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Real Estate News: Commercial lease: the Court of Appeal of Dijon ruled on May 7, 2020 that a one-off distortion can last 3 years but cancels in its entirety the clause limiting upward indexation

Catherine Saint Geniest

The Dijon Court of Appeal validates the rent clause to be compensated despite the distortion created over 3 years by the sliding scale clause (i), while ordering the nullity of the disputed clause which limited downward indexation, despite the lessor’s failure to apply this limitation during the term of the lease (ii).