Olivier VIBERT

The guarantor of promissory notes cannot benefit from the protection applicable to the surety. By a decision rendered on June 16, 2009 the Cour de cassation had ruled that the protection of the surety provided by article L313-22 of the French Monetary and Financial code wasn't applicable to guarantees like promissory notes or surety bonds. Cour de cassation, Commercial Chamber, June 16, 2009 - Decision N°08-14532 (X v. CAISSE REGIONALE DU CREDIT AGRICOLE MUTUEL DE LA TOURAINE ET DU ...

The first civil chamber of the Cour de cassation had in this case to determine a question of jurisdiction in a dispute between two parties in a commercial contract. Cour de cassation Commercial Chamber, September 30, 2009 - Decision N°08-17587 (THINET INTERNATIONAL v. SAUDI BASIC INDUSTRIES CORPORATION) A Saudi company had passed a construction contract for its head office in Riyadh. The contract had a clause defining the question of jurisdiction. A dispute occurred between the ...

French judges rule that the participation to a fair each year several times in a row is an established commercial relation. If one of the party terminates suddenly this commercial relation by refusing to grant a stand in this fair, the other party can claim damages. Cour de cassation Civil chamber, September 15, 2009 - Decision N°08-19200 (Société CHRISTIAN CARBONNIERES v. COMEXPO PARIS) The Cour de cassation detailed its position with this decision regarding a sudden termination ...

Cour de cassation 1st Civil chamber, February 25, 2010 - Decision N°08-14787 The owner of a property in France had given an exclusive mandate to a real estate agent in order to sell his house. The real estate agent found a potential buyer for the property. The real estate agent had sent a promise to sell the property within the scope of his mandate. The buyer accepted the promise to sell the house but the seller then refused to proceed with the sale of the real estate property, ...

A party in a contract cannot oppose a condition precedent clause if in fact this party has deliberately blocked its realisation. Cour de cassation, 3rd civil Chamber, January 5, 2010 - Decision N°09-10524 (GRANDE PHARMACIE DE LA GARE v. PUEL) A commercial lease had been signed between two parties. According to this commercial lease, the lessee had negotiated that he accepted the lease only if some modifications were made on the premises. These modifications needed an ...

Cour de cassation, 3rd civil Chamber, January 5, 2010 - Decision N°09-10524 (GRANDE PHARMACIE DE LA GARE v. PUEL) A commercial lease had been signed between two parties. According to this commercial lease, the lessee had negotiated that he accepted the lease only if some modifications were made on the premises. These modifications needed an administrative authorisation. This condition precedent had been drafted without any time limit. The administration refused to deliver the ...

Negligence of a commercial agent needs to be notified instantly and the termination of the contract should be asked promptly in case of serious negligence. If not the judges will consider that the principal has accepted the misconducts by his silence. Cour de cassation Commercial Chamber, December 8, 2009 - Decision N°08-17749 ( SOCIETE AMG2R. v. SOCIETE MARINI SILVANO) AMG2R had signed an agency contract with a company called MARINI SILVANO. The principal decided to terminate the ...

In this decision, the Cour de cassation ruled that the arbitration clause inserted in a contract couldn't apply to the action brought by the receiver of a winding up procedure against a former contractor. The receiver has been considered by the Cour de cassation has a third party to the commercial contract. Cour de cassation, 1st Civil Chamber, July 1, 2009 - Decision N°08-12494 (Encore Orthopedics Inc v. Enjalbert es qualité) A distribution contract had been signed between a ...

When commercial agency contracts are terminated the commercial agent needs to notify within one year of its termination its will its intentions of claiming damages. In this decision the Cour de cassation rules that the claims made before a jurisdiction specialised for labour law disputes cannot stop this delay. Cour de cassation Commercial Chamber, September 29, 2009 - Decision N°08-17611 (Système Log v. Grisez) When commercial agency contracts are terminated the ...

The notion of apparent representative can be crucial in commercial contracts. A company can be engaged by a contract sgned by someone appearing to be the representative. This decision shows how a company can be engaged by someone acting has an apparent representative. The French case law admits that a company can be engaged in a contract if a person acts apparently has its representative. A company can be legally represented by its directors or by any persons acting on behalf ...

Cour de cassation 2nd Civil chamber, September 3, 2009 - Decision N°08-13952 (Torki v. BNP Paribas) French case law implies the necessity for French banks to provide information and advice when they offer group insurances to their clients. Most of the banking operations are now accompanied in France with insurance products. When an individual takes a loan, he's usually covered against certain risks by insurances. Usually banks offer to their clients insurance products ...

Cour de cassation 1st Civil Chamber, October 14, 2009 - Decision N°08-16369 and 08-16549 (Wolberg v. In zone Brands) An interesting decision of the Cour de cassation (French civil and Commercial Supreme Court) has been rendered on October 14th 2009, on the compatibility of an American anti-suit injunction procedure with the French public order. This case concerned a distribution contract between an American Company and a French Company. IN ZONE BRANDS is a company from the ...

The qualification of a breach in a contract depends of the type of products and its final use. In a luxury market, it's normal to require perfect products. Cour de cassation Commercial Chamber, June 30, 2009 - Decision N°08-14944 ( Société TED X. v. Société MBF PLASTIQUES) A commercial contract was signed between two companies. The contract's object was for MBF to realize parts of high standard perfume bottles. TED realized when the products were delivered that in fact they ...

When a commercial agency contract is terminated the commercial agent under French Law can claim indemnities unless he has committed serious negligence. The French commercial code provides that the commercial agent is obliged to notify his intention of claiming indemnities within a year from the termination of his agency contract. The Cour de cassation, French civil Supreme Court, in a recent decision has had the opportunity to detail when this delay really started. Cour ...

The Commercial Chamber of the Cour de cassation (Supreme Court) rendered a decision on the 7th of April 2009 on road transports. The Commercial Chamber ruled that the person who receives the cargo and accepts it without stating he acts on behalf of the recipient needs to guarantee the payment of the cargo. Cour de cassation Commercial chamber, 7 April 2009 - Decision N°08-12919 (Sté Transports digoinnais v. Sté Sogeclo) Several shipments were made from and to the address of ...

A French Court needs to interpret a foreign seucrity such as the “Patronatserklärung” and qualifies this security has a letter of intent with a result obligation to guarantee the reimbursment of the loans. Court of appeal of Lyon, 4 June, 2009 - Decision N°08-5617 ( Sté Bayerische hypo und Vereinsbank v. Sté Emball'iso) Bayerische had accepted several outstanding loans to a company named Isopack, the German subsidiary of a French company called Emball'iso. These ...

A third party cannot be declared liable for the termination of negotiations if its intervention has occured after cleraly after the termination of these negotiations. Cour de cassation Commercial chamber, 9 June 2009 - Decision N°16.168 (Société Prodim v. Francap distribution) Prodim had signed a franchise agreement for a small supermarket. The franchisee decided to terminate the contract and sign another franchise agreement with a competitor. The franchise agreement ...

The importance of defining the applicable law is once more illustrated by the French Supreme Court. Cour de cassation 1st Civil Chamber, 11 February 2009 - Decision N°07-13088 ( Sté Funk International Spa v. Sté Allianz Versicherung) Interesting decision of the Cour de cassation (French civil Supreme Court) showing perfectly the difficulties encountered by judges who are confronted to a litigation with multiple crossborders commercial relations. A French Jeweler searched an ...