Floating Contracts Spain


Floating Contracts also considered null and void by the Supreme Court!

There has been a new Supreme Court ruling that may be of great importance for many timeshare consumers.

The judgment was issued on the 15th of January 2015 with number 830/2015, cassation appeal number 3190/2012, and studies the case of a 'floating' contract.

According to the "Fundamento de Derecho Cuarto", "the contract lacks the object provided by law and thus, violates the peremptory norm of Article 9.1, paragraph 3, of the Law 42/1998, under which the contract must necessarily contain accurate description of the building, its location and housing on which rests the right, expressly, registration data and the turn that is the subject of the contract, indicating the days and hours when it starts and ends".

Law 42/1998 does not cover other types of contract such as this where the accommodation to which it refers is not determined; agreement that could have been protected by the rule in Article 1255 of the Civil Code if the law itself wouldn't have forbidden by pushing with nullity (Article 6.3 of the Civil Code) in defence of consumer rights. This requirement is also contained in Article 30.1.3 of the new Law 4/2012, of July 6, which is currently governing such contracts.

It concludes saying in its ruling that "we declare this jurisprudential doctrine: In the legal regime established by Law 42/1998 of 15 December on the rights of timeshare real estate for tourist use, lack of determination in the contract for accommodation, which is its object, determines the invalidity of that contract, as required by Article 1.7 in conjunction with 9.1.3 of that Act ".

This is a very important ruling for those clients that were sold not only 'floating' timeshare, but it could affect also to the 'points' system. The Supreme Court insists in giving consumers good news about their rights.