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Transmission of the contractual guarantee to successive buyers

The Court of Cassation, in a recent judgment, clarified the question of the transmission of contractual guarantees to successive purchasers of a property. The case concerned the sale of a used car accompanied by a contractual guarantee. When the car was resold and the new buyer experienced a breakdown, he invoked the warranty provided by the original seller. The Court ruled that the sub-purchaser is entitled to benefit from all the rights and actions attached to the property, including the contractual guarantee granted by the initial seller.

The contractual guarantee granted by the seller is transmitted to successive buyers of the property throughout its duration.

Here is what the Court of Cassation has just recalled concerning the sale of a used car accompanied by a contractual guarantee by the seller. The buyer having in turn resold the car, the new buyer, following a breakdown, invoked the guarantee granted by the first seller. The latter refused his guarantee on the grounds that he had granted it to his client and to him alone.

Transferability of the contractual guarantee

The transferability of contractual guarantees can be an important selling point, especially when the guarantee has a long duration. Buyers may be attracted to goods or products with transferable warranties, as this provides them with assurance and protection even if they are not the original purchasers. The Court’s decision highlights the importance of recognizing the rights of successive purchasers and guaranteeing the transferability of contractual guarantees.

For the Court of Cassation, on the contrary, the sub-purchaser benefits from all the rights and actions attached to the property. Thus, he can benefit from the contractual guarantee granted by the initial seller, in the same way as the first buyer.

It also happens that the transferability of this contractual guarantee is used as a selling point, in particular when the guarantee offered is of long duration.

Law firm DAMY 2020