1 Legal framework
1.1 Which general legislative provisions have relevance in the private equity context in your jurisdiction?
The main legislative provisions applicable to private equity operations in France are set forth in the Commercial Code, the Monetary and Financial Code and the Civil Code.
The Civil Code's provisions on contract law were substantially amended in 2016, which has important implications for M&A practice in general, including private equity.
For instance, the new Article 1124 of the Civil Code has reinforced the binding effect of unilateral promises to buy or sell by establishing the ineffectiveness of the revocation of such a promise by the promisor. As result, the withdrawal of a promise during the period within which the beneficiary may exercise the option no longer prevents the formation of the promised contract. Therefore, beneficiaries are now entitled to seek enforcement of the relevant promise against the defaulting promisor, pursuant to new
