Limitation of Liability Agreement
Introduction
Contractual liability or contractual civil liability is, in law, the set of legal consequences that the law assigns to the obligations derived from a contract. Due to this definition, this matter is also known as "effects of obligations." The Chilean lawyer and former politician Pablo Rodríguez defines it as the duty to compensate for damages caused by the breach of a pre-existing obligation derived from a contractual relationship.[1].
Contractual civil liability, as a legal effect, is based on the interaction of two legal phenomena: the law of contract and the general right of pledge of creditors. By means of the first, it is understood that every legally concluded contract constitutes a true law for the contracting parties, and cannot be invalidated except by their mutual consent or for legal reasons. In this way, every contract carries with it a mandatory force that constrains the debtor to fulfill its obligation. For its part, the general right of pledge of creditors allows any creditor to request the court to comply with the obligation, through the realization of all the debtor's seizable assets, whether present or future, if the debtor does not carry out voluntary, perfect, complete and timely compliance with his obligation.
From an academic point of view, contractual civil liability is classified according to its effects: contractual liability for compliance, non-compliance or for the assurance of the obligation.
Contractual liability upon compliance
Voluntary compliance
Voluntary compliance with the obligation is nothing other than effective payment and all those ways of extinguishing obligations equivalent to it, which satisfy the creditor without coercion.[1].
Forced compliance
Forced compliance or forced execution of the obligation is the effect of the obligation that follows the non-compliance of the same voluntarily by the debtor.[1].