Breach Determinacion and Penalty Enforcenment in State Contracts Under Private Law and the Reporting of the Claim to the Insurance Company

Abstract

State entities subject to the contracting regime established in the General Statute of Public Administration Contracting are granted by law unilateral powers to declare breaches and impose fines on their contractors. However, entities not subject to the statute do not possess such powers derived from law. This paper examines the possibility for the latter entities to agree upon such powers and the nature of the decision made by the entity. Likewise, it analyzes the procedure for enforcing such right before the insurance company.