Attorney Dragana Djordjevic » "Law on Obligations" (2)

Compensation for damage due to price change

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Damage due to a price change can occur due to a delay in the performance of a monetary obligation established by the contract, i.e. the termination of the contract or due to a delay in the performance of an obligation determined by a legally binding decision. It can only be realised in the manner and under the conditions prescribed by the special provisions of the Law of Contract and Torts.

Compensation for damages due to a delay in the execution of a monetary obligation

In case of late payment of the contractually established monetary obligation, the debtor owes the creditor, in addition to the principal, default interest.

The creditor shall be entitled to default interest regardless of whether he has suffered any damage due to the debtor’s delay, as prescribed by the imperative provisions of Article 278, paragraph 1 of the Law of Contract and Torts.

Suppose the damage suffered by the creditor due to the debtor’s delay in the performance of the monetary obligation constituted by the contract is greater than the amount he would have received in the name of default interest. Continue reading Compensation for damage due to price change →

Compensation for profit lost

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According to the provisions of the Law of Contract and Torts, in addition to the right to compensation for ordinary damages, the injured party has the right to compensation in the form of profit lost.

Common damage represents a decrease in an existing property. At the same time, the profit lost is damage reflected in the impossibility of increasing the property or prospective property due to the actions or actions of the damager.

According to the provisions of Article 189, paragraph 3 of the Law of Contract and Torts, when assessing the amount of profit lost, the profit that could reasonably be expected according to the regular course of things or according to particular circumstances and whose realization was prevented by the harmed person’s act or omission, is taken into account.

The profit lost can appear in monetary and in-kind forms.

According to the understanding of court practice, lost benefit represents unrealized property value, regardless of whether it would appear in monetary or in-kind form and irrespective of the basis on which it would be realized. Profit lost can arise due to damage to things in the form of loss of natural and civil fruits that escaped the injured party. Continue reading Compensation for profit lost →

Co-signature according to the Law on Business Companies

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Law on Business Companies (“Official Gazette of RS”, no. 36/2011, 99/2011, 83/2014 – other laws, 5/2015, 44/2018, 95/2018, 91/2019 and 109/2021 – from now on: the Law) in Article 33 determines the co-signature as a type of restriction of the authority of the representative of the company.

This limitation may be provided for a legal representative, procurator or other representatives. If a co-signature limits the power of representation, the representative to whom this limitation applies cannot undertake legal affairs or legal actions without the co-signature of a specific person.

A co-signatory can be determined by position, in which case the co-signatory is any person holding that position. Also, the co-signer can be determined by specifying personal data (e.g. name and surname) and in another way by which the co-signer can be determined.

The founding act can limit the power of representation by co-signature. Still, it can also be provided by the decision of the authority on the appointment of the representative. Continue reading Co-signature according to the Law on Business Companies →