Reservation of Ownership Clause and Firm Sale Nature

Extract

[...] They have opted for this first qualification by retaining the existing criteria: this qualification is justified, in particular, in the light of the reform dated 23 March 2006 relating to securities. This solution is in line with previous jurisprudences. A solution in line with previous jurisprudence This solution is not new in the jurisprudence. In fact, this solution was already entirely acquired. The judges of the commercial chamber simply shed light on the differences in regime, particularly from the point of view of the sale under condition. [...]

[...] An absence of impact of the clause on the firm and definitive nature of the sale The principle is as follows: slot machines must be the subject of a firm and definitive sale in accordance with Article 68-7 of the decree of 14 May 2007 relating to the regulation of games in casinos. This is what the judicial liquidator in this case has highlighted. What then of the clause of reservation of ownership? The Supreme Court has stated that the suspension of the translative effect of ownership of the sale contract does not call into question the firm and definitive nature of the sale that has taken place. [...]

[...] The contours of the reservation of ownership clause illuminated by the judges The Supreme Court first recalled the nature of security of the reservation of ownership clause before indicating its absence of impact on the firm and definitive nature of the sale The nature of security of the reservation of ownership clause affirmed In accordance with Article 2367 of the Civil Code, the reservation of ownership clause allows the property of a good to be retained as security. This clause then has the effect of suspending "the transitive effect of a contract until the complete payment of the obligation which constitutes its counterpart. The property then has the quality of accessory to the claim whose payment it guarantees. In this case, the commercial court judges of the Court of Cassation clarified the nature of this reservation of ownership clause. It is a security. Civil law distinguishes between personal securities and real securities. [...]

[...] 17-14.986 - Does the retention of title clause guaranteeing payment of the price claim go against the firm and definitive nature of the sale? CIVIL LAW - Effects of the Sale Commentary on the Judgment - Court of Cassation, Commercial Chamber, October No. 17-14.986 The judgment of rejection rendered by the Commercial Chamber of the Court of Cassation on October and published in the Bulletin concerns the nature and contours of the reservation of ownership clause. In this case, the Casino de Grasse company was placed in judicial liquidation. [...]

[...] According to them, reservation of ownership clause is a security suspending the transitive effect of property of the sale contract until complete payment of the price. They add that a "such a suspension does not call into question the firm and definitive nature of the sale that occurred as soon as the parties agreed on the thing and the price. The clause is therefore not contrary to the provisions of Article 68-7 of the decree of 14 May 2007 relating to the regulation of games in casinos as mentioned by the liquidator. [...]