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Judgement no. 19785/2015 of 5th October 2015

Defects of leased assets

Cass., SS. UU., 5 ottobre 2015 n. 19785

With decision no. 19785/2015, filed on 5 October 2015, the Joint Sections of the Supreme Court (L.A. Rovelli Presiding –A. Spirito Reporting Judge) issued their judgement on the matter of financial leases, addressing the issue of the remedies the user may invoke in cases of defects of the leased asset.

The Joint Sessions start from the presupposition that the finance lease agreement is a type of contract that comprises two mutually connected contracts – the actual lease agreement executed by and between the grantor and the user, and the supply agreement executed by and between the grantor and the supplier in order to satisfy the user's interest to acquire the availability of the item - and that the user is entitled to act to obtain the performance of the supply agreement, in addition to compensation of the damages consequently incurred.

Instead, in the absence of an express regulatory provision in this regard, the user may exercise the action to terminate or to reduce the price of the sale agreement between the supplier and the grantor to which the user is extraneous only in the presence of a specific contractual clause whereby the grantor transfers to the user its own substantial position.

Subsequently, the Court made a distinction according to the moment – before or after the delivery of the thing – in which the defects may manifest themselves. If the defects emerge before delivery, which is thus refused by the user because of the unsuitability of the asset for use, the grantor must suspend payment of the price in the supplier's favour and act with respect to him for the termination of the supply agreement or for the reduction of the price.

Vice versa, if the defects manifest themselves after delivery, as latent defects or as defects that were not disclosed by the supplier in bad faith, the user shall be entitled to act directly with respect to the supplier to obtain the elimination of the defects or the replacement of the item. Regardless of the time when the defects are discovered, lastly, the user is entitled to act with respect to the supplier for damage compensation and the return of the payments already made to the grantor.

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