The parties to the agreement may regulate the legal relationship according to their own discretion, as long as the content or purpose does not conflict with the nature (characteristics) of the relationship, the law or the principles of social coexistence (Article 353¹ of the Civil Code). As a consequence, the parties may contractually determine the scope of responsibility, compensation and distribution of risk in bearing the consequences of failure to fulfill obligations. In contractual relationships, especially in professional trade, the provision of guarantees is an increasingly used structure, which may be an alternative to contractual penalties.
