NEW ASPECTS ABOUT THE PENALTY CLAUSE IN CURRENT LEGISLATION
NEW ASPECTS ABOUT THE PENALTY CLAUSE IN CURRENT LEGISLATION

Summary/Abstract: The penalty clause is that ancillary agreement in which the parties predetermines the equivalent loss suffered by the creditor as a result of the failure, delay or improper performance of the obligation by the debtor. Over time, the legal nature of penalty clause has been a controversial subject. The provisions of the new Civil Code establishes a mixed theory of the legal nature of the penalty clause aiming at fulfilling its main function, namely the private penalty function and the repair function, plus the comminatory and warranty.

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