Commercial Law: Entrepreneurs and Liability

Civil Liability for Defective Goods or Services

General Provision

Compensation for Damages

All injured parties have the right to be compensated under the terms set forth in this Book for damages caused by goods or services.

Ineffectiveness of Liability Limitation

The civil liability limitation or release clauses set forth in this book shall be ineffective in respect of the injured party.

The Government, subject to earnings with interested parties and consumer and user associations, shall be able to establish a mandatory system of insurance for civil liabilities resulting from the damages caused by defective goods or services, and a guarantee fund which fully or partly covers damages consisting of death, poisoning, and personal injury.

Special Provisions

Producer's Liability

Content related to Producer's Liability (0.52 Euros).

Service Provider's Liability

Content related to Service Provider's Liability.

Subsidiary Liability

The obligation imposed pursuant to the preceding article shall be enforceable not only as a result of one's own actions or omissions but also of those of such persons for whom one is liable.

Loss of Entrepreneurial Status

The death of a person or the transfer of business will result in the loss of sole trader status.

Commercial Dealings by Married Persons

Assets Affected by Direct Liabilities

As a general rule, commercial activity carried on by one of the spouses can bind only his/her property not belonging to the marital society and the results of the commercial activity that are indeed part of joint property.

Liability of Common Assets

By effect of implied or express consent of the other spouse, the patrimonial scope for liability for business debt may be extended to cover the whole of joint possessions (art. 6 CCom). Such consent is presumed to be granted if the sole trader's spouse is aware of the performance of commercial activities by his/her partner and does not oppose thereto.

Requirement to Affect Private Goods of Spouse

An express written consent is required to affect the private goods of the spouse of the entrepreneur.

Legal Regime of the Legal Foreign Entrepreneur

Companies incorporated abroad may engage in business in Spain, subject to the laws of their country with regard to their capacity to contract. Pursuant to the provisions of this Code, this applies in all matters regarding the creation of their establishments in Spanish territory, their business operations, and the jurisdiction of the Courts of Law of the Nation.

Contracts for valuable consideration entered into in Spain by a foreigner without sufficient capacity according to his national law shall be valid.

Collaborating with the Entrepreneur

Difference Between Dependent and Independent Forms of Collaboration

These kinds of collaborators are also entrepreneurs and are linked with the principal with special agreements of collaboration. Dependent employees of the employer are bound to it by a relationship of subordination and stable dependence.

Proxy of the Factor

The manager is employed and authorized to manage, direct, and enter into contracts concerning the business, with more or less power, as deemed convenient by the owner.