Recent Jurisprudence – Interest in the Event of Rescission of a Purchase and Sale Agreement

June 6, 2016
Recent Jurisprudence – Interest in the Event of Rescission of a Purchase and Sale Agreement

The Eighth Collegiate Court on Civil Matters of the First Circuit recently published non-binding legal opinionnumber I.8º.C.28 C (10a), titled, “Interest in the event of rescission of a purchase and sale agreement. The buyerhas the right to receive payment of interest without the prior need for making a formal judicial demand.” In thislegal opinion, the Collegiate Court held that, unlike penalty interest, which results from an unjustified delay inperformance of an obligation, the obligation to pay interest deriving from rescission of a purchase and saleagreement by the seller is computed as of the time the seller receives the price, without the need for making aformal judicial demand. The court recognized that the benefit of the price by the rescinding seller is the reasonfor the obligation to pay interest to the buyer.

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