Question from Cop2, Can a Developer Refuse to Pay Delay Penalty in a Construction Contract?
Answer from AI:
In Poland, development contracts (umowy deweloperskiej) are governed by the Civil Code (Kodeks cywilny), which outlines the obligations and penalties for delays. Here’s a structured explanation:
General Obligations
- Contractual Penalties: Under Article 483 of the Civil Code, if a developer fails to meet deadlines, they are typically required to pay a contractual penalty (kara umowna) as specified in the contract.
Exceptions for Refusal
- Force Majeure: If delays are due to unforeseen events like natural disasters or pandemics, the developer may not be liable for penalties.
- Excessive Penalties: Courts can reduce penalties deemed excessively high under the concept of “sansura,” though some payment may still be required.
Consumer Protections
- The Consumer Rights Act provides additional protections, potentially requiring developers to pay statutory interest for delays, alongside any penalties.
Negotiation and Legal Recourse
- Developers and buyers can negotiate modifications to the contract, but unilateral refusal without agreement is not permitted.
- Courts may side with developers if delays are justified, such as due to buyer actions or unavoidable circumstances.
Conclusion
While developers are generally obligated to pay penalties, exceptions exist for force majeure and excessive penalties. Legal advice is recommended for specific disputes, as outcomes depend on contract terms and circumstances.
Polish Civil Code (Kodeks cywilny)
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Disclaimer: The information provided in this response is intended for general informational purposes only and should not be considered as legal advice. While we strive to provide accurate information, we make no guarantees regarding the accuracy or legal validity of the information presented. Laws and regulations vary by jurisdiction and can change over time, and the application of laws can vary widely based on the specific facts and circumstances involved. Therefore, you should consult with a qualified legal professional before making any decisions related to legal matters. Do not rely solely on the information provided in this response for any legal decisions. We disclaim any and all liability with respect to actions taken or not taken based on the contents of this response.
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