Several rulings handed down in July by the French Supreme Court (Cour de cassation) have elucidate several aspects of the legal warranty for hidden defects. In particular, the Court has clarified the issues of the irrebuttable presumption of knowledge of the latent defect by professional sellers, as well as the applicable statute of limitations.
July was a busy month for the warranty of hidden defects. The Court of Cassation handed down several rulings clarifying this warranty set out in articles 1365 et seq of the Civil Code.
These decisions offer two solutions:
- The irrebuttable presumption that a professional seller has knowledge of the latent defects in the item sold does not constitute a disproportionate infringement of the right to evidence enshrined in Article 6(1) of the European Convention on Human Rights, even if the buyer has acquired the item for the purposes of his/her own professional activity.
- A person who discovers a latent defect in an item sold to him or her has two years to bring an action under the latent defects guarantee, starting from the discovery of the defect. This period is a limitation period that may be suspended, particularly in the event of an expert assessment. Under article 2232 of the Civil Code, this action may however not be brought after 20 years from the date of the sale. Previously, certain chambers of the Cour de cassation had applied a five-year time limit from the date of sale.
In its press release, the Cour de cassation explained that this newly adopted solution was based on a “balance between the protection of the rights of consumers, who must not lose their right to take action when they discover a hidden defect at a late stage“, and “the imperatives of economic life, which mean that a seller’s or manufacturer’s guarantee cannot be sought indefinitely“.
At a time when the draft reform of contract law proposes a return to a simple presumption of knowledge of the defect by the professional seller, the Cour de cassation has decided to give its opinion to the legislator in a loud and clear manner.
Cour de cass., Com., 5 juillet 2023, n°22-11.621
Cour de cass., Ch. Mixte, 21 juillet 2023, n°21-15.809, n°21-17.789, n°21-19.936, n°20-10.763
