Irrebuttable Presumption of Seller's Knowledge of Defects
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Irrebuttable presumption, seller knowledge, hidden defects, warranty, damages, Civil Code Article 1645, Court of Cassation, Commercial Chamber, professional seller, non-warranty clauses, right to evidence, human rights, fundamental freedoms, fair trial, Art 6§1 Convention, Art 9 Civil Code, contractual clauses, liability for damages, compensatory damages, buyer protection, seller obligations, merchandise verification, jurisprudential framework, legislative framework, jurisprudential interpretation, contractual obligations, professional skills, supplier, manufacturer liability, restitution of price, sale costs, damage caused by defect, contractual liability, legal presumption, contractual clauses inoperativeness, seller's good faith, buyer compensatory damages
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Abstract
The Commercial Chamber of the Court of Cassation confirms the irrebuttable presumption of a seller's knowledge of defects in a sold item, obliging them to repair damages.
Extract
[...] The concretization of the irrefutable nature of the presumption of knowledge of defects by the seller. (Introduction) A. A decision in line with the obligation for the seller to know the thing being sold The seller has the obligation to know his merchandise, the thing he sells, this, since always, and this obligation has only strengthened, protecting buyers. In such a way that today, it is admitted that defects necessarily result from the bad faith of the seller. - Presumption already recognized 'Held to know them, he cannot therefore rely on a stipulation excluding in advance his guarantee for hidden defects'. [...]
[...] Article 1646 of the Civil Code becomes somewhat obsolete in this case. A few months after this decision, the Court of Cassation has already begun to extend its interpretation of the irrebuttable presumption and apply it to the individual who acts as a professional:The individual who behaves like a professional without having the professional skills must be considered as knowing the defects of the thing in the sense of Article 1645 of the Civil Code » (Cass. Civ, 33rd December 2023, n°22-20.093. [...]
[...] - « Being obliged to know them, he cannot therefore rely on a stipulation excluding in advance his guarantee for hidden defects. - For example: 'The seller of a building cannot ignore the existence of buried tanks that have proven to be polluting and cannot therefore rely on the clause of non-warranty for hidden defects.' (Cas. Civ. 3e June 2017, n°1618.087) B. An irrefutable presumption obliging the seller to damages and interest - Art Civil Code: ' If the seller knew the defects of the thing, he is held, in addition to the restitution of the price he received, to all damages and interest towards the buyer ». [...]
[...] - Conformity of this jurisprudence with European law: « The provisions of EU law aimed at ensuring competition and free movement of goods do not conflict with the application of French jurisprudence that prohibits professional sellers from proving that they did not have knowledge of the defect in their supply » (CJCE 24 Jan. 1991: D 273). - Conformity with European law on fundamental freedoms: « The irrebuttable nature of this presumption does not constitute a disproportionate interference with the seller's professional right to a fair trial guaranteed by Art § ECHR ». [...]
[...] The Court then questions the conformity of the irrebuttable presumption of the seller's knowledge of the defect. The Commercial Chamber, on this 5th of July 2023, then responds that the irrebuttable nature of the presumption of the seller's knowledge of the defect of the sold thing, which obliges him to repair the entirety of all the damages that are its consequence, is based on the postulate that the professional seller knows or must know the defects of the sold thing. [...]
