The Possibility of a Set-off

Application pratique:

The Cour de cassation ruling confirms that a project owner must provide a payment guarantee for the outstanding balance, even if a future set-off is anticipated. The landlord cannot avoid this by claiming a counterclaim for defects; he must secure the balance (e.g., bank guarantee) and pursue damages separately. To avoid disputes, agree on the guarantee type at contract signing and never withhold payment without proper legal steps.

Application pratique:

Under the law, the project owner must provide a guarantee of the balance, regardless of financing. The buyer should obtain a bank guarantee or payment bond, protecting both parties. If the roofer refuses to start without it, they are within their rights. Seek legal advice to set up the guarantee promptly, ensuring the project proceeds without delay.

Application pratique:

The decision clarifies that a possible future set-off does not exempt the project owner from providing a guarantee. The syndicate must arrange a guarantee (e.g., bank surety) for the balance. The treasurer's plan risks legal action; comply by setting up the guarantee and handle any claims through separate proceedings. Consult the syndic to implement this correctly.