Léa explicitly set a two-month deadline for Xavier's acceptance of the offer, which bound Léa to this deadline. [...]
[...] Léa thus made to Xavier a purchase proposal of his computer at a price of 1200 euros and left a two-month deadline to Xavier to manifest his agreement or refusal. However, two weeks afterisWith this proposal, Léaa to informit's Xavier about his change of mind, she no longer wants to buy the computer. Without taking into account this retraction, Xavier has however informed Léa, a week later, his agreement on his previous offer. Xavier now wants to finally conclude the sale despite Léa's retraction. Xavier having accepted Léa's offer after Léa's retraction, is the sale perfect? [...]
[...] Xavier could therefore potentially engage Léa's extra-contractual liability for non-compliance with this deadline, but Léa will not be required to pay the 1,200 euros to Xavier, because the withdrawal of her offer, although contrary to thearticle 1116 of the Civil Code, emphinders the formation of the contract. Case Study 2 : In this case, on January Alexandre concluded a preference agreement in favor of Luisa, relating to the sale of a building that belongs to him. This agreement, binds Alexandre to offer Luisa the sale of the building as a priority in the event of a decision to sell. It is concluded for a period of three years, i.e. [...]
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