Commercial Business Transactions

Commercial Business Transactions
Activités d'échange
Jurisdiction: France

Definition

French law generally classifies business transactions as commercial acts, which involve an exchange of goods and/or services.

Examples of business transactions under the Commercial Code include action sales (vente à l'encan), supplying goods or services (fourniture debiens/services), leasing personal property (location de meubles) and resale purchases (achat pour revendre).

C com. Art L 110-1

TYPES

Achat pour revendre (actes de commerce par nature) -- Resale purchase

In order to qualify as a resale purchase, and thus be declared a commercial act (Voir/see Actes de commerce par nature) under the French Commercial Code, all of the following must have occurred: (i) purchase; (ii) intent to resell the item purchased at the time of purchase (in spite of whether or not the goods are actually resold); (iii) the item in question must constitute (a) tangible or intangible personal property, whether resold as an intermediary or final product or (b) real property so long as the property purchaser did not intend to build one or more buildings to sell in blocks or their premises.

Location de meubles -- Leasing personal property

The leasing of personal property is generally considered a commercial activity.  On the other hand, ith the exception of hotel lease agreements, which are subject to the French Commercial Code, real property leases are generally governed by the Civil Code.

C com. Art. L 110-1

Vente à l'encan -- Auction sale

Sale of goods in a public auction.

C com Art L 110-1

Fourniture de biens/services – Supplying goods/services

The supply of goods or services, with the exception of those rendered by artisans (Artisan) (governed by more favorable rules under the French Civil Code) is considered a type of commercial business transaction.

C com. L 110-1