The Nullity of Indeterminate Clauses in Agricultural Land Leases: Commentary on Ordinance No. 10309 of 2024

The recent intervention of the Court of Cassation with Ordinance No. 10309 of April 16, 2024, offers important insights into the validity of contractual clauses in the context of agricultural land leases. In particular, the Court reaffirmed the need for a clear determinability of the contractual object, establishing that the clause that generically authorizes the tenant to make improvements to the property is to be considered null for indeterminacy of the object. This principle is based on Article 1346 of the Civil Code, which requires that the object of the contract be always determined or determinable.

The Court's Maxim: Indeterminacy and Nullity

(ELEMENTS OF THE CONTRACT) - OBJECT (CONCEPT, CHARACTERISTICS, DISTINCTIONS) - DETERMINABILITY - IN GENERAL In general. In a lease agreement for agricultural land, a clause that generically authorizes the tenant to carry out all improvements deemed appropriate is null due to indeterminacy of the object, because, as it aims to regulate the object of the contractual obligation to pay compensation for the (authorized) improvements, it is subject to the general principles of Article 1346 of the Civil Code, according to which the object must always be determined or determinable (as well as lawful and possible).

This maxim draws attention to the necessity of specificity in contractual clauses. When entering into a lease agreement, especially in the agricultural sector, it is crucial to define precisely what improvements are permitted. The generality of a clause can lead to the nullity of the contract itself, making it impossible to claim compensation for the improvements made.

The Practical Implications of the Ruling

The practical implications of this ruling are manifold:

  • Need to draft clear and specific contracts.
  • Risk of nullity in the case of generic clauses.
  • Importance of consulting a lawyer for the drafting of agricultural contracts.

This decision aligns with previous jurisprudence, which has already highlighted the importance of the determinability of the contractual object. The Court indeed referred to previous rulings (No. 3408 of 2018, No. 11548 of 2023, No. 24790 of 2017) that confirmed the need to avoid ambiguous and indeterminate clauses.

Conclusions

In conclusion, Ordinance No. 10309 of 2024 represents an important step forward in protecting the rights of contracting parties. Clarity and determinability of the contractual object are fundamental requirements to ensure the validity of clauses in an agricultural land lease. Therefore, it is advisable for the parties involved in such contracts to pay particular attention to the formulation of clauses in order to avoid future disputes and ensure legal certainty in the agricultural sector.

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