Fails to Provide a Legal Basis for Its Decision

This decision sheds important light on your property rights. Here is what it changes for you.

The situation

A Court of Appeal which dismisses a claim for late payment penalties by ruling that the clause in the sale contract providing for penalties at a minimum rate of 11% is void and therefore cannot be applied, without investigating, as it was requested to do, whether the common intention of the parties did not require the reduction of the penalties to an authorised rate, does not provide a legal basis for its decision with respect to Article R. 261-14 of the Construction and Housing Code.

What the law says

This decision confirms the fundamental principles of property law.

Key takeaways

• Strictly comply with statutory time limits for appeals
• Keep all your supporting documents (title deeds, instruments, correspondence)
• Anticipate: preventive advice always costs less than litigation

For an analysis of your situation: 30-minute consultation at €45 with Maître Zakine.