Transfer of registered office outside the European Union: no automatic dissolution of the French company

A French company that transfers its registered office to the United Kingdom after Brexit does not automatically lose its legal personality or automatically transfer its assets to the newly created foreign company. The Court of Cassation confirms that, in the absence of a legal framework or a bilateral agreement for cross-border transfers of registered offices, …

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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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Healthcare networks: freedom of association does not justify calls for boycotts

The defence of professional interests cannot justify a collective call for a boycott. The French Union of Dental Surgeons (CDF) has been definitively sanctioned for anti-competitive practices. By encouraging its members to refuse to join healthcare networks such as Santéclair, the union exceeded the limits of freedom of association and committed an infringement of competition law.

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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CJEU: Effective Judicial Review of CAS Awards is required by European Law

In its ruling of 1 August 2025, Case C-600/23, Royal Football Club Seraing, the Court of Justice of the European Union (CJEU) established a fundamental principle: courts of the Member States must be able to exercise an effective and thorough judicial review of arbitral awards rendered by the Court of Arbitration for Sport (CAS). 1. …

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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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De Facto Companies and International Jurisdiction: The French Supreme Court Confirms the Jurisdiction of French Courts

Jurisdiction over the dissolution of companies, even when the company is a de facto company without legal personality, falls exclusively within the courts of the Member State where the company has its registered office, as determined under private international law rules.Under French law, in the absence of a statutory seat, one must identify the “real …

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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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Swiss franc loans: the Court of Cassation reverses its position and tightens transparency requirements for banks!

Cass. civ. 1ère, 9 July 2025, no. 24-19.647 In this ruling of 9 July 2025, the First Civil Chamber of the Court of Cassation made a significant reversal of case law concerning loans denominated in foreign currencies, particularly Swiss francs, imposing on banks a greater obligation of transparency regarding exchange rate risks throughout the term …

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