Luxury home rental company Villanova faces challenges after climatic events damage one of its properties, questioning contract clauses and seeking to limit seizure risks.
Extract
[...] It may be deemed not written. Case Study II : Facts An entrepreneur runs a one-person limited liability company (EURL). The company is currently facing financial difficulties.isThis is particularly due to a bank loan subscribed in 2018 to finance its activity and for which the entrepreneur personally guaranteed. The entrepreneur fears no longer being able to honor the repayment of the loan's installments, he is worried about the possible lawsuits from creditors and the seizures that could be carried out against him. [...]
[...] In contract law, a clause can therefore be deemedand not iscritic if she crisis a dsignificant imbalance between the parties. This includes resolutive clauses conferring a disproportionate advantage to one party. Minor In this case, the resolutive clause does not provide the weaker party, namely Villanova company, with the option to terminate, only the maintenance company has this option. This clearly indicates a significant imbalance since the option to terminate is only open to one of the parties to the contract, which constitutes a substantial infringement of Villanova company's rights. [...]
[...] The entrepreneur can she terminate the commercial lease due to the behavior of the landlord ? On the proposal for the creation of a SCI The crThe creation of a SCI and the contribution of his secondary residence allow the entrepreneur to limit the risks related to the seizures of his creditor ? Majeure According to article 2288 of the Civil Code "to cite ». As the personal guarantor of the bank loan, the entrepreneur is therefore jointly liable for the debts of the EURL in the event of its default. [...]
[...] Such is the case in this instance. Minors In any case and in this instance, these events make the pool unusable, prevent the landlord from operating the residence, and therefore make the pool maintenance and upkeep services unnecessary. However, this impossibility is temporary: the house will be rehabilitatede. In consequence, the impediment being temporary, the obligations are suspended only temporarily. Solution The landlord could request the temporary suspension of its contractual obligations towards the maintenance company by invoking force majeure. [...]
[...] In fact, jurisprudence (Civ. 3e Oct. 2001) has already confirmit is that the termination of the lease can be requested when the disturbance of enjoyment reaches a certain degree of gravity. Before initiating a judicial action, the entrepreneur will however have to put the lessor on notice to cease his actions. [...]
