The global effective rate (TEG): definition and calculation methods

Credit always costs more than banks initially advertise. The nominal interest rate reflects only part of the reality. Hence the existence of the Global Effective Rate (Taux Effectif Global – TEG), a cornerstone of banking transparency in French law. This indicator, often unknown to borrowers, nevertheless plays a decisive role in comparing credit offers and […]

What to do if you fail to appear in court: consequences and solutions

Failing to appear at a court hearing in France carries considerable legal consequences. This absence, known as “defaut de comparution” (default of appearance), profoundly alters the course of the proceedings. It can affect either the claimant or the defendant, with different effects depending on the circumstances. Understanding these mechanisms allows you to act effectively in […]

Liability and marine towing: who pays in the event of damage?

A marine towing operation, however routine, is never without risk. A sudden gust of wind, a faulty manoeuvre, a mechanical failure – and an incident can occur, causing sometimes considerable damage to the tug, the towed vessel, or even third parties or port installations. The question then inevitably arises: who is liable? Who must bear […]

Delays in obtaining legal redress

While awaiting a court decision, time can seem to stretch indefinitely. This feeling echoes La Bruyere’s famous observation: “The duty of judges is to render justice; their profession, to delay it.” Yet the quality of justice is measured not only by the correctness of its decisions, but also by its capacity to deliver them within […]

Legal costs: who pays what? Understanding costs and article 700

Initiating legal proceedings in France, whether to assert your rights or to defend yourself, inevitably raises the question of costs. Beyond the legal issues themselves, a legitimate and frequent concern relates to the final financial burden: who will ultimately bear the expenses generated by the lawsuit? French legal terminology often uses the term “depens” (recoverable […]

The banking monopoly in France: who can carry out banking activities?

In the French financial landscape, not all activities are open to all players. The legal system imposes strict safeguards to protect the public and financial stability. The banking monopoly is one of the cornerstones of this protective framework. The Regulation of Banking Activities The French legislature has chosen to restrict banking activities exclusively to licensed […]

The hotelier’s liability for damage to customers and their property

French law imposes a particularly stringent liability regime on hoteliers (hoteliers) for damage to their guests and their guests’ property. Codified at Articles 1952 to 1954 of the Civil Code (formerly Articles 1952 to 1954 prior to the 2016 renumbering, originally Articles 1952-1954 of the old Code), this regime establishes a presumption of liability that […]

Article 220 of the civil code: household debts and credit

Article 220 of the French Civil Code establishes a rule of joint and several liability (solidarite) between spouses for debts contracted for the maintenance of the household or the education of children. This provision, often referred to as solidarite menagere, has significant implications for consumer credit and debt recovery. For creditors, it provides an additional […]

Admission to regulated markets: conditions

Gaining admission to a French regulated market – primarily Euronext Paris – is a significant step for any company seeking access to public capital markets. The process involves meeting stringent conditions set by both the market operator (Euronext) and the financial markets regulator, the Autorite des marches financiers (AMF). This article outlines the principal requirements, […]

Significant imbalance in common law

French contract law underwent a historic transformation in 2016 with the introduction of Article 1171 of the Civil Code, which grants courts the power to strike down unfair terms in non-negotiated contracts (contrats d’adhesion). This provision – part of the broader reform of the law of obligations by Ordinance No. 2016-131 of 10 February 2016 […]

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