Humanities & Social Sciences 9 (2016 9) 2288-2294 ~ ~ ~ УДК 347.511 Misconduct in Contract Negotiations as the Basis for Compensation of Losses Tamara V. Shepel* Novosibirsk National Research State University 1 Pirogova Str., Novosibirsk, 630090, Russia Received 05.06.2016, received in revised form 09.07.2016, accepted 27.08.2016 Article 434.1. of the Civil Code of the Russian Federation considers the misconduct during contract negotiationsto be the basis for civil liability in the form of losses compensation. <...> However, the legislator does not define the concept of bad faith and its place among the constituent elements of the violation of law, which in the Russian legislation, doctrine and legal practice is traditionally recognized as the basis for liability. <...> The purpose of this article is to address the task relevant for the development of Russian civil law and law enforcement practice: to determine the nature of bad faith of the party in the course of or failure of contract negotiations, its relation to culpability as a condition for the traditional civil liability. <...> The research allows to conclude that bad faith of the party during negotiations cannot be an independent condition (element) of an offense. <...> The article gives a critical analysis of the Resolution No. 7 of the Supreme Court Plenum “On application by the courts of certain provisions of the Civil Code on liability for breach of obligations”dated March 24, 2016, in the part of clarification of the rules on the conditions of civil liability under Article 434.1. of the Civil Code. <...> Research area: Civil law; entrepreneurial law; family law; international private law. <...> Civil law provides for various forms of civil liability: contractual penalty, interest on borrowed funds, compensation for moral harm, deprivation of property rights, etc. <...> The Federal law N 42-FZ “On Amendments to Part One of the Civil Code of the Russian Federation” dated March 08, 2015, has expanded the scope of compensation of losses. <...> In particular, it assigns for additional basis for compensation of losses caused in the pre-contractual legal © Siberian Federal University. <...> All rights reserved * Corresponding author E-mail address: tomaser@mail.ru – 2288 – relationships: a) in case the assurance of the circumstances relevant to the contract, its execution or termination is unreliable (Article 431.2 of the Civil Code of the Russian Federation); b) in case the contract negotiation is unfair or interrupted, as <...>