Parties to a contract should have a clear understanding of their rights and obligations under the Civil Code and craft contracts which reflect that writes Jose Arcila.
The cornerstone of Spanish contractual civil liability is Article 1101 of the Civil Code which states that a party privy to a contract incurs liability when it breaches its obligations or otherwise delays in performance.This is quite separate from liability issues arising from tort, product liability or consumer protection.
In terms of civil liability there is no provision under Spanish law limiting the damage exposure of a party.The Civil Code in fact establishes a principle of universal recourse where all assets of the parties, including future assets, are inevitably affected to the payment of damage compensation in case of breach, unless otherwise agreed upon by the parties in certain cases.While contractual liability is theoretically unlimited as to the amount, the parties may try to eliminate, limit or increase,
