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Contract law

Law firm Vaić & Dvorničić Ltd. > Contract law
22 December
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Voidness of a contract

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in Contract law

Voidness of a Contract Voidness of a contract refers to a situation in which a contract does not produce the legal effects that would arise if it were valid, meaning it contains such defects and violations of legal provisions that it produces no legal effect. According to the Obligations Act (Zakon o obveznim odnosima), a contract is void if it is contrary to the Constitution of the Republic of Croatia, mandatory legal provisions, or the morality of society, unless the purpose of the violated rule indicates another legal consequence or the law provides otherwise in a particular case. Any party to a contract...

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14 August
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Anticipated Order

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in Contract law, Family law

An anticipated order is a notarial document by which a person designates another individual in advance to make decisions, take actions, and represent their interests in the event of circumstances prescribed by law. Additionally, through such an order, the person may express their will in advance and make decisions regarding certain life or health-related matters that can reasonably be foreseen in the future. By introducing anticipated orders into Croatian legislation, the legislator has further affirmed the application of the principle of individual autonomy, as it allows a person, while still legally competent, to decide in advance—through a declaration made in a...

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11 August
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Exclusion of a member from a Limited Liability Company (LLC)

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in Commercial law, Contract law
Exclusion of a member from a Limited Liability Company (LLC)

The Companies Act prescribes the ways in which membership in a limited liability company (d.o.o., LLC) can be terminated. According to the law, membership may cease in the following ways: 1. Death of a natural person member 2. Dissolution of a legal entity member 3. Transfer or sale of a business share 4. Withdrawal (redemption of the business share – e.g., exclusion due to non-payment of share contribution – forfeiture) 5. Exclusion of a member for other reasons 6. Voluntary withdrawal of a member from the company 7. Dissolution of the company. A member of a limited liability company may be excluded if there is an important reason,...

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11 July
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Withdrawal of a member from a Limited liability company (LLC)

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in Commercial law, Contract law

According to the Croatian Companies Act, membership in an LLC terminates in the following ways: 1. upon the death of a natural person member, 2. upon the dissolution of a legal entity member, 3. by transfer or assignment of the ownership interest, 4. by redemption (amortization of the ownership interest) or expulsion due to non-payment of the contribution (forfeiture), 5. by expulsion of a member for other reasons, 6. by voluntary withdrawal of a member, 7. upon the dissolution of the company. One of the possible ways for membership in an LLC to cease is through the voluntary withdrawal of a member. A member may withdraw...

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04 July
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Liability for material defects

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in Construction law, Contract law

According to the Croatian Obligations Act, a defect exists if the purchased item does not conform to the agreed description, type, quantity or quality, lacks the expected functionality, compatibility or other features, or is not suitable for the particular purpose the buyer informed the seller about. A defect is also deemed to exist if the item was not delivered with the agreed accessories, instructions or updates. Likewise, a defect exists if the item is not fit for ordinary use, does not match a sample or model shown by the seller, or lacks qualities the buyer could reasonably expect. The seller is not...

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30 June
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Liability for legal defects in contracts

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in Contract law, Real estate law

In addition to material defects under a contract of sale, the seller is also liable for legal defects. Legal defects are governed by Article 430 of the Civil Obligations Act and arise when a third party holds a right over the subject of the contract that excludes, reduces, or limits the buyer's right—provided that the buyer was not informed of this right and did not agree to accept the item encumbered by it. The seller guarantees that the right being transferred exists and that there are no legal obstacles to its fulfillment. 1) The transaction is made for consideration; 2) The defect existed...

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21 November
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Blank debenture as a means of securing a claim

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in Commercial law, Contract law, Enforcement law
Blank promissory note as a means of securing a claim

Blank debentures are one of the instruments for securing monetary claims within the legal system of the Republic of Croatia. A blank debenture is a private document issued by the debtor and certified by a notary public, through which the debtor grants permission to the creditor to collect the owed amount in the event of a failure to fulfill obligations arising from the contractual relationship secured by the debenture. Blank debenture – specifics A blank debenture is a private document certified by a notary public through which the debtor consents to the seizure of all their bank accounts for the purpose of...

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21 November
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Voidance

Posted by Vaic
in Contract law

According to the provisions of the (Croatian) Law on Obligations, the existence of certain defects of will when entering into a contract causes the legal transaction to be null or void. Voidance is a legal institute which, unlike nullity, does not act under the law itself, because it is necessary to determine the existence of a cause of voidance in court proceedings and to demand the annulment of such a contract. However, the contracting parties are left with the possibility to convalesce such a contract (which is deemed voidable) by taking subsequent actions, which is not possible with annulled contracts. Legitimate...

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10 November
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Liability for construction contract defects

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in Construction law, Contract law, News

Building contract is actually a service contract whereby a contactor agrees to deliver building work according to the specific project within a certain deadline and a client agrees to pay a certain price in exchange. Each contract needs to include both subject and price. The subject of a building contract is a construction of certain building on the certain land or performance of other building works. Hereby houses, buildings, bridges, water- gates, tunnels, roads, sewage systems etc. are considered buildings. Common trade works where e.g., no change in the apartment structure was carried out, geological-exploration drilling or some isolation works etc....

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08 November
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Contract for support until death

Posted by Vaic
in Contract law, Inheritance law

By a Contract for Support until Death, one party (the support provider) undertakes to support the other party or a third person (the support recipient) until their death, and the other party undertakes, in return, to transfer all or part of their property during their lifetime. The support provider acquires property or rights that are the subject of the Contract for Support until Death when these properties or rights are transferred in accordance with the law provided in the contract. The Contract for Support until Death is a strictly formal contract, which means that it must be concluded in writing and...

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