LEGAL HISTORY 2015

ASSIGNMENT 3
CODIFICATION
A. CASE
Paris, January 1909.
Jean Breton is very angry. In the summer of last year, he bought from a broker, Claude
Avignon, some railway bonds in the Compagnie des chemins de fer de l'Ouest (CF de
l'Ouest), which he had to pay only in February 1909; then the bonds would also be
delivered. However, in the meantime the CF de lOuest was taken over by Chemins
de fer de l'tat. His bonds in this state-controlled company would be worth only half
of what he had agreed to pay in the summer of 1908. If he would have known that the
financial situation of the CF de lOuest had been so deplorable, he would never have
bought any bonds at all. What makes it worse, is that the Chemins de fer de ltat
announced that the interest payable on railway bonds would be limited to 5%. Jean
expected at least 10%, the interest rate which his broker, Claude, mentioned when
Jean bought the bonds. His broker, Claude Avignon, however, insists that he takes
over the bonds, because pacta sunt servanda.
Jean goes to you and asks for legal advice as he does not want the bonds anymore.
Questions
When answering the questions below, students should use footnotes to indicate the
sources they have used (footnotes should ONLY be used for references to sources).
The number of words indicated at the end of each question represents the maximum
and not the average number of words to be used. The maximum number of words does
NOT include the footnotes. Indicate the number of words used per question. You may
use fewer words to provide a complete answer to each question. However, if more
words than the maximum number are used, the question will not be graded or taken
into account. Please remember not to exceed the overall 2 pages A4 limit.
Information needed to answer questions on contract should ONLY be sought for in
the course materials. For answering other questions, you may go beyond these
materials.
1.

Discuss before which court the above case may have been brought. Also
discuss the origins of this court. Mention which court or courts could have
been involved in case the parties would have decided to file an appeal
against the judgment of the first instance court. (max. 150 words) (1,5
points).

2.

Discuss where the legal rules that apply in this case can be found. Also
discuss the history of this source of law. (max. 150 words) (1,5 points).

3.

Discuss why Breton may have been of the opinion that he is not bound by
the contract. Qualify his defenses legally and discuss the history of the
legal concepts that Breton may have had in mind. (max. 300 words) (3
points).

4.

Provide a short judgment in this case, addressing all arguments advanced

by Avignon and Breton (max. 400 words) (4 points).