Distinguishing the civil sanction from legal concepts similar to it in terms of concept and consequences

Abstract

Although the civil sanction may overlap with certain legal situations that may approach it in terms of either their consequences or conceptual framework, it nevertheless constitutes a means of safeguarding and protecting contractual rights. A sanction is a means of redressing harm, rather than merely compensating the injured party. Harm arising within contractual relationships as a result of bad faith, fraud, or deceit does not preclude the sanction from fulfilling its purpose of imposing a deterrent consequence for such harm. Distinguishing the civil sanction from other legal concepts strengthens its role in establishing the injured party’s rights and clarifying its significance in relation to a fundamental concept, namely, the effects arising from the content of the contract with respect to rights and obligations.

Furthermore, the significance of the civil sanction and its distinction from other legal concepts becomes apparent in its greater capacity to achieve justice compared with other forms of contractual effects imposed as a consequence of the occurrence of harm. It provides a more equitable means of restoring rights within the sphere of contractual and legal relationships and offers greater assurance in achieving the stability of transactions by establishing distinctive contractual legal positions for the contracting parties. Moreover, its significance extends to the possibility of recovering financial rights, even from other parties that subsequently become involved in the contractual relationship for the purpose of performing the contract in good faith.

The principal conclusion that may be drawn from this research is the considerable importance of the civil sanction in relation to the effects of the contract, and the need not to regard the civil sanction merely as a specific form of the effects produced by the contract. The research is divided into two sections. The first section addresses the distinction between penalties and other legal situations, and is further divided into three subsections. The second section examines the consequences of distinguishing civil penalties from other legal concepts, and is divided into five subsections.