Commercial Leases/Business Goodwill

The irregular transfer of the leasehold right may constitute a serious and legitimate reason justifying the landlord's refusal to renew the lease without paying eviction compensation.
Constitute a serious and legitimate reason for refusal of renewal:
- the breach of the clause, according to which the lessee is prohibited from assigning, without the lessor's authorization, their lease right to anyo …

Refusal without eviction compensation

The irregular transfer of the leasehold right may constitute a serious and legitimate reason justifying the landlord's refusal to renew the lease without paying eviction compensation.

Constitute a serious and legitimate reason for refusal of renewal:

- the breach of the clause, according to which the lessee is prohibited from assigning, without the lessor's authorization, their lease right to anyone other than their successor in the same business and is obliged to consent to an assignment only by authentic deed in which the lessor would be called to participate ;

- the irregular service of the lease assignment to the lessor ;

- the violation by the lessee of the clause requiring the lessor's involvement in the act of assignment of the leasehold right   or of the clause that makes any assignment of the lease subject to the prior approval of the lessor  ;

- the transfer of the leasehold right, by private deed and without the presence of the landlord, in violation of the lease agreement stipulations, which provide that any transfer of the lease must be executed by authentic deed and in the presence of the landlord , or the transfer to a third party of the business operated on the leased premises, without the landlord being invited to participate, nor the transfer being disclosed to them ;

- the failure to notify the transfer of the lease to two of the co-owners in indivision, while the assignor was aware of the existence of an indivision on the leased property ;

- The transfer of the leasehold right, occurring after the expiration of the lease, without the landlord's involvement in the act and without prior submission of the transfer project necessary for the implementation of the right of first refusal, in violation of the clear contractual clauses of the lease requiring these formalities in all cases of transfer .

Cass. com., 19 October 1960, LawLex202300014098JBJ.

Cass. com., 13 March 1962, LawLex202300013726JBJ, according to which the mere mention made in the tenant's renewal request, who previously acquired the business operated in the leased premises, as well as the leasehold right, indicating that “the tenant requests this renewal as the assignee of the business,” cannot be considered a regular notification.

Cass. com., 7 July 1964, LawLex202300014099JBJ.

Cass. 3e civ., 22 February 1968, LawLex202300013316JBJ. Also see CA Dijon, 28 November 1990, LawLex202300014100JBJ.

CA Versailles, 11 September 1997, No 7689/95.

Cass. 3e civ., 21 November 2001, LawLex202300011936JBJ.

Cass. 3e civ., 10 December 2002, LawLex202300013723JBJ.

CA Paris, 13 February 2008, No 07/02263 – [LawLex…JBJ].

Commercial Leases/Business Goodwill

315. Refusal without eviction compensation

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Les décisions de justice citées dans ce paragraphe :

Les notions juridiques connexes

315. Refusal without eviction compensation

Demandez un accès gratuit au contenu exclusif Livv – juristes d’entreprise

Les décisions de justice citées dans ce paragraphe :

Les notions juridiques connexes

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au contenu exclusif Livv – juristes d’entreprise