D. 2001. 1568
Case Fanara v Société Europe expertise

In view of articles 1134 and 1184 Code civil;

Given that misconduct by a contractor must be really serious before the other party may terminate the contract unilaterally, at the risk of being liable if he is wrong, and that this is so whether or not the contract is for a fixed period;

Given that on 25 October 1995 the company “Europe expertise” repudiated the agreement whereby, for a period of three years starting on 25 September 1995, it had entrusted to M. Fanara, an expert mechanic, the task of examining the condition of the vehicles being returned to the manufacturer by the hire firms which had conditionally bought them;

Given that when M. Fanara claimed damages from the company for its unilateral termination of the contract the decision below, in dismissing his claim, simply stated that the premature termination of the contract was due to his failure to respect his contractual obligations;

But given that it so decided without inquiring whether M. Fanara’s conduct was sufficiently serious as to justify such termination, the court of appeal’s decision lacked legal basis;

For these reasons QUASHES the decision of the Court of Appeal of Bastia dated 8 March 1999 and remands the case to the Court of Appeal of Montpellier.

Subsequent Developments

This note on subsequent developments reflects the legal situation as of October 2005.

Civ 1, 20 February 2001 (Dalloz, 2001, 1568) : The solution expressed by this judgment has been repeated, in strictly identical terms, by a judgment of the same chamber of the 28 October 2003 (Bull I, no 211). A judgment of the same chamber of the 13 October 1998 had already accepted that "the seriousness of the conduct of a party to a contract [could] justify the other party in putting an end unilaterally to his risks and perils", the two judgments following - Civ 1, 20 February 2001 and 28 October 2003 - reaffirming this solution, making it clear moreover that it applies just as much to contracts of determined length as to those of indeterminate length.

Translation by Raymond Youngs

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