Business Contracts

The buyer may be required to pay interest at the legal rate on the sale price up to the date of payment of the principal under the terms of Article 1652 of the Civil Code  which lists the three cases in which interest is due:
- when agreed at the time of sale ;
- when the thing sold and delivered produces proceeds or other income;
- when the buyer has been sent notice to pay .
Thus, since shares i …

Interest

The buyer may be required to pay interest at the legal rate on the sale price up to the date of payment of the principal under the terms of Article 1652 of the Civil Code  which lists the three cases in which interest is due:

- when the thing sold and delivered produces proceeds or other income;

- when the buyer has been sent notice to pay .

Thus, since shares in a company are income-generating by nature, and dividends are in the nature of proceeds, the transferee owes interest on the sale price from the date of sale . Since the interest on the price represents the consideration for the enjoyment of the property, the right of the purchaser to receive the proceeds during the period between the date of transfer of ownership and the date of signature of the deed of sale implies that the purchaser is obliged to pay the legal interest on the sale price until the date of payment .

Furthermore, the fact that the sums remaining due under the contract have been reduced by court-imposed adjustment does not prevent interest from being payable from the date on which the debtor was put in default .

See also the preliminary draft reform of special contract law, Art. 1652.

In the latter case, interest accrues only from the date of the summons. See, for an example, Cass. 3e civ, 12 January 2005, LawLex202300008925JBJ.

Cass. com. 5 December 2000, LawLex202300008926JBJ.

Cass. 3e civ, 8 April 2015, LawLex202300008924JBJ.

Cass. 3e civ. 12 January 2005, LawLex202300008925JBJ.

Business Contracts

159. Interest

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Les décisions de justice citées dans ce paragraphe :

Les notions juridiques connexes

159. Interest

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Les décisions de justice citées dans ce paragraphe :

Les notions juridiques connexes

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au contenu exclusif Livv – juristes d’entreprise