The civil section of the French Supreme Court (Cour de Cassation) ruled on February 9 1994 that a provision allowing the interest rate of a loan to fluctuate at the discretion of the lender is null and void, as contrary to Article 1129 of the Civil Code pursuant to which the subject matter of an obligation, (e.g., the price), must not be dependent on the will of a single party. However, the nullity of the relevant provision has no impact on the validity of the loan.

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