Ensuring fulfillment of obligations and ways of implementing property guarantees

A lot of civil-law relations that are formed between subjects of economic relations are binding. Each party has the right to insist on the fulfillment of the terms of the contract, but has no right to enforce certain actions.

Obligations arise both among citizens and among organizations. They mediate relations in various spheres: industrial, entrepreneurial, the sphere of distribution and exchange. Ensuring the fulfillment of obligations arises from contracts of sale and purchase, transportation, delivery, capital construction and others.

Citizens create legal relationships with enterprises for consumer services, retail purchase, transportation of luggage and passengers, use of residential premises, etc. In developing market relations, such services can also be provided by private entrepreneurs.

Obligatory relationships can also arise as a result of the issuance of powers of attorney, donations, loans, etc. In addition, it should be noted that obligations can arise not only from contracts, but also from other legal grounds. For example, such may be administrative acts, unilateral transactions, harm, as well as other actions that generate rights and obligations.

Ensuring the fulfillment of obligations is established to strengthen contractual discipline. Some property guarantees of implementation are being created - it is a pledge, forfeit, deposit, guarantee, retention of property and bank guarantee.

A pledge is the transfer of the debtor's side of the contract to the creditor of a part of its property before the fulfillment of its obligations. Lombards, banks, etc. are used to apply such guarantees.

Penalty - is to ensure the performance of obligations, under which the contract prescribes a certain amount of money, which the principal must repay in the event of improper performance of debt obligations. Usually such punishment is established for delay.

The deposit is the amount of money that the debtor pays to the account of payments related to the contract, which is proof of the fulfillment of the conditions.

A surety, as a way of securing the performance of an obligation, is a kind of contract in which the surety vouches before the creditor for another person and the performance of the debt terms of the contract. The sense of such a guarantee is that the lender has the additional opportunity to receive money not only from the debtor, but also from the guarantor himself.

The retention of property is the enforcement of obligations under the contract, in which the creditor has the right to retain the property until the debtor pays the entire amount under the contract.

A bank guarantee is a written undertaking, under which a bank (also another credit or insurance organization) that is a guarantor pays a certain amount to the creditor in the event that the latter submits a written request for payment of the required amount of money.

Ensuring the fulfillment of obligations is an additional guarantee for the creditor, which helps to prevent or reduce the negative consequences from the incorrect execution of the transaction.