Publication date: 08.06.2024
Liability for breach of economic obligations: theory and practice
Introduction
Commercial liabilities are an integral part of any business's operations. They include contractual obligations between business entities that may relate to the supply of goods, performance of works, provision of services, etc. In Ukraine, the legal regulation of liability for breach of business obligations is an important aspect of ensuring the stability and reliability of business relations. In this article, we will analyze the theoretical foundations and practical aspects of liability for breach of economic obligations in Ukraine.
Theoretical foundations
The concept of business liabilities:
- Commercial obligations are legal relations that arise between business entities on the basis of contracts or other grounds provided for by law, which provide for the performance of certain actions (supply of goods, provision of services, etc.) or refraining from certain actions.
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Grounds for liability:
- Liability for breach of economic obligations arises in the event of non-fulfillment or improper fulfillment of obligations, which may include delayed performance, delivery of defective goods or provision of defective services, breach of contractual terms, etc.
Types of liability:
- Civil liability: includes compensation for damages, recovery of penalties (fines, fines), and other sanctions provided for by contract or law.
- Administrative liability: may occur in case of violation of business obligations that are of a public nature (e.g., violation of antitrust laws).
- Criminal liability: applies in cases where the breach of business obligations has signs of a criminal offense (fraud, misappropriation of property, etc.).
Practical aspects
Contractual penalty:
- One of the most common ways to ensure the fulfillment of business obligations is to include in the contract terms on penalties (fines or fines), which are collected in case of breach of obligations. Penalties encourage counterparties to fulfill their obligations properly.
Compensation for damages:
- In the event of a breach of business obligations, the party that suffered losses has the right to claim compensation. Losses may include direct losses, lost profits and other actual expenses related to the breach of obligations.
Fulfillment of obligations in kind:
- The court may order the violator to fulfill the obligation in kind, i.e. to perform the actions stipulated by the contract (e.g. to supply goods or provide services).
Court practice:
- Court practice in cases of breach of business obligations is an important source of law enforcement. It helps to understand how courts interpret legal provisions and apply them to specific cases.
