Lease-management of a business

Practical application:

The 1995 Court of Cassation decision confirms that lease-management (gérance libre) does not constitute subletting. Pierre can therefore transfer the business operation to Gérard without asking the landlord’s permission, even if the lease prohibits subletting. He should draft a proper lease-management contract, keep it distinct from a sublease (no exclusive possession of premises), and notify the landlord for transparency. This protects his lease rights while securing retirement income.

Practical application:

The case law clarifies that a lease-management arrangement—where the tenant retains the lease and delegates business running—is not a sublet. Sophie cannot treat this as a breach of the lease’s subletting prohibition or terminate on that ground. She should verify whether a true sublease (granting exclusive occupation) exists or merely a management contract; if only management, her rights are limited. She could request a copy of the management agreement and seek legal advice before escalating.

Practical application:

Thanks to the 1995 ruling, David can safely enter into a lease-management contract without breaching the main lease, as it is not considered subletting. He should ensure the agreement allows him to operate the business but does not grant him exclusive possession of the premises, distinguishing it from a sublease. This lets him test the business viability while protecting his eventual purchase, and he need not seek landlord consent for the management change—only for a later lease transfer.