The Security Deposit in Obligations under a Construction Contract: Theoretical and Practical Aspects

Abstract

The paper, on the basis of theoretical constructions, normative acts, materials of law enforcement practice, examines the peculiarities of legal regulation of relations arising during the use of security payment to enforce the obligation. Emphasis is placed on theoretical and practical aspects of the application of security payment in contractual obligations. The author justifies her viewpoint concerning the prospects of using a security payment to ensure the performance of tort obligations. It is concluded that the scope of application of a security payment in tort obligations is rather limited. On the example of securing the performance of tort obligations arising during the performance of work under the contract, the author argues that the security payment is mainly applicable to secure the fulfillment of the tort obligations arising between persons in contractual relations, in a situation where the counterparties face a threat of harm in execution of a civil obligation. The author emphasizes that the security payment agreement is a consensual transaction.