REPARATION OF DAMAGES FOR BREACH OF CONTRACTUAL GUARANTEE: A COMPARATIVE STUDY

Abstract

A contractual guarantee constitutes a legal commitment undertaken by one party in favor of the other within the framework of a binding agreement. Through this guarantee, the obligated party agrees to compensate the other for any harm arising from the failure to fulfill contractual obligations or from defects in the subject matter of the contract. Such compensation aims to redress the losses incurred by the aggrieved party, whether due to non-performance or the existence of flaws in the contracted item. Contractual guarantees play a critical role in safeguarding the rights of contracting parties. They serve as a legal mechanism for addressing harm by ensuring that the injured party receives appropriate redress for the damages suffered. This may involve financial compensation for economic loss or other forms of harm, depending on the nature and extent of the damage. In addition to offering protection, contractual guarantees contribute significantly to risk mitigation. By clearly outlining the responsibilities and obligations of each party, and specifying the procedures to be followed in cases of breach or non-compliance, they help reduce uncertainties associated with contract execution. Furthermore, such guarantees foster mutual trust between the parties. They offer reassurance that each party is legally bound to uphold their respective obligations, thereby strengthening the overall stability and reliability of the contractual relationship.