Sale Contract
Explanation
The law regulates the contract of sale (le contrat de vente) and determines the basic rules for its formation and effects. The text clarifies that the sale can be concluded in different forms. The contract may be written or oral. However, this principle is subject to restrictions when selling immovable property (les immeubles).
The law requires the determination of the price of the sold item (le prix) for the formation of the contract. The contracting parties have the option to delegate a third person to estimate this price. If this third person refuses or is unable to determine the price, the contract of sale is not formed.
The law establishes a strict rule for the sale of real estate or the real rights pertaining to it. This sale does not produce any legal effect, even between the seller and the buyer, before its registration. The effect of the sale begins exclusively from the date of its registration in the land registry (le registre foncier).
The law determines the party who bears the costs associated with the contract. The expenses of the deed of sale and what branches from it fall on the buyer (l'acheteur) and not the seller.
Official legal articles
Think deeper
How does the requirement to register the sale of real estate in the land registry for it to have effect align with the general rule that allows a sale to be oral?
Flashcards
Who bears the expenses of the deed of sale?
The expenses of the deed of sale and what branches from it fall on the buyer.
Is the contract of sale required to be written?
No, the sale may be written or oral, subject to the rules established for the sale of immovable property.
May the contracting parties delegate another person to determine the price of the sold item?
Yes, the determination of the price may be delegated to a third person.
What is the fate of the contract of sale if the third person refrains from estimating the price?
If the third person refrains or is unable to estimate the price, the sale is not formed.
When does the effect of the sale of real estate begin between the contracting parties?
It has no effect, even between the contracting parties, except from the date of its registration in the land registry.
Is the sale of real rights pertaining to real estate effective before registration?
No, it has no effect except from the date of its registration in the land registry.
Practice questions
Who bears the expenses of the deed of sale according to the law?
The expenses of the deed of sale and its branches fall on the buyer (Article 375).
What is the legally required form for a contract of sale in general?
The sale may be written or oral, subject to the rules for selling immovable property (Article 376).
A seller and a buyer agreed to delegate an expert to determine the price of the sold item, but the expert was unable to do so. What is the result?
If the third person refrains or is unable to estimate the price, the sale is not formed (Article 386).
Two people signed a real estate sale contract and the buyer paid the price in full. When does this sale take effect between them?
Real estate sale has no effect between contracting parties until registered in the land registry (Article 393).
Can real rights pertaining to real estate be sold under an immediately effective oral contract?
Selling real rights on real estate has no effect until registered in the land registry (Article 393).
Case problems
Fadi and Sami orally agreed to sell a car. They agreed that the mechanic, Jalal, would determine the price of the car. Jalal traveled and refused to determine the price. Fadi demanded that Sami deliver the car, claiming that the oral contract is valid. Was the sale formed?
Model answer
The sale may be oral according to the law.
However, the contracting parties delegated a third person to determine the price.
If the third person refrains from estimating the price, the sale is not formed (Article 386).
Since Jalal refused to determine the price, the sale was not formed between Fadi and Sami.
Self-grading rubric
Nada bought a plot of land from Rabih under a written contract. Nada paid the price but did not register the contract in the land registry. Nada wanted to enter the land, but Rabih prevented her under the pretext that the sale has no effect. Is Rabih right? And who must pay the expenses of the deed of sale upon registration?
Model answer
Rabih is right in preventing Nada.
The land is considered real estate, and its sale has no effect before registration (Article 393).
Since the contract was not registered, it has no effect yet between Nada and Rabih.
Regarding the expenses, the expenses of the deed of sale are on the buyer (Article 375).
Therefore, Nada bears the expenses of the deed of sale upon registration.