Cumulative penalty

The law maker has regulated penalty clause as a warrant like pledge and bailment to strengthen the claim. As a kind of the penalty clause, cumulative penalty is a means of pressure on the debitor who didn't deliver the debt on the decided place and time. According to the cumulative penalty regulated in TCO c.179/2, claimant can demand the fullfilment of the primary obligation and also the penalty. The penalty clause regulated in TCO c.179/2 can be claimable on condition that the violation decided in the main contract has been actualised, the claimant didn't expressly waive the right to claim the debt and the claimant has stated to reserve the right to demand penalty clause while accepting the fulfillment. The claimant can demand the cumulative penalty even if there is no loss. Reduction from the illicit cumulative penalty is claimable. The claimant who suffered a loss more than the penalty, can demand compensation for such loss. In practice, cumulative penalty clauses are regulated in the contracts, frequently. Cumulative penalty clauses are regulated to ensure the delivery on time in the construction contracts, to assure the minimum sale commitment in the fuel vender contracts, to secure the system from damages and to make sure that the debts are fulfilled properly in the system use contracts