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Topics: El Salvador


El Salvador
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Contract Law

Contracts can be easily formed in El Salvador. The only restriction parties face is that they cannot enter into contracts that violate laws or that are contrary to public order.

Enforcement of contracts, on the other hand, is a different issue because of the critical condition of the judicial system and a lack of alternative dispute-resolution mechanisms. Both the time necessary to enforce a contract and the outcome of decisions are unpredictable. It can take years to reach decisions, and in some cases the judges have issued decisions that are completely contrary to the law. In general, judges are poorly trained and some of them even lack a legitimate law degree. The Supreme Court has problems similar to those observed in lower courts.

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