Where, in proceedings brought by the lessor seeking a declaration that a forfeiture clause has taken effect due to non-payment of rent within one month of service of a formal notice to pay, the lessee raises a defence of non-performance, the judge must examine the merits of that defence, irrespective of whether the lessee has applied to the court for a grace period for payment within one month of service of the formal notice under Article L. 145-41 of the French Commercial Code

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

The situation

Where, in proceedings brought by the lessor seeking a declaration that a forfeiture clause has taken effect due to non-payment of rent within one month of service of a formal notice to pay, the lessee raises a defence of non-performance, the judge must examine the merits of that defence, irrespective of whether the lessee has applied to the court for a grace period for payment within one month of service of the formal notice under Article L. 145-41 of the French Commercial Code

What the law says

This decision confirms the fundamental principles of property law.

Points to remember

• Scrupulously respect legal time limits for appeals
• Keep all your supporting documents (title deeds, instruments, letters)
• Anticipate: preventive advice always costs less than litigation

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