Unlock the legal insights you need to navigate contractual disputes with confidence. Discover how the DAB CIE company's acquisition of counterfeit handbags led to a contractual liability case, exploring the nuances of contract nullity, damages, and interest under the Civil Code. Learn how contractual liability is established through fault, damage, and causal link, and understand the role of fraud in vitiating consent. Dive into the specifics of dol, the intentional manipulation or lies that can render a contract null and void. Get clarity on the conditions required for contractual liability, including predictability of damage and the importance of putting the debtor on notice. Empower your business with the knowledge to protect its interests and make informed decisions in complex contractual situations.
Extract
[...] Therefore, the contract serves as the law of the law for the parties that concluded it (article 1103 of the Civil Code). In this case, the DAB CIE company acquired handbags, which were sold as originals, but it turned out that they were actually counterfeits. Therefore, the debtor of the obligation inherent to the conformity of the articles sold has not respected the execution of his obligation. The debtor of an obligation may be condemned to damages and interest due to the non-execution of his obligation (article 1231-1 of the Civil Code), provided that he must be previously put in default by the creditor (article 1231 of the Civil Code). [...]
[...] Finally, to claim action on contractual liability, the damage must have been predictable at the time of contract conclusion (Article 1231-3 of the Civil Code). In this case, the damage could have been predictable at the time of contract conclusion in as much as there was a risk that the bags were counterfeit, despite the distributor assuring they were original. Therefore, the DAB CIE company can obtain damages and interest and obtain the nullity of the contract, which will have a retroactive effect, so that the contract will be considered as never having existed (Article 1178 of the Civil Code). [...]
[...] Contractual Liability and Responsibility The DAB CIE company has acquired a large quantity of PANCEL brand handbags, which are manufactured in Thailand and delivered to Paris. Initially, the company was wary, but the director trusted its distributor, who assured him that the bags were genuine. However, it turned out that they were counterfeit. The question is to know which legal avenues are available to the DAB CIE company so that the sale of handbags is annulled. It is necessary to consider on the one hand the dol and on the other hand the contractual liability In preliminary terms, a contract is an agreement of will between two people, intended to create, modify, transfer or extinguish obligations (Article 1101 of the Civil Code). [...]
[...] To seek the nullity of the contract and obtain damages and interest, it is up to the DAB CIE company to establish a fault, a damage and a causal link. In this case, the fault is not in doubt, the distributor committed a fraud against the DAB CIE company. The damage is also not in doubt since the DAB CIE company thought it was acquiring original Maques bags and in reality acquired counterfeits. Finally, the causal link between the fault and the damage does not pose any difficulty. [...]
[...] If the distributor had informed DAB CIE that the bags were counterfeits, the latter would not have contracted. Therefore, the conditions of article 1137 of the Civil Code inherent to the lie and the intentionality of this and the condition of article 1130 relating to consent are therefore met. The deceit must emanate from the representative, the managing director, the foreman, the bearer of the contractor or a conniving third party (article 1138 of the Civil Code). In this case, the deceit emanates from the distributor, an intermediary known by DAB CIE, with whom she is accustomed to working. [...]
