A case study on lease termination under French law, examining the rights of landlords and tenants in various scenarios.
Extract
[...] Lease Agreement - Ending a Lease Case Study Subject: Leonard and Sheldon live in a small town in the Paris metropolitan area. Both are exceptionally gifted physicists, "geeks" to boot. They spend almost all their free time with their two friends Howard and Rajesh playing video games like Halo, organizing a Star Wars marathon, playing board games like Klingon Boggle or role-playing games like Dungeons and Dragons, or discussing very complex scientific theories. They also enjoy spending time with their neighbor Penny. [...]
[...] Despite the delay, she fulfills her payment obligation, as she eventually pays. But she performs a poor execution of her obligation, as the date is not respected. However, whether it is the law or case law, termination is only possible in the event of non-payment. Now, Penny pays her rent. With a delay, certainly, but she pays it. There is therefore no default in payment. Thus, the lessor cannot give notice to Penny on the basis of payment delays. However, he may claim damages and interest if it causes him harm. [...]
[...] This is not complicated, since she learned "by accident" the quality of usufructuary of the lessor. On the other hand, the common error. Penny must demonstrate that she had no means of discovering the quality of usufructuary. Unfortunately, the facts are not precise enough to know if this condition is met." Thus, there is a risk that the n-proprietor may act in nullity of the lease if he has not given his consent. Penny can however avoid nullity by invoking the theory of appearance. [...]
[...] Article 1741 of the Civil Code provides that the lease is resolved by the tenant's failure to fulfill their commitments. Article 1728 of the Civil Code states that the tenant must pay the rent in the agreed terms. In judgment No. 59-11.900 rendered on February the Court of Cassation holds that the termination of the lease can occur in the event of default in payment of rent. In this case, if there are delays, it is because the lease contains a clause indicating the date of payment of the rent. [...]
[...] 79-13.854 rendered on January the third civil chamber of the Court of Cassation holds that if the usufructuary had the appearance of the true owner, the judge cannot annul the lease granted without the consent of the n-proprietor if the tenant is in good faith and was under the influence of a common error, that is, an error that can be committed by anyone in the same situation. In this case, Penny has a lease on a commercial property concluded by a usufructuary. The consent of the n-proprietor is then necessary, under penalty of nullity of the lease. The facts do not specify if the n-proprietor has given his consent. If so, the lease will proceed normally. [...]
