Judicial principles and studies
Compensation, Contractual Liability, Contract Termination, and Technical Expertise
A brief overview of principles on seller obligations in sale contracts, limits of technical expert reports in compensation claims, proof requirements for damage and lost profits, and the link between legal interest and insolvency declarations. This is an educational summary, not judicial text or legal advice.
Updated: 10 September 2026
Prepared and reviewed by: Ashraf Al-Khawaja
Subject
This summary outlines core rules in contractual disputes under sale agreements: the seller's duty to remove construction impediments and enable delivery per contract, the limited evidentiary value of technical expert reports in compensation claims, proof standards for damage and lost profits, the effect of insolvency declarations on legal interest, and appellate conduct regarding evidentiary weight.
Summary
- The seller is obliged to remove construction obstacles and enable the buyer to take delivery according to contract terms; refusal to deliver despite receipt of the price constitutes a material breach that justifies contract termination and gives rise to compensation. - Expert reports are technical assessments and, by themselves, are inadequate to ground contractual liability for compensation unless supported by legal evidence proving actual damage or gross fault; experts addressing entitlement to compensation exceed their technical mandate. - Awards for compensation must be founded on damage established by clear legal evidence; lost profits are not awarded based on unsupported assumptions or unverified individual testimony. - Legal interest is calculated in relation to debts of an insolvent company only after a final judicial declaration of insolvency is issued. - An appellate court's insistence on its prior decision despite cassation remarks concerning evidentiary weight and assessment is a legal error warranting reversal.
Practical significance
- Judges should seek concrete legal evidence before giving decisive weight to expert reports in compensation matters. - Parties claiming compensation or lost profits must present supporting legal evidence and not rely solely on technical reports or unsupported testimony. - In insolvency contexts, legal interest depends on a final judicial insolvency declaration and the debts recognized thereby. - Appellate courts should avoid persisting in rulings when higher-court review has questioned the assessment of evidentiary weight. This content is an educational summary and not judicial text or legal advice.
Sources and references
Verify the official text and latest amendments before relying on this material professionally.