Lease and Good Faith: Reflections on Order No. 11219 of 2024

The recent order of the Court of Cassation No. 11219 of April 26, 2024, offers important food for thought on the subject of leases for non-residential properties. In a context where contractual relationships must adhere to principles of equity and good faith, the ruling addresses the lessor's inaction and the legitimacy of their claim for payment of arrears.

Context of the Ruling

The case involved a dispute between F. and S. in which the lessor had exhibited a pattern of inaction in exercising their credit rights for a prolonged period. The Court of Cassation established that this conduct does not automatically imply a waiver of the right to claim full payment of accrued rents.

In general. Regarding urban property leases for purposes other than residential use, the conduct of a lessor who, after being inactive in pursuing the lessee – even if due to a fault attributable to them and for a duration that would reasonably lead the debtor to believe the right will no longer be exercised – demands full payment of accrued rents is not sufficient to constitute conclusive behavior from which to unequivocally infer a tacit intention to waive the right, nor does it represent a case of abuse of right, because the mere delay by one party in exercising their prerogatives can give rise to a violation of the principle of good faith in the performance of the contract only if, not serving any interest of its holder, it results in damage to the counterparty.

Implications of the Ruling

This pronouncement has several practical implications:

• Recognition of the lessor's right to claim arrears even after a period of inactivity.
• Affirmation that inaction does not, in itself, constitute a waiver of rights by the lessor.
• Evaluation of the principle of good faith in relation to the interests of both parties.

The Court, also referencing the provisions of the Civil Code, clarifies that abuse of right cannot be established solely on the basis of a delay in demanding performance. In other words, the lessor must demonstrate that their conduct did not cause harm to the lessee and that they maintained a legitimate interest in pursuing the debt.

Conclusions

Order No. 11219 of 2024 invites us to reflect on the importance of good faith in lease agreements. Legal professionals and lessors must be aware that inaction has consequences and that late payment demands must be justified. In light of this, it is essential to maintain open dialogue between the parties and respect mutual rights to avoid future disputes and ensure the stability of contractual relationships.