The 7% flat-rate indemnity clause in professional loans challenged
A clause providing for a 7% flat-rate indemnity in case of default in professional loans is being challenged by several courts of appeal.
Published 3j1 sourceNotable
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The fact
This provision, often included in contracts for real estate companies and businesses, has been reduced to one euro in some rulings.
Case law may evolve to better protect borrowers.
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