Breach of preliminary contract

The signing of a preliminary sales contract, commonly known as a "compromise," represents a crucial moment full of expectations. Unfortunately, it can happen that one of the parties, for various reasons, decides not to proceed with the signing of the final contract, the notarial deed, generating a situation of great uncertainty and potential economic damage. Understanding your rights in this scenario is the first step to protecting your investment. As an expert lawyer in damages compensation in Milan, lawyer Marco Bianucci assists both buyers and sellers in facing the complex legal consequences arising from the breach of the preliminary contract, ensuring effective and targeted protection.

The role of the earnest money deposit according to the law

In the context of a preliminary contract, the earnest money deposit, governed by Article 1385 of the Civil Code, is not a simple down payment on the price, but a fundamental guarantee for both parties. Its function is to strengthen the contractual bond, providing for immediate consequences in case of breach. The law establishes two main scenarios. If the breaching party is the buyer, i.e., the one who paid the deposit, the seller can withdraw from the contract and retain the deposit as compensation. If, on the other hand, it is the seller who no longer wishes to conclude the deal, the buyer has the right to withdraw and demand payment of double the deposit paid.

Legal alternatives: forced performance or compensation for further damage

In addition to the path of withdrawal with the deposit, the compliant party has other legal options available. They can, in fact, go to court to request the specific performance of the contract, obtaining a judgment that produces the same effects as the unexecuted contract (art. 2932 c.c.), coercively transferring ownership of the property. Alternatively, they can request the termination of the contract due to breach and sue for compensation for further damage. This second option is indicated when the damage suffered exceeds the value of the deposit (or double its amount), but requires that such damage be specifically proven in court, such as expenses incurred or the loss of other business opportunities.

The approach of the Bianucci Law Firm

Faced with the breach of a preliminary contract, it is essential to act promptly and strategically. The approach of lawyer Marco Bianucci, an expert lawyer in damages compensation in Milan, is based on a rigorous analysis of the case to define the most advantageous course of action for the client. The first step is to examine the preliminary contract and the circumstances that led to the breach in detail. Subsequently, it is assessed whether the most effective path is withdrawal, to quickly obtain the deposit, or to initiate legal action for forced performance or for compensation for greater damages. The firm assists the client in every phase, from the formal notice to perform to any litigation, with the aim of transforming a disappointed expectation into a concrete and fair outcome.

Frequently Asked Questions

What happens if the other party refuses to appear before the notary for the deed?

The unjustified refusal to appear on the scheduled date for the notarial deed constitutes a serious breach of contract. The compliant party can immediately activate the legal protections provided by law, such as withdrawal with retention of the deposit (or demand for double) or initiate legal action to obtain a judgment that transfers ownership of the property.

Can I claim compensation greater than double the deposit?

Yes, it is possible, but it is a legally more complex path. Instead of withdrawing from the contract and settling for double the deposit, it is necessary to initiate a lawsuit for the termination of the contract and to prove precisely that you have suffered economic damage exceeding that amount. This damage may include, for example, expenses incurred or the loss of other favorable opportunities.

How much time do I have to act in case of breach of the preliminary contract?

The right to compensation for damages arising from breach of contract is generally subject to a statute of limitations of ten years. However, it is essential to act with the utmost promptness to prevent the other party from selling the property to third parties or from the evidence supporting your position weakening over time.

Is it always convenient to retain the deposit or ask for double?

Not necessarily. Although it is the quickest solution, it may not be the most advantageous if the actual damage suffered is significantly higher. For example, if the buyer has lost an opportunity to purchase at a much lower price or the seller has refused other advantageous offers. An accurate legal assessment is essential to choose the best strategy.

Contact the Firm for an Assessment of Your Case

The breach of a preliminary contract can jeopardize important life projects and investments. Facing this situation without expert legal guidance can lead to wrong decisions and financial losses. The Bianucci Law Firm, located in Milan at Via Alberto da Giussano, 26, offers legal advice and assistance to protect your rights. If the other party refuses to honor the compromise, contact lawyer Marco Bianucci to analyze your situation and define the most effective strategy to obtain fair compensation.