Corporate and M&A

Law No. 32/2021 of 27/05

Law No. 32/2021 of 27 May was published, establishing limitations on the wording of standard contractual terms and providing for the creation of a system for the control and prevention of unfair contractual terms, amending Decree-Law No. 446/85 of 25 October 1985, which established the legal framework for standard contractual terms.

Following its entry into force, standard contractual terms drafted in a font size smaller than 11 or 2.5 millimetres and with a line spacing of less than 1.15 will be absolutely prohibited.

This diploma will still be subject to regulation, which includes the creation of an administrative system of control and prevention of unfair contractual terms, in order to guarantee that the terms deemed prohibited by a court decision are not applied by other entities.

The decree will enter into force on 25 August 2021.