The analysis of the nature of the penalty clause leads to the question of how broad its scope of compensation is. Taking into consideration the debate that has arisen in recent years regarding the compensation of non-monetary contractual damages, both discussions seem to be interconnected. Thus, it is pertinent to elucidate on the applicability of the contractual non-monetary damages within the penalty clause. This article will study the nature of both institutions and will determine whether the penalty clause compensates contractual non-monetary damages.
