Penalty


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Related to Penalty: death penalty

Penalty

 

in civil law, a means of ensuring performance of obligations.

The penalty is a sum of money determined by law (legal penalty) or under contract (contract penalty) which the responsible party is obligated to pay if the obligation is not carried out or is carried out improperly. A penalty is paid for violation of contract conditions regarding time, quality, and method of per formance; it is recovered regardless of whether losses actually occur or how large such losses are.

According to Soviet law, the obligation to pay a penalty is supplementary (accessory) to the primary obligation. Any agreement concerning a penalty must be concluded in written form to be effective. The size and form of the penalty are determined by the nature of the violation of the original obligation. Imposed as a fine, the penalty is a fixed sum or definite percentage of the total unfulfilled or improperly fulfilled obligation. Fines are applied for violation of contract conditions regarding such elements as product quality, completeness of deliveries, efficient use of transport, and observance of the rules of documents transfer in the course of clearing accounts. A penalty is also paid for delay in performance of an obligation, whether for delay in turning over work or for delay in payment. The amount of such a penalty equals a fixed sum or a percentage of the value of the delayed performance, increasing with the duration of the delay.

Depending on the combination of losses and penalties recovered, the following types of penalties are distinguished: an offset penalty, discharged with the recovery of losses; an exclusive penalty, the collection of which excludes recovery of losses; a contract penalty, collected together with losses; and an alternative penalty, by which the aggrieved party has the right to demand recovery of either the penalty or actual losses.

The penalty is used to strengthen plan and contract discipline. The collection of penalties by socialist organizations is therefore viewed by the law not only as a right but also as a duty to the state. Payment of a penalty does not release the responsible party from performance of the obligation itself, with the exception of cases where the plan on which an obligation between socialist organizations was based is no longer in force.

E. G. POLONSKII


Penalty

 

(Russian penia, from the Latin poena, “punishment”), under Soviet civil law, a sum of money paid for each day of delay in the performance of an obligation or the imperfect performance of an obligation by a guilty party. It is calculated as a percentage of the sum of the unfulfilled or improperly performed obligation. Payment of the penalty does not release the debtor from the fulfillment of his obligation.

References in periodicals archive ?
That I would never commit a heinous crime because I will be penalized and death penalty imposed on me,' Aguirre said.
The purpose of this study is to investigate whether readmission penalties under HRRP impose significant reputational effects on hospitals and whether these effects vary based on the size of the penalty.
Once that rollover took place, the only way for her to avoid the 10% penalty for a premature distribution was to qualify for one of the other exceptions listed under IRC section 72(t).
Form 2750 is a waiver form used to extend the SOL on assessment of the trust fund recovery penalty.
Pursuant to the DRA, states are required to institute a process for seeking a hardship waiver when the transfer penalty will result in a deprivation of medical care that would endanger the applicant's health or life.
Zidane provided France a seventh- minute lead, converting a penalty kick after Florent Malouda raced between Materazzi and Fabio Cannavaro and tumbled to the turf.
For Prejean, however, her faith demands opposition to the death penalty.
The Federal Reserve Board announced on June 9, 2005, the issuance of a consent order of assessment of a civil money penalty against the Bank of Pontiac, Pontiac, Illinois, a state member bank.
From seeing the practice of the death penalty up close, I have no doubt that it is torture.
The existing 20 percent accuracy penalty would increase to 30 percent for listed and certain other reportable transactions that are not disclosed.
But the real racism in the death penalty is not in the race of the murderer, but in the race of the victim.
If someone has good credit, [they] may be offered a much lower interest rate in exchange for the prepayment penalty.