PENALTY – AS A WAY TO ENSURE PROPER FULFILLMENT OF OBLIGATIONS BY THE PARTIES IN BUSINESS ACTIVITIES OR A MEASURE OF RESPONSIBILITY TOWARDS AN UNSCRUPULOUS PARTY IN THESE OBLIGATIONS

Efimtseva Olga Aleksandrovna

This paper highlights the actual problems of determining the legal nature of the penalty in practice, in the process of implementing the obligations assumed by business entities, through the analysis of its dual nature. The consequences of its application in contractual obligations are highlighted. Based on the analysis, it is concluded that the use of the institution of penalty as a way to ensure the fulfillment of obligations is ineffective, but the effectiveness of its application as a measure of responsibility of the debtor's party to the creditor.

Keywords:right, obligation, security, liability, contract