Formal notice and termination of contract: where the notice of default is useless, it is not a precondition for termination of the contract
A contract breach usually requires formal notice for termination under French law. However, in cases of severe misconduct, this can be waived. In this case, a tenant stopped paying rent and left due to the landlord’s inappropriate behavior. The Court of Cassation upheld that no prior notice was needed since the landlord’s actions made it impossible to continue the contract.
Acts entered into on behalf of a company in formation – case-law overturned
A company in formation lacks legal personality and previously needed strict formalities to validate contracts made before registration. In this case, a lease signed without these formalities was initially voided, but the Court of Cassation overturned the ruling. It decided that the contract’s validity should be based on the parties’ intent rather than formal requirements, changing prior case law.
Confiscation of property protected under a retention of ownership
A driver’s car bought with a retention of ownership clause was confiscated after a drunk driving conviction. The Court of Cassation ruled that the clause doesn’t prevent confiscation. However, the bank can reclaim the car or its value if the price is unpaid, with any excess value going to the State.