How to deal with a breach of contract in Spain (without scre*ing it up)
When your business faces a breach of any contract it is important to have a plan.
Here we go with some steps that might help you with yours.
These are the steps explained more into depth:
- Assess the impact of the breach and whether it is material under the contract subscribed
- Have a clear view of your short/medium term interests regarding this relationship. How does this affect your business and what's the best-case scenario?
- At the very beginning, try informal communication. If breach is substantial, change the scope of communication to written form (letter, email, WhatsApp etc.)
- Formal notice if breach persists
- Renegotiate (if convenient) only if additional securities are provided. Securities may come from warranties, penalty clauses, checks, timing, etc.
- Judicial claim if the situation deviates unacceptably.
- ALWAYS investigate the solvency of your debtor. Otherwise, when you sue it might be too late due to the length of the Spanish civil #procedure.
Do you know how a civil procedure is under Spanish law? Click on the button if you want to know more
Ignacio López-Hermoso
Corporate M&A Lawyer
➡️For more info you can contact us on 0034 91 415 74 62 or send us an email to info@lopezhermoso-abogados.com