Commercial Leases/Business Goodwill

Article L. 145-37 of the Commercial Code specifies that the revision may take place “at the request of either party,” without distinguishing whether the landlord or the tenant is eligible to exercise the action for revision. The action for revision, therefore, belongs equally to both parties when the defined index variation has occurred, regardless of the direction of the variation . Thus, dependi …

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Article L. 145-37 of the Commercial Code specifies that the revision may take place “at the request of either party,” without distinguishing whether the landlord or the tenant is eligible to exercise the action for revision. The action for revision, therefore, belongs equally to both parties when the defined index variation has occurred, regardless of the direction of the variation . Thus, depending on each party's interests, the rent will be revised upwards at the landlord's request or downwards at the tenant's initiative.

The provisions of Article L. 145-37 do not require either party to act personally. Thus, a request for rent review may be regularly made by a duly authorized representative, who has the capacity and interest to act, provided that it has been made in the name and on behalf of the principal . It may thus be presented by a lawyer or

The request for revision of the commercial rent constitutes an act of administration , and the co-owners holding at least two-thirds of the undivided rights may make such a request, in accordance with Article 815-3 of the Civil Code, but must inform the other co-owners. In the face of refusal from their co-owners, the co-owner initiating the project to revise the rent of the undivided property leased can still obtain judicial authorization for this purpose . The usufructuary may also request the revision of the rent, without the involvement of the lessor , provided that the request does not affect the substance of the leased property or the rights of the bare owner .

Cass. com., 8 January 1964, LawLex202300007357JBJ; 22 March 1966, LawLex202300007358JBJ.

CA Grenoble, 25 September 2014, LawLex202300007360JBJ.

Cass. com., 5 February 1963, LawLex202300007432JBJ, according to which the action for revision of a commercial rent constitutes an act of administration and not a conservatory act insofar as it aims to enhance the value of the building and is not merely a necessary formality for its preservation.

Cass. civ. 1re, 13 November 1984, LawLex202300007433JBJ, which specifies that if the better profitability of the undivided property, in which all co-owners have an interest, is of common interest and the existence, in certain co-owners, of divergent interests arising from a circumstance unrelated to the undivided ownership does not imply the absence of common interest, one of the co-owners, who faced the refusal of his co-owners, is entitled to seek judicial appointment of a provisional administrator to obtain the revision of the rent of an undivided property leased to a company.

By analogy, Cass. 3e civ., 4 May 1976, LawLex202300007434JBJ, according to which the provisions of Article 595 of the Civil Code do not prevent the usufructuary from pursuing the termination of the lease alone.

Cass. 3e civ., 5 March 1986, LawLex202200002303JBJ. – See also Cass. 3e civ., 14 March 2019, LawLex202100002671JBJ, the amendment to a commercial lease contract insofar as the usufructuary granted the lessee a reduction of half the rent amount without the agreement of the bare owner.

Commercial Leases/Business Goodwill

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