Legal tip 417. Works not started: Bank Guarantee enforcement
Tuesday, December 28, 2010 @ 1:19 PM
Just as another good sign of right justice in Spain, we have recently received a Court decission in favour of one of our clients where the Bank Guarantee is enforced due to the lack of start of the building work.
These guarantees are communly understood and applied when the delay is related to the end of the works, but take note that the delay on starting, when the start of the works date is mentioned in the contract or just an extended period of time with no start, for those cases where starting date is not mentioned in the contract, which makes the contract interest decay, are also conditions for a sucessful execution of a Bank Guarantee.
In the case we recently won, the developer, in a tricky and illegal way, omitted to mention the date of start of building works, but the Judge has considered the amount of time passed without start of works as factual enough according to Law for the enforecement of the guarantee due to delay ab initium.
Yes, keep the confidence up!. Spain is touched by the finacial-real estate crisis but we do have a very solid legal system: no doubt. Do not lose your confidence, that Spain you were dreaming about will come.... we promise.
Best of best,
Maria
Mojacar by Shehani at Flickr.com