The cascading liquidation of contractual collections in the French legal system

Document Type : Original Article

Authors

1 Assistant Professor, Faculty of Law, Razavi University of Islamic Sciences, Mashhad, Iran

2 Ph.D., Faculty of Law, Razavi University of Islamic Sciences, Mashhad, Iran

Abstract

Economic developments caused French law to move from the point of view of the inviolable independence of contracts to the acceptance of the concept of "contractual groups" including contractual chains and contractual collections. This movement evolved with the identification of contractual collections and the declaration of Caducité as a sanction for them in Articles 1186 and 1187 of the 2016 amendments to the Civil Code. Contractual collections are a group of contracts that participate in the realization of a general operation and are connected to each other with unilateral or mutual dependence objective links (the impossibility of executing the contract in the event of the dissolution of other contracts in the set) or subjective (The will of the parties to the collection contracts). In case of liquidation of one of the contracts of the Contractual collections and the party against whom the Caducité is invoked proves the knowledge of the existence of the overall operation, the performance guarantee of "Caducité" will be activated and will cause the cascading liquidation of the other contracts of the collections."Caducité" is "automatic" and "complete" performance guarantees that eliminate all provisions of contracts and related conditions such as dispute resolution conditions. Determining the territory of Caducité in terms of regressive effects is left to the judges. Paying attention to the achievements of French law regarding contractual collections accelerates the design and evolution of this theory in Iran's legal system; therefore, the present article examines the contractual collections in the French legal system with analytical-descriptive method.

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Main Subjects

References

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History

  • Receive Date: 16 August 2023
  • Revise Date: 10 November 2023
  • Accept Date: 18 November 2023

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