Renewal of the commercial lease | 500 Questions - Business Law (Chapter 2.3.2) • Livv

337. Does the lessee automatically have the right to renew?

The commercial lease grants the lessee commercial ownership, which cannot be waived. It grants them a right to renewal (Art. L. 145-8 Commercial Code), which is a mandatory public policy provision, with clauses, stipulations, and arrangements …

338. Under what circumstances can the lessor take the initiative to renew the lease?

When the lessor takes the initiative, they must, in principle, deliver a notice with an offer of renewal by extrajudicial notice, at least six months before the lease expiration date (Art. L. 145-9, para. 5, Commercial Code), the date on which it …

339. Is the lessee required to accept the renewal?

Without requiring a particular form, the lessee may accept the notice with an offer of renewal issued by the lessor. However, the acceptance of the principle of renewal, which results from the sending of the notice, does not, by itself, constitute …

340. Is the lessee entitled to request renewal?

In the absence of notice given by the lessor for the contractual expiration date of the lease , the tenant who wishes to obtain the renewal of their lease must request it either within the six months preceding the expiration of the lease or, if …

341. Is the lessor required to accept the lessee's renewal request?

The lessor is not obliged to accept the tenant's request for renewal. The lessor has a period of three months from the request for renewal of the commercial lease to inform the tenant, by extrajudicial act , of their refusal to renew it, specifying …

342. Does renewal result in the conclusion of a new lease?

The renewed lease constitutes a new lease, not an extension of the previous lease, even if it is concluded under the same terms and conditions of the former contract . The parties may choose not to retain the terms and conditions of the expired …

343. What conditions apply to the determination of the rent for a renewed lease?

A determining element of the parties' consent, the rent amount results from the express or tacit agreement of the parties, which must, however, demonstrate a precise, complete, and firm commitment . The tenant's continued occupation of the leased …

344. Can the lessor refuse the renewal?

The lessor may refuse to renew the lease upon its expiration. The Commercial Code thus offers the possibility to refuse the renewal of the lease without specifying reasons, with the sole obligation of paying the lessee an eviction indemnity to …

345. Can the lessee claim compensation from the lessor for non-renewal?

The principle of the right not to renew the lease entails the landlord’s obligation to pay the tenant compensation for dispossession as redress for the harm suffered as a result of the lease not being renewed (Art. L. 145-14, para. 1, Commercial …

346. Can the lessor reverse the decision not to renew the lease?

The right to reconsider allows a lessor who has refused to renew the commercial lease, to avoid paying the eviction indemnity by retracting their refusal. Until the expiry of a period of fifteen days from the date on which the decision becomes res …

347. In what cases can the eviction indemnity be refused?

To be entitled to the eviction indemnity, the lessee must meet the conditions to benefit from the status of commercial leases, and consequently the right to renewal, which requires the existence of premises, the registration of the tenant, and the …

348. Under what conditions may the option right be exercised if the rent for the renewed lease is set by a court?

In the event of a judicial determination of the rent for the renewed lease, the parties have a reflection period during which each of them may retract and not accept the renewal of the commercial lease (Art. L. 145-57, para. 2, Commercial Code) . …