III. MAIN LEGAL TEXTS

3.1. Contracts

2.1. Conditions to subscribe a contract

There is an offer by one party (offeror) accepted by an offeree

Enforceable contract, parties must agree on price + subject matter

Enforceable agreement may be manifested in express contract or implied contract

Common clause types

A) Acceleration: cláusula de amortización anticipada

B) Assignment: cesión / traspaso C) Confidenciality:

confidencialidad D) Consideration: prestación

E) Force Majeure: fuerza mayor F) Liquidated Damages:

indemnización por daños y perjuicios

G) Entire agreement: H) Severability I) Termination: cese, extinción J) Payment of costs: pago de las

costas

Defences to contract formation

1- Illegality of the subject matter 2- fraud in the inducement 3- duress: coacción 4- lack of legal capacity

Contract remedies

Pecuniary compensation Specific performance:

cumplimiento del contrato Rescission of the contract:

extinción del contrato

Main types of contracts

A) Purchase-sale contract: contrato de compra-venta

B) Lease or leasehold: contrato de arrendamiento

C) Contract of employment: contrato de trabajo

a) Purchase- sale contracts

Types: real property, materials Must be legalised by deed

(escritura) Can be terminated by performance

of contract, mutual consent, novation or breach of contract

B) Lease or leasehold

Parties: owner of a real state (bien immueble) or lessor and tenant

Covenants (pactos): parties to the contract, term / length, description of real property, rent, insurance, repairs and maintenance

Types of tenancy(arrendamiento): a) for a fixed term b) periodic c) tenancy at will (inquilinato sin plazo fijo)

C) Contract of employment

Types: full time or part-time Causes of the termination: unfair

dismissal (despido improcedente), redundancy (despido por regulación de plantilla)

Remedies applied by Industrial Tribunals (unfair dismissal): reinstatement, reengagement, compensation