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Termination of a financial lease may become costly

26.11.2006

The Supreme Court clarified the meaning of additional costs to be paid in the case of unilateral termination of a financial lease agreement. The person who leases the property is under an obligation to compensate the other party for termination costs, provided that the termination was not caused by a financing institution. Termination costs are, e.g., costs associated with the sale process, including the safekeeping of objects, clean-up of objects to be sold, etc. Such costs have to be reasonable.

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