Grounds for application and forfeits

The Civil Code of the Russian Federation establishes in Article 330 the concept offorfeit, according to which, it is understood as a strictly stipulated by law the amount (or money range) that is payable by the debtor to the creditor, in the event of late performance of any obligation or in the event of improper performance of the obligations provided for in the labor or civil law contract.

In accordance with this definition of the concept,the essence of the penalty is that the law determines a certain amount of money paid regardless of the amount of damage caused, and even in cases where the damage is not caused at all. The latter circumstance concerns the violation of the deadlines for the fulfillment of obligations under the labor agreement.

The penalties, fines,Penalties are one of the few ways of property liability of individuals or organizations for breach of contractual obligations. In addition to the amounts, the law also determines the specific types of penalties and grounds on which these sanctions can be applied. For example, it should be borne in mind that the list of these reasons is much narrower than the one used to determine the sanctions for bringing to justice in the form of damages. The simplest application of this sanction is the fact that the contractual obligations were not properly executed.

Due to the variety of forms of responsibility forwhich can apply a penalty, the law classifies the types of penalties for the following reasons, which are objective criteria that determine the delineation of these regulatory forms.

So, depending on the order of establishment,legal and contractual penalties are singled out. The first is determined by law and is objective in nature, that is, its parameters can not be changed by the parties. The contractual agreement is established as a result of an agreement between the parties to the transaction. Legitimate applies in cases where the contract did not provide for it as a form of authorization for its violation. The only exception to this rule is the right of the parties to provide in contract foreseen the amount of the penalty in excess of that established by law.

All types of penalty arestatutory measure of civil liability, because the reasons for its occurrence almost coincide with those grounds for the occurrence of liability, which are prescribed in the Civil Code of the Russian Federation. In the event that the contract or a specific law does not contain precise indications of the reasons and grounds for bringing to justice, it is possible to apply to the court.

As sanctions, all existing types of forfeitcan be combined with other types of responsibility, especially with reparation. In this case, the law provides for the classification of penalties for the following reasons:

1. The forfeit entitles the creditor to demand, in addition to the payment of the forfeit itself, and damages, if any, in the manner prescribed by law. As a rule, such a measure is used in cases where the amount of the penalty is much less than the losses incurred and does not cover the damage.

2. Penalty gives the right to claim full compensation for damage, not only by the amount of the difference between damage and forfeit, but also over it. As a rule, such sanctions are applied for the most significant violations that entailed serious consequences.

3. In the event that the right to recover damages to the creditor is refused, an exclusive penalty is applied.

4. And, finally, the alternative penalty gives the right to choose the creditor, which type of sanction to choose-penalty or compensation for damages.