In Order No. 21138 of July 29, 2024, the Court of Cassation examined the indemnity payable to a party that had performed a service under an invalid contract. In the case described, the assessment included business profit through the use of regional price lists.
Contractual profit is distinct from indemnity
The headnote gives the indemnity a restitutory function: reversing an unjustified transfer of assets cannot reproduce the economic effects of a valid contract. The performing party therefore cannot claim the profit it would have earned had the contract been valid and effective.
The limit under Article 2041
Under Article 2041 of the Civil Code, the indemnity addresses the corresponding reduction in assets within the limits of the enrichment without legal justification. It does not automatically equal the contract price or full compensation for damage. The assessment must distinguish the recoverable impoverishment from the profit expected under the invalid contract.
