ABOUT SELF-CONTRACTING

Self-contracting, as its name indicates, is a bilateral contract that is concluded by a single person, but on their behalf and also on behalf of another (a company for example), or on behalf of several. It is a figure that occurs very frequently in the market, and it is also a concept that creates some confusion when evaluating its legality. The first thing to say is that self-contracting itself is valid.

The red line is crossed when there is a “conflict of interest” between the natural person and the society represented by it, for example. It is required to be able to invalidate that contract by a Court, on the one hand that both persons, representative and represented have conflicting interests in the legal business that they are celebrating. On the other hand, it is necessary to decree their invalidity that this conflict of interest has produced real harm to the represented person. If there is no such conflict of interest and if no damage has occurred, the self-contract is perfectly valid. For all of them, the Supreme Court Judgment dated March 28, 2000 can be consulted. It will always be necessary to study each specific case.