Application of the mechanism of withholding penalty from the amount payed under a state contract by institutions of the penitiary system

The article is devoted to the advisability of including in a government contract a condition providing for the repayment of a fine by reducing the amount of payment to the supplier. Analyzing the provisions of government contracts of institutions of the penal system for the supply of food products in terms of establishing liability in the event of improper performance of contracts and judicial practice in this category of disputes, the author comes to the conclusion about the advisability of using this legal instrument in the content of government contracts. The author characterizes the legal nature of the mechanism for withholding a penalty in government procurement, speaking of it as an unnamed basis for terminating obligations.