Legal Interest

Fernando Langa

By Fernando Langa and Gilda Rivas

We can define INTEREST as the sum of money owed ​​to the creditor as compensation for the damage caused by the breach or late performance of an obligation; it is LEGAL when the rate is fixed by law; it is JUDICIAL when it is owed ​​from the filing of a complaint or from a prior intimation; it is COMPENSATORY when it is intended to repair the damage resulting from the definitive breach of an obligation or its defective performance; it is MORATORIUM when it is designed to repair the damage resulting from the delay in the fulfillment of an obligation.

In contractual civil liability, there is an applicable condemnation for damages by reason of non-compliance with the legal obligation or because of a delay in carrying it out1; similarly, obligations that are limited to the payment of a certain amount and damages that may result from delay in performance, only consist condemnation to the interests specified by law2.

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