PENALTY AS A FORM OF LIABILITY

Abstract

The article examines the institution of penalty (neustojka) in Roman law. Penalty (stipulatio poenae) as a conditional agreement obligated a person who breached a contract to pay a monetary sum to the injured party. The research reveals that the main purpose of penalty was to exert pressure on the debtor and ensure the main obligation. It is emphasized that the obligation to pay penalty depended on whether the debtor was liable for the breach of contract. The article demonstrates the parties' right to include penalty clauses in contracts and its significance. The analysis shows that contract breach was the main condition that triggered the penalty obligation, and penalty served as an indirect mechanism for compelling the debtor to fulfill the obligation.