The penalty clause provided for in the contract in the event of delay

Application pratique:

Under the Cassation Court ruling, delay penalties cease at delivery, not when reservations are lifted. Emma should calculate penalties only up to the actual delivery date (15 December 2023) and not beyond. She must review her contract’s definition of ‘delivery’ and gather all correspondence and acceptance records. If the developer refuses to pay the correct amount (approximately €5,500 for 168 days at €32.50/day), Emma can seek legal advice to negotiate or bring a claim based on this binding precedent.

Application pratique:

This case law confirms that Marc’s delay penalties stopped on 20 November 2022, the date of delivery, regardless of the later acceptance with reservations. Marc should not withhold payment for penalties beyond delivery. He must promptly pay the outstanding amount minus the correct penalty deduction (€4,800 for 80 days at €60/day). To recover costs for the defects, Marc should rely on separate warranty claims, not delay penalties, and keep distinct records of reservation-related expenses.

Application pratique:

Following this precedent, the association’s claim for extra delay penalties after delivery is unfounded. The penalty clause lapses on delivery, not acceptance with reservations. The association should accept the penalties paid up to 1 March and focus on compelling the developer to fix defects under the legal warranties of perfect completion (garantie de parfait achèvement) or decennial liability. They should formally notify the developer of each unresolved defect and, if necessary, take legal action for specific performance rather than trying to extend penalty periods.