Restitution of Rents in Case of Nullity of Sale: French Law and Jurisprudence Analysis"
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Sale by lots, nullity of sale, restitution of rents, tenant rights, Article 10-1 law of December 31 1975, Article 1792 Civil Code, Article 1178 Civil Code, construction contract, latent defects guarantee
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Abstract
Unlock the complexities of property law with expert insights on sale by lots regulations and contract nullity implications. Discover how Article 10-1 of the law of December 31, 1975, and Article 1792 of the Civil Code safeguard tenant rights and builder liabilities. Understand the conditions under which rents are not restorable in cases of sale nullity, and explore the nuances of construction contract liabilities under French law. Dive into a detailed analysis of court rulings and legal precedents that shape property transactions and dispute resolutions.
Extract
[...] Esnault and, on the other hand, the contractor/artisan, Petits et grands bateaux company. The latter has called on subcontractors, Alpha, Bêta and Gamma companies approved by the client. This contract concerns the construction of a boat, concluded in 2022. An agreement on the price was reached: 500,000 euros. For the construction of the boat, Petits et Grands bateaux and Alpha companies purchased materials from Bricorama Normandie. However, the material is defective. The client becomes aware of this after the delivery of the boat on July 22, 2024. [...]
[...] This responsibility of the builder towards the client is broad. It includes damages and defects making the property unfit for its purpose. Article 1792-6, paragraph 2 of the Civil Code sets out the guarantee of perfect completion to which the contractor is bound for a period of one year, from the date of acceptance of the work. A ruling made by the civil and commercial chamber of the Court of Cassation on June and published in the Bulletin (19-20.647) held that Article 1641 of the Civil Code regarding the guarantee of latent defects is not applicable in the presence of a construction lease contract. [...]
[...] Conclusion: Both the fault and the liability for defective products can be invoked by the contractor. The prescription period being decennial, the contractor is within the deadline. As for the entrepreneur, he can use the theory of intermediate defects or the manufacturer's guarantee. Actions for liability directed against a subcontractor also prescribe within ten years. Case number 2 General facts: The company Esnault, owner of a building, decides to proceed with the sale by lots of the said building. This sale involves the separate transfer of the real estate units making up the building. Mr. [...]
[...] In fact, the concluded contract is a contract for work and not a sales contract. There is here, a break in the contractual chain of successive contracts. The actions of the client The client can then attempt to invoke extracontractual liability and on the basis of article 1240 of the Civil Code, the contractual fault committed by the seller, that is to say by Bricorama Normandie. He will however have to provide proof of a fault. The client also has the possibility, if the case arises, to invoke against the manufacturer the liability for defective products presented in article 1245 of the Civil Code. [...]
[...] If this is the case, the courts seized may pronounce the nullity of the sale, since the rights of the tenants, protected by a law of public order, have not been respected. Conclusion: Nullity is quite possible. II- The restitution of rents Major: Pursuant to Article 1178 of the Civil Code, the nullity of a contract is retroactive, so that the contract never existed. This nullity is intended to put the parties back in the same state as before the conclusion of the contract. [...]
