[COMMERCIAL LEASE - RENEWAL - NOTICE OF TERMINATION]

[BUSINESS LAW - COMMERCIAL LEASE - RENEWAL NOTICE]

🚨 A notice of termination served by a lessor with an offer to renew a commercial lease, proposing different terms and conditions to the initial expired lease, apart from the price, must be analysed as a notice of termination with refusal to renew giving entitlement to eviction compensation.

⚖️ In principle, the renewal of a commercial lease is subject to the same terms and conditions as the expired lease.

By way of exception, modifications are restrictively possible in the context of the exercise of the judge's power to set the price, the existence of an amicable agreement or a rider applying to the renewed lease (Civ. 3e, 12 Oct. 1982 P; 6 March 1991, no. 89-20.452; Civ. 3e, 21 Dec. 2017, no. 16-26.699; Civ. 3e, 21 Dec. 2017, no. 16-26.699; Civ. 3e, 2 Oct. 2002, no. 01-02.781).

On the basis of the provisions of articles 1103 of the Civil Code and L.145-8 and L.145-9 of the Commercial Code, the Civil Division of the Cour de Cassation has ruled that a notice of termination with an offer to renew, proposing changes relating to the size of the leased premises and the lessee's obligations, must be analysed as a notice of termination with refusal to renew (Cass., Civ. 3e, 11 Jan. 2024, no. 22-20.872).

⚠It is therefore important to ensure compliance with the formality rules relating to commercial leases, at the risk of requalification.

#commerciallease #businesslaw #renewal #dismissal #validity #formality