The Value of Compensation and Its Timing in Contractual Liability
Keywords:
Compensation, Fault, Damage, Contractual LiabilityAbstract
The principle of good faith generally requires the execution of the contract by both parties, provided that the contract has been validly, definitively, and conclusively concluded. Therefore, if one of the parties fails to adhere to the obligations stipulated in the contract, they are considered liable toward the other party, and such liability is referred to as contractual liability, since a contract or agreement, in general, constitutes a source of obligation and commitment that has not been fully performed. This type of liability arises only when three elements—fault, damage, and a causal relationship between the fault and the damage—are present. The meaning of this liability is that each individual must bear the consequences of conduct contrary to their duties, as determined by the nature of the duty and its characteristics. Furthermore, the type of damage incurred by the contractual party is only eligible for compensation if it is real and direct. Similarly, for a judgment requiring payment of compensation to the injured party and redress of the incurred harm, certain conditions must be satisfied. However, the payment of full compensation is not the only necessary form of reparation, as legislators and the judiciary have introduced other forms of remedies that do not reach the level of full compensation. The criterion for such remedies is not limited to the extent of the loss but also includes other considerations connected to justice.
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