Mandate. Exceded Competence v. Incomplete Execution

The High Court of Cassation and Justice has held that where a trustee charged, by mandate, with an obligation to borrow any amount of money in buying an apartment on behalf of the principal and to his benefit, without any stipulated in terminis but with the obligation with regards to the trustee to conclude the contract, a loan agreement entered into by the principle cannot impose an exceeding of the mandate, as though it were accepted that the mandate concerned the loan and purchase and even if the two legal operations were interdependent, failure to comply with the obligations in their entirety is worth overcoming term limits, but an incomplete execution, failure of the mandate, which does not amount a nullity sanction (in this case the loan agreement), but instead would call for mandate damages, under art. 1021, reported to art. 1539-1540 Civil Code. (Decision no. 3476 of 7 November 2014 rendered the appeal of Section II of the Civil High Court of Cassation and Justice for the annulment loan agreement with mortgage)

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Dan Alexandru NEGRU


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