Compensation for damage due to price change

Damage due to a price change can occur due to a delay in the performance of a monetary obligation established by the contract, i.e. the termination of the contract or due to a delay in the performance of an obligation determined by a legally binding decision. It can only be realised in the manner and under the conditions prescribed by the special provisions of the Law of Contract and Torts.

Compensation for damages due to a delay in the execution of a monetary obligation

In case of late payment of the contractually established monetary obligation, the debtor owes the creditor, in addition to the principal, default interest.

The creditor shall be entitled to default interest regardless of whether he has suffered any damage due to the debtor’s delay, as prescribed by the imperative provisions of Article 278, paragraph 1 of the Law of Contract and Torts.

Suppose the damage suffered by the creditor due to the debtor’s delay in the performance of the monetary obligation constituted by the contract is greater than the amount he would have received in the name of default interest. Continue reading Compensation for damage due to price change

Compensation for profit lost

According to the provisions of the Law of Contract and Torts, in addition to the right to compensation for ordinary damages, the injured party has the right to compensation in the form of profit lost.

Common damage represents a decrease in an existing property. At the same time, the profit lost is damage reflected in the impossibility of increasing the property or prospective property due to the actions or actions of the damager.

According to the provisions of Article 189, paragraph 3 of the Law of Contract and Torts, when assessing the amount of profit lost, the profit that could reasonably be expected according to the regular course of things or according to particular circumstances and whose realization was prevented by the harmed person’s act or omission, is taken into account.

The profit lost can appear in monetary and in-kind forms.

According to the understanding of court practice, lost benefit represents unrealized property value, regardless of whether it would appear in monetary or in-kind form and irrespective of the basis on which it would be realized. Profit lost can arise due to damage to things in the form of loss of natural and civil fruits that escaped the injured party. Continue reading Compensation for profit lost

Protection of consumers as users of air transport services – denied boarding of passengers and lost/damaged luggage

The contractual relations between the passenger-consumer who uses the air transportation service, as one contractual party, and the airline that provides this service, as the other contractual party, are applied as authoritative provisions:

  • Law on Obligation and Fundamentals of Ownership-Legal Relations in Air Traffic (“Official Gazette of RS”, No. 87/2011 and 66/2015),
  • The Montreal Convention, which the Law ratified on Confirmation of the Convention on the Unification of Certain Rules for International Air Transport (“Official Gazette of RS – International Agreements”, No. 38/2009) and
  • Law on Consumer Protection (“Official Gazette of RS”, No. 88/2021).

General rules of the Law on Obligation Relations (“Official Gazette of the SFRY”, no. 29/78, 39/85, 45/89 – decision of the USJ and 57/89, “Official Gazette of the SFRY”, no. 31/93, “Official Gazette of SCG”, No. 1/2003 – Constitutional Charter and “Official Gazette of the RS”, No. 18/2020) accordingly apply to all issues that are not regulated by the regulations mentioned above. Continue reading Protection of consumers as users of air transport services – denied boarding of passengers and lost/damaged luggage