Caps on Liability

It is absolutely valid to agree caps on liability in Spain – in fact, it is frequent and advisable. Generally speaking, the cap is usually equal to the price of the contract or a certain percentage related to the price of the contract.

In the event that the party in breach of the contract has incurred in willful misconduct, the agreement will not work.

Exclusions of Liability

Parties are free to agree any exclusion of liability for certain events or consequences in their contracts under Spanish law.

Note – the exclusion will not be effective in case of willful misconduct.

Limitations of Liability

Limitation of liability clauses are also valid in contracts under Spanish law, except in case of willful misconduct.

Use of Indemnities

The use of indemnities is also frequent and valid in contracts under Spanish law. Examples of indemnities clauses are the bare indemnities, reflexive indemnities, limited indemnities, third party indemnities, financing indemnities or party indemnities.

Use of Time Bar Provisions

Time Bar provisions are not allowed in Spain. The legal statute of limitations is compulsory under Spanish law and it is not possible to replace it