Life annuity, sale price, contract law, property sale, Civil Code Article 1976, contract nullity, sale price seriousness, revenue indexing
Reader
Abstract
Contents
Extract
of 4
Abstract
This document discusses the legality of indexing the sale price of a property to a life annuity and the conditions under which such a sale is considered valid.
Contents
Introduction
Detailed Plan
Introduction
Detailed Plan
Get this table of contents for free after login.
Extract
[...] It then shows that the high magistrates exercise control over the criteria for assessing the seriousness of the price in accordance with the elements known on the day of the formation of the contract. [...]
[...] The finding of the passage of such a period should it lead to consider that there was a sufficient correlation between the capital amount of the arrears paid by the debtor and the value of the sold property ? Admitting such an analysis would amount to forgetting that the risk must be assessed on the day of the formation of the contract and not in relation to the elements surrounding its execution. It is therefore only from the elements known on the day of the formation of the contract, or that can be, that it is necessary to assess the existence or absence of a risk and not those that are effective at the time of the realization of the risk. [...]
[...] 76-14,798 - Is a sale paid by means of a life annuity void if the annuity is equal to or less than the income of the sold property? - Introduction and detailed plan In this case, a sharecropper sold to other sharecroppers the bare ownership of the buildings housing the viticultural operation and the full ownership of the vineyards, in exchange for a sale price indexed to the income derived from the property that is the subject of the sales contract, i.e., the sold property. [...]
[...] The judges of fact, sovereign in the assessment they make of the character of the sale price of a property, are however subject to the strict control of the Court of Cassation as to the application of the criteria used for this assessment. In the present case, the judges of fact have rejected the action for nullity of the sale formed by the heirs of the seller and consented to by their deceased author in exchange for the payment of a life annuity. I - The prohibited indexing of the sale price on the income from work of the debtor A - The possible conversion of the sale price of the property into a life annuity. [...]
[...] PLAN: I - The indexing allowed on the sale price to the life annuity A - The freedom to set the price by the parties to a sales contract The legal foundation If Article 1976 of the Civil Code states that 'the life annuity can be constituted at the rate that the contracting parties wish to fix', the freedom of the parties to a sales contract with the payment of a life annuity is far from being total. The praetorian foundation The jurisprudence has admitted since the 19th century that the aleatory nature of the contract does not exclude the vileness of the price. This can be established when the price proves to be derisory and leads to excluding the risk. The contract will then be struck with absolute nullity. [...]
