Definition of an Obligation

• If due to an obligation one person (the debtor) shall be obliged to commit for the benefit another person (the creditor) certain actions, e.g. to transfer property, perform work, pay money etc., or abstain from certain actions, then the creditor shall have the right to claim from the debtor the execution of his obligation. The creditor shall be obliged to accept the execution from the debtor.

Liability for violation of obligation [article 349 CC]

FORMS OF LIABILITY FOR VIOLATION OF OBLIGATION

• Compensation of losses (Возмещение убытков)

• Forfeit/penalty (Неустойка)

• Confiscation of an item from the debtor and its transfer to the creditor

• Loss of advance payment or paying a double amount of the advance payment (Advance payment - Задаток)