Securing obligations through the institute of contractual penalties

Zuzana Lukáčová

doi:10.5219/legestic.11

Authors

Zuzana Lukáčová Matej Bel University, Faculty of Law, PhD student at the Department of Civil and Labour Law, Komenského 20, Banská Bystrica, 97517, Slovak republic, FNsP F.D.Roosevelt Banská Bystrica

DOI:

https://doi.org/10.5219/legestic.11

Keywords:

bill of exchange, contractual penalty, security for obligations, contractual obligation

Abstract

This paper examines the intricacies of legal processes related to the execution of promissory note rights, encompassing acts such as acceptance, transfer, guarantee, protest, payment, redemption, enforcement, and limitations concerning promissory notes. A comprehensive understanding of these procedures supports the effective application of this structured, abstract legal tool, which holds significant value in contemporary legal practice. Promissory notes, as unique financial instruments, are governed by specific legal frameworks which contribute to their precision and robustness, ensuring that they continue to serve as a reliable means for securing financial obligations. This study delves into the theoretical underpinnings and the practical implications of promissory note regulations, tracing their historical evolution and examining current applications in various legal systems. Furthermore, the analysis addresses the interaction between promissory note law and related securities laws, providing insights into how these frameworks support enforceable financial commitments. By detailing the rights and responsibilities inherent to promissory note transactions, the paper highlights the enduring relevance of this legal tool in the assurance of contractual obligations. Through this exploration, the paper aims to underscore the importance of a nuanced understanding of promissory notes relating to economic stability and legal certainty within domestic and international financial operations.

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