Losses include

• Real damage (реальный ущерб) - losses, which are incurred or must be incurred by the person whose right is violated, the loss or the damage to his property

• Lost profits (упущенную выгоду) - lost profit which this person would have received under the normal conditions of business if his right has not been violated.

Is the agreement for exemption from liability valid?

• An agreement of the parties which is adopted prior to the violation of the obligation, concerning the exemption of the debtor from compensation of losses which are caused by the violation, shall be invalid, however, the parties by mutual agreement may provide for exacting only the actual damage to property.

Losses and Forfeit

• When a forfeit is established for a failure to execute, or for improper execution of an obligation, then the losses shall be compensated for the part which is not covered by the forfeit.

• Legislation or the agreement may stipulate the cases: where it is permitted to claim only forfeit. but not losses; where losses may be levied in full amount in addition to damages; and where at the discretion of the creditor either damages or losses may be claimed.

Liability for Unlawful Use of Somebody’s Money

• Damages shall be paid for an unlawful use of somebody else's money assessed on the basis of the official rate of refinancing of the National Bank of the Republic of Kazakhstan.

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Liability for Unlawful Use of Somebody’s Money

• Damages shall be paid for an unlawful use of somebody else's money assessed on the basis of the official rate of refinancing of the National Bank of the Republic of Kazakhstan.

Securing Execution of Obligations

• Forfeit

• Pledge

• Withholding the debtor's property

• Sureties,

• Guarantee,

• Advance payment,

Other methods provided for by legislation or the agreement.

Principal Agreement vs. Security Agreement

• The invalidity of an agreement on securing an obligation shall not entail the invalidity of that obligation (the principal obligation).

• The invalidity of the principal obligation shall entail the invalidity of the obligation which secures it. [article 292 CC]

• Termination of the principal agreement entail security agreement.