OCTOBER 30, 2023

Technology Disputes 2024: Argentina


Áreas de práctica relacionadas: TMT · Resolución de Disputas: Litigios · Resolución de Disputas: Arbitraje



Technology Disputes 2024: Argentina

Preliminary considerations
Common disputes and preliminary actions
What are the most common issues that arise in connection to technology contracts? What actions should be considered when these issues arise?

The most common issues that arise in connection with technology contracts are as follows:

• Scope and specifications: misalignment between what was agreed and what is delivered, particularly regarding timing of each iteration in agile software development and each stage in software implementation. Contracts should clearly define the scope of work and specifications, including milestones for each stage.
• Performance and quality: failure to meet performance standards or quality expectations. Contracts should clearly define performance metrics and quality standards and include remedies for non-compliance.
• Intellectual property rights: ambiguity or disputes regarding ownership of intellectual property,  particularly when created during the contract term. Contracts should clearly specify ownership rights for technology developed during the contract term.

When an issue arises, it is common practice to send a pre-action letter summoning the other party to remedy the situation. If the pre-action letter is sent as a formal compliance request, it can be used to put the debtor in default, or to suspend the statute of limitations for six months or any shorter term that corresponds to the limitation period of the action (section 214z of the National Civil and Commercial Code (CCC).

The affected party will usually request the production of evidence before trial, to prevent evidence from being lost. The party can request the disclosure, protection or seizure of documents that are related to the subject matter of the claim (section 326 of the National Civil and Commercial Code of Procedure (CCCP)).

Furthermore, in bilateral contracts, when the parties must fulfill their obligations simultaneously, one of them can suspend the fulfillment of the obligation until the other one fulfills or offers to fulfill its own obligation. The suspension may be raised before the court as an action or as a defense to a claim (section z03z of the CCC).

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Technology Disputes 2024: Chapter Argentina
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