Application issues of contractual penalty

The thesis deals with a contractual penalty as an institution of private law. Thanks to the simple application of contractual penalty, it has become a traditional way of ensuring of debts which is frequently used as an instrument for strengthening the cre- ditor's position. Considering the growing non-formality of legal relations in current society, it is possible to expect the increase of contractual penalty's importance in future. The aim of this thesis is to explore the institution of contractual penalty with focusing on actual application issues which arise from its practical use. The thesis relates to the current legislation on contractual penalty of the Czech Civil Code, Act No. 89/2012 Coll. With regard to the nature of the topic, the thesis concentrates on the case law and the comparison with the previous legislation. In this way the legal development is reflected as well. The work consists of five chapters. The first chapter deals with the legal institution of contractual penalty in a general way, outlining the concept and functions of contractual penalty. This chapter also examines the current legislation on contractual penalty and the comparison with the previous legislation and the European legislation. In the second chapter, the thesis refers to the contractual penalty's negoti- ation..