Summary

As opposed to the legal system found in the majority of Continental European countries, international conventions and model laws, the regulation of the Law of Obligations Act draws a distinction between two types of claims for the compensation of damage: a creditor may demand compensation from the debtor along with the performance of the obligation or in its place (§ 115 (1) of the Law of Obligations Act).

The article analyses the goals of the regulation substituting the performance of the claim for compensation, criteria for restricting a claim and the meaning thereof. At the same time, the conditions for the enforcement of the claim and the restrictions associated with the extent of the claim are covered. The author cites bottlenecks in legislation and judicial practice, and presents their proposals for overcoming them.