What distinguishes a penalty from a penalty?

In the Russian legislation provides for the application in various legal fines and penalties. What are those others? What distinguishes a penalty from a penalty?

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What is the penalty?

Under penalty of civil legislation of the Russian Federation refers to the amount of money payable by one subject of legal relations in favor of another — for example, the counterparty to the contract or the state of the requirements of the law, in case of default of some obligations resulting from a contract or law.

The penalty is a fixed amount. It is charged once at the time when the obligation of the subject of legal disputes not considered to be fulfilled. For example, by delay or by reason of incorrect delivery of goods or poor quality services.

Fines — a term used not only in civil law, but also, for example administrative. But in its legal nature in most relationships the various types of penalty have a number of common features:

  • fixity of the amount of sanctions;
  • a one-time — in correlation with an individual violation, which led to the penalty.
  • The calculation of the appropriate amount of sanctions, in turn, in different branches of legislation can vary considerably. Thus, in civil law the penalty is usually based on the amount of the obligations of the parties under the contract — a percentage of its value. In administrative law the penalty is assessed usually based on statutory values.

    to table of contents ↑What is the penalty?

    Under a penalty in the legislation of the Russian Federation taken to mean the amount of money that one party to civil legal relations shall pay to the other, if you do not fulfill the statutory or contract the scope of responsibilities. For example — again, because of the delay in their execution or implementation of incorrect actions related to the implementation of obligations under the contract.

    Forfeit, as a penalty, usually expressed in a solid amount or as a percentage of the monetary obligations of one party to the legal relationship before the other. Speaking about civic relationships, by its legal nature it is almost identical to the penalty. In contracts between private firms often appears just after the term «penalty» and not a «fine».

    In other fields of law (e.g., administrative) concept of the penalty hardly used. The term is applied primarily in civil matters.

    to table of contents ↑the Difference between fine and penalty

    The main difference between a penalty from liquidated damages in that the first type of sanctions used in several areas of law, and the second primarily in civil matters. When the appropriate relations, the term «penalty» in contracts, as a rule, does not appear. Instead, the treaties apply the concept of penalties.

    In the legal nature both sanctions are very similar. Both a fine and a penalty (assuming the payment obligation subject to a fixed monetary amount in favor of the entitled party relationships in accordance with contract or law.

    Defining the difference between fine and penalty, fix the findings in the table.

    to content ↑Comparative table


    What is common between them?

    A fine and penalty — sanctions involving payment of a liable party a fixed sum of money in favor of the party entitled thereto by agreement or by operation of law

    What is the difference between them?

    The term is used in both civil and in many other branches of law — e.g. administrative
    The term is used mainly in civil law

    Rarely used as a condition civil-law transactions
    Often used as a condition civil-law transactions

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