The lease-management of a business

Application pratique:

The Cour de cassation ruling confirms that lease-management (location-gérance) does not constitute subletting. Unless the lease explicitly prohibits lease-management, the tenant is not in breach. The landlord should review the lease terms; if only subletting is forbidden, eviction cannot proceed. Seek legal advice to clarify rights and possibly negotiate a formal acknowledgment with the tenant.

Application pratique:

The case law clearly distinguishes lease-management from subletting, so the arrangement is legally secure if the head lease does not expressly prohibit lease-management. The buyer must obtain and review the head lease to confirm no specific prohibition exists. Notify the landlord as a courtesy (though not mandatory for validity) and consider legal advice to ensure a smooth transfer of the business and lease.

Application pratique:

The ruling confirms that lease-management is not subletting, so the opposing sibling cannot rely on a standard no-subletting clause. Both co-owners should jointly review the lease for any specific prohibition on lease-management. Present the Cour de cassation decision to the dissenting sibling to demonstrate legality. To avoid costly litigation, recommend mediation or a joint legal consultation, as preventive advice is far cheaper than court disputes.