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El blog de Maria

Your daily Spanish Law reporter. Have it with a cafe con leche. www.costaluzlawyers.es

Legal tip 136. Consumer wins against an unfair penalty clause
08 September 2009 @ 12:45

The refund of 100% of the  deposit  has been awarded by a First Instance Judge to a consumer who was challenging the clause by which the developer was keeping 50% of his amounts as a penalty clause.

The argument given by the lawyers to the Judge were mainly based on very basic and general principles of Contract Law such as reciprocity, balance, proportion... : out of almost commun sense I would say....

the developer is keeping the house, why is he also entitled to the 50% of  the deposit too?

This Consumer Law discipline is so challenging and down-to-earth!

It is actually the Law of these new times.

North Africa from Atlanterra, Tarifa, Cádiz by Al S at Flickr.com



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1 Comments

A said:
08 September 2009 @ 15:06

Maria,

That is an excellent court decision - common sense prevails. When these developers don't deliver a resort as sold let's hope they see common sense now and pay up before the case goes to court. The other alternative is that the developers lose at court (like above) and get lots of bad publicity. They should do the honourable thing now and pay up! That way, people may consider buying in Spain again at a later stage

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