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What are the justifications for limiting fines under the contract?
Contract for the creation of a computer program. LLC / sole proprietorship with sole proprietorship.
Confuse points such as "In case of violation of any of the guarantees assumed by the Contractor under the Contract, the Contractor undertakes to compensate the Customer for the losses caused in connection with this in full."
It’s not the very possibility of a fine that bothers me, but its unknown size. How can you limit possible fines? What could be the rationale for imposing restrictions? Or is this a normal requirement?
I tried to offer such an option that the amount of damage could not exceed the value of the contract, in response to their lawyer received "Not accepted: there is no justification for such restrictions."
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Firstly, losses / damages must be really substantiated and documented, so they cannot just take and count 100500 billion
. Secondly, the courts always apply 333 of the Civil Code of the Russian Federation.
Thirdly, full compensation for losses is guaranteed by the same Civil Code of the Russian Federation, so there is no need to write this into the contract
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