Agreement compensation in Iraqi civil law

Abstract

consensual compensation is an agreement in which the two contracting parties specify in advance the amount of compensation to which the creditor is entitled if the debtor does not fulfill his obligation, breaches it, or delays its implementation. Subsequently, the agreement on the penalty clause was not intended for its own sake, but was made on the occasion of an agreement on another obligation and with the intention of compelling the contracting party to implement it. It is an agreement that does not generate an original obligation to compensate, but rather creates an accessory obligation to estimate the compensation, and the judge has the power to modify the agreed compensation by increase or decrease.