The preventive protection of article 1032 of the Civil and Commercial Code of the Argentine Nation

A self-protection took against foreseeable breach of contract

Abstract

This paper analyzes the anticipatory breach doctrine as a manifestation of the preventive 
function of law within the contractual sphere. Article 1032 of the Argentine Civil and Commercial Code establishes an exceptional mechanism that entitles one party to suspend its own performance when a serious threat of harm to its rights is foreseen. The study examines the essential elements of this mechanism, including the serious threat of harm and the significant impairment in the other party’s ability to perform or its financial solvency. It also reviews both foreign and domestic precedents of this figure, as well as its configuration under current Argentine law. Finally, the paper explores the effects of this preventive mechanism and the remedies available to the other contracting party to neutralize the fundamental effects of the anticipatory breach.