Case Summary: Supreme Court (Commercial Circuit B) Contestation 160/2019 (Delay Penalties and Indirect Damages in Construction Contracts)

The Supreme Court held that delay penalties in a construction contract constitute agreed compensation that limits the liability of the debtor. Furthermore, the court ruled that compensation in contractual liability is limited to direct damages and does not extend to indirect damages, such as loss of profit from other projects or third-party lawsuits, particularly when the creditor failed to mitigate losses using agreed contractual mechanisms.