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Preliminary lease agreements – the guidance of the Italian Supreme Court

According to the decision of the Italian Supreme Court no. 20989/20, deposited on 2 October 2020, a preliminary lease agreement has passed the pre-contractual stage, even if the parties are supposed to execute a further agreement, i.e. the final lease agreement. In light of the above, in case of breach of a preliminary lease agreement, the compensation for damages is not limited to the sole so called “negative interest” (i.e. the prejudice suffered by the party for having been involved in useless negotiations) but includes all the components of damage i.e. incurred damage and loss of profit.

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