Requirements for the nullity of foreing currency mortgage loans by misrepresentation

Abstract

The nullity contract actions by misrepresentation in foreign currency loans are having very various solutions in Spanish courts. This paper tries to systematize the requirements for the nullity of these loans by innocent misrepresentation, considering as a starting point the juridical significance of the ignorance of the inherent risk of these loans, the qualification or not of currency loans as financial instruments and consequently the pre-contractual system of information to which they are subject, as well as the traditional requirements to the misrepresentation: essentiality, excusability, lack of confirmation and caducity.