Contractual Penalty Clauses in Recent Serbian Arbitration Practice

Annals FLB – Belgrade Law Review, Year LXI, 2013, No. 3, pp. 63-81

19 Pages Posted: 9 Mar 2014

See all articles by Dragor Hiber

Dragor Hiber

University of Belgrade - Faculty of Law

Vladimir Pavic

University of Belgrade - Faculty of Law

Date Written: 2013

Abstract

The focus of the paper is on the analysis of different approaches to situation when the parties are allowed to agree on sums payable in the event of breach of obligations, issues pertaining to contractual penalties in general as well as practical and doctrinal differences in their compensatory and penal goal. The authors reflect on some of the acute issues raised in recent arbitration practice with respect to the topic of contractual penalties, particularly in the sphere of privatization agreements. One of the problems analyzed relates to characterization of the secured obligations in privatizations, reductions of penalties as well as the issue of combining contractual penalties with bank guarantees and with the prohibition of restitution contained in the Law on Privatization of the Republic of Serbia.

Keywords: Arbitration, Contractual penalties, Privatization Agreements, Non-performance, Delay, Proportionality principle

JEL Classification: K12, K41

Suggested Citation

Hiber, Dragor and Pavic, Vladimir, Contractual Penalty Clauses in Recent Serbian Arbitration Practice (2013). Annals FLB – Belgrade Law Review, Year LXI, 2013, No. 3, pp. 63-81, Available at SSRN: https://ssrn.com/abstract=2406186

Dragor Hiber

University of Belgrade - Faculty of Law ( email )

Bulevar Kralja Aleksandra 67
11000 Belgrade, 11000
Republic of Serbia

Vladimir Pavic (Contact Author)

University of Belgrade - Faculty of Law ( email )

Bulevar Kralja Aleksandra 67
11000 Belgrade, 11000
Serbia

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