Publications: Commercial and Corporate Law

The recent developments on the interpretation and application of the maximum contractual payment terms effective since January 1, 2009 can be found at the end of this article. :
The Law for the Modernization of the Economy dated August 4, 2008 (known as the “LME Law“ instituted a ceiling for contractual payment terms agreed between professionals : “45 days end of month” or “60 days as from the date of issuance of the invoice” (Article L.441-6 paragraph 9 of the French Commercial Code “FCC”), considering that professionals (clients and...

Arrêt de la Cour de Cassation du 3 mars 2009 :
As a continuation of the article on the new maximum payment terms applicable as of January 1, 2009 (see our January 2009 e-newsletter), a recent decision of the French Supreme Court[1] established the principle that a supplier can automatically require payment of late penalties even if, in its General Conditions of Sale (“GCS”), there is no clause providing for such. The law on new economic regulations dated May 15, 2001 (“NER”) established that “late penalties are due without the need for any...

The Law for the Modernization of the Economy dated August 4, 2008 (known as the “LME Law“ instituted a ceiling for contractual payment terms agreed between professionals : “45 days end of month” or “60 days as from the date of issuance of the invoice” (Article L.441-6 paragraph 9 of the French Commercial Code “FCC”), considering that professionals (clients and suppliers) operating in the same business field may decide to further reduce the payment terms through inter-professional agreements. As a temporary measure, certain inter-professional agreements...