Dropshipping as a form of electronic trade

The Law on Trade (“Official Gazette of RS,” No. 52/2019) governs dropshipping as a method of conducting electronic commerce in Serbia. Following the provisions of Article 17 of the Law on Trade (“Official Gazette of RS”, No. 52/2019), dropshipping is defined as a form of electronic commerce in which a retailer sells goods through an electronic store or an electronic platform, while the goods are delivered to the consumer directly from the manufacturer/wholesaler.

According to the above definition, there are three people involved in the described dropshipping form of electronic commerce:

  1. manufacturer/wholesaler
  2. seller of goods on the platform (dropshipper)
  3. customer (consumer).

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Obligations with several debtors or creditors

The provisions of the Law on Obligations govern the requirements for fulfilling debts with several debtors or creditors. When fulfilling duties with many debtors or creditors, dividing obligations into divisible and indivisible is important because it determines mutual relations and obligations between debtors or creditors based on the execution of

Divisible obligations

Dividing an Obligation and a Claim

An obligation shall be divisible if what is owed can be divided and fulfilled into parts having the same features as the entire subject, and should what is divided lose nothing in value; otherwise, the obligation shall be indivisible.

Should several debtors exist in a divisible obligation, such obligation shall be divided between them in equal shares unless a different kind of division is determined, and each shall be liable for his share of the obligation. Continue reading Obligations with several debtors or creditors

Pledge agreement

The provisions of Articles 966–996 of the Law on Obligations govern the concept, object, and conditions for the legal validity of the pledge agreement, the rights and responsibilities of the pledger and the pledgee, and other essential issues.

By a contract of security a debtor or a third party (pledger) shall assume the obligation to a creditor (pledgee) to deliver to him a movable object in relation to which there exists the right of ownership, so that he can, before other creditors, effect collection out of its value, should his claim not be paid when due, while the creditor shall assume the obligation to keep the accepted object and return it to the pledger undamaged after the termination of his claim.

To conclude a valid pledge agreement, it will be necessary for the pledger to be able to dispose of the objects he is giving as a pledge.

If the object referred to in the contract is delivered to him, the pledgee acquires the right to pledge.

It is possible to conclude a pledge agreement for an object that has already been granted as a pledge to another party. In such a case, the right of pledge shall occur if the pledger notifies the creditor holding the object of the conclusion of the pledge agreement, another creditor, and if he has ordered him to deliver the object to that creditor after settling his own claim. Continue reading Pledge agreement