10
Aug

Before addressing the topic of breach of contract in the Dominican Republic , we must know that a contract is a pact or agreement between two parties, in which both signatory parties commit  to comply with certain elements specified therein. These contracts should be reviewed according to the legislation of the Dominican Republic, by an attorney specialized in contracts.

Through a contract, a series of obligations are generated for the parties involved, and these obligations must be fulfilled by each of the parties. However, one or both parties may fail to comply with one of the clauses of said contract.

Breach of contract

It is one of the greatest risks that the parties are exposed to when conducting business, which is why we will be addressing some elements that must be taken into account in the event that they apply to the contract in question, after a negotiation and a breach of contract.

Lawsuit for breach of contract in the Dominican Republic.

Before addressing the possibility of suing on grounds of a breach of contract, it is ideal to explain that it is of utmost importance to clearly express the clauses signed by the parties in a contract in writing. This is done in order to protect the rights and obligations of said parties, however, when one of the parties listed on the contract fails to comply with its obligations, it violates the rights of the other party and, at a legal level, it is considered a contractual default.

A contract, regardless of its purpose, binds the parties with respect to each other or third parties, to provide a service.

When reaching an agreement through a contract, the parties do it in a lawful way and trusting that both parties will be able to honor their commitment. On the other hand,  what would happen if one or both parties fail to comply with some or all of the stipulations on the contract? 

In the event that there is a violation of one of the clauses of a contract, the case must be brought to justice by means of a suit on the grounds of Breach of Contract.

A lawsuit for breach of contract is a process in which one party states they were affected, as a result of non-compliance from the other party, in relation to all or some of the clauses in a contract, and sues them on those grounds.

To initiate a lawsuit for breach of contract in the Dominican Republic, we must take into account that in said claim, it is possible to request the enforcement of the contractual obligation infringed, as well as damages resulting from a FAILURE TO COMPLY WITH THE OBLIGATION.

The Dominican Civil Code establishes contractual liability, which institutes the violations to the pre-existence of a breached conventional obligation, arranged between parties who are bound by a contract.

For contractual liability to be committed, there must be a contract and damages resulting from the non-compliance of said contract.

Many contracts establish Penal Clauses in which a breach is penalized with compensation. In the event that these penalties are specified as payments, a percentage may be established. The claim might also be for damages, although in general the party that was affected by the breach, can process the corresponding claim for damages, even if the contract does not specifically established it.

Non compliance by unforeseeable circumstances.

Acts of God generally have a negative impact on the fulfillment of contractual obligations.

In the event of a breach by one of the parties caused by a fortuitous event, which are unforeseeable situations to any contractor in good faith, this could release them from their obligation or in any case postpone their compliance.

However, it is ideal to keep in mind that in order to be able to state that a contract was not fulfilled due to a fortuitous event, certain requirements need to be met regarding unavoidable or unpredictable effects. This would need to be verified by a lawyer and by a court.

On the other hand, it is imperative to take into account the provisions of article 1148, of the Dominican Civil Code, which states the following: “Damages are not applicable, when as a consequence of a fortuitous event, the debtor was unable to provide or carry out their responsibilities, or committed an act that was forbidden.

Morillo Suriel Abogados is a law firm in Santo Domingo, Dominican Republic specialized in contracts. We are available to evaluate your particular situation through a consultation and assist you in finding the optimal solution, in the event of an actual or potential non-compliance, of contractual obligations.