CONTRACTUAL LIABILITY. RESCISSION AND TERMINATION OF CONTRACT, PENALTIES, INTERESTS, DAMAGES, PENAL CLAUSE
CONTRACTUAL LIABILITY. RESCISSION AND TERMINATION OF CONTRACT, PENALTIES, INTERESTS, DAMAGES, PENAL CLAUSE

Summary/Abstract: The contract is, worldwide, the quintessential legal mechanism of economic activity. The contract is, in fact, the conventional framework by means of which the parties assume obligations and gain rights in relation to one another, the materialization of the willing agreement between the parties and is deemed valid only if the parties have freely and benevolently expressed their consent. The contractual partners have the freedom of inserting any clauses they wish inside the convention, with the only condition of respecting public order and good morals. Therefore, next to the other contractual clauses, the parties will be able to insert in the contract the sanctions that they deem necessary in case of failure to perform the obligations assumed, and if the parties omit to make this specification then the lawmaker, by the power invested in him, has provided for a series of regulations meant to protect the aggrieved party's interests and to re-establish the contractual balance where needed. We therefore consider that contractual liability is not only an extremely exciting and vast field, but also one which is particularly complex from a legal point of view, due to the effects it may produce, depending on the manner in which it is applied in space and time.

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