Hidden defects and time limits clarified by French Supreme Court

Hidden Defects and Time Limits: Rules Clarified by the French Supreme Court (Cour de cassation)

Under French law, the warranty against hidden defects requires the seller—whether professional or not—to deliver goods free from defects that make them unfit for their intended use (Articles 1641 et seq. of the Civil Code). This warranty applies even without a specific clause and covers sales of vehicles, machinery, equipment, construction materials, and more.

Until recently, time limits for filing claims were unclear, particularly on two key points:

  • Is the two-year period after discovering the defect flexible or fixed?
  • What is the ultimate time limit beyond which no action is possible, even if the defect is discovered late?

The French Supreme Court (Cour de cassation) has issued four landmark rulings to harmonize case law, clarify procedural rules, and strengthen legal certainty for businesses.

The 2-Year Time Limit from Discovery of the Defect

What this means: You have two years from discovering the defect to take action, and this period can be suspended in certain cases. For example, if a court-appointed expert review is ongoing, the time limit may be paused.

Why it matters: This type of time limit (prescription) is more flexible than prefix delay (forclusion). This strengthens protection of buyers.

The 20-Year Time Limit from Sale

The Court confirmed that buyers cannot sue more than 20 years after the sale—even if the defect is discovered very late.

This long-stop period, set out in Article 2232 of the Civil Code, runs from the date of sale (not from discovery of the defect) and cannot be suspended.

Example: You buy a machine in 2025 and discover a defect in 2030. You will not be barred because you are within two years of discovery and within the 20-year long-stop. However, if you only discover the defect in 2046, it is too late—even if you could not have found it earlier.

Balancing Buyer Protection and Seller Certainty

The Court seeks to balance the opposing interests of buyers and sellers:

  • Buyers are protected by having two years after discovery to initiate proceedings.
  • Sellers gain certainty by knowing they cannot be sued more than 20 years after the sale.

In practice, this solution favors buyers, who benefit from a generous long-stop period.

Key Takeaways for Professionals

The Court aims to protect buyers—even in cases of late discovery—without undermining economic stability. Sellers cannot remain indefinitely exposed to litigation.

For buyers:

  • Do not delay in identifying defects
  • Act within two years of discovery
  • Remember: after 20 years from the sale, it is too late—even for proven hidden defects

For sellers:

  • Pay close attention to warranty clauses and limitations of liability
  • Keep all contractual documents (sales contract, general terms, annexes, technical documentation)

Need assistance with a product affected by hidden defects? Contact us today to protect your interests.

Frequently Asked Questions

Why is the French Supreme Court’s decision criticized by some practitioners?

Previously, the Court considered that actions based on hidden defects were subject to a 10-year limitation from the sale under Article L110-4 of the Commercial Code. This was reduced to five years after the 2008 reform of civil prescription. That approach was more favorable to professional sellers, who benefited from a relatively short long-stop period starting from the sale.