Journal of Business and Law

ISSN: 2521-439x

Volume 4 / Issue 2

The Most Important Legislative Amendments Related to the Effect of the Contract Towards the Third Party in the French Civil Code Amended in 2016 and 2018

Authors

Raghid Fattal

 

Abstract

The French decree no. 131/2016 promulgated on Feb.10, 2016, and the Law no. 287/2018 promulgated on April 20, 2018 have amended many issues in the French Civil Code, including the doctrine “the contract has effect towards the parties only”. However, this doctrine is not very clear, and needs to be interpreted according to the new legislations. This shall include the idea that “the third party shall respect the legal status created by the contract”, and the idea that the third party can benefit from the legal status created by the contract as well. The doctrine according to which the simulated contract does not have effect towards the third party, and the nullity of the contract that simulates the true price, and how the amendments of the articles 1199 and 1200 of the French Civil Code affect the courts decisions that allow the third party to oblige the seller to execute the sale contract. It is also important to mention the conditions that allow the third party to sue for damages, the debtor who did not perform his/her contractual duties. We would like also to mention the opinions of the Law projects makers, and to compare the laws with the UAE Civil Transactions Law. The new doctrine of “binding himself on behalf of a third party” and the doctrine of “stipulation for the benefit of a third party” shall be interpreted according to the new legislations.