Compensation

Compensation is a method of the termination of debts and claims without fulfillment. On the basis of compensation in relation to one person shall be terminated debts and claims which exist towards another person without fulfillment.

Compensation may be legal, contractual and unilateral.

Legal compensation is compensation which is conducted on the basis of the law, regardless of the willingness of participants in compensation. Currently legal compensation does not stipulated by the positive legislation of Republic Serbia. Contractual compensation is compensation which arising under the contract, while the unilateral form is arised on the basis of a unilateral statement of intention

Contractual compensation

Contractual compensation is not regulated by law explicitly, but it is allowed on the basis of freedom of contracting (autonomy of intention). Continue reading Compensation

Legal remedies in enforcement proceedings

Legal remedies in enforcement proceedings are the appeal and objection.

The appeal is used to contest the writ of the first instance court or the writ of the public enforcement officer, unless it is stipulated in the Law on enforcement and security interest the appeal is not permitted or that such writ is to be contested by objection.

The objection is filed against the writ on the motion for enforcement based on credible document, against other writs of the first instance court or public enforcement officer defined by the Law on enforcement and security interest, and in the form of the third party objection.

Only in case of objection of the third party an objection is permitted against the writ issued on the objection to the writ, and the appeal only against the writ issued on the objection to the writ of execution based on a credible document.

A conclusion is not subject to objection or appeal. The objection or appeal filed against a conclusion is dismissed by a writ or conclusion which completes the enforcement proceedings. Continue reading Legal remedies in enforcement proceedings

Collection of receivables from debtors in the blockade

Under conditions of the global financial crisis increases the risk of debt uncollectability. The risk of this type primarily depends on the individual claims, payment terms, economic and political conditions in the country, as well as the solvency and creditworthiness of the debtor.

The occurence of the debtor’s inability to fulfill its financial obligations due to blockage of business accounts is one of the biggest risks, whose implementation may result in a debtor’s bankruptcy, but in some cases may represent a cause of the creditor’s bankruptcy.

Answers on some questions, concerning with the possibility of the collection of receivables from a debtor who has in the blockade you can find in this article.

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Legal consequences of a blocked accounts are regulated by the Law on performing payment of legal persons, entrepreneurs and natural persons who do not perform activities. Continue reading Collection of receivables from debtors in the blockade