Have you ever wanted to own an establishment like McDonald’s, Marriott International or RE/MAX? All over the world, and the Central American region is no exception, we have these types of businesses that, in the legal context, translate into franchise contracts that establish the legal framework to start the business. Lawyers call franchises sui generis,…
Introduction Solid and strategic commercial relationships depend, to a great extent, on suitable contractual agreements. Among these fundamental instruments is the Agency-Representation or Distribution Agreement, which plays an important role in the promotion and marketing of goods and services in the legal context of El Salvador. In practice, consultations are received on this figure regarding…
Consortium Legal, the largest law firm in Central America continues to drive its strategy of growth and excellence in client service by announcing the appointment of Maria Fernanda Morales as Practice Partner in its Guatemala office. This promotion marks a milestone in Maria Fernanda’s professional development, and consolidates the firm’s commitment to provide the highest…
On July 25, 2023, the Supreme Court of Justice through the National Council of Administration and Judicial Career, approved Agreement Number 577, which amends the Operating Regulations of the Registry of Final Beneficiaries of Commercial Companies in Nicaragua. This instrument established new articles and guidelines to comply with the Final Beneficiary Registry. In this partial…
With respect to the distribution contracts of foreign houses signed in accordance with Law number 6209 and that continue after the reform of the law introduced in 2007, two questions arise. Firstly, should the indemnity be considered an acquired right and, secondly, which indemnity regime should be applied? It must be analyzed at what moment…
It is very common in Guatemala that, when entering into a contract between two local entities, the parent company of one of them is foreign and, therefore, requires that the contract be executed in another language (usually English), that it be subject to the laws of the jurisdiction of the referred parent company and subject…
The COVID-19 pandemic has profoundly affected companies around the world, and Honduras has been no exception. In the midst of the economic and financial challenges posed by this global crisis, Honduran companies have had to seek innovative ways to adapt and maintain their financial stability. In this context, the payment of dividends in kind has…
The topic of the equity premium has taken off in Guatemala, mainly because of the concern about how ventures can be financed, since: They do not want to be diluted. They need capital. Their venture is valued as nothing more than an income expectation. Essentially, there are two ways in which money can come into…
By: Annette Herrera Pro-bono work is free legal services for the benefit of low-income, socially vulnerable, or marginalized individuals or communities, and the organizations that assist them (NGOs). Providing pro-bono services to those who need them most demonstrates professional integrity and strong ethical values. Pro-bono work is increasingly linked to environmental, social, and corporate governance…
Article 237 of Law No. 822 “Ley de Concertación Tributaria” (LCT) creates the Stamp Tax, also called ITF. This is an indirect tax levied on the consumption of certain legal acts, which are contemplated in article 240 of the referred law, with its respective applicable rate. The referred article determines the applicable rate for stamped…
By: Millie Miranda and Ana Cristina Flores Given the growing adoption of technology and the increasing use of technological instruments in the day to day, both for individuals and companies, we have known a new way of interacting in the digital world. Among these instruments, we find the use of electronic signatures, which has proven…
On March 30, 2023, bill number 22.901, “Access to Justice for Consumers”, was approved in second debate, by means of which a series of significant amendments were made to Law 7472, Law for the Promotion of Competition and Effective Defense of Consumers. In summary, the approved amendments consist of: The National Consumer Commission is granted…