By Yasmine EDDAM
2 May 2025
The execution of finance leases raises specific practical difficulties. Based on a tripartite structure, it involves various linked contracts. This complexity generates a great deal of litigation, particularly concerning contractual interdependence. The Court of Cassation has developed a body of case law on this point that is now well established. It has a profound influence on the financial leasing regime. Practitioners need to master these rules to ensure the security of the transaction. The essential obligations of the parties The finance lease contract creates specific obligations for each party. Understanding these obligations is essential if disputes are to be avoided. Obligations of the lessor The lessor's fundamental obligation remains the delivery of the leased property. Article 1719 of the French Civil Code requires this. This obligation is a matter of public policy. No clause can totally exclude it. Case law confirms this principle. A ruling by the Douai Court of Appeal on 15 February 2018 states that "the lessor cannot exempt himself from delivering the leased property to the lessee". However,...