Commercial Leases/Business Goodwill

Law No 65-356 of 12 May 1965, which introduced Article 3-2 into Decree No 53-960 of 30 September 1953, now Article L. 145-5 of the Commercial Code, opened the possibility for the parties to derogate from the protective system of commercial leases and to conclude a lease for a duration not exceeding two years , known as a "short-term lease." Subsequently, the Pinel Law, by extending the maximum duration of the short-term lease from two to three years , strengthened the system with the aim of encouraging the use of this type of lease, particularly for entrepreneurs starting out, who can thus make their project viable over a period of three years instead of two, before resorting to a nine-year lease, in accordance with Article L. 145-4 of the Commercial Code.

Law No 65-356 of 12 May 1965 amending and supplementing Decree No 53-960 of 30 September 1953 governing the relations between landlords and tenants concerning leases of buildings or premises for commercial, industrial, or artisanal use, Art. 4.

Act No 2014-626 of 18 June 2014 on Craftsmanship, Commerce, and Very Small Enterprises, Art. 3-I.

56. Short-term leases