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Does inaction or delay in enforcing a right mean that the holder has waived that same right?

Is the German principle of “Verwirkung” applicable in Italian law? In a recent Supreme Court decision concerning lease agreements, the Italian judges addressed the issue of inactivity in enforcing a right and clarified to what extent the delay in enforcing a right may give rise to a reasonable expectation on the other party that the right has been waived by its holder and, therefore, whether there could be a breach of the “good faith” clause if the right is enforced with delay by its holder.

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Liquidated damages clauses: are they effective under Italian law?

In case of breach of contractual obligations, the party in breach is normally required to pay to the other party damages, i.e. an amount of money as compensation for the loss generated by non-performance or delay. Contracts often include liquidated damages clauses, which establish in advance the amount of damages to be paid. However, the effects of such clauses can vary significantly depending on the jurisdiction and it is essential to consider all legal implications when drafting a contract.

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