Section 8: Hire purchase and hire with a promise to sell

Lease-purchase or lease contracts accompanied by a promise to sell relating to the properties mentioned in a of 1° of Article L. 313-1 are subject to the provisions of this chapter, under the conditions set out in this section.

Any advertisement made, received or perceived in France, which, irrespective of its medium, relates to one of the contracts governed by the provisions of this section, shall specify the identity of the lessor, the nature and purpose of the contract.If this advertisement includes one or more quantified elements, it shall mention the term of the lease as well as the annual cost and the total cost of the transaction.

For contracts governed by the provisions of this section, the lessor is required to make an offer in writing on paper or any other durable medium, addressed free of charge to the prospective lessee. This offer shall mention the identity of the parties. It shall specify the nature and purpose of the contract as well as its terms and conditions, in particular with regard to the dates and conditions for…

For lease contracts with a promise to sell, the offer also sets out:1° The conditions for exercising the option and its cost broken down between, on the one hand, the fraction of the initial payments and rents taken into account for payment of the price and, on the other hand, the residual value of the property, taking into account the impact of any review clauses that may be included in…

The model of the offer referred to in article L. 313-55 is set by order of the Minister for the Economy.

The sending of the offer obliges the lessor to maintain the conditions it indicates for a minimum period of thirty days from receipt by the lessee. The offer is subject to acceptance by the lessee, who may not accept it until ten days after receiving it. Acceptance is notified by letter, as evidenced by the postal operator’s postmark, or by any other electronic means agreed between the parties that provides…

Until the offer is accepted, the lessee may not make any deposit, subscribe to or endorse any commercial paper, sign any cheque or authorise any direct debit from a bank or post office account in favour of the lessor or on the lessor’s behalf.

In the event of default by the lessee in the performance of a contract governed by this section, the lessor shall be entitled to demand, in addition to the payment of rents due and unpaid, compensation which, without prejudice to the application of Article 1231-5 du code civil, may not exceed an amount depending on the remaining term of the contract and set according to a scale determined by decree….

No compensation or costs other than those mentioned in article L. 313-60 may not be charged to the lessee. However, in the event of default by the lessee, the lessor may claim reimbursement from the lessee, subject to justification, of the taxable costs incurred by the lessee as a result of such default, to the exclusion of any flat-rate reimbursement of collection costs. .

In the case of a lease with a promise to sell, the deed recording the exercise of the option is concluded under the condition precedent provided for in article L. 313-41. When this condition is not met, the lessor returns all sums paid by the lessee, with the exception of rent and the costs of restoring the property.