‘Abuse, Bad Faith or Fraud’. A better standard for the review of unilateral termination without cause clauses. Corte Suprema, March 5, 2024, Rol 137.874-2022

Agustín Prado; Francisco Javier Rubio Varas

doi:10.7770/rchdcp-V17N1-art535

‘Abuse, Bad Faith or Fraud’. A better standard for the review of unilateral termination without cause clauses. Corte Suprema, March 5, 2024, Rol 137.874-2022

Agustín Prado^*
, Francisco Javier Rubio Varas

^*Corresponding author for this work

Research output: Contribution to journal › Article › peer-review

Abstract

The ruling in question rejects a claim for termination of contract with compensation for damages, on the grounds that the contracting party that exercised its contractual right of early termination without cause did not commit abuse, fraud, or act in bad faith. It is noteworthy that this standard is preferable to the requirement of proving a “just and reasonable cause” for exercising the aforementioned contractual right, which is present in previous case law.

Original language	English
Pages (from-to)	1-16
Number of pages	16
Journal	Revista chilena de derecho y ciencia politica
Volume	17
Issue number	1
DOIs	https://doi.org/10.7770/rchdcp-V17N1-art535
State	Published - Jan 2026

Bibliographical note

Publisher Copyright:
© (2026), (Catholic University of Temuco Faculty of Law Economics and Administrative Sciences). All rights reserved.

Keywords

Contracts
good faith
notice of termination
unilateral termination
unilateral termination without cause

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10.7770/rchdcp-V17N1-art535

Cite this

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‘Abuse, Bad Faith or Fraud’. A better standard for the review of unilateral termination without cause clauses. Corte Suprema, March 5, 2024, Rol 137.874-2022

Abstract

Bibliographical note

Keywords

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