RECOVERY OF DAMAGE CAUSED BY LATE PERFORMANCE OF OBLIGATIONS RESULTING FROM INTERNATIONAL COMMERCIAL CONTRACTS

Aurel Băieșu

doi:10.51582/interconf.21-22.04.2021.030

Abstract

This article analyses the different approaches in comparative law, arbitral practice and in doctrine regarding the institution of interest on late performance (default interest) allocated to compensate for the damage arising from the late performance of contractual obligations, known by most legal systems and instruments of uniform law. Despite the trend of harmonization of regulations in this area, national legislations enshrine different solutions regarding some aspects of this institution. Consequently, the national and international tribunals give various decisions, depending on the legal regulations and the international commercial customs that they consider applicable in the case, the jurisprudence in this field being different.

Highlights

Concept of interest on late payment The obligation to pay compensation due for the delay in the execution of a contractual obligation related to a sum of money, interest on late payment, exists in most legislations of continental Europe and in the instruments of uniform contract law
Under the German Civil Code, ”if the obligor, following a warning notice from the obligee that is made after performance is due, fails to perform, he is in default as a result of the warning notice”. ”A person who is liable in damages must restore the position that would exist if the circumstance obliging him to pay damages had not occurred”. ”The damage to be compensated for, comprises the lost profits
Most legal systems and instruments for the standardization of contract law enshrine the institution of default interest, which is allocated to compensate for the damage resulting from the late performance of contractual obligations

Summary

Introduction

Concept of interest on late payment The obligation to pay compensation due for the delay in the execution of a contractual obligation related to a sum of money, interest on late payment (called default interest), exists in most legislations of continental Europe and in the instruments of uniform contract law. In Republic of Moldova, the general rule is that the creditor can request, at his choice, either the statutory interest for delay or the penalty for delay according to the stipulated damages clause, called penal clause (Art. 942 para (4) of the Civil Code).

Results

Conclusion