Law of Obligations and Contractual Liability: Key Concepts and Methods of Claim

14/03/2025

The law of contractual obligations and liability governs the relationship between parties who have entered into a contract, defining mutual rights and obligations. When one party fails to comply with the agreement, the other may seek redress or damages. This article explores the key concepts and how to act in the event of a breach.

What is the law of obligations?

The law of obligations is a branch of civil law that regulates the duties between parties, which originate in contracts, the law or unlawful acts. In contractual terms, when two parties sign a contract, mutual obligations are generated: one must respect what has been agreed (deliver a good, provide a service, pay, etc.), while the other has the right to demand compliance.

Types of bonds:

Obligations to give: Delivery of goods or money.
Obligations to do: Carrying out specific services or activities.
Obligations not to do: Refrain from actions that harm the other party.

These principles are based on good faith, fairness and respect for agreements.

What is contractual liability?

Contractual liability arises when one party fails to fulfill its obligations, causing damage to the other. It aims to restore the affected party to the state it would have been in if the contract had been performed. There are three main types of violations:

Total: None of the obligations are met.
Defective: Compliance is inadequate, such as the delivery of defective products.
Partial: Only certain obligations are met.

For example, if a supplier fails to deliver the agreed products, the buyer can claim the damages suffered, such as economic losses or business interruptions.

How to act in the event of a breach of contract

If you are faced with a non-execution case, follow these steps:

Review the contract: Analyse the agreed terms to confirm the breach and understand the consequences provided in the document.
Document the case: Gather evidence such as emails, invoices, photographs, testimonials, and any other evidence to support your claim.
Notify the other party: Formally communicate the breach, specifying the facts and requesting a solution. In many cases, a negotiation can resolve the conflict.
Seek an amicable solution: Mediation or arbitration are useful tools to avoid prolonged legal proceedings.
Filing a lawsuit: If no agreement is reached, take legal action to enforce the contract or award damages. These can be:
- Enforcement: To force the other party to comply with what has been agreed.
- Financial compensation: Repair the damage caused.

Compensation for non-performance

Compensations? may include:

Direct damages: Immediate losses resulting from the breach, such as loss of revenue.
Consequential damages: Additional consequences, such as costs due to delays in a job.
Moral damages: Emotional or personal impact on contracts related to sensitive services.

Prevention of contractual problems

To avoid conflicts, follow these practices:

Write clear contracts: Specify obligations, deadlines and consequences of non-compliance.
Include dispute resolution clauses: Establish methods such as mediation or arbitration.
Prior legal advice: Review the contract with a lawyer before signing it.

Common Examples of Contractual Liability

Construction: Delays or faulty work on construction projects.
Professional Services: Negligence or default by lawyers, physicians or advisors.
Sale of goods: Products delivered that do not meet the agreed specifications.

Conclusion

The law of obligations and contractual liability is essential to ensure compliance with agreements and to protect the parties involved. If you are faced with a breach, acting quickly, documenting the case, and seeking legal advice are key steps in resolving the dispute and obtaining fair compensation. With clear contracts and dispute resolution tools, it is possible to prevent problems and ensure successful business relationships. At BCV Lex, our teams in Bordeaux and Madrid are at your service and operate throughout France and Spain to defend your interests. Don’t hesitate to contact us.