5.6.2020
News
Disputes

KŠB won a dispute as the National Theatre’s legal counsel

KŠB won a dispute as the National Theatre’s legal counsel in proceedings before the Supreme Court regarding rent payment. The Supreme Court accepted KŠB’s argument reasoning, dismissed the other party’s appeal, and confirmed the previous decisions by courts of lower instances issued in favour of the National Theatre.

The Supreme Court’s decision No. 26 Cdo 2585/2019 of 15 April 2020 is also important in general as it confirms the voluntary nature of the legal provisions applicable to leases of business premises. According to the Supreme Court, the parties may deviate from Section 2314 of the Civil Code, which regulates judicial review of the legitimacy of a lease’s termination. The Supreme Court held that parties to a lease agreement may exclude the application of this provision, which means that the party which receives a termination notice may challenge the termination at any time and is not limited by any deadline. Moreover, in the context of Section 1763 of the Civil Code, the Supreme Court confirmed that the validity of a lease agreement is not prejudiced by the fact that later another lease agreement is concluded for the same premises and for the same lease term.

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