Contractual liability: burden of proof, limitation periods and penalty clauses

Under the allocation settled by the Joint Sections, the creditor must prove the source of the relationship and allege the non-performance, while it is for the debtor to show that it has performed or that the non-performance is due to a cause not attributable to it; the ordinary limitation period is ten years.

A penalty clause makes it possible to predetermine damages for non-performance or delay, dispensing with proof of the harm; the court may reduce it of its own motion if manifestly excessive, having regard to the creditor’s interest in performance.

Summary note by the CommercialistiAvvocati network, based on specialised legal and practice sources. The text does not reproduce original contributions and does not constitute professional advice.