Breach of contractual obligations and penalties: what contract parties need to know

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15.12.2025 281

Breach of contractual obligations and penalties: what contract parties need to know

Modern contractual practice in Ukraine is undergoing notable changes. Developments of recent years, including the introduction of martial law and significant legislative changes following the repeal of the Commercial Code of Ukraine, have had a considerable impact on contractual relations, particularly on the application of penalties.

This article examines the main types of penalties in contracts, the rules governing their application, key positions of the Supreme Court, and current trends in court practice.

Read more in the article by EVERLEGAL lawyers for the LIGA ZAKON at the link.

In focus:

  • Types of penalties
  • Amount and procedure for applying penalties
  • Changes in the application of penalties following the repeal of the Commercial Code of Ukraine
  • Reduction of penalty amounts
  • Possibility of simultaneous application of fines and late-payment penalties


Our experts:
Sofiia Papura, Associate at EVERLEGAL
Sofia Aronovych, Junior Associate at EVERLEGAL

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