Commercial Leases/Business Goodwill

Prescription is termed extinctive by the Civil Code. It thus results in the extinction of the right due to the inaction of its holder over a certain period of time (Art. 2219). It is acquired on the last day of the term (Art. 2229).
The acquisition of prescription has particular effects in the matter of commercial leases. When the commercial rent judge has not been seized within the two-year perio …

Effect

Prescription is termed extinctive by the Civil Code. It thus results in the extinction of the right due to the inaction of its holder over a certain period of time (Art. 2219). It is acquired on the last day of the term (Art. 2229).

The acquisition of prescription has particular effects in the matter of commercial leases. When the commercial rent judge has not been seized within the two-year period, the prescription does not result in either the lapse of the notice with an offer of renewal , or the tacit extension of the lease , but the renewal under the terms and conditions of the expired lease, including the amount of rent of the expired lease .

On the other hand, the request for a triennial rent review is void if no action is taken within the limitation period, and a new request can be made without having to wait for the minimum period of three years. As soon as the request for review concerns the renewed lease, whose price has not been revised since that date, and the renewal of the lease has no impact on the triennial review action occurring during the previous lease to be renewed, the failure to refer the matter to the commercial rent judge within two years from the start of the renewed lease only results in the continuation of the old lease price, the review action is not time-barred .

The prescription of the action for payment of the occupancy indemnity not only results in the extinction of claims older than two years but also the total extinction of the right to claim this indemnity . Similarly, the acquisition of the prescription of the tenant's action for payment of the eviction indemnity implies the loss of their commercial property rights and renders them an occupant without right or title .

Cass. 3e civ., 8 July 1980, LawLex202200003232JBJ, which quashes the appeal decision that held, to declare the notice void, that since no new lease had been concluded because the parties never agreed on the new price to be applied, it was up to either of them to initiate proceedings to determine the conditions of this lease, whereas the renewal of a lease is not subject to the prior determination of a new price.

Cass. 3e civ., 4 July 2001, LawLex202200003233JBJ, which quashes the appellate decision that held, to state that the expired lease was renewed by tacit agreement, that by refusing to refer the matter to the commercial rent judge within the two-year prescription period, the lessor tacitly accepted the refusal to increase the rent, even though the latter had given notice to the lessee.

Cass. 3e civ., 28 November 2006, LawLex202300010300JBJ.

Cass. 3e civ., 1 February 2012, LawLex202300008362JBJ.

Cass. 3e civ., 23 March 1977, LawLex202300014760JBJ; 10 March 2004, LawLex202400000506JBJ.

Cass. 3e civ., 31 May 2007, LawLex202400000312JBJ.

Commercial Leases/Business Goodwill

355. Effect

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Les décisions de justice citées dans ce paragraphe :

Les notions juridiques connexes

355. Effect

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Les décisions de justice citées dans ce paragraphe :

Les notions juridiques connexes

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