Digital Transformation of Negotiable Instruments in Mexico: What You Need to Know
On March 26, 2024, a decree was published in the Mexico’s Federal Official Gazette that amends the General Negotiable Instruments and Credit Operations Law (“LGTOC”), as well as the Law on Organizations and Auxiliary Credit Activities (“LOAAC”), with the purpose of regulating the granting of certificates of deposit issued electronically by Public Bonded Warehouses. What […]
Court issues ruling on the legality of service of process carried out by a private courier in the United States
The First Chamber of the Supreme Court of Justice of Mexico heard a case in which one person sued another who resides in the State of California, United States of America. The initiated trial was of a commercial nature. The judge ordered the summons to the defendant through a rogatory letter without specifying that it […]
The update factor for the total annual income of simplified stock corporations was published in the Official Federal Gazette
On December 30, 2024, a decree was published in the Official Federal Gazette (DOF) through which an adjustment factor for the annual total income of simplified stock corporations was announced, in accordance with the provisions of Article 260 of the General Law of Commercial Companies (LGSM). The maximum annual total income of simplified stock corporations […]
Navigating Security: Mexico enacts Tougher Measures Against Drone Misuse
On June 8, 2024, an executive order that punishes the misuse of remotely piloted aircraft (“RPA”) in Mexico came into force after it was published in the Official Gazette. The executive order amends the Federal Criminal Code as well as the Firearms and Explosives Act (the Laws) to punish improper use of remotely piloted aircraft […]
Reform Simplifies Mexican Citizenship Recognition for Nationals Born Abroad
On June 4, 2024, a reform was published in Mexico’s Official Gazette by which a third paragraph was added to articles 314 and 1144 of the National Code of Civil and Family Procedures.The reform, which came into effect on June 5. 2024, marks a significant milestone for Mexicans born abroad and those seeking to return […]
Mexico’s Congresswoman urges to Address Electricity Demand and Nearshoring Opportunities
The president of the Chamber of Deputies highlighted the urgent need to increase investment in Mexico’s electrical infrastructure. Currently, annual electricity demand is growing at 3.5%, particularly in transmission lines and distribution networks, with a crucial focus on clean and renewable energies. This initiative aims to strategically position Mexico to capitalize on industrial relocation trends, […]
International Civil Aviation Organization removes Mexican Civil Aviation from operational safety alert
On June 10th, 2024, the Federal Civil Aviation Agency (AFAC) issued a statement announcing that the International Civil Aviation Organization (ICAO) had removed Mexico’s civil aviation from an operational safety alert called “Significant Safety Concern,” as it was confirmed that all observations made during the audit conducted by AFAC were met at 100%. This alert […]
Mexico’s Competition Commission Fines Six Companies for Concentration Failures
Mexico’s Competition Commission (the Commission) fined six companies -more than 58 million pesos- dedicated to the sale of gasoline and diesel to consumers for failure to notify two concentrations to the Commission. According to the Mexican law a concentration occurs when entities, shares of stock, partnership interests, trusts or assets are combined by means of […]
Mexico’s Supreme Court renders judgment on the statute of limitations to bring a claim regarding damage insurance cases.
The First Chamber of Mexico’s Supreme Court of Justice (the “First Chamber”) issued a decision confirming that regarding damage insurance cases, when an accident occurs causing the death of a person, the statute of limitations to file a claim against the insurance company is not the two-year term established by the law but the five-year […]
Federal Court issues new decision on the duty to notify the attorneys-in-fact about the revocation of their authority.
On January 12,2024, it was published a decision on the importance to notify the attorneys-in-fact on the revocation of their authority. In the matter at hand, a court agreement that put and end to a trial was signed by one of the party’s attorney-in-fact, yet it was ratified before the court, it was not approved […]
Mexico’s Supreme Court renders judgment on the types of sections in commercial agreements that are null and void.
The First Chamber of Mexico’s Supreme Court (the “Court”) issued a decision by which it clarified the limits to the freedom of contract principle in a supply agreement. A supply agreement entails the periodic delivery of goods by a supplier to a client, in exchange of a consideration in cash. It is common practice that […]
What are the consequences of breaching a contract in Mexico?
Through the execution of a contract two or more persons create or transfer rights and obligations, [1] however, there is a risk that one of the parties or even both will breach the agreement. Nonperformance is the failure to comply with contractual obligations including defective or late performance. Either party is in breach by failing […]