The Abusiveness of the Cross Default Clause
From the perspective of Brazilian contract law
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This work is a study of the cross-default clause within Brazilian contract law, in order to establish whether it fits the current rules and principles of civil law. Firstly, the evolution of obligations, their ramifications and how default is remedied under the rules laid down in the 2002 Civil Code will be developed, followed by a search for an idea of fair and equitable contract law, which after several phases is now based on constitutional principles and adopts a social stance, removing from contractual legal business any clauses that could harm one of the parties to the contract. It can th...
This work is a study of the cross-default clause within Brazilian contract law, in order to establish whether it fits the current rules and principles of civil law. Firstly, the evolution of obligations, their ramifications and how default is remedied under the rules laid down in the 2002 Civil Code will be developed, followed by a search for an idea of fair and equitable contract law, which after several phases is now based on constitutional principles and adopts a social stance, removing from contractual legal business any clauses that could harm one of the parties to the contract. It can therefore be concluded that the clause under analysis, also known as cross default, is not merely a means of facilitating receipt by the creditor party, but an obligation contracted that harms the less economically favoured party.
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