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Damages estimation for potential breach of contract in the long-term car rental sector

In 2019, Lear advised a firm supplying long-term car rental services in assessing whether to unilaterally terminate a contract with one of its customers. Lear provided an independent estimate of the effects of the unilateral termination in terms of the amount of damages that the client would be liable for in the event of a unilateral termination of the contract, taking into account the likely evolution of the customer’s fleet. In 2020, Lear assisted its client again in order to update its assessments according to the evolution of the contractual relationship between Lear’s client and its customer during the last year. In particular, Lear provided a comparison between two different scenarios: one regards the continuation of the contract at different and better conditions, and the other one refers to the unilateral termination of the contract.