Abstract
A prerequisite for a stable turnover cycle is the possibility of full and fair compensation for losses incurred in connection with the execution of contracts. The idea of damages as a universal legal instrument does not change the relevance throughout the world of the continuous development of the principle of legal regulation, causing the complication of cyclical turnover. However, when applying the requirements for regulating the property status of participants in a circular flow, the measure of liability - penalties, losses and unjust enrichment - continues to raise questions. Using the example of resolving disputes under construction contracts, the authors of this article show that the potential of the protective mechanism for compensation for losses has not been fully disclosed; in particular, it is an effective legal means of bringing the parties into a position of proper fulfillment of the obligation. Purpose. The purpose of this article is to determine the potential for a more complete application of the civil remedy for the recovery of damages. Methodology. Achieving this goal was ensured by the use of general scientific and specific scientific research methods: dialectical, formal-logical, comparative legal, and the method of scientific analysis. Results. When considering the possibility of compensation for losses under a current contract, it is concluded that the main idea of compensation for losses, in addition to compensation for property damage (expenses), is to bring the parties to the contract into a position of proper fulfillment of the obligation. It is this understanding of this protective mechanism that meets the goals of effective protection of the rights of participants in property transactions. Conclusion. Current legislation reflects the universal nature of such a legal remedy as compensation for damages. However, in many cases it continues to be applied by courts with extreme caution. To avoid unjustified narrowing of the use of this protective mechanism in contractual obligations, based on modern trends in the development of law, compensation for damages should be considered as a result of bringing the parties to the position of proper performance of the obligation.
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