Responsibility of an individual entrepreneur for obligations

Entrepreneurial activity of an individual involves interaction with various organizations and individuals. Such interaction can be expressed in the form of conclusion of contracts for the provision of services or the supply of goods. The liability provided for by law for entrepreneurs in the event of failure to fulfill the terms of the contract differs significantly from the liability established for organizations.

Instruction manual

1

A citizen registered as an entrepreneur is responsible to his clients in the framework of all his property. In this case, his personal property, for example, a car, a summer residence, etc., is no exception. But basic necessities, such as clothing, housing, which is the only thing for him, the necessary household appliances, cannot be used to meet the requirements of persons to whom the entrepreneur owes.

2

Responsibility of an individual entrepreneur for obligations can be expressed in compensation for losses, which are understood not only as financial losses, but also the income that the counterparty could receive if the entrepreneur fulfilled his obligations under the transaction.

3

In addition to damages, an entrepreneur can be prosecuted in the form of a penalty. It can be expressed as a specific amount of cash, or can be indicated as a percentage of the contract price.

4

The entrepreneur continues to be liable for his debts even if he has completed his activities and no longer has the status of an entrepreneur.