Mexican Legal Framework of Business Insolvency - White & Case

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8. Leases
A lease is an agreement through which the lessor grants the temporary use and
enjoyment of nonconsumable property, and the lessee agrees to pay a certain price
as rent [CCF 2398, 2400].
The subject matter of the lease can be either realty or chattel property. Please refer
to the Appendix for a summary of the differences between real property
and chattel.
The Insolvency Law only regulates executory lease contracts with respect to
realty. If the debtor is the lessor under a realty lease agreement, its concurso will
not affect the lease. If the debtor is the lessee under a realty lease agreement, its
concurso will not affect the lease; provided, however, that the conciliator can reject
the lease, but the debtor will be liable to pay a penalty equivalent to three months’
rent (or such other early termination penalty provided for under the lease)
[LCM 106].
9. Lump Sum Construction Agreements
The lump sum construction agreement is the agreement through which a
contractor undertakes to carry out, under its supervision and with its own materials,
a work requested by a sponsor, who undertakes to pay the contractor a lump
sum price. 42
An executory lump sum construction agreement shall terminate upon the
concurso declaration of either the sponsor or the contractor, unless the parties,
with the approval of the conciliator, agree to its continuation [LCM 108]. Upon
early termination, the law provides for equitable payments based on actual work
performed and expenditures incurred by the contractor [CCF 2635, 2638, 2639].
42
Sánchez Medal (1989), p. 339.