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Legal Articles

Liability for material defects

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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Liability for legal defects in contracts

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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The right to exemption from the payment of the base contributions to salary

As of January 1, 2025, the new Contributions Act entered into force, resulting in changes to the tax relief for "first employment." Previous measures Under the former legislation, two types of base contribution exemption measures were provided for employees: The first applied to workers who, at the time of entering into employment, had no registered length of service in the pension insurance system. In such cases, the employer was exempt from paying contributions for a period of one year. The second measure related to the employment of young persons, specifically workers who were employed permanently (indefinite contract) for the first time and had not...

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Statutory deadlines (preclusive periods) in pre-bankruptcy and bankruptcy proceedings

Pre-bankruptcy and bankruptcy proceedings are special non-contentious court proceedings conducted with the aim of resolving a debtor's illiquidity or insolvency. While pre-bankruptcy proceedings focus on preserving the business and restructuring the debtor in cooperation with creditors, bankruptcy proceedings aim to liquidate the debtor's assets and ensure equal settlement of creditors according to the order determined by the Bankruptcy Act. An important aspect of both proceedings is the observance of statutory deadlines (preclusive periods) – legally defined time limits within which participants in the proceedings must take certain actions. Failure to meet these deadlines results in the loss of rights. Statutory deadlines (preclusive...

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Order of settlement in bankruptcy proceedings

In bankruptcy proceedings, the order of debt collection is not based on chance or subjective judgment, but on the strictly regulated rules of the Bankruptcy Act. Proper application of these rules is essential to protect the rights of all creditors, preserve legal certainty, and ensure fair distribution from the bankruptcy estate. There are four types of creditors in bankruptcy proceedings: bankruptcy creditors, creditors of the bankruptcy estate, secured creditors, and creditors with a right of separation. Creditors of the bankruptcy estate The first to be paid from the bankruptcy estate are the costs of the bankruptcy proceedings and other obligations of the bankruptcy...

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Seperate creditors in bankruptcy proceedings

Bankruptcy is a special non-litigation court procedure aimed, according to Article 2, Paragraph 2 of the Bankruptcy Act, at the total settlement of creditors of the bankrupt debtor by liquidating his assets and distributing the collected funds to the creditors. The Bankruptcy Act distinguishes four types of creditors (separational creditor, seperate creditor, estate creditor, and bankruptcy creditor). In the following text, the concept of the seperate creditor will be elaborated in more detail. Who is a seperate creditor? A seperate creditor is a person who holds a lien or a right to settlement over a specific asset or right that is registered...

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Compulsory and supplementary health insurance in the Republic of Croatia

In Croatia, all citizens are legally required to be included in the system of compulsory health insurance, administered by the Croatian Health Insurance Fund (HZZO). This type of insurance provides access to basic healthcare services, but it does not cover all treatment costs. For this reason, many individuals choose to purchase supplementary health insurance to avoid co-payments for doctor visits, hospital stays, or prescribed medications. Supplementary insurance is offered by the HZZO at a fixed price, and it is also available from other insurance providers, who often offer different packages and benefits. Compulsory health insurance Compulsory health insurance in Croatia is administered by...

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Overview of the Croatian healthcare system

The primary objective of the healthcare system is to improve public health, prevent diseases, enable timely diagnosis, ensure effective treatment, and provide rehabilitation. It is founded on the principles of solidarity and universality, and its main governing body is the Croatian Health Insurance Fund (HZZO). Healthcare services in the Republic of Croatia are delivered at the primary, secondary, and tertiary levels, as well as through public health institutes. In addition to public institutions, private healthcare providers also operate within the system. These private entities often lease premises in state-owned health centres and must meet specific criteria, including a minimum number of...

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Works Council

The works council represents one of the mechanisms through which the Labour Act enables employees to actively participate in making decisions regarding significant economic and social matters that affect their rights and interests. By establishing a works council, employees are given the opportunity to be involved, through their elected representatives, in the decision-making process concerning issues of particular importance to their working conditions. The establishment of a works council is not mandatory. A works council may be established at employers employing at least 20 workers. The initiative can be launched by a trade union or by at least twenty percent of...

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Limited partnership

A limited partnership is one of the forms of commercial companies in the Republic of Croatia, where two or more persons join together for the permanent performance of business activities under a common company name. At least one member (general partner – komplementar) is liable for the obligations of the company jointly and unlimitedly with their entire assets, while at least one member (limited partner – komanditor) is liable only up to the amount of their investment in the company. The company is established by a partnership agreement , which must specify the members who hold the position of general partners...

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