Unilateral amendment of Spanish contracts
Agreements must be complied in their own terms.
Not always.
Not exactly.
In our previous post, we anticipated what could happen with the rebus sic stantibus provision. Agreements may be modified by one party.
Even if the other party opposed.
This clause is implicit in every continuous agreement under Spanish Law.
It means that if equilibrium of a contract is broken, the agreement can be terminated or amended in order to recover that equilibrium.
Now the first Sentence relating COVID 19 and rebus sic stantibus provision has been made public. The case was about a commercial lease.
The result: rent down to 50% retroactively applied during pandemic.
This Sentence comes from a Civil Courts in BCN and it still can be appealed, so we cannot give anything for granted and must follow up regularly on the subject.
Take care,
ILH
Ignacio López-Hermoso
Abogado Corporate M&A
➡️Para más información contacta con nosotros en el teléfono 91 415 74 62 ó en info@lopezhermoso-abogados.com