Substantial performance and protection of creditors’ interests: an analysis of the decision in appeal Recurso Especial 1.581.505
Keywords:
Appeal Recurso Especial 1.581.505/SC. Breach of contract. Doctrine of Substantial Performance.Abstract
This article is a commentary on the decision issued by the Superior Court of Justice (Superior Tribunal de Justiça, Brazil’s highest court in non-constitutional matters) in Appeal Recurso Especial 1.581.505/SC. The court rejected the Doctrine of Substantial Performance and held that the seller under a promise of sale was entitled to exercise its discretionary right (“direito potestativo”) to terminate the agreement in view of the purchaser’s failure to comply with the agreement. The article situates the Doctrine of Substantial Performance within contemporary theory of breach of contract and examines the foundations of the doctrine and the requirements for its application.





