Paid for a Service in Portugal but Did Not Get What You Were Promised? Here Is What You Can Do
Margarida Tempera | Lawyer
Engaging a contractor, supplier or service provider in Portugal is often expected to be a simple matter of agreement and trust, where clear terms are set and performance is delivered accordingly; however, when this trust is broken due to a failure to fulfil contractual obligations, the situation becomes not only financially damaging but legally complex, particularly for international clients who may be unfamiliar with local procedures. Portuguese law offers effective remedies, but navigating them requires a proper understanding of contractual principles, evidence requirements and the appropriate procedural steps that must be taken to seek redress.
Under the Portuguese Civil Code, the principle of pacta sunt servanda establishes that contracts freely entered into must be honoured in good faith, and where a party fails to perform their obligations, the other party may be entitled to seek compensation, specific performance, or, in certain cases, termination of the agreement. While this legal protection exists in theory, in practice the outcome will depend on the clarity of the agreement, the nature of the default and the ability to prove that a service was promised, paid for and ultimately not delivered as agreed.
A recurring issue in these situations is the absence of a written contract or a clear description of what was to be delivered, which is not uncommon in cases involving smaller service providers, especially in the real estate or renovation; nonetheless, Portuguese courts accept a wide range of evidence, including email correspondence, payment receipts, text messages and even witness statements, all of which can be used to demonstrate that a valid agreement existed and was breached. What matters is not only that a breach occurred, but that it was material, meaning it had a serious and unjustified impact on the value or outcome of the service provided, as assessed considering the legitimate expectations of the party who fulfilled their side of the agreement.
In many cases, before any legal action can be brought, Portuguese law requires that the defaulting party be formally notified of the breach through a written notice, setting out the facts of the case, identifying the specific obligations that were breached, and granting a reasonable period for correction or compensation. While this step is not universally mandatory, it is often required in order to constitute the defaulting party in mora (delay), except where the law, the contract or the nature of the obligation exempts such requirement. Although the failure to issue this notice does not necessarily render legal proceedings inadmissible or procedurally defective, it may hinder certain legal effects, such as the right to terminate the contract based on delay or to claim default interest from an earlier date. The letter must be clear, objective, as it often prompts the other party to enter negotiations or settlement discussions, thereby avoiding escalation to the courts.
Should the defaulting party fail to respond or reject liability, the next step is to initiate legal proceedings, either for damages or to compel performance, depending on the specific circumstances and whether the breach was total, partial or capable of remediation. Civil litigation in Portugal is generally well structured, but clients should be aware that even in the most efficient jurisdictions, the process can take several months, and for this reason interim measures, such as injunctions to prevent the disposal of assets or to preserve evidence, may be necessary where there is a serious risk of irreparable harm or further losses.
Alternative dispute resolution, including mediation and arbitration, is increasingly common in Portugal and can be an efficient and cost-effective way to resolve disputes, particularly where the parties are open to maintaining a business relationship or where court litigation would be too time-consuming or adversarial. Where it is possible, these methods are often quicker and more flexible.
At LVP Advogados, we assist clients from a wide range of countries who have encountered non-performance of services in Portugal, and we regularly act in cases we regularly act in cases involving breach of contract, defective service provision and unjust enrichment, ensuring that our clients’ rights are protected and enforced through every available legal avenue. If you have paid for a service and not received what was promised, it is essential to act quickly, consider issuing a formal legal notice and evaluate your position with the assistance of a qualified lawyer, as early action can significantly increase your chances of a successful resolution.
Each case must be evaluated on its own merits, taking into account the evidence available, the conduct of the parties and the legal and commercial consequences of proceeding or settling, and we are available to provide tailored advice to help you determine the most effective and proportionate course of action. Should you wish to review your case to enforce your rights or obtain compensation, our team is ready to support you with clear and strategic representation.
