Notes on the default interest’s initial term and the brazilian civil code´s article 407

Authors

  • Gustavo Tepedino Universidade do Estado do Rio de Janeiro - UERJ
  • Francisco Viégas Universidade do Estado do Rio de Janeiro - UERJ

DOI:

https://doi.org/10.5433/2178-8189.2017v21n1p55

Keywords:

Default, Default interest, Initial term, Liquidity

Abstract

Understanding the definition of the default interest´s initial term requires a proper understanding of its objective, which is to indemnify the party who did not receive compensation for the other party´s breach of contract. Furthermore, the existence of default interests in contractual obligations that have undetermined objects should be of no debate. Most importantly, those that actively calculate interests based on the eventual fixation of the principal amount with a mere interpretation of the article 407 of the Brazilian Civil Code are not noticing the incompatibility of default interests in the Brazilian legal system. Even more, it contradicts the legal reasoning of this mechanism, whose origin indicates an absence of relation to the default interest´s initial term.

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Author Biographies

Gustavo Tepedino, Universidade do Estado do Rio de Janeiro - UERJ

Doutor em Direito na Universidade de Camerino, Itália. Professor Titular de Direito Civil da Faculdade de Direito da Universidade do Estado do Rio de Janeiro (UERJ). Advogado. E-mail: fav@tepedino.adv.br.

Francisco Viégas, Universidade do Estado do Rio de Janeiro - UERJ

Mestrando em Direito Civil pela Universidade do Estado do Rio de Janeiro (UERJ). Advogado. E-mail: franciscoviegas@icloud.com.

Published

2017-03-31

How to Cite

Tepedino, G., & Viégas, F. (2017). Notes on the default interest’s initial term and the brazilian civil code´s article 407. Scientia Iuris, 21(1), 55–86. https://doi.org/10.5433/2178-8189.2017v21n1p55

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Section

Artigos