OBSERVARE
Universidade Autónoma de Lisboa
e-ISSN: 1647-7251
VOL. 16, Nº. 2, TD3
Thematic Dossier
Rule of Law, Human Rights, and Institutional
Transformation in Times of Global and National Challenges
March 2026
100
LIABILITY FOR CAUSING PROPERTY LOSSES IN THE COURSE OF BUSINESS
ACTIVITIES
IURII BEDRATYI
rivne121985@gmail.com
PhD (Law Sci.), Associate Professor of the Department of Legal Environmental Protection
Disciplines Educational-Scientific Institute of Law National University of Water Management and
Natural Resources Rivne (Ukraine) https://orcid.org/0000-0001-9230-0438
TETIANA PROTSIUK
sdfm.finmon@gmail.com
PhD (Economic Sci.), Associate Professor Department of Operational Law
Educational and Scientific Institute of Military History, Law, and Social Sciences
National Defence University of Ukraine
Kyiv, (Ukraine)
https://orcid.org/0000-0003-2010-2146
OLENA NADIIENKO
o.nadienko@gmail.com
PhD (Law Sci.), Assistant Professor of the Department of Criminal, Civil and International Law
Faculty of Law National University “Zaporizhzhia Polytechnic” Zaporizhzhia (Ukraine)
https://orcid.org/0000-0001-6676-7616
OLENA PERUNOVA
snezkas79@gmail.com
PhD (Law Sci.), Docent of the Department of Accounting and Taxation
Faculty of Management and Business Kharkiv National Automobile & Highway University:
KHNADU Kharkiv (Ukraine) https://orcid.org/0000-0001-8246-8800
VOLODYMYR TSIKALO
voltsikalo@gmail.com
Doctor of Science (Law), Professor of the Department of Civil Law and Procedure, Faculty of Law
Ivan Franko National University of Lviv (Ukraine) https://orcid.org/0000-0002-6174-6928
Abstract
The relevance of the study lies in the need to improve mechanisms for compensating damages
arising from breaches of civil and commercial obligations during the full-scale armed conflict
in Ukraine. Existing legal provisions do not always ensure effective or consistent recovery of
damages, creating risks for legal certainty and economic stability. The objective is to develop
a theoretically grounded concept of a unified compensatory mechanism in Ukrainian civil and
commercial law that would enhance the efficiency of damages recovery and improve law
enforcement practice. The research is based on an interdisciplinary methodological approach
using the dialectical method to examine the relationship between contractual and tort liability;
formal legal and comparative methods to identify systemic links and conflicts in current
legislation; legal modeling to formulate a unified compensation mechanism; and structural-
functional analysis to determine problems and prospects for reform. The findings reveal key
contradictions between the Civil Code and Economic Code of Ukraine in regulating
compensation for damages. The absence of a unified approach to the correlation between
“damage” and “losses,” unclear boundaries of contractual and tort liability, and imperfect
JANUS.NET, e-journal of International Relations
e-ISSN: 1647-7251
VOL. 16, Nº. 2, TD3
Thematic Dossier - Rule of Law, Human Rights, and Institutional
Transformation in Times of Global and National Challenges
March 2026, pp. 100-121
Liability for Causing Property Losses in the Course of Business Activities
Iurii Bedratyi, Tetiana Protsiuk, Olena Nadiienko, Olena Perunova, Volodymyr Tsikalo
101
mechanisms for compensating moral damages and damages caused by lawful actions of public
authorities undermine the effectiveness of law enforcement. Based on structural and
functional analysis, the study proposes a comprehensive system of improvements aimed at
harmonizing civil and commercial law, unifying approaches to determining the composition of
compensation, and creating an effective mechanism for compensating business losses in
accordance with the rule of law and European standards. The proposed recommendations can
enhance the efficiency of damages compensation, ensure greater coherence in judicial
practice, and strengthen the systematic character of civil and commercial relations in Ukraine.
Keywords
Compensation for damages, regulation, compensatory mechanism, law enforcement, legal
aspects.
Resumo
A relevância do estudo reside na necessidade de melhorar os mecanismos de compensação
por danos decorrentes do incumprimento de obrigações civis e comerciais durante o conflito
armado em grande escala na Ucrânia. As disposições legais existentes nem sempre garantem
uma recuperação eficaz ou consistente dos danos, criando riscos para a segurança jurídica e
a estabilidade económica. O objetivo é desenvolver um conceito teoricamente fundamentado
de um mecanismo compensatório unificado no direito civil e comercial ucraniano que
aumentaria a eficiência da recuperação de danos e melhoraria a prática de aplicação da lei. A
investigação baseia-se numa abordagem metodológica interdisciplinar que utiliza o método
dialético para examinar a relação entre a responsabilidade contratual e a responsabilidade
civil; métodos jurídicos formais e comparativos para identificar ligações e conflitos sistémicos
na legislação atual; modelagem jurídica para formular um mecanismo de compensação
unificado; e análise estrutural-funcional para determinar problemas e perspetivas de reforma.
As conclusões revelam contradições fundamentais entre o Código Civil e o Código Económico
da Ucrânia na regulamentação da indemnização por danos. A ausência de uma abordagem
unificada à correlação entre «danos» e «perdas», os limites pouco claros da responsabilidade
contratual e extracontratual e os mecanismos imperfeitos de indemnização por danos morais
e danos causados por ações legais das autoridades públicas comprometem a eficácia da
aplicação da lei. Com base na análise estrutural e funcional, o estudo propõe um sistema
abrangente de melhorias com o objetivo de harmonizar o direito civil e comercial, unificar as
abordagens para determinar a composição da indemnização e criar um mecanismo eficaz para
indemnizar as perdas comerciais, de acordo com o Estado de direito e as normas europeias.
As recomendações propostas podem aumentar a eficiência da indemnização por danos,
garantir uma maior coerência na prática judicial e reforçar o caráter sistemático das relações
civis e comerciais na Ucrânia.
Palavras-chave
Indemnização por danos, regulamentação, mecanismo de compensação, aplicação da lei,
aspetos jurídicos.
How to cite this article
Bedratyi, Iurii Protsiuk, Tetiana, Nadiienko, Olena Perunova, Olena & Tsikalo, Volodymyr (2026).
Liability for Causing Property Losses in the Course of Business Activities. Janus.net, e-journal of
international relations. Thematic Dossier - Rule of Law, Human Rights, and Institutional
Transformation in Times of Global and National Challenges, VOL. 16, Nº. 2, TD3, March 2026, pp.
100-121. https://doi.org/10.26619/1647-7251.DT0226.6
Article submitted on 20 November 2025 and accepted for publication on 19 December
2025.
JANUS.NET, e-journal of International Relations
e-ISSN: 1647-7251
VOL. 16, Nº. 2, TD3
Thematic Dossier - Rule of Law, Human Rights, and Institutional
Transformation in Times of Global and National Challenges
March 2026, pp. 100-121
Liability for Causing Property Losses in the Course of Business Activities
Iurii Bedratyi, Tetiana Protsiuk, Olena Nadiienko, Olena Perunova, Volodymyr Tsikalo
102
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e-ISSN: 1647-7251
VOL. 16, Nº. 2, TD3
Thematic Dossier - Rule of Law, Human Rights, and Institutional
Transformation in Times of Global and National Challenges
March 2026, pp. 100-121
Liability for Causing Property Losses in the Course of Business Activities
Iurii Bedratyi, Tetiana Protsiuk, Olena Nadiienko, Olena Perunova, Volodymyr Tsikalo
103
LIABILITY FOR CAUSING PROPERTY LOSSES IN THE COURSE OF
BUSINESS ACTIVITIES
IURII BEDRATYI
TETIANA PROTSIUK
OLENA NADIIENKO
OLENA PERUNOVA
VOLODYMYR TSIKALO
Introduction
In today's context of socio-economic transformations and digitalization of the legal
system of Ukraine, ensuring the efficient functioning of civil and economic relations is
becoming a key factor of economic stability. Breach of contractual and tort obligations
creates economic risks for both business entities and individuals, which necessitates the
improvement of mechanisms for compensation for losses. Therefore, effective regulation
of liability is of particular relevance in times of war, when legal certainty and speed of
compensation procedures are increasingly important.
The theoretical and practical aspects of liability for breach of obligations have been
considered by a number of domestic and foreign authors. For example, Daryaie et al.
(2024) analyzed the general principles of damages and compensation mechanisms in
civil law, emphasizing the importance of a systematic approach to establishing causal
relationships and determining the amount of damages. Modern Ukrainian scholars draw
attention to the need to integrate contractual and tort liability into a single compensatory
mechanism, which allows for more effective law enforcement and reduces the number of
litigations (Melnyk et al., 2023; Nishchymna& Andrushchenko, 2024; Prilensky, 2021;
Zhegulyn, 2021).
At the same time, the practice of applying civil and commercial law shows that there are
significant differences in determining the amount of damages, criteria for their
compensation, and recovery procedures. This is due to uneven interpretation of the rules
by courts, different approaches to damage assessment, and insufficient integration of
modern digital technologies into the processes of proof and compensation. Such
JANUS.NET, e-journal of International Relations
e-ISSN: 1647-7251
VOL. 16, Nº. 2, TD3
Thematic Dossier - Rule of Law, Human Rights, and Institutional
Transformation in Times of Global and National Challenges
March 2026, pp. 100-121
Liability for Causing Property Losses in the Course of Business Activities
Iurii Bedratyi, Tetiana Protsiuk, Olena Nadiienko, Olena Perunova, Volodymyr Tsikalo
104
challenges require a comprehensive scientific study aimed at developing a unified
compensation mechanism capable of taking into account both contractual and tort
aspects of liability, ensuring a balance of interests of the parties.
The purpose of the article is toformulate a theoretically grounded concept of a single
compensation mechanism in the civil and commercial law of Ukraine, which would
increase the efficiency of damage compensation and improve law enforcement practice.
The objectives of the study include: systematization of the provisions of the Civil and
Commercial Codes of Ukraine on liability for breach of obligations; analysis of the practice
of application of these provisions by courts; identification of problematic aspects in
determining the amount of damages; and development of proposals for integrating
contractual and tort liability into a single compensation mechanism.
Literature Review
There is an urgent need for a comprehensive scientific understanding of the specifics of
the application of the new civil and commercial legislation of Ukraine within the
framework of economic legal relations, particularly in the context of a full-scale war and
deep socio-economic transformation of society, during the period of adaptation to the
European standards of private law and the acquis communautaire of the European Union
(EU). This problem has a twofold nature: on the one hand, there are significant difficulties
in interpreting the latest codifications, and on the other hand, there is an obvious lack of
case law on certain aspects of their application.
The discourse on the peculiarities of regulating liabilities for damages in the context of
business activities is becoming particularly relevant. For example, Melnyk et al. (2023)
emphasize that civil liability for damage in the field of economic activity becomes
especially relevant in times of war, when labor market transformations and increased
labor migration create additional risks for business. The authors point out that the legal
aspects of human resources management and security of economic systems should be
flexible so that businesses can maintain their viability despite material and legal changes.
Thus, their conclusions confirm the need to improve legal mechanisms for compensation,
introduce clear rules of liability and a systematic approach to regulating economic
relations in a crisis. Thus, the traditional legal understanding perceives these relations as
intra-civil, regulated by the provisions of the Civil Code of Ukraine (further – CCU).
However, part 2 of Article 9 of the Civil Code of Ukraine expressly states that
«peculiarities of regulation of property relations in the field of economic activity may be
established by law», which opens up space for specific regulatory regulation. Thus,
according to part 2 of Article 4 of the Commercial Code of Ukraine, «the peculiarities of
regulation of property relations of business entities are determined by this Code» (VRU,
2025a; 2025b). Thus, these legal provisions require law enforcement authorities to
carefully identify the institutional features of regulation laid down in the Commercial Code
in each branch of private law used in the framework of economic activity. This need is
driven by practical pragmatism: parties to commercial disputes will actively appeal to the
provisions of the Commercial Code, which may either increase the scope of compensation
for damages (for victims) or limit it (for the entities that caused the damage).
JANUS.NET, e-journal of International Relations
e-ISSN: 1647-7251
VOL. 16, Nº. 2, TD3
Thematic Dossier - Rule of Law, Human Rights, and Institutional
Transformation in Times of Global and National Challenges
March 2026, pp. 100-121
Liability for Causing Property Losses in the Course of Business Activities
Iurii Bedratyi, Tetiana Protsiuk, Olena Nadiienko, Olena Perunova, Volodymyr Tsikalo
105
During the period of Soviet statehood, the institute of civil liability in commercial legal
relations was not clearly distinguished in the scientific literature, but civil and commercial
law researchers identified characteristic features of the application of liability in the
context of production and economic legal relations as opposed to typical consumer
relations. For example, Berman (1947) highlighted the specifics of civil liability rules for
damage to collective farm property – in particular, he justified shortened limitation
periods for disputes between socialist organizations in the interests of strengthening
financial and planning discipline and stimulating the prompt exercise of property rights
of such organizations. Rudden (1967) and Sirianni (2020) also noted that when a socialist
organization is recognized as a victim, its freedom to choose the method of compensation
is limited: compensation must be consistent with the functional goals of the organization,
the nature of its property and planned tasks – today, this is consistent with the
requirements of the owner or his authorized body.
In the modern foreign discourse, the issue of civil liability is addressed in different ways.
For example, Van Dunné (1999) raises the complex issue of compensation for pure
economic losses arising without direct physical damage to property or a person. Based
on a comparative analysis of civil and common law, the author proves that in continental
systems liability for such losses is generally recognized, albeit with reservations, while in
common law it is traditionally rejected and allowed only in exceptional cases. The author
emphasizes the political arguments («floodgates argument») and the new use of the
classical categories of causation and negligence.
The expansion of the scope of liability in tort law was the subject of a separate study by
Priest (1991), who showed that since the 1970s in developed economies there has been
a sharp increase in the scope of liability, which has had a profound impact on the markets
for goods and services. The scholar argues that modern tort law, being based mainly on
non-economic principles, has led to significant dysfunctions in the insurance sector and
caused serious market distortions. At the same time, he critically assesses the reform
initiatives of the late twentieth century, pointing out their limited ability to eliminate the
root causes of the expansion of tort liability.
Instead, in modern Ukrainian scholarship, civil liability for damage caused in the course of
economic activity in Ukraine is viewed through the prism of a complex multi-level regulatory
array which combines both universal provisions of private law and specialized regulatory
structures focused on certain sectors of economic activity. In particular, it is noted that the
key sources are the Civil Code and the Commercial Code of Ukraine, as well as a number of
special laws that detail the procedure for compensation for damage in certain areas of
economic activity, thereby ensuring the complexity of legal regulation (Nishchymna&
Andrushchenko, 2024). This approach guarantees the protection of the rights of victims and
is also intended to formulate standards of responsible business behavior in a competitive
marketplace.
Within the doctrinal discourse, several key forms of liability are distinguished. For
example, non-contractual (tort) liability is associated with damage caused by negligence
or intentional acts, and a necessary condition for its occurrence is the presence of a
causal relationship between the act and the resulting damage (Zhegulyn, 2021).
Contractual liability, in turn, is caused by the breach of specific obligations arising under
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e-ISSN: 1647-7251
VOL. 16, Nº. 2, TD3
Thematic Dossier - Rule of Law, Human Rights, and Institutional
Transformation in Times of Global and National Challenges
March 2026, pp. 100-121
Liability for Causing Property Losses in the Course of Business Activities
Iurii Bedratyi, Tetiana Protsiuk, Olena Nadiienko, Olena Perunova, Volodymyr Tsikalo
106
civil law agreements; in scientific works, it is often illustrated by examples of
transportation relations, when, for example, a passenger is liable for damage caused to
the carrier (Prilensky, 2021). The issue of compensation mechanisms is essential in this
regard. They include both voluntary and mandatory forms of compensation, in particular
by filing a civil lawsuit in criminal proceedings or using state mechanisms for financing
compensation payments, which indicates the active role of the state in ensuring the
restoration of violated rights (Lapkin et al., 2019).
The issue of the effectiveness of compensation is also considered in the context of
economic analysis of law. The study by Daryaie et al. (2024) emphasizes that the
effectiveness of compensation mechanisms largely depends on their economic rationality
and ability to minimize transaction costs. The authors conclude that it is the combination
of legal and economic criteria that allows creating an optimal model for restoring the
violated rights of victims and ensuring a balance of interests of all participants in
economic relations.
In the context of technological transformations, liability for personal data breaches
attracts special attention of scholars. Cheng (2025) argues that in the «era of big data»,
traditional principles of tort law are not able to fully ensure adequate protection of
individual rights. He proposes a model of combining the principle of guilt and the
presumption of guilt as a single system of imputation of harm, while recognizing the need
to develop the compensatory and preventive-punitive function of civil liability. This
approach allows to harmonize the doctrine of liability with new social and technological
realities.
The question of civil liability for environmental factors that cause damage is equally
important. Alwreikat and Qtaishat (2025), analyzing the experience of Jordan, Egypt,
and France, argue that in the field of e-waste management, the most effective concept
is the objective theory of liability, which eliminates the need to prove the guilt of the
person causing the damage. This approach strengthens the legal mechanisms for
environmental protection and integrates the issue of waste recycling and disposal into
the broader context of achieving sustainable development goals.
In the Ukrainian regulatory space, many economic and legal mechanisms of
compensatory liability are covered in the Explanation of the Supreme Arbitration Court
of Ukraine «On some issues of the practice of resolving disputes related to compensation
for damage» No. v_215800-94 of 29.12.2007 (VRU, 2007c), which was subsequently
clarified by the Presidium of the Supreme Economic Court of Ukraine in the
Recommendations of the Presidium of the Supreme Economic Court of Ukraine «On
Amendments and Additions to the Explanation of the Presidium of the Supreme
Arbitration Court of Ukraine dated 01.03.1994 N 02-5/215 «On Some Issues of Practice
of Dispute Resolution Related to Compensation for Damage» No. va239600-07 dated
29.12.2007) (VRU, 2007a). These documents explicitly emphasize the need to take into
account the special provisions of the Commercial Code, in particular Article 249(3), Article
39(1), Article 153(1), Article 159(1), Article 162(3), Article 178(2), Article 216(2) (as an
example), as well as the method of calculating damages under Article 225(6) of the
Commercial Code of Ukraine (VRU, 2025b).
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e-ISSN: 1647-7251
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Thematic Dossier - Rule of Law, Human Rights, and Institutional
Transformation in Times of Global and National Challenges
March 2026, pp. 100-121
Liability for Causing Property Losses in the Course of Business Activities
Iurii Bedratyi, Tetiana Protsiuk, Olena Nadiienko, Olena Perunova, Volodymyr Tsikalo
107
However, in accordance with Article 225 of the Civil Code of Ukraine as it currently exists,
as amended, it includes only the following components of damages: the cost of lost,
damaged or destroyed property; additional expenses (penalties, additional work,
materials, etc.); lost profits; and material compensation for non-pecuniary damage, if
provided for by law. It is worth noting that part 2 of this article establishes that the law
may impose restrictions on civil liability for certain types of economic obligations. The
price criteria for calculating damages are outlined in paragraphs 3–4, and they are
contingent on the date of the claim's voluntary satisfaction or the claim's filing, with the
option to consider the price on the day of the decision. Instead, paragraphs 5-7 of Article
225 of the Civil Code of Ukraine were repealed by the Law of Ukraine «On Amendments
to Certain Legislative Acts of Ukraine on the Protection of Investors' Rights» No. 289-VIII
dated January 1, 2023 (VRU, 2023).
Thus, the current legal framework of Ukraine in the field of civil liability for damage
caused in the course of economic activity, on the one hand, creates a fairly developed
and multicomponent system of protection of victims' rights, and on the other hand,
demonstrates the existence of a number of challenges in terms of practical law
enforcement, especially in the area of proper compensation and the effectiveness of
enforcement mechanisms. The evolution of economic relations, including in high-risk
sectors, highlights the need for further reforms aimed at strengthening institutional
guarantees of fair compensation and establishing the principles of good faith and legal
certainty in the business sector.
Materials and Methods
The study's methodology is founded on the fact that the issue of civil liability for damages
in the realm of economic activity is interdisciplinary. These methods were used during
the study:
- the dialectical method was used to identify internal contradictions in the relationship
between contractual and tort liability and their development in the modern private law
doctrine. This approach made it possible to reveal the evolution of the compensatory
mechanism and to outline the patterns of its transformation in the context of economic
turnover;
- the formal legal method was used to analyze the regulatory body of civil and commercial
legislation of Ukraine (the Civil Code of Ukraine, the Commercial Code of Ukraine, special
laws and regulations). It made it possible to clarify the systemic links between the norms,
determine their hierarchy, and identify gaps and conflicts in legal regulation;
- the comparative legal method was used to compare the provisions of civil and
commercial legislation on compensation for damages (in particular, Articles 22, 623,
1166-1194 of the Civil Code of Ukraine and Articles 174, 222, 224-226 of the Commercial
Code of Ukraine). This method made it possible to identify differences in the categories
of «damage» and «losses», as well as the specifics of economic tort;
- the method of legal modeling was applied to the formation of the concept of a single
compensatory mechanism of private law, within the framework of which an institutionally
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e-ISSN: 1647-7251
VOL. 16, Nº. 2, TD3
Thematic Dossier - Rule of Law, Human Rights, and Institutional
Transformation in Times of Global and National Challenges
March 2026, pp. 100-121
Liability for Causing Property Losses in the Course of Business Activities
Iurii Bedratyi, Tetiana Protsiuk, Olena Nadiienko, Olena Perunova, Volodymyr Tsikalo
108
coordinated design integrating contractual and tort elements is proposed as the basis for
law enforcement practice;
- the method of structural-functional analysis was used to identify key issues and
prospects for their resolution in the area of compensation for damages in economic
relations. This approach allowed the author to identify internal contradictions of the
current legislation (in particular, the Civil Code and the Commercial Code of Ukraine),
classify them by type and propose targeted areas of improvement which will ensure
consistency of intercontractual and tort structures and practical implementation of the
principle of full compensation for damage.
Results
The issue of civil liability for damage caused within the framework of economic activity is
a key one in the private law doctrine, as it combines both elements of contractual
obligations and tort remedies. It is not by accident that Ukrainian court practice in the
early 1990s brought attention to the necessity of a thorough process for settling
disagreements pertaining to damages compensation. Thus, in the Explanation of the
Supreme Arbitration Court of Ukraine «On some issues of practice of resolving disputes
related to compensation for damages» No. v_215800-94 dated 29.12.2007 (VRU, 2007c)
(as further amended in the Recommendations of the Presidium of the Supreme Economic
Court of Ukraine «On Amendments and Additions to the Explanation of the Presidium of
the Supreme Arbitration Court of Ukraine dated 01.03.1994 N 02-5/215 «On some issues
of the practice of resolving disputes related to compensation for damages» No.
va239600-07 of 29.12.2007) (VRU, 2007a), it was emphasized that it is necessary to
take into account special provisions of the Commercial Code of Ukraine (part. 3, Article
249, Article 39(1), Article 153(1), Article 159(5), Article 162(3), Article 178(2), Article
216(2)), as well as the methods of determining the amount of losses in the field of
business provided for in Article 225(6) of the Commercial Code of Ukraine (VRU, 2025b).
These acts laid the foundation for further law enforcement practice, but left a number of
open questions related to the correlation between the concepts of «loss» and «damage», as
well as the limits of application of contractual and tort constructions. The modern doctrine
recognizes that the institute of damages as a result of breach of obligation and the institute
of damage as a tort phenomenon have different normative origins, but in practice their
interaction is inevitable.
The law enforcement practice has also developed an approach according to which a clear
distinction should be made between (1) the debtor's duty to pay for losses caused by
not performing or performing improperly an obligation (Article 623 of the Civil Code of
Ukraine) and (2) non-contractual damage, which is regulated in Chapter 82 of the Civil
Code of Ukraine (Articles 1166-1194) (VRU, 2025a).
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Liability for Causing Property Losses in the Course of Business Activities
Iurii Bedratyi, Tetiana Protsiuk, Olena Nadiienko, Olena Perunova, Volodymyr Tsikalo
109
Figure 1. Comparative Characteristics of the Application of Civil Law and Commercial Law
Regulations on Liability for Damage in the Course of Business Activities
Source: compiled by the author on the basis of VRU (2025a; 2025b)
Characteristics
The Civil Code provides
general provisions, while
the Commercial Code
specifies them in the field
of economic activity,
creating a dualistic model
of liability regulation
The Civil Code has the
principle of full
compensation, while the
Commercial Code has a
pragmatic approach
Both Codes form similar
structures, but the
Commercial Code takes
into account the specifics
of business risk
The CC introduces the
«economic tort» category
In economic relations, lost
profits are considered as a
key element for
assessingeconomic
efficiency
The Commercial Code
provides more room for
taking into account economic
feasibility
courts follows the path of
complementarity of
institutions rather than
theirstrict separation
Commercial Code of
Ukraine
Also taken into
account when
determining damages
(Articles 224)
Consideration of the
principle of
proportionality,
methods and balancing
of interests (Art. 225)
Possible overlap (e.g.,
Article 224 of the Civil
Code covers both
types)
Civil Code of
Ukraine
Included in damages
(according to Article 22
of the Civil Code)
There is no direct rule,
but judicial reduction is
allowed (court practice)
Clear distinction:
contract - Art. 623, tort -
Ch. 82
Criterion
Contractual
liability
Tort liability
Amount of
compensation
Normative
basis
Lost profit
Correlation of
contractual and
non-contractual
Possibility to
reduce the
amount of
liability
Chapter 82
«Compensation for
Damage» (Articles 1166-
1194), Article 22
Art. 224, Art. 225,
Art. 249 (3), Art. 39
(1), Art. 153 (1), Art.
159 (5), Art. 162 (3),
Art. 178
In full (according to Art.
1166, Art. 1192 of the
Civil Code)
Consideration of
methods for
determining the
amount of damages
(Art. 225 of the Civil
Code)
Art. 623 of the Civil
Code: the debtor shall
compensate damages for
non-performance/
improperperformance of
obligations
Art. 224 of the
Commercial Code:
compensation for
damages for breach
of economic
obligation
Art. 224 of the
Commercial Code:
losses are possible
not only from breach
of obligations, but
also from violation of
requirements
forconducting
economic activity
General rule: damage is
subject to compensation
regardless of fault
(Article 1166 of the Civil
Code)
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Thematic Dossier - Rule of Law, Human Rights, and Institutional
Transformation in Times of Global and National Challenges
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Liability for Causing Property Losses in the Course of Business Activities
Iurii Bedratyi, Tetiana Protsiuk, Olena Nadiienko, Olena Perunova, Volodymyr Tsikalo
110
The importance of this matter is substantiated by the fact that Chapter 82 of the Civil
Code of Ukraine contains only a general rule on compensation for damages «in full»
(Article 1166), but does not define in detail either the components of compensation, the
possibility of its reduction, or the procedure for compensation for lost profits. Instead,
commercial law (Articles 224, 225, 249 of the Commercial Code of Ukraine) expressly
establishes the possibility of compensation for damages both in case of breach of an
obligation and in case of non-compliance with «established requirements for conducting
business activities», which in fact covers the tort liability of business entities (VRU,
2025b).
A participant in economic relations who violates an economic obligation or established
requirements for conducting economic activity must, therefore, reimburse the entity
whose rights or legitimate interests have been violated for the losses resulting from the
violation, as per part 1 of Article 224 of the Commercial Code of Ukraine.
This provision demonstrates an organic combination of contractual and tort elements, as
damage can arise not only from the failure to fulfill a contract, but also from a violation
of general business rules (VRU, 2025b). Additionally, Article 22 of the Civil Code of
Ukraine defines «damages» as a universal category covering any violation of civil rights,
and Article 1192 of the Civil Code provides for both compensation in kind and in monetary
form (VRU, 2025a).
Therefore, the provisions of the Civil Code and the Commercial Code of Ukraine on
recovery of damages for breach of obligations may (and should) be applied to relations
for compensation for non-contractual damage in the field of business, but only to the
extent that they do not contradict the provisions of Chapter 82 of the Civil Code of Ukraine
(VRU, 2025a). This does not mean that contractual and tort liability are equated, instead,
that private law has a single compensatory mechanism that makes it possible to fill in
legal gaps and guarantees the efficient defense of business entities' rights and legitimate
interests.
One of the most problematic issues in the field ofThe challenge of reflecting their sectoral
specificity is among the most troublesome problems in the area of legal regulation of
compensation for damage in economic relations is the problem of reflecting their sectoral
specificity. The study of the The conclusions drawn from the analysis of current
legislation's provisions of current legislation leads to the conclusion that theare that some
reformers' proposals of some reformers regarding the abolition of to abolish the Economic
Code of Ukraine as an separate law independent act and complete unification of fully
unify its provisions with the provisions those of the Civil Code of Ukraine are both
methodologically incorrect flawed and practically dangerous hazardous for the business
sector community. Commercial legal relations, unlike purely civil ones, require the use
of specialized tools focused on the professional sphere of business, which makes it
impossible to identify the mechanisms of liability in civil and commercial law. Ignoring
this specificity leads to the destruction of traditions established in commercial circulation,
distortion of business loss compensation procedures and their replacement with general
civil remedies that are formally acceptable but essentially inadequate and harmful to the
business environment.
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Ukrainian legislation provides for a number of Several provisions that directly indicate
the special nature of Ukrainian legislation explicitly denote the unique nature of the
institution of compensation for damage in the field of business. Thus, pursuant to Part 1
of Article 174 of the Commercial Code of Ukraine, an economic obligation may arise as a
result of damage to a business entity or by the business entity itself. This indicates that
liabilities for damages in such cases fall into the category of property and economic
liabilities. At the same time, part 3 of Article 175 of the Civil Code of Ukraine explicitly
states that damage caused by an individual who does not have the status of an
entrepreneur cannot give rise to an economic obligation, which further confirms the
autonomy and specialization of economic legal mechanisms (VRU, 2025b).
Figure 2. Scheme of a single compensatory mechanism in private law
Source: compiled by the author
Elements
Peculiarity of
application
Legal and
regulatory
Object of
protection
Form of
compensation
Article 623 of the Civil
Code; Chapter 51 of
the CC; rticles 224-
225, 249 of the
Commercial Code
Violation of creditor's
rights within the
obligation
Compensation for
damages (actual
damages and lost
profits)
Arises from non-
performance /
improper
performance of the
contract
Arises from violation
of general rules of
conduct and business
Compensation for
damage (in kind or in
money)
Violated rights in
case of damage
outside the contract
Ch. 82 of the Civil
Code (Articles 1166-
1194); Articles 224-
225 of the
Commercial Code
Universality of the category of
"losses": covers contractual and
non-contractual cases
Types of liability
Tort liability
Contractual
Compensation function: restoration
of violated rights regardless of the
form of liability
Flexibility of application:
compensation both in kind and in
cash; covers lost profits
Complementarity of the provisions
of the Civil Code and the
Commercial Code: commercial law
allows for the application of
damages to tort cases as well
Common element
Protection of rights
in contractual
obligations
Protection of rights in
non-contractual
relations
Purpose: to create a unified
compensatory mechanism in
private law that integrates
contractual and tort remedies and
ensures effective restoration of
rights and interests of business
entities
The overall
result
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The content and structure of such obligations indicate the existence of a separate tort
institute of economic law, which, although it corresponds to civil law tort, is not identified
with it. It is about a set of provisions that form the specifics of the economic law approach
to determining and compensating for damage. In particular, part 1 of Article 222 of the
Civil Code of Ukraine provides for the possibility of initiating a pre-trial settlement of a
dispute over compensation for damage by the injured party, which reflects the economic
law orientation towards discretion and balance of interests (VRU, 2025b). Compensation
for non-pecuniary damage should be given special consideration. In the economic sector,
it can only be considered a business entity's business reputation being violated, as
opposed to the more general grounds outlined in Article 23 of the Civil Code of Ukraine
(VRU, 2025a).
Another important difference is the regulation of liability of public authorities. While
Article 393 of the Civil Code of Ukraine provides for compensation for damages only in
case of unlawful decisions or actions, part 5 of Article 47 of the Commercial Code of
Ukraine allows for recovery of damages even for lawful decisions that objectively led to
negative property consequences for business entities (VRU, 2025a; 2025b). This
provision clearly demonstrates the orientation of commercial legislation to protect
business stability, rather than purely to formal compliance with the principle of legality.
No less significant is the expanded list of damages enshrined in Article 225 of the
Commercial Code of Ukraine, which differs significantly from Article 22 of the Civil Code
of Ukraine. Commercial law recognizes «lost income» as an element of damages that is
calculated not in the abstract, buttaking into account economic specifics: by reducing the
gross income of a business entity by the amount of gross expenses and depreciation
(Article 142 of the Commercial Code of Ukraine) (VRU, 2025b). In contrast to the civil
law approach, which defines lost profits as income that an individual could actually
receive under normal circumstances, this sets apart the economic understanding of lost
profits (Article 22(2) of the Civil Code of Ukraine) (VRU, 2025a).
Additionally, part 3 of Article 226 of the Civil Code of Ukraine provides for a special ground
for reducing the amount of compensation: a business entity is denied the right to
compensation for losses if it was promptly informed of a potential failure to fulfill an
obligation and could have prevented the adverse consequences, but failed to do so. This
provision has no analogues in civil law, which confirms the separateness of economic
torts.
Significant peculiarities can be traced in the methods of determining damage. Instead of
the universal approach of Art. 22 of the Civil Code of Ukraine, commercial law relies on
special regulations. Thus, part 6 of Art. 225 of the Commercial Code of Ukraine provides
for the use of methods approved by the Cabinet of Ministers of Ukraine (further – CMU),
including, in particular, the Resolution of the CMU
«On Approval of the Methodology for Determining the Amount of Damage Caused by
Unauthorized Occupation of Land Plots, Use of Land Plots for Other Purposes, Removal
of Soil Cover (Fertile Soil Layer) without Special Permit» No. 963 of 25.07.2007 (VRU,
2007b); «On Taxes for Calculating the Amount of Damage Caused by Violation of the
Legislation on the Nature Reserve Fund of Ukraine» No. 287-93-p of 03.04.1995 (VRU,
1995); and «On Taxes for Calculating the Amount of Damage Caused to Green Areas
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within Cities and Other Settlements» No. 559-99-p of 29.02.2012 (VRU, 2012a). In the
absence of modern methods, the Temporary Methodology for Determining the Amount
of Damage from Breach of Economic Contracts, approved by the Order of the State
Property Fund of Ukraine «On Approval of the Methodology for Determining the Damage
and Amount of Damage Caused to Enterprises, Institutions and Organizations of All
Forms of Ownership as a Result of Destruction and Damage to Their Property in
Connection with the Armed Aggression of the Russian Federation, as well as Loss of Profit
from the Impossibility or Obstacles to Conducting Economic Activity» (No. z1522-22 of
18.10.2022), may also serve as a guide. An additional element of the specialty of
commercial law is the regime of double compensation for damage caused by violations
of competition law, enshrined in part 2 of Article 55 of the Law of Ukraine «On Protection
of Economic Competition» (VRU, 2024), which is completely alien to civil law. Thus,
commercial law forms an autonomous compensatory mechanism within which
compensation for damage acquires the characteristics of a special tort. This mechanism
is not isolated from civil law, but it is also not reduced to its provisions, which leads to
its consideration as a separate, institutionally justified form of civil liability in the field of
business.
In addition, another conceptually complex problem, which is reflected in paragraph 9 of
the Explanation of the Supreme Arbitration Court of Ukraine «On some issues of practice
of resolving disputes related to compensation for damage» No. v_215800-94 of
29.12.2007 (VRU, 2007c), is the issue of determining the legal nature of damage caused
in the field of business as a result of non-enforcement of a court decision. This issue is
of practical and methodological importance, as it affects the limits of application of both
tort and obligation constructions in commercial law. Therefore, first of all, it should be
emphasized that a court decision as a legal fact may be recognized as the basis for a new
obligation only in exceptional situations. These are, in particular, cases of restitution
under an invalid disputed contract (Article 208 of the Commercial Code of Ukraine), when
the court obliges the parties to return what they received under the contract; situations
of recognizing a contract as concluded by a court decision (Article 187, Article 219 of the
Commercial Code of Ukraine), as well as a number of other specific cases (VRU, 2025b).
In such situations, the court decision does create a new obligation that did not exist
before it was made. In most cases, however, judicial acts do not create new obligations,
but rather ensure their enforcement by giving them the form of an enforcement
document. For example, a decision to recover damages states the fact of a violation and
determines its scope and procedure for compensation, while the obligation to compensate
arises on the basis of a preliminary fact of an offense. This is further supported by the
fact that, even prior to the court's ruling, the debtor is entitled to voluntarily make up
the damages.
Based on this, it seems methodologically incorrect to define non-enforcement of a court
decision as a tort. Within the meaning of Chapter 82 of the Civil Code of Ukraine (Article
1166), tort damage results from the violation of absolute rights of a person protected by
the general prohibition of harm. In the case of non-enforcement of a court decision, it is
not a violation of an absolute right, but rather the improper fulfillment of a specific
obligation. Therefore, the legal basis for the creditor's claims in such a situation should
be sought not in tort provisions, but in the rules on liability for breach of obligations -
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Articles 623 and 625 of the Civil Code of Ukraine, as well as Chapter 25 of the Commercial
Code of Ukraine. In particular, the concept of «court decision as a source of tort damage»
negates the principle of full compensation for damage enshrined in Article 1166 of the
Civil Code of Ukraine (VRU, 2025a). After all, tort compensation provides for continuous
and systematic accounting of all losses of the injured party from the moment they occur
until the moment of actual compensation. The reclassification of this obligation as a
«judicial» obligation breaks the unity of the compensation process by introducing an
external factor - the possibility or impossibility of enforcing a court decision.
The problem is further complicated by the position reflected in paragraph 9 of the
Explanation of the Supreme Arbitration Court of Ukraine on damages (VRU, 2007c),
according to which the court must determine whether it was actually possible to enforce
the judgment at the time it was presented for enforcement. However, this provision
seems questionable given the current substantive law. Pursuant to Article 1192 of the
Civil Code of Ukraine, compensation for damages may be made in two forms - in kind or
in cash. If compensation is made in cash, then pursuant to Article 625 of the Civil Code
of Ukraine, the debtor is not released from liability for the inability to fulfill a monetary
obligation (VRU, 2025a). Thus, a court review of the «possibility of fulfillment» would be
contrary to the law.
A different situation arises when it comes to a court decision on compensation for damage
in the form of transferring a specific thing or performing a certain action. Here, of course,
the objective impossibility of performance may be relevant. However, it does not
eliminate the debtor's obligation itself, but rather affects the procedure for its realization.
In such cases, procedural rules apply, in particular, Article 33 of the Law of Ukraine «On
Enforcement Proceedings» (No. 1404-VIII of 10.08.2025), which allows the court or
enforcement body to grant a deferral or installment plan, as well as to change the method
and procedure for fulfilling the obligation (VRU, 2025c). Thus, the legal qualification of
non-enforcement of a court decision as tort damage is unacceptable from a doctrinal
point of view and contrary to the system of national legislation. The only correct approach
seems to be to qualify such legal relations as obligatory, with the appropriate application
of the provisions of the Civil Code of Ukraine, the Economic Code of Ukraine and special
laws.
It is impossible to overlook one of the most contentious topics when analyzing the
problems of damages compensation in the field of economic relations: compensation for
losses suffered by businesses as a result of illegal decisions, actions, or inaction on the
part of local self-government bodies and public authorities.Even the Clarification of the
High Commercial Court of Ukraine on compensation for damages emphasizes the
unlawful actions of state enforcement officers as a basis for imposing tort liability.
However, this issue does not exhaust the whole range of issues. Thus, in the field of land
relations, numerous offenses arise due to the adoption of unlawful decisions by local
governments, which necessitates amendments to the Law of Ukraine «On Local Self-
Government» (No. 280/97-VR of 08.08.2025) (VRU, 2025d).
The current stage of development of Ukrainian legislation is characterized by a
comprehensive regulatory framework for the institution of liability of public authorities
for damage caused to business entities. Thus, the Economic Code of Ukraine contains a
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number of provisions that directly define the grounds for such liability: Article 23(7),
Article 40(7), Article 47(4-5), Article 74(6), Article 88(8), Article 147(3), Article 249(3),
Article 255, Article 397(5-7) (VRU, 2025b). According to the Civil Code of Ukraine,
damage caused by public authorities is covered by the provisions of Article 393 and
special provisions of Articles 1173-1176, which expressly establish the liability of the
state, the Autonomous Republic of Crimea and local self-government bodies for unlawful
decisions, actions or omissions (VRU, 2025a). Additionally, Article 77 of the Law of
Ukraine «On Local Self-Government» (VRU, 2025d) and Article 13(3) of the Law of
Ukraine «On the State Tax Service» (VRU, 2012b) provide for the possibility of
compensation for damage caused by the relevant authorities in the course of exercising
their powers.
At the same time, despite the developed regulatory framework, a number of problems
remain open. First of all, it is the issue of distinguishing between lawful and unlawful
actions of officials, which is crucial for the emergence of the obligation to compensate for
damage. The issue of personification of public authorities as independent subjects of civil
liability is no less complicated, since they traditionally act on behalf of the state or a
territorial community. The issue of jurisdiction is also controversial: the division of
competence between commercial and administrative courts in disputes related to
compensation for damage caused by the actions of public authorities. The mechanism of
actual enforcement of funds from the state or local budget remains extremely
problematic, which creates a conflict between the principle of full compensation for
damage and the limitations of budget legislation.
Resolving these issues is an urgent need for the state in times of war, which also
proclaims the development of entrepreneurship as one of its key priorities. A qualitative
enhancement of the legislative framework is necessary to guarantee adequate
compensation for damage caused by unlawful actions of public authorities, as indicated
in Table 1.
Table 1. Key problems and prospects for their solution in the field of compensation for damage
in economic relations
Problem
Essence of the problem
Proposed solution
Correlation of
the concepts of
«losses» and
«damage»
In the Civil Code of Ukraine (Art.
22), damage is a universal category,
while the Commercial Code (Arts.
224, 225, 249) treats losses as
covering both contractual and tort
cases, creating uncertainty over
whether these concepts coincide or
differ.
Introduce a legislative definition clarifying
the relationship between “losses” and
“damage,” recognizing losses as a broader
category that includes damage and lost
profits, and amend Article 22 of the Civil
Code of Ukraine to harmonize it with Article
225 of the Commercial Code of Ukraine.
Limits of
application of
contractual
and tort
structures
In practice, disputes often arise
when damage is caused within
existing contractual relations but
outside the contract’s scope (e.g., a
contractor’s negligent acts).
To codify in the Civil Code (e.g., Article 623)
the presumption that the existence of a
contract does not preclude tort liability
where damage arises outside the
performance of the contractual obligation, in
line with § 280 BGB (Germany).
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Lack of detail
on the
composition of
compensation
Art. 1166 of the Civil Code contains
a general rule on «full
compensation», but does not detail
the procedure for compensation for
lost profits, the possibility of
reducing compensation, etc.
Amend Chapter 82 of the Civil Code of
Ukraine to provide for a structure of
compensation similar to Article 225 of the
Commercial Code of Ukraine: direct
damage, lost profits, lost income, additional
expenses, which will unify the practice.
Specifics of
economic tort
In the Civil Code, tort is based on
violations of absolute rights, whereas
in the Commercial Code of Ukraine it
centers on economic activity and
professional risk, and the lack of a
clear definition leads to
methodological errors.
Recognize the autonomy of economic tort as
a separate institution at the level of doctrine
and law. To enshrine in the Civil Code the
definition of «economic tort» as damage
caused in the field of professional business
activity, which differs from the tort of civil
law.
Compensation
for non-
pecuniary
damage in
commercial
law
The Civil Code of Ukraine (Article 23)
recognizes a broad range of non-
pecuniary losses, whereas
commercial law allows them only for
damage to business reputation,
creating legal conflicts.
Enshrine in the Civil Code of Ukraine (Part 1
of Article 222) a provision that clearly
defines that moral damages in economic
relations are limited to violation of business
reputation and special compensation for
loss of business image.
Compensation
for damages
by lawful
actions of
public
authorities
Article 393 of the Civil Code provides
for liability for unlawful acts, while
part 5 of Article 47 of the
Commercial Code allows for recovery
of damages even for lawful acts that
have caused negative consequences,
including a conflict of regulations.
A special institute of «compensation for
legitimate damage» should be established
at the legislative level, limiting it to cases
where an act of a public authority has
objectively caused losses for business.
Failure to
enforce court
decisions
Some scholars and courts equate the
failure to enforce a court decision
with a tort, although in fact it is an
improper fulfillment of an obligation
(Articles 623, 625 of the Civil Code;
Chapter 25 of the Commercial
Code).
Introduce in the Civil and Commercial Codes
of Ukraine the rule that failure to enforce a
court decision constitutes a breach of
obligation, not a tort, to eliminate doctrinal
contradictions and align with procedural law
(Article 33 of the Law «On Enforcement
Proceedings»).
Methods of
determining
damage
The Civil Code (Article 22) adopts a
universal approach, whereas the
Commercial Code (Article 225(6))
allows special methods approved by
the CMU (Resolutions No. 963/2007,
No. 287/1995, No. 559/2012), and
the lack of a unified standard creates
legal uncertainty.
Develop a single comprehensive
methodology for assessing damage that
combines civil and commercial approaches.
Introduce mandatory forensic examination
in cases where damage is determined by
special methods.
Lack of a clear
mechanism for
recovering
damages from
the budget
Although the Civil Code (Articles
1173–1176) and the Commercial
Code (Articles 23, 40, 47, 88, 147,
249, 255, 397) regulate state and
local government liability,
enforcement is often hindered by
budget legislation.
Introduce a special procedure for enforcing
compensation from the budget by creating a
state fund to guarantee damages from
authorities, in line with the rule of law and
ECHR practice (Article 6 of the Convention).
Source: compiled by the author based on VRU (2021; 2025a; 2025b)
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Discussion
This construction, as the analysis of legislation and its application practice shows, is not
accidental, but is driven by the needs of economic circulation, where compensation for
damage cannot be reduced to purely civil law instruments.
In this context, a paradox is revealed: attempts to unify civil and commercial regulation
(through proposals to eliminate the Civil Code of Ukraine) come into conflict with the
actual needs of economic circulation, where damage arises not only in the field of
relations of obligation but also as a result of violation of general business rules. Unlike
general civil torts, in commercial relations, the priority is to compensate for business
losses, restore business reputation and maintain commercial stability. In fact, as the
practice of other legal orders demonstrates (Van Dunné, 1999; Priest, 1991), ignoring
the specifics of the economic context leads either to an excessive expansion of tort
liability with undesirable market effects or to an excessive narrowing of compensation
opportunities (the case of pure economic loss in common law).
The results of the study confirm the conclusion that there is a «single compensatory
mechanism» in private law of Ukraine, which combines civil and commercial structures
of compensation for damage. However, unlike the universal model of the Civil Code,
commercial law instruments provide for an expanded range of damages, including lost
income and special forms of non-pecuniary damage (in the context of business
reputation), and allow for compensation even for lawful actions of public authorities. This
situation significantly brings the Ukrainian model closer to the concept of «objective
responsibility» that modern science is actively developing in the field of environmental
risks and high-tech challenges (Alwreikat&Qtaishat, 2025; Cheng, 2025).
Comparing the results with foreign approaches reveals several important patterns. First,
the effectiveness of compensation mechanisms is determined not so much by the degree
of their formal universality as by their adaptability to the specifics of the market
environment (Daryaie et al., 2024). Secondly, in the current environment, economic
activity covers high-risk areas - from the digital economy to waste management - where
the classical tort principles (fault, causation, full compensation) are insufficient. That is
why the expansion of the limits of liability, which Priest (1991) noted in Western systems,
takes on a new meaning in Ukraine: not as an «overload» of the legal order, but as a
need for an adequate response to the complication of economic processes. Thirdly, the
Ukrainian model of compensation for damages in commercial legal relations combines
traditional tort elements with commercial legal functionality, creating a unique structure
that can serve as a model for legal systems with similar socio-economic challenges. This
is also confirmed by the analysis of law enforcement: the practice clearly distinguishes
between cases of damages for failure to fulfill obligations and tort situations, but at the
same time applies the same compensatory criteria (Articles 224, 225 of the Civil Code of
Ukraine). This approach is consistent with the concept of «hybrid» obligations, which is
increasingly seen in the doctrine as an adequate response to the current challenges of
private law.
Thus, the discussion around civil liability in the field of economic activity demonstrates
that the key challenge is not so much to find the boundaries between civil and commercial
law as to develop a balanced compensation mechanism capable of ensuring legal
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certainty, economic efficiency and fairness of compensation. In this sense, Ukraine's
experience may be conceptually important for other transitional legal orders facing
similar problems – fragmented regulation, lack of established practice, and rapidly
changing economic and technological conditions.
Conclusions
This study demonstrates that the mechanisms of civil liability in Ukrainian commercial
law form a single compensatory complex that combines contractual and tort remedies
for damages. Such a system provides legal certainty, protects economic stability and is
aimed at compensating both direct damage and lost profits arising from the breach of
obligations.
In order to apply the provisions of the Ukrainian Civil and Commercial Codes, it is
necessary to further harmonize methods for calculating damages and to more clearly
regulate the relationship between contractual and tort liability, according to an analysis
of the current legislation. The study notes that there is a need to improve the procedures
for assessing damages, unify judicial practice, and adapt legal instruments to modern
socio-economic and technological challenges, including digitalization and new forms of
business activity.
The results obtained confirm that a unified compensation mechanism contributes to
improving the efficiency of legal regulation, minimizing risks for business structures and
making certain that the parties' interests are balanced. The practical significance of the
study lies in the development of scientifically based recommendations for legislative
initiatives and the development of law enforcement practice aimed at improving the
system of compensation for losses and strengthening the legal security of commercial
relations in Ukraine.
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VOL. 16, Nº. 2, TD3
Thematic Dossier - Rule of Law, Human Rights, and Institutional
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