Closing the Gap: How to Avoid Costly Litigation in High-Stake Credit.

Closing the Gap: How to Avoid Costly Litigation in High-Stake Credit.

by | Mar 10, 2026 | collateral, Commercial law, Contracts, Corporate, Corporativo, Derecho Mercantil, guarantees, Investment, Jurisprudence, Mexican Law, non-possessory pledges, SCJN, Tribunal Federal

Some companies granting high-value credit rely on the fact that, by being secured through non-possessory pledges or guaranty trusts, they will face fewer difficulties in recovering their investment in the event of a debtor’s default. On the other hand, if the...
Cross-Border Contractual Shielding: Why foreign law does not secure immunity in Mexico.

Cross-Border Contractual Shielding: Why foreign law does not secure immunity in Mexico.

by | Mar 10, 2026 | Commercial Agreements, Commercial law, competence, contract termination, Contracts, Corporate, Corporate Governance & Complience, Jurisprudence, Mexican Law, SCJN

Some companies with cross-border businesses still assume that by choosing foreign laws to govern agreements that have effects in Mexico, they will obtain greater legal certainty. This is because they assume that a Mexican judge will apply the agreement literally when...
Subscribing for stock shares is not the same as paying for them: a consequence many companies in Mexico discover too late

Subscribing for stock shares is not the same as paying for them: a consequence many companies in Mexico discover too late

by | Mar 9, 2026 | Corporate Governance & Complience, Corporate Law, Corporativo, Jurisprudence, LGSM, SCJN, Stock Shares

A company admitted a new shareholder through a capital stock increase, received a promissory note as a guarantee for payment of the issued stock shares, and believed that with that it was in compliance. The Supreme Court of Mexico (the Court) confirmed that it was...