Price reduction as general remedy for breach of contract in Chilean Civil Law

This article argues for generalizing the remedy of price reduction for breach of contract, which Chilean statutory law only establishes for specific contracts. It is contended that the contractual synalagma and the principle of the balance of the bargain, which are the foundations of the statutory remedy of price reduction, concur in identical terms in all bilateral, onerous and commutative contracts. For that reason, the creditor has always the remedy of price reduction in this class of contracts. Chilean contract law, it is argued, has enough flexibility to give solid legal support to a general remedy of price reduction.