Termination clause and commercial lease: the Court of Cassation unifies its case law

Two rulings handed down on the same day clarify the scope of Articles L. 145-41 and L. 145-15 of the Commercial Code. The Court of Cassation rules that any termination clause providing for a period of less than one month after an unsuccessful formal notice is deemed null and void. It also confirms that the …

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Foreign jurisdiction clause: the indivisibility of the dispute is not sufficient to set it aside

Court of Cassation, First Civil Chamber, 8 October 2025, No. 23-16.756 (partial cassation). The Court of Cassation reiterates a principle of private international law: a validly stipulated foreign jurisdiction clause is binding on French courts, even when the dispute is indivisible between several defendants. In other words, the special jurisdiction of the court of the …

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Exception for non-performance and commercial leases: prior formal notice is not required

Court of Cassation, 3rd Civil Chamber, 18 September 2025, Appeal No. 23-24.005 The tenant in a commercial lease may suspend payment of rent as soon as the premises become unfit for use, without prior formal notice. The facts: commercial premises affected by water infiltration The company Le Bourgeon had leased premises to Ms [D] for …

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A warning to distributors of a risk of counterfeiting without a court ruling constitutes commercial disparagement

The Court of Cassation reiterates that a company cannot warn its competitor's distributors of a risk of counterfeiting in the absence of a court ruling confirming its rights. Such warnings constitute wrongful disparagement, even when they are worded with restraint. Court of Cassation, Commercial, Financial and Economic Chamber, 15 October 2025, No. 24-11.150 The facts: …

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Conservatory Arrest of Ships: Strict Application of the 1952 Brussels Convention

The French Supreme Court (Cour de cassation) has provided an important clarification on the legal regime governing the conservatory arrest of ships, reaffirming the primacy and strict application of the International Convention for the Unification of Certain Rules Relating to the Arrest of Seagoing ships, signed in Brussels on 10 May 1952. Cour de cassation …

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Commercial Lease: Rent uncapping requires only a potential to favor the tenant’s business

A significant change in local commercial factors justifies setting aside rent capping as long as it is likely to have a favorable impact on the tenant’s business activity, without the need to demonstrate an actual, measurable effect on the business carried out. Court of Cassation, 3rd Civil Chamber, September 18, 2025, Appeal No. 24-13.288 The …

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Loss of opportunity and the role of the judge: fundamental clarifications from the Plenary Assembly of the Court of Cassation

Judgments of the Plenary Assembly of the Court of Cassation of 27 June 2025 (appeals nos. 22-21.146 and 22-21.812) The Court of Cassation, sitting in plenary session on 27 June 2025, handed down two important decisions (appeals nos. 22-21.146 and 22-21.812), providing decisive clarification on the concept of loss of opportunity and the scope of …

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Tortious nature of direct action brought by the sub-purchaser against the manufacturer

In two rulings of 28 May 2025 (No. 23-13.687 and No. 23-20.341), the First Civil Chamber of the Court of Cassation clarified the legal classification applicable under European private international Law to direct action by the sub-purchaser against the manufacturer of a defective product, affirming the tortious nature of this action in accordance with the Rome II Regulation (No. 864/2007).

Maritime transport: clarification on the carrier’s unit of limitation of liability

Court of Cassation, Commercial, Financial and Economic Chamber, 21 May 2025, appeal no. 24-11.519 This decision of the Commercial Chamber of the Court of Cassation rules on the criteria determining the unit of freight applicable for the limitation of liability of the maritime carrier under the 1924 Brussels Convention. Background and facts The Senegalese company …

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