Commercial Leases/Business Goodwill

Pursuant to Article 1722 of the Civil Code, the loss of leased premises following total or partial destruction resulting from a fortuitous event results in the automatic termination of the lease . Judges are not required to determine, in order to pronounce the termination, whether the restoration of the premises constitutes an excessive expense for the lessor when they ascertain the total destruct …

Consequences

Pursuant to Article 1722 of the Civil Code, the loss of leased premises following total or partial destruction resulting from a fortuitous event results in the automatic termination of the lease . Judges are not required to determine, in order to pronounce the termination, whether the restoration of the premises constitutes an excessive expense for the lessor when they ascertain the total destruction . From the time of this ascertainment, the lease ends. As the contract no longer has an object, the lessee is exempt from paying rent subsequent to the loss and can no longer claim eviction compensation that was not definitively acquired on the day of the disaster and had not entered their estate .

The automatic termination only applies in the event of total destruction. If the destruction is partial, the lessee has the option to choose, depending on the circumstances, between a reduction in rent or the termination of the lease. Only the lessee can, in this case, request the termination of the lease .

The lessee is released from their obligations towards the lessor when a fortuitous event or force majeure has absolutely prevented the enjoyment of the leased property . Similarly, whether the destruction is total or partial, the lessor is exempt from any obligation towards the lessee. Indeed, since the destruction originates from a fortuitous event, unrelated to the will of the lessor and not due to any fault attributable to them, they are neither required to rebuild the building, even if they have received compensation from their insurer , nor to compensate the tenant for the damage suffered due to the disaster . Nevertheless, if no compensation is possible, a request for the return of rents remains possible since it is not equivalent to a compensation claim. Thus, in the event of termination of the lease following the loss of the premises by fire, the lessee who has paid the rents in advance pursuant to a clause in the lease is entitled to obtain a refund .

See, notably, Cass. 3e civ., 13 July 1994, LawLex202300011263JBJ.

Cass. 3e civ., 1 March 1995, LawLex202100001276JBJ.

Cass. 3e civ., 29 June 2011, LawLex202200004632JBJ.

Cass. 3e civ., 1 February 1995, LawLex202200004634JBJ.

Cass. 1re civ., 29 November 1965, LawLex202300011226JBJ.

Cass. 1re civ., 6 February 1963, LawLex202200007250JBJ; Cass. 3e civ., 29 January 1975, LawLex202300011218JBJ; 20 January 1981, LawLex202100004012JBJ; 8 March 2018, LawLex202200004365JBJ.

Cass. 3e civ., 29 January 1975, LawLex202300011218JBJ; 3 May 1978, LawLex202300011220JBJ.

Cass. 3e civ., 1 April 1998, LawLex202300011262JBJ.

Commercial Leases/Business Goodwill

256. Consequences

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Les notions juridiques connexes

256. Consequences

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Les décisions de justice citées dans ce paragraphe :

Les notions juridiques connexes

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