Spanish Legal Update nº 33

    View Authors July 2014

    This is the July edition of "Spanish Legal Update" publication, produced by the International Dispute Resolution team of Squire Patton Boggs, which contains some recent Judgments given in the field of Spanish Commercial Law.

    This issue contains the following articles:

    Moderation of a Penalty Clause by the Courts

    Courts are not entitled to moderate a penalty clause if this is specially agreed for cases of minor breaches.

    Amendments to the Spanish Consumers and Users Act

    An amendment has been recently applied to the Spanish Consumers and Users Act in order to adapt it to UE Directives.

    This article is aimed to define the main novelties included therein, except for distance and off-premises contracts that are to be analyzed in a different article.

    Distance and Off-Premises Contracts in the New Spanish Consumers and Users Act

    The new Act 3/2014 dated March 27th, amending the Spanish Consumers and Users Act (hereafter "LGDCU") has unified in title III entitled "distance and off-premises contracts” the regulation of both kind of contracts.

    Legal Reform on Bankruptcy Proceedings

    The reform on bankruptcy proceedings is intended to prevent the bankruptcy proceedings in those companies which are viable from an operational point of view, but which have become unviable from a financial point of view and require funding.

    The Legal Concept of Insolvency According to the Spanish Supreme Court

    From the point of view of bankruptcy proceedings the insolvency situation should not be confused with net worth imbalance of the company.