Professional Documents
Culture Documents
Chapter 1
Chapter 1
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Patrimonial law:
The part of Civil Law made of the norms and institutions that order the economic activity among
individuals.
Areas covered by Patrimonial Law:
. Allocation of goods to individuals
. Exchange of goods
. Provision of services by certain individuals to others
Private property:
Economic goods can be attributed to the individuals and not to the State.
It is contained in the Art. 33 of the Spanish Constitution which defines it as one of the rights of all
citizens with its limitations due to its “social function”.
The Spanish Constitution protects certain goods due to their importance for the social welfare and
the general interest.
Economic freedom:
Free market: entails that the means of production can be in private hands and there is freedom in
the production and exchange of good and services. In Spain there is freedom in the production of
goods. However, there are markets that are heavily regulated (Example: energy market).
Free enterprise: is the right to create and conduct a business for profit without intervention of the
State
Freedom of contract is the right to choose one’s contracting parties and to trade with them on terms
and conditions they find appropriate. Contract is obligated but you can establish some limits.
Exchange principle:
The exchange of goods and services has to tend to the greatest equilibrium possible between the
performances of the parties.
Everything has to be done in a good way and with good faith (honest intention, correct behavior…).
Legal certainty:
It is necessary that the persons that intervene in the market are confident as to the certainty of the
legal rules applicable to their situation.
Example: if you want a company to sell books, you have to know the rules published by the state
before to perform that activity.