Business Contracts

Under ordinary civil law, the burden of proof for payment lies with the buyer. In effect, Article 1353 of the Civil Code, which places the burden of proof on the party claiming performance of an obligation, stipulates that, in return, the party claiming to be discharged must justify the payment or the event which extinguished his obligation. Where the contract of sale between the parties is not di …

Proof of payment

Under ordinary civil law, the burden of proof for payment lies with the buyer. In effect, Article 1353 of the Civil Code, which places the burden of proof on the party claiming performance of an obligation, stipulates that, in return, the party claiming to be discharged must justify the payment or the event which extinguished his obligation. Where the contract of sale between the parties is not disputed as to either the subject matter or the price, it is for the buyer to prove that he/she has been discharged from payment .

Article 1342-8 of the Civil Code provides for payment to be proven by any means. There are, however, certain specificities in sales, depending on whether they involve real estate or movable property.

In the case of real estate sales, proof of payment generally consists in the presentation of a receipt for the sum paid. According to the Court of Cassation, a receipt for a sum paid outside the notary's accounts is only valid until proven otherwise, which can only be established in accordance with the rules set out in Articles 1358 et seq. of the Civil Code .

In the case of a sale of movable property, the handing over of the thing and its accessories to the buyer gives rise to a presumption of payment . However, while the cash sale of merchandise may constitute a de facto presumption that the transaction is paid, such a presumption is left to the discretion and care of the court. The buyer's production of a document that cannot be considered a paid invoice, and vague statements by the buyer, cannot constitute proof, or even a prima facie case, of the alleged cash payment . Conversely, the fact that the purchasing company issued a blank check to the selling company, later completed by the latter, does not call into question the disputed payment, since the parties are not prohibited from agreeing on such arrangements and the purchaser affixed a handwritten signature .

Cass. 1re civ. 13 December 2005, LawLex202200003245JBJ.

Cass. 3e civ, 10 March 1993, LawLex202200002719JBJ; 27 February 2008, LawLex202300008974JBJ. See, for example, Cass. 3e civ, 7 November 1990, LawLex202300008971JBJ, which holds that the statement in a notarial deed that the price was paid before the deed was signed, and outside the notary's accounts, by the remittance of a check, places the onus on the purchaser to prove that he has actually paid.

Cass. 1re civ, 7 February 1989, LawLex202300008973JBJ.

Cass. com, 17 November 1987, LawLex202200002720JBJ.

CA Bourges, 23 May 2024, LawLex202400003917JBJ.

Business Contracts

155. Proof of payment

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Les décisions de justice citées dans ce paragraphe :

Les notions juridiques connexes

155. Proof of payment

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Les décisions de justice citées dans ce paragraphe :

Les notions juridiques connexes

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