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Compensation for losses in the field of business

Compensation for losses in the field of business

Compensation for damages, as one of the important legal mechanisms in commercial law, is aimed at the full or partial restoration of the property status of a certain business entity. The obligation imposed on the person causing the damage to compensate for the damages stimulates the person to fulfill his contractual obligations in good faith and comply with the requirements of current national legislation. We will discuss how to obtain proper compensation in the article below.

Damages: Concepts and Types

Compensation for losses in the field of business

Damages are a monetary assessment of a person’s property losses that arise as a result of a violation of his legal right. Compensation for damages is, by its very nature, the main tool for holding the other party to the obligation liable. The Civil Code of Ukraine clearly distinguishes between the following types of damages:

  • first, real (actual) damages – direct damage (the cost of lost property) and additional costs (for example, for repairing damaged property, paying for the services of specialists);
  • secondly, lost profits – income that a person could actually receive under normal conditions if his right had not been violated (in particular, the net profit of the enterprise).

When does a person have the right to compensation for damages?

Such a right arises in a person when real damage has been caused in one of the forms listed above. It is also worth emphasizing that the actions of the violator in such a case must be unlawful and in one way or another violate the rights of the person. Below are also the key features of the right to compensation for damages in the field of business:

  • a person who has violated his obligations and caused losses is obliged to compensate the injured party for these material losses in full;
  • the right to compensation arises in the event of non-fulfillment or improper fulfillment of obligations, violation of property rights by state bodies or restriction of legal rights and interests;
  • if the violator has received profit as a result of his actions, the amount of compensation cannot be less than this profit;
  • the main condition (and at the same time the basis) for compensation for damages is the fact of the occurrence of material losses by the victim (must be documented).
It will also be useful: Reimbursement from the founder

How to compensate for losses in the economic sphere: the main procedure

Визнання договору позики недійсним

Compensation for damages, as already noted earlier, is based on the principle of full compensation, unless otherwise established by law or contract. In order for the court to make a positive decision on the applicant, it is necessary to prove the following in the statement of claim:

  • the unlawfulness of the violator’s behavior (in accordance with the contract or law);
  • the presence of damages (in monetary terms);
  • the causal connection between the action and the damages;
  • the fault of the person who caused the damage.

Important to know! Quite often it happens that a person could not fulfill his obligations due to force majeure circumstances (natural disasters, epidemics, unlawful actions of third parties, etc.). In this case, the court will not be able to oblige him to compensate for the damages, since there is no real fault for such actions, in all other cases it is possible. For more detailed information, we recommend that you order a consultation with our commercial law lawyer.

According to the general rules of legislation in the field of business:

  • first, if penalties are established for a violation, then the losses are compensated in the part not covered by them;
  • second, the amount of losses must be determined in accordance with the agreement between the parties or on the basis of documentary confirmation of real material losses and lost profits;
  • third, evidence confirming the presence of specific damage must comply with the principle of reliability (the amount of losses must be accurately calculated).

Assistance from a lawyer in economic matters: how will we help you compensate for losses in the field of business?

A lawyer in economic matters is your reliable partner in the economic process. Having the necessary knowledge and skills, he will help you effectively compensate for losses in the field of business through:

  • legal consultations (as part of familiarizing yourself with the request and case materials, the lawyer will establish the presence of illegal behavior and the fault of the violator, help you correctly calculate the losses and the full amount for their compensation along with penalties);
  • work with the necessary documents (systematize evidence, prepare a statement of claim and, if necessary, a motion for the application of measures to secure the claim);
  • direct representation of the client’s interests in the economic court (will represent legitimate interests in all court hearings and processes, including in the court of second and third instance);
  • support for the enforcement of a court decision (in addition, the lawyer will submit a request to the enforcement service for the purpose of forcibly collecting funds for the damages caused).

Do you have questions for a lawyer? Then fill out the form below, get a consultation, and find out the cost of a lawyer’s services in a case of compensation for damages in the field of business.

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Has your business suffered material damage due to a counterparty?

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Are you interested in compensation for damages for unfair competition?

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Do you need legal assistance in court to recover material/moral damages?

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Is a subscriber form of service possible to quickly resolve issues as they arise?

Yes, of course, we take companies for permanent support.

The subscription form of service allows you to receive a full range of legal services on an ongoing basis for a fixed monthly fee.

Our lawyers will accompany all economic legal relations of your company: from drawing up contracts and solving corporate issues to representing interests during inspections by regulatory bodies and in court disputes.

We have very flexible pricing, so contact us and we will discuss your specific case.

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