The legal consequences of a clause defined by the parties as a “penalty clause” should be used in order to determine the nature thereof and not only the definition used by the parties, also because the legal consequences may indicate the true intention of the parties in respect of the specific clause.
A penalty of twice the amount overdue is not an unreasonable nor disproportionate deterrent to ensure that the debtor would pay the overdue amounts.Facts/Procedure
On 19 January 2012, Almami Samori Da Silva Moreira (the Player) and FC Vojvodina (the Club) concluded an Employment Contract for a period of two years, valid until 31 December 2013. Also, on the same day, the Player and the Club concluded an annex to the Employment Contract.
On 3 December 2012, the Player and the Club met and decided to mutually terminate the Employment Contract and the Annex. The “minutes of termination of the contract” were signed by the Player and by the Club. These minutes were certified by the Football Association of Novi Sad and were verified by the Football Association of Serbia. On the same day, the Player and a person on behalf of the Club signed a “Termination Agreement”, which obliged the Club to pay an amount no later than the 15 December. In...
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