Compensation – Cancellation of contracts – may

The Principles of European Contract Law offer a unitary and harmonized set of means of protection to the creditor for breaches of the contract by the debtor, which are decisive for professionals in valuations within the framework of the quantification of compensation for damages.

It´s necessary to work with great diligence because it is not easy to prove the three generating subjects to obtain financial compensation, which are:

– The inexcusable breach of contract.
– The production of damage.
– The causal link between breach and damage.

Pecuniary compensation will be the consequence of patrimonial or non-patrimonial damages, whether present or future, direct or indirect, suffered by one party due to the inexcusable breach of the other party.

The first means of protection for the creditor’s dissatisfaction is the claim to fulfill the specific provision, including compulsory execution. First, employers must want the debtor to fulfill the contract, even going to court to get it.

The contractual liability has limits that are not inspired by the absence of fault of the debtor, but by the existence or not of circumstances or facts that prevent the fulfillment of the contract. These are inexcusable breaches to study possible compensation.

The production of damage is not just the cost differences between business alternatives with different contracts. There is necessarily the business diligence of the creditor in order to find the best alternative to a default by the first debtor.

The injured party, to be entitled to compensation for the damage, must demonstrate the predictability test, null or at least almost no influence on their part in the production of the damage and, also, to have mitigated the damage.

Jaume Quibus

The actuary and economist Jaume Quibus holds a master’s degree in Financial Economics and Accounting, a degree in Actuarial and Financial Sciences, a degree in Economic and Business Studies from the University of Barcelona and has completed the Management Development Programme at the IESE Business School of the University of Navarra. He is a full member of the following associations: the Catalan Actuarial Association, the Spanish Actuarial Association, the Catalan Economists Association, the International Actuarial Association, the Catalan Association of Accounting and Management and also a member of the IESE Business School Alumni. He was a founding partner in 1998 of the actuarial company Quibus, and is corporate member number 6 in the Catalan Actuarial Association.