Enforcing Contracts in South America?

The Enforcing Contracts topic assesses the efficiency of the judicial system by following the evolution of a commercial sale dispute over the quality of goods and tracking the time, cost and number of procedures involved from the moment the plaintiff files the lawsuit until payment is received. The most recent round of data collection was completed in June 2020 showing the following rating given to South America Countries. This was done by The World Bank Group.

Be aware that some countries like Brazil, Colombia and Uruguay have historically not allowed contacts to be enforced in third countries, but this could change at any time.

Brazil latest business rules: Thomson Reuters 

Also keep in mind, we are seeing a sweeping update of commercial laws in Argentina in 2024 to streamline business activities including enforceability.

The World Bank reports are a must-read for anyone doing business in South America, as sooner or later you will need to use the court system to enforce a broken contract. Always check with a local law firm what the current situation is.

If you can, try and get the contracts (if permissible) to be enforceable in countries that have high rating of enforceability.

As of 2014

Argentina             106

Bolivia                   111

Brazil                     118

Chile                        64

Panama                   84

Paraguay                 90

Peru                        100

Mexico                     57

Uruguay                 106

Other countries to show some relativity

India                       186

Italy                         147

Bahamas                 125

Israel                        111

China                        93

Taiwan                      93

Canada                      65

Read the methodology and read the full report click here

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