In its judgment 500/2016 of July 19, 2016, the Supreme Court interprets article 62.4 of the Insolvency Act, regulating the effects of contract resolution during insolvency:
(i) In the case of continuing-performance contracts, the resolution does not affect the obligations met by both parties, as they have been taken care of through the correlative obligation. The rule establishes (i) discharging effects for payments agreed on but pending, (ii) cancellation of the contractual relationship, acknowledging the compliant party’s credit right to any payments not met by the insolvent party, and (iii) a compensation when it is proved that damage arises from the insolvent party’s noncompliance.
(ii) In the case of single-performance contracts— in the case studied, a sales contract—, payment is considered a single object, meaning that partial compliance does not meet the other party’s correlative obligation. Therefore, resolution of a single-performance contract not only results in a discharging effect, but also involves restitution of payments received by both parties.