Court decision specifies the effects of an irrevocable agency agreement after the principal’s death
Introduction Through an agency agreement, the agent commits to carry out on behalf of the principal the acts entrusted by the latter. [1] The agency may be irrevocable, if it is granted as a condition in a bilateral agreement or as a mean to comply with an agreed obligation. [2] In accordance with the court […]
Mexican court issues new decision on non-acknowledged charges from online purchases
A Mexican court determined which evidence is sufficient to prove a disputed charge, pertaining to online purchases, especially because banks have the burden of proof to demonstrate that the purchase was made. Facts In a commercial trial, the plaintiff demanded from a defendant (a bank), the nullity of several transactions realized online. On the other […]
Does removing the director of a company require his consent?
The Federal civil law, states that in order to remove the directors that were appointed in the articles of incorporation of a civil partnership, all the partners consent is required.[1] However, what does “all the partners consent” entail? The director of a civil partnership sued the nullity of a general shareholders’ meeting resolution in which, […]
Can the creditor of a surety bond demand payment from the guarantor if the principal debtor is subject to a commercial bankruptcy proceeding?
Facts A construction company sued a surety entity the payment acknowledgement of an obligation assumed in a construction contract, as well as the cancellation of the bond policies guaranteeing such obligation.[1] The above based on the fact that its obligation to pay the clients was already guaranteed by virtue of a court recognition of its […]
Executory order that amends the provisions of the Specialized Services Providers Registry is published
On February 3, 2023, an executory order that amends a previous one issued on May 24, 2021, was published in the Federal Official Gazette (“DOF” by its abbreviation in Spanish). The executory order discloses the general provisions for the registration of individuals or entities that provide or execute specialize works or services, to which the […]
10 duties that directors of Mexican companies should know so as to avoid incurring civil liability
Directors of commercial corporations are regarded as their agents and legal representatives according to articles 10 and 142 of the Mexican General Corporations and Partnerships Law (“GCPL”), and have the authority necessary to perform all those activities listed on the company’s corporate purpose unless otherwise stated in the law or in the bylaws of a […]
Bill to reform the Commercial Code on terrestrial transport agreement is passed
Introduction Deputy Francisco Javier Borrego Adame, member of the Morena parliamentary group, submitted a bill by which articles 581, Section V, 588, section V, and 591, section II, of the Commercial Code (the “Code”)[1] are amended. Reasons The terrestrial transport agreement is a commercial contract that involves two parties, on the one hand the carrier […]
Mexican Court determines that lessors are only allowed to forgive the payment of two months of rent
The Federal civil law establishes that, if the lessee is totally prevented from using the leased property as a result of fortuitous event or force majeure, no rent will be charged while the impediment lasts, and if it lasts longer than two months, the lessee may request the contract termination. Facts In a direct amparo […]
Mexican Court determines the effects of inserting a condition in promissory notes
Introduction A promissory note is an executory instrument regulated by the General Negotiable Instruments and Credit Transactions, which establishes the mandatory requirements that said document must contain: I.- The mention of being a promissory note, inserted in the text of the document; II.- The unconditional promise to pay a certain sum of money; III.- The […]
Is it legally allowed to agree the payment of interests when executing a donation agreement?
ENGLISH VERSION Introduction: Two people entered into a donation agreement of movable property, in the agreement the donor determined that the donee should prove to the donor the use of the donated goods for the agreed purpose, otherwise the agreement would be cancelled. By not fulfilling the agreed purpose, the donor filed a lawsuit against […]
Senator submits initiative to amend laws regarding pledge bonds
ENGLISH VERSION On February 8, 2023, Senator José Narro Céspedes, member of the Parliamentary Group of the National Regeneration Movement Party, submitted an initiative to amend the General Law of Negotiable Instruments and Credit Transactions as well as the General Law of Organizations and Credit Auxiliary Activities,[1] with the purpose of considering the issuance of […]
The Mexican Competition Commission raises concerns on the initiative to amend the aviation regulatory framework proposed by Mexico’s president
ENGLISH VERSION Airlines’ officers, deputies, public servants and representatives of aviation and airport organizations met at the offices of the Chamber of Deputies to discuss Mexico’s president initiative to amend the Airports Law and the Civil Aviation.1 A representative of the Mexican Federal Competition Commission (Cofece) Mr. José Nery Pérez Trujillo mentioned that competition might […]