Rules on Reducing (Adjusting) of Penalty as Overriding in International Commerce

Abstract

Classical conflict regulation of international contracts in practice is often confronted with the special institutions of private international law, such as public policy and overriding rules. International contract law chosen by the parties or set by the Court in accordance with conflict bindings does not affect those overriding rules, which, owing to their importance, among other thing ensure the rights and legally protected interests of parties to civil law, govern the relationship. The concept of overriding rules in private international law does not have a universally accepted definition. Given that the vast majority of such rules is not directly indicate their overriding status, their identification in practice becomes complicated. The author concludes that the study of the special status of the rule of law must take into account not only the regulations and enforcement practice, but also the doctrine. From these positions, in an integrated manner, the author analyses the rules on reduction/adjustment of penalties of various legal families. The study identified a heterogeneous approach of the continental system of law to the issue of overriding rules on reduction/adjustment of penalty. There are three main approaches to the problem. Also, taking into account the study of the various countries, legal sources revealed the Muslim legal family approach to the issue in question. It is regarded as more homogeneous.