Recovery of Debt Under a Contract
Since 2008, the “First Legal” Law Firm has been successfully operating to protect its clients’ interests. The specialists of our Firm have extensive experience in resolving disputes concerning the recovery of debt under contracts, both out of court and in court. By choosing us, you will receive the highest level of service and be certain that professionals of the highest caliber are protecting your interests.
In the course of performing concluded contracts, questions frequently arise related to the improper performance of these contracts by one of the parties. Therefore, disputes concerning the recovery of monetary debt (for goods, work, or services), the recovery of penalties (fines, late charges), and the compensation of damages (including lost profits) constitute the most common category of disputes in judicial practice.
Legislation provides for a pre-trial dispute resolution process by submitting a claim, which must be prepared in compliance with the relevant legal requirements (Article 222 of the Commercial Code of Ukraine). Although, as a general rule, the claim procedure for protecting violated rights is an additional, not a primary, means of legal protection—and using or not using it does not affect the possibility of immediately filing a lawsuit in court—in some cases, its use is mandatory. The general principle of resolving disputes by claim or negotiation does not always yield the desired result, and thus there is a need to protect one’s violated rights by filing a lawsuit in court.
When going to court, it is important to have clear documentary evidence of the debt, i.e., the counterparty’s improper performance of its obligations under the contract terms.
It is also worth noting that a debtor is not released from liability for being unable to fulfill a monetary obligation and, at the creditor’s request, must pay the debt amount taking into account the inflation index for the entire delay period, as well as three percent annual interest on the overdue sum, unless the contract or law specifies a different interest rate.
Penalties are collected in the amount stipulated by the contract, taking into account legislative restrictions on the maximum amount of late fees for violating monetary obligations.
As we can see, the legislator imposes a number of mandatory requirements but also provides parties with fairly broad opportunities to voluntarily define contractual terms different from those prescribed by current legislation. Moreover, in order to properly prepare a statement of claim in court, it is necessary to correctly calculate any penalties and damages, as well as accurately substantiate the causal relationship and the legal basis for the claims. Therefore, it is impossible to proceed without professional legal assistance in many cases, and promptly seeking such assistance from the “First Legal” Law Firm will prevent mistakes and save both time and effort.
The service provided by the “First Legal” Law Firm in representing clients’ interests in disputes regarding the recovery of debt under a contract includes:
- Legal analysis of all necessary documents provided by the client;
- Preparation of a legal position and its coordination with the client;
- Collection of evidence (including through attorney requests);
- Preparation and filing of the statement of claim with the court, assistance with paying the court fee;
- Support in the enforcement of the court’s decision.
By agreement with the client, the “First Legal” Law Firm can also provide professional legal assistance from an attorney during court hearings and in appellate or cassation proceedings.