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Private procurements, the termination of the contract does not exclude compensation for non-performance

  • 11/01/2024

The Court of Cassation, in its judgment No. 421 of 8 January 2024, ruled that, with regard to private procurements, "if the client exercises its unilateral right of withdrawal (pursuant to Article 1671 of the Italian Civil Code), it is not precluded from claiming the return of the down payments made and compensation for damages suffered due to non-performance that occurred during the course of the work and that can be attributed to the contractor. However, the ermellini judges wished to clarify that, "in such an eventuality, the dispute of non-conformities and defects, with regard to the part of the work performed, does not fall under the discipline of the guarantee for defects, which necessarily requires the total completion of the work".

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