No Paper Title Author Name Page No

firstly,
contractually and 
secondly,
in the 
form of breach of non-contractual obligations. 
The concepts of non-fulfilment or inadequate fulfillment of obligations are different from each 
other. 
Non-performance is defined as non-fulfillment of the terms of the contract (for example, non-
payment of the full contract fee or refusal to pay for the delivered goods or refusal to provide 
services, work, etc.). 
9
https://online.zakon.kz/Document/?doc_id=30514349 
10
Belov V.A. Civil law. Obshchaya i osobennaya chasti. Textbook. M.: "Center YurInfoR ". 2003. p. 
2402. C. _ 875.
11
Komarov A.S. Otvetstvennost v kommercheskom oborote. M.: Law . lit. 1991. S. 38.

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187
A
MERICAN Journal of Public Diplomacy and International Studies
www.
 grnjournal.us 
 
Inadequate fulfillment means non-compliance with contractual terms and legal requirements, and 
in the absence of such terms and requirements, business practices or other requirements that are 
usually imposed. Examples of this include non-payment in full, delivery of goods of poor quality 
and inconsistent assortment, performance of work and provision of services in a smaller volume 
than stipulated in the contract. 
Distinguishing the mentioned differences is important for determining the essence of applying 
the institution of penalty as a measure of property liability provided for in civil law, which is one 
of the methods of ensuring legal consequences arising from non-fulfillment of the terms of the 
contract. 
According to part 1 of Article 260 of the Civil Code of the Republic of Uzbekistan, the amount 
of money that the debtor must pay to the creditor in case of non-fulfillment or improper 
fulfillment of the obligation established by law or contract is considered non-payment. 
The following basic requirements are imposed on Penalty: 

the creditor shall not be obliged to prove the damage caused to him, the amount of the 
damage and the amount of unearned income. 
In contrast, under the Anglo-Saxon legal system, the creditor has to prove the amount of 
contractual damages and lost profits. This is one of the differences between the legal 
consequences of non-fulfillment of the terms of the contract in the two legal systems. 

Uzb. Res. According to Article 262 of the FC, the agreement on penalty must be made in 
writing. Only in such a case the injured party (creditor) has the right to demand payment of 
the default. The reason is Uzb. Res. It follows from the requirement of the provision in 
Article 115 of the FC "Failure to comply with the written form of the agreement is the reason 
for its invalidity"; 

with penalty, only real demand is provided. In other words, if Uzb. Res. If there is no reason 
for the occurrence of the default provided for in Article 260 of the CC, it is not possible to 
demand its payment by the creditor. Therefore, in order to apply penalty, there must be a fact 
of non-fulfillment or improper fulfillment of obligations by the debtor; 
It follows from the requirements of Articles 260 and 263 of the Civil Code of the Republic of 
Uzbekistan that penalty can be provided for in the agreement of the parties, that is, contractual 
penalty or the law (legal penalty). 
Uzb. Res. According to the first part of Article 261 of the FC, the penalty is in the form of a fine 
or surcharge. 
There are several differences between a fine and a penalty, which are considered forms of 
surcharge, and these differences are as follows: