Significant imbalance & indivisible operations

French Commission of Commercial Practices released a recent and important advice, which, even if it does not apply the provisions of Article L.442-6 I 2° of French commercial code under which the party to an agreement providing clauses causing a significant imbalance between the rights and the obligations of the parties, pursuant to principles governing the application over time of law (the matter originating before the adoption of Article L.442-6 I 2°), leaves the door opened to such remedy in case of a lease agreement covering indivisible operations.

One may also note that the sanction of significantly imbalanced contractual provisions should extend to any and all contracts as per the draft Article 1169 of French code civil resulting from the contemplated reform of this code, and not only commercial contracts.

Frédéric Fournier

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