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Can a contractual penalty be cut by 99%? When?
Contractual penalties are a common instrument for sanctioning failures to perform non-monetary obligations (e.g. completing construction on time). Contractual penalties can be cut by the courts, but generally the Polish Civil Code indicates only the grounds for mitigating a contractual penalty. The details must be sought in the legal literature and the case law. Indeed, the regulations do not even provide guidance on how much contractual penalties can be reduced. Thus each case should be treated individually, guided by the principles discussed below.
Can a contractual penalty be cut by 99%? When?
Construction market when there is a war abroad
The construction market is facing more challenges. After many problems associated with the pandemic, other major difficulties have arisen due to Russia’s war on Ukraine. This presents the second recent case of force majeure affecting the economy. Although the construction sector did well in the pandemic crisis, this time the outlook is much more pessimistic. Thus the new reality requires a rapid response and search for solutions to mitigate numerous risks.
Construction market when there is a war abroad
Liquidated damages in construction contracts not only for works: New resolution of the Supreme Court
On 9 December 2021, the Supreme Court of Poland issued a resolution (case no. III CZP 26/21) examining liquidated damages in construction contracts. In construction, liquidated damages are particularly common, generating serious disputes even threatening the completion of projects. In practice, this instrument is mainly used by investors, and the problem usually affects general contractors and subcontractors.
Liquidated damages in construction contracts not only for works: New resolution of the Supreme Court
Representation of a company in contracts with a member of its management board
A limited-liability company is represented by its management board. The right of the management board to represent the company covers all actions, including entering into contracts, court actions, making declarations, accepting declarations, etc. It cannot be restricted. However, the management board cannot represent the company in its dealings with a member of the management board.
Representation of a company in contracts with a member of its management board
Contracts for supply of agricultural products under scrutiny
The EU’s Single CMO Regulation provides for heavy penalties for use of a form contract with even minor deviations from the formal requirements under that regulation. As a result, the National Support Centre for Agriculture may impose administrative fines of millions of zlotys on businesses.
Contracts for supply of agricultural products under scrutiny
All quiet on the choice-of-law front
The Brexit transition period is coming to an end. Whether or not it is still possible for the UK and the EU to reach a new trade agreement, many businesses operating on both sides can expect a number of uncertainties and challenges. Fortunately, one of the issues that will remain stable is the choice of law in contracts. Here Brexit will result in only technical changes.
All quiet on the choice-of-law front
Fundamental issues a game developer should pay attention to when negotiating a contract for publication of a video game
Contracts for publication of video games are concluded between game developers and companies specialising in publishing games (sometimes referred to “dev-publisher agreements”).
Fundamental issues a game developer should pay attention to when negotiating a contract for publication of a video game
Combining contractual penalties for repudiation and delay?
Many contracts provide for a contractual penalty for reputation of the contract due to the other party’s fault and a contractual penalty for delay in performing the contract. But in such cases can both of these penalties be pursued simultaneously?
Combining contractual penalties for repudiation and delay?
Tenant’s right to unilaterally extend lease agreement during the coronavirus epidemic
Entry into force of the Anti-Crisis Shield, i.e. the 31 March 2020 amendments to the Anti-Crisis Act, has had a strong impact on the real estate market, especially the rental market for space at shopping centres. In addition to the widely discussed Art. 15ze, which has extinguished mutual obligations of the parties to lease agreements, the parliament has also introduced another important provision which may significantly affect the rights and obligations of not only the parties to lease agreements, but also other participants in commerce.
Tenant’s right to unilaterally extend lease agreement during the coronavirus epidemic
Remote signing of contracts
For obvious reasons, remote signing of contracts has assumed great significance recently. To conclude a contract, is it sufficient to exchange a few emails or to transmit electronically signed documents? It depends.
Remote signing of contracts
COVID-19, performance of contracts governed by foreign law, and the hardship clause
Many businesses and their lawyers are now analysing the impact of the coronavirus on their contractual obligations. In the case of some contracts the situation is further complicated by the fact that the contract is governed by foreign law.
COVID-19, performance of contracts governed by foreign law, and the hardship clause
Situation of contractors performing construction contracts in the private sector
The pandemic may delay the performance of construction works and increase their costs. It may even make it completely impossible for a contractor to fulfil its obligations. But how this affects the contractors’ legal situation depends on the factual circumstances of the given case and the wording of the specific construction contract.
Situation of contractors performing construction contracts in the private sector