Attorney Dragana Djordjevic

A creditor and a debtor may stipulate that the debtor shall pay to the creditor a specific sum or supply him with some other property benefit, should he fail to perform his non-monetary obligation, or delay in performing it (liquidated damages).

Unless something else results from contract, liquidated damages shall be considered as stipulated for the case of a debtor becoming late in performance.

Liquidated damages shall not be stipulated in relation to monetary obligations.

Method of Calculation

Contracting parties may determine the amount of liquidated damages as they please, either in form of a lump sum or as a percentage, or for each day of delay, or in some other way. Continue reading Liquidated damages →

An obligation shall be terminated after being fulfilled, as well as in other cases provided by law. According to provisions of the Law of Contract and Torts, other cases of termination of obligations are offsetting (compensation), remission of debt, substitution (innovation), integration (merger), the impossibility of fulfilment, flow of time, notice and death.

The termination of the principal obligation shall also extinguish the pledge, mortgage, and other accessory rights.

Who can fulfill obligations and expenses of the fulfillment of obligations?

An obligation may be fulfilled not only by a debtor but also by a third person. A creditor shall be bound to accept fulfilment by every person having a legal interest in fulfilling the obligation, even should the debtor be opposed to such fulfilment. Continue reading General rules of fulfilment of obligations →