Legal Definitions - exécution parée

Exécution parée is a specific legal right under French law that allows a creditor to recover a debt quickly and directly, without needing to go through a lengthy court process to obtain a judgment. This right arises when the debt is established in a formal document that has been approved and verified by a notary public. Because of this notarized agreement, the creditor can immediately seize and arrange for the sale of the debtor's property to satisfy the outstanding debt, up to the amount owed.

Here are some examples illustrating how exécution parée might apply:

• Business Loan Default:

  Imagine a small business in France takes out a loan from a bank to purchase new machinery. To provide the bank with strong security, they sign a loan agreement before a notary public, which includes a clause granting the bank the right of exécution parée if the loan defaults. If the business later struggles and fails to make its loan payments, the bank, as the creditor, can use this notarized agreement to bypass the usual court proceedings. They can directly initiate the seizure and sale of the business's assets (like the new machinery) to recover the outstanding loan amount, without first needing a judge's order.

• Real Estate Purchase Agreement:

  Consider a situation where an individual sells a piece of land in France to a buyer, and the buyer agrees to pay the remaining balance of the purchase price over a few years. To ensure the seller has strong recourse if the buyer defaults, the sale agreement, including the payment schedule and a specific clause for exécution parée, is formally executed and verified by a notary. Should the buyer stop making the agreed-upon payments, the seller can invoke the exécution parée right. Based on the notarized sale agreement, the seller can move directly to seize and sell other assets of the buyer (as specified or allowed by law) to recover the unpaid portion of the purchase price, without having to sue the buyer in court first.

• Commercial Lease Arrears:

  A company leases office space in a French city. The lease agreement, which includes the tenant's obligation to pay rent and a provision for exécution parée in case of default, is signed and notarized. If the tenant company repeatedly fails to pay rent, the landlord, as the creditor, can rely on the notarized lease agreement. This allows the landlord to immediately pursue the seizure and sale of the tenant's movable property (such as office furniture or equipment) to cover the unpaid rent, without needing to obtain a court judgment for the debt.