Compensation for damages

It is always sad and unpleasant when your partner does not fulfill the contract. You have fulfilled your part of the contract and expected the same from him - but it was not there. And even more unpleasant - when you are suffering financial losses due to the counterparty’s failure to fulfill its contractual obligations, or due to the delay in their performance.

Such financial losses by law are defined as losses. In addition, the law contains a provision according to which damages are subject to reimbursement by the guilty person for this you may have to file a claim for damages. We will try together with this question to figure out what kind of damages are what kinds exist and how to get compensation for damage.

So, what are losses?

First is your financial loss.

Secondly, they arose in connection with the violation of the terms of the contract.

Third, there must be a causal relationship between its violations and your losses. In other words, financial losses should occur solely as a result of breach of contract by the counterparty. That is, if the contract had not been breached, you would not have had these losses.

The law divides losses into three forms:

expenses incurred by you in connection with breach of contract;

loss or damage to your property;

unearned real income that you would receive if the obligation was fulfilled by the counterparty.

The first two forms of losses are called real losses, and the third - lost profits.

Now, let's detail the loss forms with a specific example.

Suppose you are a successful merchant. You have decided to expand your production and want to build additional workshops. Or you have already built workshops and are planning to build yourself a new residential building.

And in fact, and in another case, you hire builders and enter into an agreement for the supply of building materials and certain equipment.

All suppliers require a considerable advance, referring to significant manufacturing costs.

You signed a contract, paid an advance of 70 or 80% of the value of the entire product, and waited for the delivery deadline, which is a certain number of days from the moment an advance is paid.

But the deadline has passed, but there are no materials.

1. Costs incurred. So, what expenses can you incur due to such a delay?

For example, the delivery of construction materials is overdue, and construction deadlines have been disrupted Under the following contract you will receive equipment for air conditioning. You planned to receive and deliver this equipment immediately after delivery. And there is no place to install it. The wall is not built. And there is nowhere to store it.

You are asking the supplier to delay delivery. And he says well, but pay me the storage costs. Plus compensation for failure to accept timely delivery (if it is registered in your contract).

Second example. Your construction site has a crane that was brought and assembled for your money. To dismantle it and take away, you need to pay the same amount. A supply of building materials was late, and he has no work. But the owner of the crane does not make a difference: whether the crane will work and earn money for it, or you will pay simple (to compensate for the losses) in the same amounts. On other conditions, the contract with you will not be signed.

This is financial loss that wouldn’t have happened if there had been no delay.

And the most unpleasant. If you think that you can redirect your partners who claim damages to the overdue counterparty - you are mistaken.

To be eligible for damages, you first need to actually incur these costs, that is, to make payments. And then, you write to the counterparty who broke the deadline, the letter about the compensation of damage and attach copies:

payment order on the transfer of funds (evidence of incurring losses);

The basis of payment (the letter of the counterparty and the contract with him).

If he did not accept the written claim for damages (loss), all these documents will have to be attached to the claim for damages to the court.

2. Loss or damage to property.

Also a simple example. The term of your construction is one year. Before winter, you planned to build the outer contour of the building (walls, roof) and connect it to the heating. After that, either to preserve the construction for the winter, or to continue the internal work at low speed. And everything seems to be calculated correctly.

And here the supplier breaks your delivery time of equipment to the boiler house, and you enter the winter without heating. The result of such circumstances is the freezing of everything built and damage to some structures and other results of the completed construction.

And here, unlike the previous form of damages, you will have to tinker with documentary evidence of the amount of damages.

First, only your opinion on the damage and unsuitability of certain structures will not be enough. You will need a paper (expert opinion) of a reputable institution or expert (the cost of which you hire and pay, you can also present all this as a loss).

Secondly, after the expert points out that the concrete structures are unusable, you will need to calculate the costs of making them. To do this, you will need to raise the contract and primary documents confirming:

cost, fact of purchase and fact of payment for materials;

cost, fact of execution and fact of payment for construction works, using these materials.

Perhaps this part of the preparatory work will also be correctly entrusted to an expert.

3. Real incomes you did not receive.

This type of loss is typical only for the business sector, when the result of the construction is supposed to be used to make money.

For example, one supplier disrupted a supply of building materials for a month. The second for a month - the supply of ventilation equipment. You completed the construction of the workshop two months later.

Two months later, we imported raw materials, machine tools and began the production and sale of finished products. The loss of profit in this case consists in non-receipt of income (profit) from the sale of finished products for two months.

Such a loss can be proved, for example, by the following documents:

contract with the counterparty for the supply of finished products;

a letter from the contractor with the cancellation of the contract and demanding a refund of the prepayment;

payment order for the refund.

Thus, the issue of recovery of damages in the judicial process, the procedure is quite complicated. It is necessary not only to provide evidence of the fact of the damage and justify their size, but also to prove the causal link between the non-performance (improper performance) of the debtor of its obligations and the losses caused.

Because of this, the parties to the contractual relationship often turn to the penalty for cancellation or non-fulfillment of contracts, since it is much easier to justify its size and prove the occurrence of the obligation of the debtor to pay it. damages and penalties

Do you doubt your ability?

If there is a need for damages and a penalty. Come to us! We will help at all stages, and our specialists will accompany you at all stages of the trial, starting from the pre-trial settlement of a claim for damages until full compensation for the damage caused by the unfulfilled contract!

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