State Act

Portuguese Civil Code, 1867

Article 720 – Losses and damages in financial obligations - Where the performance is limited to the payment of a certain amount of money, the losses and damages resulting from the non-performance of the contract cannot exceed the interest agreed upon or laid down by the law, except in the case of guarantee, as provided in article 838. § Sole paragraph - Legal interest is 6 percent, both for debts of civil as well as commercial nature.