Contract Validity Contingent on Administrative Authorization Refusal
Synthèse Legislator
Généré par l'IAA party contracted to sell a business to another, with the sale subject to the seller obtaining authorization from the administrative authority for the transfer of the necessary license, and when the authorization was refused, the seller initiated proceedings seeking annulment of the sale, arguing the condition precedent was not fulfilled; the court rejected the appeal, holding that the administrative authorization, being a condition suspensive to the sale, was a requirement for the contract's effectiveness and its absence justified the non-execution of the agreement, not its nullity, as the refusal was imputable to the administration and not the fault of either party, thus rendering the sale definitively unexecuted rather than voidable.
Regeste Legislator
Généré par l'IAContract Validity Contingent on Administrative Authorization Refusal: A party contracted to sell a business to another, with the sale subject to the seller obtaining authorization from the administrative authority for the transfer of the necessary license, and when the authorization was refused, the seller initiated proceedings seeking annulment of the sale, arguing the condition precedent was not fulfilled; the court rejected the appeal, holding that the administrative authorization, being a condition suspensive to the sale, was a requirement for the contract's effectiveness and its absence justified the non-execution of the agreement, not its nullity, as the refusal was imputable to the administration and not the fault of either party, thus rendering the sale definitively unexecuted rather than voidable.