Non-performance of the contract is not a cause of nullity of the contract

Court of Appeal of Versailles, 12th chamber, September 24, 2020, n° 19/03654

Article 1186 of the Civil Code a validly formed contract lapses if one of its essential elements disappears. Jurisprudence must still specify the scope of this new article resulting from the reform of contract law, in particular by answering these questions: what are the essential elements of the contract? Can the disappearance of one of these essential elements result from the will of the parties?

A recent decision by the Court of Appeal of Versailles provides an answer: the disappearance of the essential element of the contract within the meaning of article 1186 cannot be dependent on the will of the parties. Thus, the non-performance of its contractual obligations by a company cannot constitute a cause of nullity of the contract, even if it would be invoked by the party victim of the non-performance.

In the present case, this solution seems relevant to us. Indeed, to recognize the contrary would ultimately amount to conferring on the defaulting party a right to unilateral termination of the contract.

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