What is finance?

The penalty clause is a clause in a contract that orders financial forfeiture if one party breaks the contract. The sanction clauses are specially designed to punish and exceed the basic compensation for losses that could occur as a result of a breach of the contract. People can refer to the funds ordered in a criminal clause as "criminal damage", which distinguishes them from other types of damage that can also be entered in legal treaties. The court will not authorize someone to pay a punishment that is not related to the specifics of the contract or that is considered to be excessive. "Excessive" can be defined by standard practice with similar contracts and specifics of the situation. A lawyer who has experience with contractual law. The lawyer may also provide advice on the insertion of the sanction clause if the parties feel that this is necessary.

2 For example, someone who writes a contract for the sale of the house can write inliquidated damage, while the buyer fails certain funds if the contract is violated, while the seller may be forced to compensate for rent or similar damage if he returns from the contract. This is intended to create a mechanism for restoring compensation after a breach of the contract.

When writing and looking at the contractual agreement, it is important to fully understand the conditions and question everything that seems special or unknown. While the punishment on the punishment may not be enforceable in court, people do not have to be prepared or willing to take it to court and consider whether they are willing to pay the fine if they decide to cancel the contract.

The idea of ​​introducing liquidated damage and other types of provisions into contracts is to ensure that there is a clear consequence for breach of the contract, so that people understand the seriousness of the agreement they conclude. These provisions are also designed to ensure that people are more likely to fulfill the contract. The sanction clause will take this step a step further and youthe face of a potential punishment due to violations.