Equivalencia entre las contraprestaciones

English translation: equivalent consideration

GLOSSARY ENTRY (DERIVED FROM QUESTION BELOW)
Spanish term or phrase:equivalencia entre las contraprestaciones
English translation:equivalent consideration
Entered by: Jennifer Levey

23:16 Apr 29, 2023
Spanish to English translations [PRO]
Law/Patents - Law: Contract(s) / Stock Purchase Agreement
Spanish term or phrase: Equivalencia entre las contraprestaciones
This is the clause title followed by this text in a stock purchase agreement:

"Equivalencia entre las contraprestaciones.- Las Partes declaran que entre el Precio y el valor de las Acciones existe perfecta equivalencia, razón por la cual se hacen donación recíproca de las diferencias (de más o de menos) que pudieran existir entre ellas."

What I am having trouble with is "entre el Precio y el valor de las Acciones existe perfecta equivalencia." So I understand there is a gap between the Share Price and Share Price, but I am not clear that the parties [buyer and seller] are discussing an "equivalence" so that they meet halfway between their differences. Perhaps Equitable Compensation?


"Equivalencia entre las contraprestaciones.- Las Partes declaran que entre el Precio y el valor de las Acciones existe perfecta equivalencia, razón por la cual se hacen donación recíproca de las diferencias (de más o de menos) que pudieran existir entre ellas."

Here is further context:

"CLÁUSULA TERCERA
COMPRAVENTA DE ACCIONES
3.1 Compraventa de Acciones.- El presente Contrato establece los términos y condiciones bajo los cuales el Vendedor transfiere las Acciones al Comprador y, a su vez, el Comprador compra las Acciones al Vendedor. Sujeto a los términos y condiciones pactados en el Contrato, el Vendedor y el Comprador se obligan a entregar a la Sociedad Agente de Bolsa una o más Órdenes de Venta y una o más Órdenes de Compra respecto de las Acciones en la Bolsa de Valores de Lima para perfeccionar la venta y transferencia de acciones de las Acciones de parte del Vendedor a favor del Comprador. La operación de transferencia de acciones en la Bolsa de Valores de Lima será una operación al contado conforme a las normas peruanas de mercado de valores y su liquidación y pago se realizará de acuerdo con dichas normas, los procedimientos aprobados por CAVALI I.C.L.V. S.A. y la Sociedad Agente de Bolsa.

En vista de que la transferencia de las Acciones deberá ser hecha a través de la Rueda de Bolsa de la Bolsa de Valores de Lima, las Partes convienen y dejan establecido que, la obligación que asumen el Vendedor y el Comprador conforme al presente Contrato se refiere y se limita a la suscripción y entrega de las respectivas Órdenes de Venta y Órdenes de Compra.

3.2 Precio de compraventa.- El precio pactado por el total de las Acciones será de USD [•] (en delante, el Precio).

3.3 Equivalencia entre las contraprestaciones.- Las Partes declaran que entre el Precio y el valor de las Acciones existe perfecta equivalencia, razón por la cual se hacen donación recíproca de las diferencias (de más o de menos) que pudieran existir entre ellas.

CLÁUSULA CUARTA
DECLARACIONES DEL VENDEDOR
El Vendedor declara y garantiza frente al Comprador que:

4.1 Propiedad de las Acciones.- El Vendedor es una sociedad debidamente constituida y existente de conformidad con las leyes de [•], la cual cuenta con la capacidad (corporativa y legal) y autoridad necesaria para adquirir y operar sus propiedades, así como para llevar a cabo sus actividades de negocio conforme lo hace a la fecha.

4.2 Alcance de la transferencia de las Acciones.- La transferencia de las Acciones incluye todos los derechos y obligaciones inherentes a ellas. Las Acciones no están afectas a carga, embargo, garantía mobiliaria o cualquier medida judicial o extrajudicial que limite la propiedad ni la transferencia de las mismas."
Seth Phillips
United States
Local time: 08:25
Equivalent Consideration
Explanation:
https://www.lawinsider.com/dictionary/equivalent-considerati...

"Equivalent Consideration means consideration of substantially equivalent economic value as determined by the [parties] at the time of execution of the definitive agreement relating to the applicable [transaction] ... "

The ST establishes that (contrary to Asker's suggestion about 'compensation') the parties agree that their respective considerations are equivalent (of equal value), and that, if it is later found that there was in fact a difference, they will waive their right to compensation and instead treat the difference as if it were a 'donation' to the other.
Selected response from:

Jennifer Levey
Chile
Local time: 08:25
Grading comment
Selected automatically based on peer agreement.
4 KudoZ points were awarded for this answer



Summary of answers provided
4 +3Equivalent Consideration
Jennifer Levey
4quid pro quo equivalence between the types of consideration
Adrian MM.


Discussion entries: 4





  

Answers


12 hrs   confidence: Answerer confidence 4/5Answerer confidence 4/5
equivalencia entre las contraprestaciones
quid pro quo equivalence between the types of consideration


Explanation:
There seems to be some 'overthinking' of the expression, the tricky part or 'limb' of the question seeming to be the plural of contraprestación.

In Angl-Am contract law, leaving aside the vexed issue of acceptance of part-payment of a debt, the consideration or quid pro quo merely needs (to) be 'sufficient' (has to exist e.g. a peppercorn rent/ $ 1 paid for a run-down house) rather than 'adequate' (a fair exhange).

Example sentence(s):
  • 'Consideration' is the price given in exchange for goods or services under a contract, or a promise to do (or not to do) something in return. The price is usually money – but can be anything that has value.
  • There are many definitions for consideration. Consideration is the 'agreed equivalent and inducing cause of the promise (pg 119, contract law

    Reference: http://eng.proz.com/personal-glossaries/entry/14614724-contr...
    Reference: http://papers.ssrn.com/sol3/papers.cfm?abstract_id=3471850
Adrian MM.
Austria
Specializes in field
Native speaker of: Native in EnglishEnglish
PRO pts in category: 278

Peer comments on this answer (and responses from the answerer)
neutral  AllegroTrans: what is the logic of jettisoning "consideration" in favour of the rather sloppy "quid pro quo"?
3 hrs
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12 hrs   confidence: Answerer confidence 4/5Answerer confidence 4/5 peer agreement (net): +3
Equivalent Consideration


Explanation:
https://www.lawinsider.com/dictionary/equivalent-considerati...

"Equivalent Consideration means consideration of substantially equivalent economic value as determined by the [parties] at the time of execution of the definitive agreement relating to the applicable [transaction] ... "

The ST establishes that (contrary to Asker's suggestion about 'compensation') the parties agree that their respective considerations are equivalent (of equal value), and that, if it is later found that there was in fact a difference, they will waive their right to compensation and instead treat the difference as if it were a 'donation' to the other.

Jennifer Levey
Chile
Local time: 08:25
Native speaker of: Native in EnglishEnglish
PRO pts in category: 175
Grading comment
Selected automatically based on peer agreement.

Peer comments on this answer (and responses from the answerer)
agree  patinba
2 hrs

agree  Andrew Bramhall: Yep, why say it in nine words when two will do!
3 hrs

agree  Elizabeth Joy Pitt de Morales
1 day 21 hrs
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