In obligation law the annuity is understood as a form of compensation for damages whose total amount is not known at the time of making the request and it shall be paid periodically in predetermined amounts. Typically material damage that will be realized in the future is compensated by annuity.
The basis for the establishment of annuity claims is contained in the realization of the objective circumstances of unexpected adverse event.
The annuity has the following main features:
- It’s about the future damage
- The final total amount of the annuity is not known at the time of the judgment and
- The annuity is paid periodically (successively) in certain installments. Continue reading Definition and characteristics of annuity