THEORETICAL AND PRACTICAL ASPECTS OF REDUCTION OF PENALTIES AS A FORM OF CIVIL LIABILITY

Abstract

The article presents a theoretical and practical analysis of the reduction of penalties as a form of civil liability
for non-performance of contractual obligations, based on the legislation and experience of foreign countries.
To reduce the penalty, the court must assess all consequences of the contract breach, compare them with the
amount of the penalty, and determine that the penalty payable is evidently disproportionate to the consequences
of the creditor’s breach of obligation.
Conclusions are provided on the comprehensive assessment of contractual obligations, taking into account the debtor’s financial condition and actual damages, as well as on reducing penalties based on the principle of
fairness to balance the interests of the parties.
At the same time, proposals for improving Article 326 of the Civil Code of the Republic of Uzbekistan have
been put forward.