Malaga Appeal Court has again passed a Court decission favouring the application of the Pro-consumers approach within the off-plan business. This keeps providing fresh air against so much abuse and disaster.
The decission we appealed was passed by a First Instance Court in Marbella which, even both parties having acknowledged the delay of 11 months and lack of First Occupation License, considered there was no breach of contract and the contract could not be cancelled.
We appealed on the basis of lack of correct application of Law 57/68 which simply and clearly exposes ( as you all know now) that delay of the completion of the works opens for the buyer the option between cancelling the contract or granting an extension period with the corresponding compensation as price reduction.
The other set of doctrine importantly applied by this Court decission is that of our Supreme Court by which cancellations operate if the breach frustrates the aim of the contract, the legitimate aspirations of the contract party. Just a clear and objective breach is needed, without the need, as per the old doctrine, of a persistent resistence to the fulfilment of the contract or a deliberate will of breaching but just a simply a voluntary and unjustified conduct for breaching the contrat in the agreed terms.
Congratulations to Malaga and our litigation department!
Corralejo beach Fuerteventura by Lorenzo at Flickr.com