The Penalty Clause is a commonly used provision in both civil and commercial agreements. As the doctrine defines it, the Penalty Clause is "the accessory agreement permitting the parties to establish in advance the damages to which a creditor will be entitled in case of non-performance, delay in performance, or improper performance by the debtor of its contractual obligations". The Penalty Clause is regulated by the provisions of the Romanian Civil Code under articles 1066-1072 and 1087.
April 30 2009