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Publicado en Sep 26, 2021

Loan Agreement In French

Article 1892 of the French Civil Code defines loan contracts. This article has always been interpreted in such a way as to require the transfer of the subject matter of the contract as a precondition for its existence and validity. Therefore, like deposit contracts, credit agreements are considered to be agreements of things (in rem). Therefore, the transfer of funds by the lender to the borrower is not a contractual obligation. As long as funds have not been transferred, a bank`s formal commitment to lend money to one of its customers is only a promise to conclude a credit agreement. If the bank is late in transferring funds, it cannot be held liable in the absence of a credit agreement. The willing borrower is entitled, under certain conditions, only to damages. The French government will grant a loan of about $76 million to Tanzania through its French Development Agency (AFD), said Dotto James, permanent secretary of the Ministry of Finance and Planning, who signed the agreement on behalf of Tanzania. Tanzania on Thursday signed a credit agreement with France to finance water supply projects that will benefit some 770,000 people in Morogoro commune. As a result of this decision, credit agreements will exist as soon as they have been concluded and will justify the obligation for the lender to transfer funds to the borrower. If the lender does not do so, the borrower is now entitled to the transfer of funds and not just damages.

However, the Court of Cassation extended this finding to all loans granted by credit professionals in accordance with its decision of 28 March 2000, without reference to a particular law. In this case, the loan was intended for the purchase of agricultural equipment and was subject to the condition that the buyer withdraw a life insurance contract. This condition was met, but the buyer died before the funds were transferred. The bank then refused to execute the loan. This loan was not governed by the Consumer Code, but by Article 1892 of the French Civil Code, which defines credit agreements. This means that the contract was subject to the theory of the Real Contract. On this basis, the Bank argued that it could not be compelled to transfer the funds, as no credit agreement is in progress. However, the Court of Cassation rejected this argument and found, without reference to a specific law, that loans granted by credit professionals are not real contracts. The Tribunal therefore decided that the bank was required to transfer the funds under the mutual agreement between the parties. This loan is 90% guaranteed by the French State and has an initial term of 12 months, with a 5-year extension option decided by OSE Immunotherapeutics (until May 2026). This new financing, obtained as part of the French government`s initiatives to support companies in the current health crisis, allows OSE Immunotherapeutics to benefit from the support of Bpifrance, BNP Paribas, CIC and Crédit Mutuel.

However, some types of contracts do not work according to this principle. . . .