Spanish jurisprudence on the nulity of preferred shares

The First Section Spanish Regional Court of Cáceres (Sección 1ª de la Audiencia Provincial de Cáceres) decided Sentence 3/2013 on January 15 in which the Court declared the nullity of a purchase agreement of preferred shares on the grounds of a mistake regarding the consent of the individual purchaser.

The elements essential to understanding the Sentence include, among others, those that point to a lack of clarity in the contract: even if a contract explains that the product is a complex derivative, it may not provide a clear, precise, or simple explanation. In addition, the Sentence affirms that the mere delivery of the product and the well-known clauses of science do not prove that the information was provided.

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Please note that this article is not intended to provide legal advice.

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