Legal regime of moratory interests in Cuba. An analysis from their processing in judicial and arbitral proceedings

Abstract

In the context of contractual obligations, when a debtor fails to fulfill their obligation within the specified term, they incur in default, resulting in moratory interests that the debtor must pay because of a blameworthy delay in fulfilling the obligation. This is an institution of great importance in economic contracting. However, it is common in legal practice to confuse moratory interests with commercial interests and the pecuniary penalty agreed upon in the contract, leading to errors in the calculation of the former, as rates corresponding to commercial interests or pecuniary penalties are imposed due to the lack of predictability at the time of contracting. In the context of dispute resolution in judicial or arbitral proceedings, this legal issue affects the administration of justice, as applying an excessive rate for moratory interest results in a detrimental decision for the debtor who has lost in the process. Cuban legal regulations establish a reference rate for legal moratory interest; however, this is sometimes not taken into account in practice, resulting in a violation of the norm and an imbalance in the contractual relationship. This work aims to analyze moratory interests and distinguish them from other institutions such as commercial interests and pecuniary penalties for their correct disposition in economic contracting and application in dispute resolution, by addressing the problems that arise in legal practice.