French Consumer Law is a comprehensive and comparative overview of French and EU law in this field, covering: advertising, unfair commercial practices, conditions for the validity of contracts, unfair terms, product conformity, latent defects, product safety.

French Consumer Law

 Fraud, a defect of consent and a tort, is governed by a specific sanction regime.
According to Articles 1130 and 1139 (former Article 1116) of the Civil Code, fraud, insofar as it has affected the formation of the contract, is sanctioned by the nullity of the agreement .
On the basis of Article 1240 (former Article 1382) of the Civil Code, the victim of fraud can also seek compensation for his da …

Implementation of the sanction

 Fraud, a defect of consent and a tort, is governed by a specific sanction regime.

According to Articles 1130 and 1139 (former Article 1116) of the Civil Code, fraud, insofar as it has affected the formation of the contract, is sanctioned by the nullity of the agreement .

On the basis of Article 1240 (former Article 1382) of the Civil Code, the victim of fraud can also seek compensation for his damage due to the fraudulent attitude of his contractual partner (or his accomplice or representative).

These two actions can be exercised independently of each other. They complement each other while remaining autonomous, the action for compensation being in no way the accessory of the action in nullity. According to the Court of Cassation , the fact that the victim of fraud has withdrawn his action for the nullity of the contract does not preclude the possibility for him to act on the basis of tort. It is the same when the action in nullity has been rejected or time-barred. The victim of a fraud may therefore either bring an action for damages without bringing an action for the nullity of the contract , at the risk, according to some, of causing a dilution of the fraud in tort law , or bring these two actions at the same time.

Although incidental fraud could not traditionally form the basis of the annulment of the contract, but only the award of damages as compensation, the Court of Cassation  held on several occasions that the buyer who would have acquired a property at a lower price if he had known the exact situation, was justified in seeking the annulment of the sale for fraud . Now, on reading Articles 1130 and 1131 as they result from the reform of contract law, it appears that the sanction of fraud, whether incidental or principal, is the nullity of the contract.

 "The mistake resulting from fraud is always excusable; it is a cause of nullity even if it relates to the value of the benefit or a mere motivation of the contract".

 Cass. com., 18 October 1994, LawLex200500006475JBJ.

 Cass. 1re civ., 25 March 2010, LawLex201400000720JBJ and Cass. com., 10 July 2012, LawLex201400000721JBJ (same case), on compensable damage and the loss of chance to conclude a contract on more advantageous terms.

 On the fact that the tort action risks ousting the contractual action under Article 1139 (former Article 1116) of the Civil Code, especially since the tort action does not require the finding of an intentional element, unlike the action for annulment for fraud, see Cass. 1re civ., 28 May 2008, LawLex201400000772JBJ.

 Cass. 3e civ., 22 June 2005, LawLex200600002189JBJ. See also Cass. 1re civ., 28 May 2008, LawLex201400000772JBJ.

 See also, for an application, Cons. d'Ét., 19 December 2007, LawLex200800000959JBJ: the victim of fraudulent maneuvers who, without being the decisive cause of the desire to contract of the party who suffered the effects, led him to accept conditions more costly than those he should normally have subscribed, may opt for an action not to have the contract declared invalid, but to be awarded compensation for his damage and thus place the dispute on the ground of quasi-tortious liability.

French Consumer Law

380. Implementation of the sanction

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Les décisions de justice citées dans ce paragraphe :

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Les notions juridiques connexes

380. Implementation of the sanction

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Les décisions de justice citées dans ce paragraphe :

Sous parties

Les notions juridiques connexes

Demandez un accès gratuit
au contenu exclusif Livv – juristes d’entreprise