Publication

Penalties: proportionality to consequences

Penalties: proportionality to consequences

Specifying the amount of penalty for a failure to perform or an improper performance of an obligation does not warrant that in the event of a dispute the penalty will be recovered upon a creditor’s claim in the exact amount agreed by the parties when contracting.

21 January 2016

State procurement contract. Risk management

State procurement contract. Risk management

Unstable economic environment makes businessmen that assumed obligations when competition was tough and economic conditions favorable most vulnerable.

Freedom of contract when resolving construction related disputes

Freedom of contract when resolving construction related disputes

Of the fundamental principles of Russian civil law is the freedom of contract under which parties to civil relations may enter into various (including untitled or mixed) contracts at their own discretion by independently determining their terms and conditions. However, the existing court practice is not that liberal when it comes to applying this principle to certain contractual obligations.

20 January 2016

Lower quality means lower price

Lower quality means lower price

When works performed by a contractor are defective, the customer may claim a proportionate reduction of the contract price. Such remedy by the customer causes most questions in courts.

15 January 2016