The Provisional Measure 881/2019 ("PM"), published on April 30, 2019, and which came into force at the same date, prescribes the Declaration of Economic Freedom Rights, establishing a free market guarantee and analysis of regulatory impact, among other measures.

In general, the PM intends to reduce the bureaucracy of the private initiative, aiming to reach especially the small entrepreneurs.

Oriented by the presumption of freedom in the exercise of economic activities, the PM establishes the principle of minimum State intervention in private contractual relations, in order to apply the rules of business law only in a subsidiary manner to the

The PM also asserts the freedom of fix prices to products and services, obeying the supply and the demand of market, preventing laws that restrict the competition agreement between the parties.

In this context, the right of the parties to agree about the risk allocation as a result of contractual revision will be lawful, and always respected, according to the PM. Thus, business contracts, including about rules of public order, cannot be changed judicially, since they have been freely agreed between the parties.

Furthermore, judicial decisions can no longer disregard of legal entity without demonstrate the presence of a bad faith of the entrepreneur, avoiding that the disregard to be detrimental to those who did not contribute to the abuse, as minority shareholders who did not participate in the administration of the legal entity.

and the emergence of new business models. This freedom will be only restricted in cases of declared public emergency or calamity.

Thus, the PM, exempt authorizations for low-risk activities guided to the family's own subsistence and provided that it is a duty of the public administration and related entities to avoid abuse of regulatory power - except in compliance with the explicit provision in law.

Finally, in order to be definitively converted into ordinary law, the PM must be approved by the Houses of the National Congress (Chamber and Senate), in a term of 45 days, extended for equal period. If approved, it will be forwarded to the sanction or veto of the President of the Republic. If rejected, it will lose its effectiveness.

Should you have any doubts, SAEKI ADVOGADOS remains available to any clarification.