Liability for another

Liability for another was regulated by the provisions of Articles from 164. to 169 of the Law of Contract and Tort.

With liability for another varies the perpetrator of damage – tort-feasor from the responsible person – a person who is obliged to compensate the caused damage. Liability for the other was established in the interest of the injured party, because it is the perpetrator of damage that usually has no assets for the compensation of damage.

Liability for another means responsibility for the damage and the person responsible for another, and tort-feasor, except in cases when the damage is caused by a person who, due to mental illness or retarded mental development, or for some other reasons, is not mentally competent or by a child of up to seven years of age.

Tort-feasor shall be responsible in accordance with the principle of fault, because it is a responsibility for its own actions. Continue reading Liability for another

Indemnity for Damage to Property

The basic rules applicable to indemnity for damage to property are regulated by the provisions of the Law on Contracts and Torts (Articles from 185 to 198).

By the provisions of Articel 185 of the Law on Contracts and Torts indemnity for damage to property is defined as re-establishing of the previous situation and an indemnity in money. A responsible person shall be liable to re-establish the situation existing prior to the occurence of damage. Indemnity for damage to property in money shall be paid to the person suffering loss in following cases:

  • Should re-establishing of the previous situation fail to eliminate the damage entirely, the responsible person shall be liable to pay an indemnity in money to cover for the rest of the damage.
  • Should restitution be impossible, or should the court find it necessary for the responsible person to do that, the court shall order such person to pay to the person suffering loss an adequate amount of money as compensation for loss.
  • At the request of the person suffering loss, the court shall award compensation in money to him, unless the circumstances of the specific case justify the restitution.

Compensation for damage to property shall be due from the moment of the damage taking place. Continue reading Indemnity for Damage to Property


Franchising is a system of marketing goods and/or services and/or technology, which is based upon a close and ongoing collaboration between legally and financially separate and independent undertakings, the Franchisor and its individual Franchisees, whereby the Franchisor grants its individual Franchisee the right, and imposes the obligation, to conduct a business in accordance with the Franchisor’s concept.

The right entitles and compels the individual Franchisee, in exchange for a direct or indirect financial consideration, to use the Franchisor’s trade name, and/or trade mark and /or service mark, know-how, business and technical methods, procedural system, and other industrial and /or intellectual property rights, supported by continuing provision of commercial and technical assistance, within the framework and for the term of a written franchise agreement, concluded between parties for this purpose. Continue reading Franchising