Glossary entry

Spanish term or phrase:

equivalencia entre las contraprestaciones

English translation:

equivalent consideration

Added to glossary by Jennifer Levey
Apr 29, 2023 23:16
1 yr ago
31 viewers *
Spanish term

Equivalencia entre las contraprestaciones

Spanish to English Law/Patents Law: Contract(s) Stock Purchase Agreement
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."
Change log

May 13, 2023 12:07: Jennifer Levey Created KOG entry

Discussion

Seth Phillips (asker) Apr 30, 2023:
@ Jennifer Good explanation. Indeed I meant to say Share Price and Share Value. Thanks!
Seth Phillips (asker) Apr 30, 2023:
@ Taña Thanks for the reference, this helpful. Yes, I meant to say Share Price and Share Value, sorry for the confusion.
Jennifer Levey Apr 30, 2023:
@Asker So I understand there is a gap between the Share Price and Share Price...

As suggested by Taña, it's a question of an eventual 'gap' (difference) between the share price and the share value. The text under the heading Equivalencia entre las contraprestaciones establishes that the parties agree that the price paid to the seller for the shares is equivalent to the current value of the shares acquired by the buyer, and the buyer and seller assume, each at their own cost, the consequences any 'non-equivalence' that might in fact exist.
IOW, the parties are agreeing that the deal was fair ('fair exchange is no robbery', as they say).
Taña Dalglish Apr 30, 2023:
@ Seth Here is a link which may help. It provides an example of "perfect equivalence". "Indeed, a CNBC analysis showed that going back to 1985, Hershey’s coefficient of correlation with the S&P 500′s performance nine months later is an impressive 0.86 (a correlation coefficient of 1.0 shows perfect equivalence). That means that 86 percent of the time that Hershey shares have moved higher or lower on a daily basis, the S&P tracked the movement nine months later."

Also, I think here, "Las Partes declaran que entre el Precio y el valor de las Acciones existe perfecta equivalencia ...", and you've used "Share Price" twice in the English draft, as opposed to "price" (of the share) vs. "the value of the share". I think? Regards. HTH the example helps. Goodness: I forgot to include the link: https://www.cnbc.com/2013/06/19/the-chocolate-indicator-usin...

Proposed translations

+3
12 hrs
Selected

Equivalent Consideration

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.
Peer comment(s):

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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4 KudoZ points awarded for this answer. Comment: "Selected automatically based on peer agreement."
12 hrs

quid pro quo equivalence between the types of consideration

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:

'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

Peer comment(s):

neutral AllegroTrans : what is the logic of jettisoning "consideration" in favour of the rather sloppy "quid pro quo"?
3 hrs
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