Attorney in Costa Rica

Contracts in Costa Rica.

A business attorney is always recommended to draft or review contracts in Costa Rica. Even though there is “contractual freedom” in Costa Rica, it´s always a good idea to have a business attorney review anything you are asked to sign.  Contractual freedom means that contracts are not susceptible to forms, so you can convene on anything you want, and the law will protect you in case of breach of contract.    

A contract is a pact between two or more people.  The object of the contract is the obligation of the parties.  The object and the cause of the agreement must be legal.  This means that contracts that carry out illegal commitments are not protected by law and are null and void.   

 

The agreement creates an obligation that may consist in:

A. Doing something.

B. Giving something.

C. Not doing something.

In Costa Rica, deals are perfected by mere consent.  However, in some contracts, certain formalities are sometimes required by law.  So mere consent is sometimes not enough.  This, however, is the exception since contractual freedom is the norm. 

In this article, I will be able to offer several links to descriptions of the different agreements in Costa Rica that I can help you with as a business lawyer.  In addition, I will even provide links to other pages where I cover what to do in case of breach of contract concerning civil litigation.

Types of contracts in Costa Rica:

Unilateral agreements: 

They are unilateral when only one of the parties obligates himself to perform a determined obligation for the benefit of another. Bonds, powers of attorney, donations, and mortgages are examples of unilateral deals.

Bilateral contracts:

Unlike unilateral ones, bilateral agreements have reciprocity of obligations regarding distinct obligations by both parties.  Examples are sale agreements,  rental arrangements, and some mutually agreed-on divorces.

Consensual and Solemn commitments:

The mere consent of both parties perfects consensual contracts; the written word and certain formalities are accidental to the agreement.  For example, the sale of a property gets perfected by the mere consent given by the seller to sell and the consent given by the buyer to buy for a determined price.  The contract becomes perfect with that consent, and the written form (escritura), is something adjacent or accidental to the deal, which has already been perfected.  On the other hand, solemn deals are perfected by certain solemnities that the law establishes.  An example is donations, which can only be done in public scripture by a business attorney who must be a notary public.  

Recordable Contracts:

Sometimes, the written form of the agreement must also be registered in the Public Registry.  This is not an essential condition for the agreement´s validity but rather to give publicity to third parties.  An example is when you buy a property:  the public scripture must be registered so that third parties know there has been a change in the proprietor.  If this is not done, the original or primitive owner remains as such in the Registry, and continues to be, to all third parties.  This presents huge problems for the buyer, that may even lose the property.  Your business lawyer must be on top of the proper registration of the public scripture.

Nominated and unnominated: 

Nominated deals have been given a determined name and legal treatment under the law.  You must remember that we have codification in our legal system.  Nominated contracts are established by the law itself, like property sales agreements, mortgages, fiduciary agreements, and donations.  All of these contracts have law-specific regulations in the law. Unnominated arrangements are not specified directly by codified laws, but people can create them under contractual freedom. This is where the business lawyer´s academic freedom comes into place.

Contracts in Costa Rica that we can assist you with:

Donations

Property and car sales. Options to purchase

Due Diligence Agreements

When you buy your property, we guide you through all the steps beginning with due diligence.

Car liens

Loan and credit transfers

Guarantee Fiduciary Agreements

Rentals

Breach of contract actions in Costa Rica:

What can you do in case of a breach of contract?  The law establishes specific routes you can take that your business attorney can recommend.   In Costa Rica, a breach of contract occurs when one party fails to fulfill its obligations under a legally binding agreement. This can include failure to deliver goods or services, pay for goods or services, or meet other terms and conditions outlined in the contract.  When a breach of contract occurs, the non-breaching party may have several legal remedies available. These can include:

 

Specific performance:

This is what we call forceable execution or “ejecución forzosa.”  The non-breaching party can seek a court order requiring the breaching party to fulfill their obligations under the agreement.

 

Contractual Resolution:

The non-breaching party can seek to terminate the contract and cancel any obligations under the contract.  Everything returns to the prior state before the contract was even signed.

 

Additionally, in Costa Rica, if a contract is breached and the breaching party cannot fulfill its obligation, it is required to pay compensation for damages caused.  The non-breaching party can seek financial compensation for any losses or damages incurred due to the breach of contract. This is what´s called contractual civil responsibility.  It’s important to note that in Costa Rica, contracts are governed by the Civil Code and in some cases by the Commercial Code.  It depends on the nature of the contract and the parties involved. As your business lawyer, I will be happy to answer any questions you may have.

  • .
Your business lawyer in Costa Rica for breach of contract.
Contractual Anullments

Read about anullments that your business lawyer may recomend.

Your business lawyer in Costa Rica can recommend actions in case of breach of contract.
Executions

All about contractual executions and civil damages.

Breach of contract resolution in costa rica.
Contract Resolution

Your business attorney may recommend contract resolution and damages claims in case of a breach of contract.

Contact Chris now.