Sanctions

This section contains guarantees to protect the interests of counterparties in case of violation of the terms of the contract by one of the parties. They are various kinds of sanctions in the form of penalties, penalties, fines paid by a party who has not fulfilled his obligations in respect of one of the contractual terms. The most common type of sanctions is a penalty – a conventional fine for violation of the terms of delivery of goods, non-notification of shipment, incomplete deliveries, late payments. The legislation of foreign countries regarding penalties is different. For example, according to the laws of England and the United States, a penalty is not recognized, but liquidated damages are recognized, and practice allows the establishment in the contract of possible future losses in the amount of “reasonable” and a predetermined percentage of the value of the goods. The maximum value of penalties, as a rule, is 8-10% of the total amount of the contract.