Contract of construction

A contract of construction shall be a contract for services by which a contractor assumes the obligation to construct, according to a specific plan and within a stipulated time limit, a specific building on an agreed building site, or to perform on such building site, or on an already existing facility, some other civil engineering works, while the purchaser assumes the obligation to pay in return an agreed price. A contract of construction must be concluded in written form.

Form and content of the contract of construction, rights and responsibilities of the contracting parties, liability for defects and especially responsibility of contractor and project engineer for the soundness of building are regulated by the provisions of the Law on Contracts and Torts.


In this Chapter, the term “building” shall include buildings, dams, bridges, tunnels, water supply installations, sewerage systems, roads, railroad tracks, wells and other civil engineering facilities the manufacture of which requires large and more complex works. Continue reading Contract of construction

Doing business without order or authority

Doing business without an order means carrying out the transactions of another person, whether legal or material, without order or authority, but on account of the one otherwise normally engaged in them, and for the purpose of protecting that person’s interests.

Doing other person’s business without invitation is permissible only should the transaction need to be carried out without delay, because of possible immediate danger of damage or loss of an obvious benefit.

Duties and rights of a manager without order (authority)

Duties of a Manager Without Order (Authority)

A manager without order (authority) shall notify the principal for whom he acts about his act as soon as possible and shall continue the business commenced, should this be reasonably possible, until his principal is able to take over the matter. After completing the business transaction he shall render account thereof and shall hand over everything he has acquired while doing his business to his principal. Continue reading Doing business without order or authority

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