The effect of the introduced state of emergency and the decisions of the authorities on the obligations undertaken by loan agreements, leasing and other contracts as well as on deadlines in court proceedings
1. Delay in payment of loans and leasing liabilities for 90 days
The National Bank of Serbia has adopted two decisions determining the delay in repayment of loans and leasing liabilities for at least 90 days.
2. The effects on the concluded contracts
Force Majeure
In Article 263 of the Law on Obligations, circumstances arising after the conclusion of a contract that the debtor could not prevent, eliminate or avoid are defined as force majeure. If someone's business has suffered losses due to a pandemic, they will not be liable for damage caused by delays in the delivery of goods or the provision of services.
Substantially changed circumstances (Rebus sic stantibus)
The use of both clauses is possible if certain conditions are met:
• the circumstances arose after the conclusion of the contract and
• they made difficult to fulfill one party's obligations or if the purpose of the contract cannot be achieved
• to the extent that it is obvious that the contract no longer meets the expectations of the contracting parties and that
• it would be unfair to maintain it as it is.
A party that has difficulty in fulfilling its contractual obligations or cannot fulfill them at all may seek termination of the contract. If the other party is not ready to terminate the agreement by mutual agreement, it is necessary to initiate appropriate court proceedings to terminate the contract and / or compensate for the damage.
3. Deadlines in court and other proceedings
The Government of the Republic of Serbia adopted the Decree on deadlines in Court Procedures during the State of Emergency declared on 15 March 2020.
The deadlines for filing civil lawsuits, private criminal proceedings, motions for initiating extrajudicial or enforcement and security proceedings, filing a lawsuit in an administrative dispute and filing a constitutional complaint cease to exist during the state of emergency declared on March 15, 2020.
The deadlines for declaring remedies, remedies or for taking other procedural steps in the procedures referred to in Article 1 of this Decree cease to exist during the state of emergency declared on 15 March 2020. In criminal proceedings, misdemeanor proceedings and proceedings for economic offenses, the deadlines for lodging appeals against decisions terminating the proceedings, as well as for declaring extraordinary legal remedies, cease to exist during the state of emergency declared on March 15, 2020.