The Guarantor Who Undertakes Without Limitation of Time

Practical application:

The Court of Cassation decision of 31 March 1998 (no. 96-16.637) confirms that a guarantor’s unlimited commitment covers occupation indemnities after the lease ends. The landlord should send a formal demand to the guarantor, referencing this decision, and keep all correspondence. If payment is not made, initiate legal proceedings before the French courts, presenting the guarantee agreement and proof of the tenant’s continued occupation (e.g. bailiff’s report, unpaid invoices).

Practical application:

Under the 1998 Court of Cassation ruling (no. 96-16.637), a guarantee without time limit extends to post-termination occupation indemnities. The guarantor should immediately check whether the lease was properly terminated (e.g. by bailiff’s notice or registered letter with acknowledgment of receipt). If liability is established, it is often cheaper to pay and then seek reimbursement from the tenant. For future guarantees, insist on a fixed term or cap on liability.

Practical application:

The 1998 decision (no. 96-16.637) makes clear that the guarantor is liable for occupation indemnities after lease termination if the tenant fails to formally end the tenancy. The tenant should ensure proper termination (e.g. by sending a congé via bailiff or registered letter) and return all keys to avoid triggering the guarantor’s obligation. If already in this situation, the tenant should cooperate with the guarantor to negotiate a payment plan or settlement with the landlord to limit financial damage.