Forfeit, as a way of securing obligations, is provided for by Chapter 23 of the Civil Code of the Russian Federation. A penalty is a sum of money that the debtor undertakes to pay to the creditor in the event that he does not fulfill the obligation or does not fulfill it in the way agreed by the parties.
Instructions
Step 1
For example, the client and the artist have agreed that by a certain date (the birthday of the client's wife) the artist will draw a portrait of the client's wife. Since it is important for the customer to receive the finished portrait on time, he is interested in establishing a penalty in case of delay in the performance of the obligation. The law establishes that regardless of the form in which the contract is concluded: oral or written, the agreement on the forfeit is made in writing. The penalty, which the parties have agreed on orally, is not subject to payment.
Step 2
The penalty can be expressed in a certain amount (fine). In our example, the parties can agree that if the artist does not have time to finish the work by the birthday of the customer's wife, he pays the customer 3 thousand rubles.
Step 3
Also, a penalty can be established as a percentage of the amount of the main obligation and paid for each day of delay (penalty). Forfeit in the form of a penalty interest is very common in securing monetary obligations.
Step 4
In addition to the contractual forfeit established by agreement of the parties, the forfeit may be established by law. The creditor shall have the right to demand the payment of such a forfeit regardless of whether an agreement on a forfeit has been concluded between the creditor and the debtor.
Step 5
If the debtor (artist, in our case) evades or refuses to pay the penalty, then the creditor (customer) can file a claim to recover it in court. Disputes between citizens and organizations are considered by courts of general jurisdiction, and disputes between individual entrepreneurs and legal entities arising from economic relations are considered in arbitration.
Step 6
In addition to other documents, the range of which is determined by the relevant procedural legislation, in order to consider the case by the court, the plaintiff will need to submit an agreement if it is concluded in writing, as well as an agreement on a forfeit, if the forfeit is contractual. According to article 333 of the Civil Code of the Russian Federation, the court has the right to reduce the penalty if its amount clearly does not correspond to the consequences of the violation of the obligation.
