Glossary

Compensatory interest

Compensatory interest is interest awarded by the court to compensate the period of time between the sustaining of a loss and its reparation. This interest partakes in the principle of full reparation of the loss enshrined in Article 1382 of the Code of Civil Law (extra-contractual matter) and in Articles 1147 and 1149 of the Code of Civil Law (contractual matter). This interest is applied in obligations other than obligations limited to the payment of a sum of money.

A distinction is made between compensatory interest and default interest.

Updated 26/12/2018

Definitions provided under this section refer to the Belgian situation; unless specified otherwise. The texts are meant to summarize concepts in daily language and should not be considered as comprehensive or definite. We welcome suggestions for modifications or additions at glossary@tcm.be.