Abstract
The article focuses in detail on the legal regulation of the contractual penalty ("smluvní pokuta") in the new Civil Code. It analyzes the concept of contractual penalty in the NOZ in general and the nature and conditions of the agreement on contractual penalty.
It refers also to the concept of contractual penalty as a generalization of damages and the possibility of judicial moderation of the unreasonably high contractual penalty. The last part of the article briefly deals with the institute of penalty ("penále").