The Constitutional Court Clarified the Distinction Between Embezzlement and Breach of Contract

nikola šedová
Mgr. Nikola Šedová
7. October 2026
1 minute of reading
1 minute of reading
Legal news

Not every failure to pay promised money constitutes embezzlement. In its ruling, Case No. II. ÚS 1414/26, the Constitutional Court overturned the conviction in the case of a fishing tournament organizer who used part of the collected entry fees to pay off his own debt and subsequently failed to pay out the cash prizes. According to the court, it had not been reliably proven that the collected funds had merely been entrusted to him and remained the property of another.

Yet the very act of taking possession of another person’s property is one of the fundamental elements of the crime of embezzlement under Section 206 of the Criminal Code. In this case, the lower courts did not agree even on the nature of the contractual relationship between the organizer and the contestants, and thus also not on whether the entry fees became the property of the organizer.The Constitutional Court therefore emphasized the principle of in dubio pro reo: if a decisive fact cannot be established beyond a reasonable doubt, the court must rule in favor of the defendant. 

The ruling thus highlights the important distinction between a civil breach of contract and a criminal offense. Mere failure to fulfill an obligation or to pay the promised amount is not sufficient in itself to warrant a conviction for embezzlement. In this case, the Constitutional Court explicitly stated that the district court must acquit the defendant.

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