Conventional termination clauses and just cause on resolution of urban lease contracts under Portuguese law

Abstract

Since most conflicts are caused by the lack of clear parameters of what the parties understand as a breach of contract, the provision of conventional termination clauses in the main contract that was certainly signed at a time of consensus between the parties, is an element of rationalization for future circumstances. Any discussion in this area involves the answer for two questions: (1) whether the parties are allowed to agree on how to operate the terminations based on a legal clause due to the compelling nature of the rules established in art. 1084 of the Portuguese Civil Code; and (2) whether it is lawful for the parties to agree on how to operate in relation to the contractual termination clauses. In addition, it is important to understand the concept of just cause and the conventional limits of termination clauses in the context of urban lease contracts under contemporary Portuguese law.