Commercial Leases/Business Goodwill

The right to renewal is not exercised in the same way in the case of partial subletting of the premises. For the sublease to be subject to renewal directly by the landlord, the premises occupied must not be indivisible, either materially or in the common intention of the parties, from those occupied by the main tenant (Article L. 145-32, para. 2, Commercial Code) . In the absence of material or conventional indivisibility, the conclusion of a single lease for all the premises is not sufficient to allow the main tenant to obtain the total renewal of their lease and claim a right to renewal on the part of the sublet premises in which their business is not operated .

When the premises are indivisible and the subtenant of part of the premises cannot claim a direct right, they will be evicted without receiving any compensation. However, when the premises are not indivisible, if the property owner refuses the renewal request made by the subtenant, the latter may claim eviction compensation for the part of the premises they operate . This request is nevertheless essential in order to obtain the compensation, as it is a direct consequence of the refusal of the request .

Cass. 3e civ., 21 July 1999, LawLex202200009890JBJ.

Cass. 3e civ., 7 July 1993, LawLex202200009886JBJ.

Cass. 3e civ., 21 November 1974, LawLex202300012207JBJ.

Cass. 3e civ., 14 March 1973, LawLex202300012696JBJ; 14 June 2006, LawLex202200009888JBJ.

336. Specific Conditions of Renewal