📝 What is exceptio non adimpleti contractus?

📜 What is exceptio non adimpleti contractus, and how does it protect your contractual rights?

Sometimes, when we enter into a contract, one party may fail to fulfill their obligations, while the other is expected to fully comply. This raises the question: Why should I fulfill my part if the other party hasn’t fulfilled theirs? This is where exceptio non adimpleti contractus comes into play.

This is a legal exception that allows one party to refuse to fulfill their obligations if the other party has not fulfilled theirs. For this exception to apply, the contract must involve mutual obligations, meaning both parties are required to fulfill their commitments simultaneously or in accordance with specific timelines.

📖 Legal Basis

Article 1.124 of the Civil Code states that in reciprocal obligations, one party can refuse to comply if the other has not met their own obligations. It serves as a protection against unjustified breaches.

⚖️ Requirements for the Exception to Apply

According to the Supreme Court, the requirements for this exception to take effect are:

1. A bilateral contract with obligations for both parties, originating from a reciprocal or "synallagmatic" relationship.

2. Simultaneity of compliance, unless one party is required to perform first; in that case, the exception does not apply.

3. Essential breach by the party demanding compliance.

4. Breach of a primary obligation, not of ancillary or secondary terms.

🚫 Effects of the Exception

Applying this exception suspends the fulfillment of obligations for the affected party until the other party fulfills their own. This is a legal defense commonly used in contracts such as sales, construction, or manufacturing agreements, where payments or performance may be set to occur progressively as conditions are met.

🏛️ Enforcing Compliance or Justifying Your Own Non-Compliance

The exceptio non adimpleti contractus not only allows a defense in court but also enables one to demand compliance with mutual obligations. Ultimately, each case will depend on the court’s interpretation and the evidence presented.

Have you experienced a breach of contract? Know your rights and defend them in court, especially in cases involving construction, sales, or service contracts.