TBK Article 182: Excessively high penal clause can be reduced by the judge.
Discount Factors
- Degree of fault of the debtor
- Economic situation of the parties
- Amount of the actual debt
- Actual amount of the damage
Discount Rate
- Up to 50% common
- 70-90% (in extreme contracts)
- Complete removal is very rare
Types of Violation
- Early termination of lease
- Violation of non-competition in employment contract
- Commercial contract penal clause
- Delay in refund of advance
Supreme Court 13. HD and 9. HD
13. HD adopts that "balance of rights" should be taken as basis in reducing penal sentences.
Debts lawyer is recommended.