Enforcement of obligations and ways of exercising property guarantees

2024 Author: Henry Conors | [email protected]. Last modified: 2024-02-12 02:42

Many civil law relations that develop between the subjects of economic relations are binding. Each party has the right to insist on the performance of the terms of the contract, but does not have the right to force the performance of certain actions.

Commitments arise both among citizens and among organizations. They mediate relations in various areas: production, business, distribution and exchange. Security for the performance of obligations arises from contracts of sale, transportation, supply, capital construction and others.

Citizens create legal obligations with enterprises in consumer services, retail sales, transportation of luggage and passengers, use of residential premises, etc. In developing market relations, such services can also be provided by private entrepreneurs.

Obligation relations can also arise as a result of the issuance of powers of attorney, gifts, loans, etc. In addition, it should be noted that obligations mayarise not only from contracts, but also as a result of other legal grounds. For example, these may be administrative acts, unilateral transactions, causing harm, as well as other actions that give rise to rights and obligations.

Enforcement is established to strengthen contractual discipline. Some property guarantees of implementation are being created - this is a pledge, a pen alty, a deposit, a surety, a retention of property and a bank guarantee.

Pledge is the transfer of the debt side of the contract to the creditor of part of his property before he fulfills his obligations. Pawnshops, banks, etc. are known to use such guarantees

A pen alty is a security for the performance of obligations, in which a certain amount of money is prescribed in the contract, which the principal is obliged to repay in case of improper performance of debt obligations. Usually such a pen alty is set for delay.

The deposit is the amount of money that the debtor pays against the payments related to the contract, which is proof of the fulfillment of the conditions.

A guarantee, as a way of securing the fulfillment of an obligation, is a kind of contract in which the guarantor guarantees to the creditor for another person and the fulfillment by him of the debt terms of the contract. The meaning of such a guarantee is that the creditor has an additional opportunity to receive money not only from the debtor, but also from the guarantor himself.

Retention of property is a security for the performance of obligations under a contract, in which the creditor has the right to retain property until the debtor has paid the entire amount under the contract.

A bank guarantee is a written obligation under which a bank (also another credit or insurance organization), which is a guarantor, pays a certain amount to the creditor if the latter requests in writing to pay the required amount of money.

Security is an additional guarantee for the lender, which helps to prevent or reduce the negative consequences of an incorrect transaction.