Contractual Breach and Exception of Non-Performance: A Legal Analysis and Case Study
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Themes
Contractual breach, exception of non-performance, damages, French Civil Code, contractual liability, Article 1217, Article 1231, contractual non-execution, suspension of obligation, contract law
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Abstract
Discover expert insights on contractual breach sanctions under the Civil Code, including the exception of non-performance and damages claims. Understand your rights and obligations when dealing with contractual non-execution, and learn how to navigate complex situations like the Thomas case study. Get clarity on the conditions for invoking the exception of non-performance, the importance of proving contractual breach, and the prescription period for personal and movable actions. Optimize your contractual relationships and protect your interests with informed decision-making.
Extract
[...] The question is whether the supplier of Thomas can invoke the exception of execution despite the fact that Thomas was unaware of being a debtor of such orders and that they date back over a year. In preliminary, a contract is an agreement of will between two people, intended to create, modify, transmit or extinguish obligations (article 1101 of the Civil Code). When the contract is regularly formed, it takes the place of law for the parties who concluded it (article 1103 of the Civil Code). [...]
[...] The one who claims the execution of an obligation must prove it (Article 1353 paragraph 1 of the Civil Code). It therefore belongs to Julien's supplier to establish the truth of Julien's debt by establishing the existence of the orders, their effective delivery and Julien's non-payment. Finally, personal and movable actions prescribe in principle by 5 years from the day on which the holder of the right knew or should have known the facts allowing them to act (Article 2224 of the Civil Code). [...]
[...] When one party suffers a contractual breach, it may resort to 5 sanctions, including the exception of non-performance (Article 1217 paragraph 1 of the Civil Code), and in any case, damages and interest can always be claimed (Article 1217 paragraph 2 of the Civil Code). The exception of non-performance is the fact for one party to refuse to perform its obligation as long as its co-contractor has not performed its own (Article 1219 of the Civil Code), and this even if the obligations are not born from the same contract. [...]
[...] Therefore, this means is not opposable to the supplier. Therefore, Julien's supplier can validly oppose to Julien the exception of non-performance resulting from the contractual non-performance of Julien, provided that he establishes the truth of the said non-performance. Furthermore, it is necessary to specify that Julien's supplier can claim damages and interest on the basis of contractual liability (Articles 1231 and 1231-1 of the Civil Code), which will be cumulative with the exception of non-performance (Article 1217, paragraph 2 of the Civil Code). [...]
