Attorney Dragana Djordjevic » "Law of Contract and Torts" (2)

Financing of the company by the founders through loan

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Contracting and implementation of the loan to the company from the founders is almost entirely governed by the provisions of the Law on Contracts and Torts.

The Companies Act in the part Additional Payments and Loan to the Company (Articles from 178 to 181) prescribes manner of esblishing the additional payment obligation, consequences of failure to make addititonal payment and return of the additonal payments, but does not provide specific rules relating to the loan. Provisions of the Companies Act which regulate payment limitations to the company’s founders, approval of a transaction in which there is personal interest and company’s share capital increase contain norms that are important for the contracting and implementation of loan.

The Law on Cotract and Torts doesn’t impose restrictions when it comes to the conclusion of the loan contract and the lender can be both as a business entity and natural person. According to the provisions of Article 557 of the Law on Contract and Torts by a loan contract the lender shall assume the obligation to transfer ownership to the borrower of a specific amount of money or other interchangeable objects, while the borrower shall assume the obligation to restitute after a certain time to him the same amount of money, or same quantity of objects of the same kind and quality. Continue reading Financing of the company by the founders through loan →

Cession of claims by contract

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Cession of claims by contract is governed by the provisions of Articles 436 to 445 of the Law on Obligations and resulting in a substitution of creditor in obligations.

Subject of Contract

A creditor may carry out the cession of his claim by a contract entered into with a third person, except a claim whose transfer is not permitted by statute, or which is restricted to creditor’s
person, or whose very nature is incompatible with transferring to another.

Cession of claim by contract respectively a contract of cession shall have no effect for a debtor if he and the creditor have stipulated that the latter shall not be able to assign the claim to another, or that he shall not assign it without the debtor’s consent. Continue reading Cession of claims by contract →

Assumptions of liability for damages

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Liability for damage exists if the following special conditions have been met:

  • injured person and tort-feasor (subjects)
  • harmful action
  • damage
  • unlawfulness of the tort-feasor’s action
  • established causal link between undertaken harmful action and harmful consequence
  • fault of tort-feasor.

Assumptions of liability for damages vary depending on whether liability for damages based on the criterion of guilt or causing damage.

Liability for damages based on causing damage criterion on the basis of the strict liability for dangerous object of property or dangerous activity, it is enough the existence of two conditions: the damage and the causal link established between undertaken harmful action and harmful consequence. Continue reading Assumptions of liability for damages →