Law on Obligations (2001) (excerpts)

 

THE LAW ON OBLIGATIONS (excerpts)

(OFFICIAL GAZETTE NO. 18/01)

(...) 

CHAPTER 2

CAUSING DAMAGE

Section 1

GENERAL PROVISIONS

 

Basis of Liability

Article 141

 

(1) A party causing damage to another party is obliged to indemnify it, unless it proves that the damage was caused without its fault.

 

(2) For damage due to objects or activities that increase the risk of damaging the environment, the liability is established regardless of fault.

 

(3) The law also provides for liability in other cases of damage regardless of fault.

 

Damage

Article 142

Damage is reduction [diminution] of social assets or one’s property (ordinary damage), preventing accrual thereof  (loss of earnings), and inflicting of  physical or mental distress or apprehension (non-physical damage).

 

Request to Eliminate the Risk of Damage

Article 143

(1) Anyone may request another person to eliminate the source of risk endangering him/her or an indefinite number of persons for damage, and to refrain from activities causing anxiety or damage, unless the anxiety and the damage can be prevented by appropriate measures.

 

(2) Upon the request of an interested person [party], a court shall order appropriate measures to be taken for preventing anxiety and damage to be caused, or to remove the source of risk at the expanse of the possessoer of the source of risk provided he/she fails to do so by him/herself.

 

(3) Where the damage was caused during the performance of  an activity of general benefit for which permission was given by a competent organ, compensation for damage beyond the standard limits may be requested.

 

(4) However, in such a case, the undertaking of socially justified measures for preventing or reducing damage may be requested as well.

  

Request to Cease Violation of Personal Integrity

Article 144

(1) Anyone is entitled to request from a court or any other competent organ to order cessation of activity that injures his personal integrity and private family life and other rights.

 

(2) A court or any other competent organ may order cessation of the injuring activity under the threat that a certain amount of money be paid, in total amount or per time unit, to the injured part.

 

Section 2

LIABILITY ON GROUNDS OF FAULT

 

Existence of Fault

Article 145

A fault exists when a person [party] causes damage negligently or on purpose.

 

Non-liable Persons

Article 146

(1) A retarded person,  a person with a mental illness or a person incapable of making judgments for any other reason, shall not be liable to another person for the damage that he/she has caused.

 

(2) A person causing damage to another person in a state of temporary [transitional] incapacity to make judgments is liable for the damage, unless he/she proves  that it was not his fault that he/she was in that state.

 

(3) Where the person found himself/herself in such a state due to the fault of another person, the person whose fault it was shall be liable for the damage.

 

Liability of a Minor

Article 147

(1) Until a minor is seven years old he/she is not liable for damage that he/she has caused.

 

(2) In the years between the seventh and the fourteenth, a minor is not liable for damage, unless it is proved that in the process of causing the damage he/she was capable of making judgments.

 

(3) Fourteen years old minor is liable for damage according to the general rules relating  to liability for damage..

 

Necessary Defense, State of Necessity /Need/, Eliminating Damage from Another Person

Article 148

(1) A person causing damage to an attacker [assailant] as a necessary defense is not obliged to compensate it, except in cases where the normal limits of a necessary defense are exceeded.

 

(2) Where one has caused damage in a state of necessity,  the damaged person [party] may request compensation from the person [party] at fault for creating the risk of damage, or from the persons who were protected from damage, but from the latter the compensation shall not exceed the benefit they have had from eliminating the damage.

 

(3) A person suffering damage while eliminating the risk of damage from another person is entitled to request compensation from this person for the damage to which he/she reasonably exposed him/herself.

 

Permitted Self-Protection

Article 149

(1) A person who in the process of permitted self-protection causes damage to the person that caused the need for self-protection, is not obliged to pay compensation.

 

(2) Permitted self-protection denotes the right of any person to eliminate the violation [injury] to the right when a risk is directly threatening, provided such protection is necessary and the manner of eliminating the violation [injury] of the right corresponds to the circumstances in which the risk is generated.

 

Damaged Person’s Consent

Article 150

(1) A person allowing another person to undertake an action at his/her own detriment, cannot request compensation for the damage caused by that action.

 

(2) A statement of consent by a damaged person for damage to be caused to him/her with an illegal action [forbidden by law] is void.

 

Section 3

LIABILITY TO THIRD PERSON

Retarded and Mentally Ill Persons

Article 151

(1) For any damage caused by a retarded or a mentally ill person, or person incapable of making judgments due to any other reason, the guardian of this person [the person under duty to take care of him/her] as appointed by law, a decision of a competent organ or a contract, is liable.

 

(2) The guardian may be excused from the liability if he/she supplies evidence that he/she had performed the supervision that he/she was obliged to conduct or that the damage would have been caused even with careful supervision.

 

Liability of Parents

Article 152

(1) Parents are liable for damage caused by their child to another person until the child is seven years of age, even if there is no fault of their own.

 

(2) Parents are excused from liability provided reasons exist for exempting their liability according to the regulations relating to liability regardless of fault.

 

(3) Parents are not liable if the damage was caused while their child was entrusted to another person and if that person is liable for the damage.

 

(4) Parents are liable for damage caused by their underaged child of over seven years of age, unless they prove that the damage was not caused due to their fault.

 

Joint Liability

Article 153

Where, besides the parents, the child is liable for the damage as well, their liability is joint.

 

Liability of a Third Person for a Minor

Article 154

(1) Where damage has been caused by a minor while under supervision of a guardian, school or other institution, the guardian or the school or the institution shall be held liable, unless they provide evidence for the correct supervision they were obliged to conduct or that the damage would have been caused even with careful supervision.

 

(2) Where the minor is liable for the damage as well, the liability is joint.

  

Special Parental Liability

Article 155

(1) Where the duty to supervise a minor is not with the parents but with some other person, the damaged person is entitled to request compensation from the parents if the damage was caused due to poor parental guidance, bad examples or vicious habits, or if the parents can otherwise be liable for damage .

 

(2) In such a case, where the third person [guardian] responsible for supervising the minor pays compensation to the damaged party, the guardian is entitled to request reimbursement for the compensation from the parents.

 

 

Liability on Grounds of Fairness /Equity/

 

Article 156

(1) Where damage is caused by a person not liable for it, and compensation cannot be obtained from the person responsible to supervise the damaging person, a court,  taking into consideration the financial state of the damaged and the damaging party,  may, when the principle of fairness indicates so, decide on partial or full compensation by the damaging party.

 

(2) Where damage is caused by a minor capable of making  judgements but unable to pay compensation, a court, especially taking into consideration the financial state of the parents and the damaged party, may, when the principle of fairness indicates so, decide on full or partial compensation by the parents regardless of the fact that they are not being at fault.

 

Section 4

LIABILITIES OF THE EMPLOYER TO THIRD PARTIES

 

Liability of the Employer

Article 157

(1) For damage caused to a third party by an employee in the course of the employment [while working or in relation to work], the employer employing the person at the time of impairment shall be liable, unless it is proven that under the circumstances the employee acted properly.

(2) Where the damage has been caused on purpose, the damaged party is also entitled to request compensation from the employee directly.

 

(3) Provisions pursuant to Subarticle 1 of this Article, do not affect the rules relating to liability for damage due to dangerous object or dangerous activity.
 

(4) The employer who has compensated the third party for the damage that was caused by the employee deliberately or through undue negligence, shall be entitled to seek reimbursement from the employee for the rendered amount .

 

(5) Such right shall expire within six months following the date of payment of the compensation against damages.

 

Liability of Legal Entity for Damage Caused by One of Its Bodies

Article 158

(1) A legal entity is liable for damage caused by its body to a third person [party] in the course of, or in connection with, the performance of its duties.

 

(2) Except where in particular cases otherwise provided by law, the legal entity is entitled to compensation from the person that has caused damage on purpose or with negligence.

 

(3) This right shall expire within a period of six months from the date of payment for the damage.

  

Section 5

LIABILITY FOR DAMAGE DUE TO A DANGEROUS OBJECT OR ACTIVITY

I.  GENERAL PROVISIONS

 Causing Damage /Presumption of Causability/

Article 159

Damage caused in relation to a dangerous object or activity is presumed to be caused by that object or activity, unless proven that they were not the impairing causes.

 

Who Is Liable for Damage

Article 160

(1) For a damage caused by a dangerous object the person that possesses the object is liable, while for damage caused by a dangerous activity the person that performs the activity is liable.

 

Illegal Deprivation of Dangerous Object from Possessor

Article 161

Where a possessor has been deprived of a dangerous object in an illegal manner, he/she shall not be liable for the damage caused by that dangerous object, but the person depriving him/her of it shall be liable, provided the possessor him/herself is not liable for the deprivation.

  

Entrusting an Object to a Third Party

Article 162

(1) In place of the object’s owner, the party to whom the possessor has entrusted the the object for use or the party whose duty is to supervise, it while not being employed by him/her, shall be liable just like the possessor.

 

(2) Besides the third party, the possessor of the object shall be liable as well, if the damage is due to any concealed defect or feature of the object that he/she did not pay enough attention to.

 

(3) In such a case, the liable person [party] that has paid compensation to the damaged party is entitled to request reimbursement of the full amount from the possessor.

 

 

(4) The possessor of a dangerous object that has entrusted the object to a person [party] incapable [not trained] or not authorized to handle it, shall be liable for any damage caused by that object.

 

Exempting from Liability

Article 163

(1) A possessor is exempted from liability, if it is proven that the damage is caused due to a reason not related to the object, the effect of which could not have been foreseen, avoided or eliminated.

 

(2) A possessor is also exempted from liability, if it is proven that the damage was caused exclusively by an action of the damaged party or a third person [party] that could not have been foreseen, and the consequences of which could not have been avoided or eliminated.

 

(3) Where the damaged party has partly contributed to causing the damage, the possessor is partly exempted from liability.

 

(4) Where the infliction of a damage was partly caused by a third party, the third party and the possessor are jointly liable to the damaged party, and the third party is obliged to pay compensation in proportion to its fault.

 

(5) A person that a possessor has abused while utilizing the dangerous object is not deemed to be a third party.

 

 

II.  LIABILITY IN CASES OF ACCIDENT CAUSED BY MOTOR VEHICLES IN MOTION

 

Article 164

(1) In case an accident is caused by a motor vehicle in motion due to the exclusive fault of one owner, the rules relating to liability on grounds of fault are applicable.

 

(2) Where both possessors are at fault, each is liable for the entire damage suffered by both in proportion to the level of fault of each of them.

 

(3) Where there is no fault of either of the possessors, they are equally liable, unless the principles of honesty indicate otherwise.

 

(4) For damage suffered by a third party, the possessors of motor vehicles shall be jointly liable.

 

III.  LIABILITY OF MANUFACTURER OF A DEFECTIVE OBJECT

 

Article 165

(1) A party trading unawares with a defective object [goods] of its own manufacturing that involves the risk of damage to persons or things, shall be liable for any eventual damage caused by that defect.

 

(2) A manufacturer shall also be liable for any dangerous features of the object after failing to take all measures necessary to prevent the damage which he/she was able to foresee by means of warning, safety packing or other appropriate measure.

 

Section 6

SPECIAL CASES OF LIABILITY

 

Liability for Terrorist Actions, Public Demonstrations or Manifestations

Article 166

(1) The state shall be liable  in damage for death or bodily injury, or damage or destruction of the property of a natural person and legal entity as a result of violence or terror, public demonstrations or manifestations.

 

(2) Persons that organize, participate in, instigate or support acts of violence or terror, public demonstrations or manifestations the purpose of which is to destabilize the constitutional order are not entitled to compensation for damages on these grounds.

 

 

(3) Any social and political community has the right and obligation to request compensation  for the paid amount from the person [party] causing damage.

 

(4) This right expires within the time limits prescribed for expiration of claims on compensation for damage.

 

Liability for Actions of Corruption

Article 167

 

(1) Damage caused by an act of corruption committed by a public servant when performing his/her functions shall fall within the liability of the state or local government bodies where s/he works.

 

(2) The State, including local government bodies, shall have the right and the obligation to seek reimbursement of the paid funds from the person who inflicted the damage.

 

(3) The right pertaining to paragraph 2 of this Article shall become time barred within the time limits prescribed in the statute of limitations for compensation of damage.

 

Liability for Damage Caused by Violent Offenses

Article 168

 

(1) The State shall be liable for a violent offense if the offender is unknown (unidentified).

 

(2) The State shall also compensate for damages caused by violent offenses that were committed by known offenders who cannot support themselves.

 

(3) Organizers, instigators, participants and supporters of violent offenses shall not be entitled to such compensation.

 

(4) The right shall become time barred within the time limits prescribed in the statute of limitations for compensation of damage.

 

Liability for Damage Caused by International Military and Other Organizations

Article 169

 

(1) The State shall be liable for damage inflicted to legal and natural persons on the territory of the Republic of Macedonia by individuals working for international military or other organizations that the Republic of Macedonia has signed agreements with.

 

(2) The State shall have the right and obligation to seek reimbursement of the paid funds from the international military or other organizations or the individuals who inflicted the damage.

 

Liability of Organizer of Performances

Article 170

A party organizing a great number of people to gather in a closed or open space is liable in damage for death or bodily injury resulting from the extraordinary circumstances that can emerge on such occasions,  such as waving [movement] of the masses, general disorder and the like.

 

 

Liability for Not Providing the Necessary Help

Article 171

(1) A person that does not provide help to another person whose life or health are evidently endangered when he/she could have done so without any risk to him/herself, shall be liable for the damage caused by such a state if, according to the circumstances of the case, he/she had to foresee the damage.

 

(2) In accordance with the principles of honesty, a court may free such a person from the obligation to compensate for the damage.

  

Liability Relating to the Obligation to Enter into a Contract

Article 172

A party that according to the law is bound to enter into a contract, is obliged to pay compensation for the damage if it fails to enter the contract immediately upon a request from the interested party.

 

Liability for Performing Activities of Public Interest

 

Article 173

Legal entities rendering utility or other similar services of public interest shall be liable for damage caused by undue suspension or irregularities in the services provided.

 

Section 7

I.  COMPENSATION FOR PHYSICAL DAMAGE

 

Restoring the Condition that Existed Prior to Damage and Monetary Compensation

Article 174

(1) The person responsible is obliged to restore the condition that existed prior to the causing of the damage.

 

(2) Where the restoring of the previous condition does not eliminate the damage entirely, the person responsible is obliged to pay compensation for the rest of the damage.

 

(3) Where restoring the previous condition is not possible or a court determines that it is not necessary for the person responsible to undertake it, the court shall determine an appropriate monetary compensation for the damage to be paid to the damaged party by the person responsible.

 

(4) At request from the damaged party,  a court shall decide on monetary compensation for the damaged party, unless the circumstances of the particular case justify restoring to condition that existed prior to the damage.

 

When Is the Obligation to Pay Compensation Mature

Article 175

The obligation to pay compensation is considered matured from the moment the damage is caused.

 

 

Compensation in Cases of Destruction of Object Taken Away in an Illegal Manner

Article 176

Where an object taken away from the possessor in an illegal manner has been destroyed due to force major, the person responsible is obliged to pay monetary compensation.

  

Compensation in Form of Monetary Installment Payments

Article 177

(1) In cases of death, bodily or health injury, the compensation is determined, as a rule, in form of a monetary installments payable for a determined period of time or for life.

 

(2) A monetary installment compensation for damage is payable monthly  and in advance, unless a court determines otherwise.

 

(3) A creditor party is entitled to request the necessary security for payment of monetary instalments, unless, according to the circumstances of the case, it is not justified.

 

(4) Where a debtor party fails to provide the security determined by a court, the creditor party is entitled to request payment of a total sum rather than monthly installments, the amount of which is determined on the basis of the monthly installment and the probable duration of the creditor party’s life, by deducting the appropriate interest.

 

(5) On the basis of serious reasons, the creditor party may, in other cases as well,  request immediate or subsequent payment of a total sum rather than monthly installments.

  

II.  SCOPE OF COMPENSATION FOR PHYSICAL DAMAGE

 

Ordinary Damage and Loss of Earnings

Article 178

(1) A damaged party is entitled both to compensation for ordinary damage and loss of earnings.

 

 

(2) The amount of the compensation for damage is determined in accordance with the prices at the time a court decision is reached, except in cases where the law provides otherwise.

 

(3) An estimate on the loss of earnings due to the damaging party’s action or omission is made by taking into consideration the profit that could have been justly expected according to the regular flow of the working activities or the special circumstances.

 

(4) Where an object has been destroyed or damaged due to a premeditated criminal offence, a court may decide on the compensation amount based on the value that the object had for the damaged party.

  

Full /Complete/ Compensation

Article 179

A court, taking into consideration the circumstances that arosed after the damage has been caused, shall decide on the amount of compensation necessary to restore the financial state of the damaged party to the state it would have been in had there not been the damaging action or omission.

 

Reduction of Compensation

Article 180

(1) Considering the financial state of the damaged party, a court may decide that  the person liable shall pay a reduced compensation in regard to the damage, provided the damage was not caused on purpose or with undue negligence and the person liable is in such a meager financial state that the payment of full compensation would force him/her into poverty.

 

(2) Where a damaging party causes damage while performing something in favor of the damaged party, a court may decide on a lower compensation, taking into consideration the care that the damaging party exercises in the course of its activities.

 

Divided Liability

 

Article 181

(1) A damaged party that has contributed to causing the damage or to making the damage be higher than it otherwise would have been, is entitled only to a proportionally reduced compensation.

 

(2) Where it is impossible to determine the part of the damage caused due to an action of the damaged party, a court shall decide on compensation taking into consideration the circumstances of the case.

  

III.  SEPARATE PROVISIONS ON COMPENSATION OF PHYSICAL DAMAGE IN CASE OF DEATH OR  PHYSICAL BODILY OR HEALTH INJURY

 

Lost Earnings, Medical Treatment and Funeral Expenses

Article 182

(1) A person causing the death of some other person is obliged to pay compensation for the regular expenses of that person’s funeral.

 

(2) He/She is also obliged to pay compensation for the expenses for medical treatment of the caused injures as well as other necessary expenses relating to the treatment, and the earnings lost due to any resulting work disability.

 

The Right of a Person Supported by a Deceased Person

 

Article 183

(1) A person supported or regularly provided aid by the deceased person and a person that according to the law is entitled to request support from the deceased person, is entitled to compensation for the damage caused by the loss of the support or aid.

 

 

(2) This damage is compensated through installment payments, the amount of which is determined by taking into consideration all of the circumstances of the case, and cannot be higher than the amount that the damaged party would have received from the deceased person had he/she stayed alive.

  

Compensation for Damage in Case of Bodily or Health Injury

Article 184

(1) A person inflicting a bodily or health injury to another person, is obliged to pay compensation for the expenses for medical treatment and all other expenses related to the treatment, as well as the earnings lost due to the resulting inability to work during treatment.

 

(2) Where the injured person loses the earnings due to a partial or full work disability, or his needs are permanently increased, or the prospect for his further advancement and promotion are destroyed or reduced, the person responsible is obliged to pay to the injured person /specified/ installments as compensation for the damage.

 

Modification /Alteration/ of Compensation Decided by Court

Article 185

Upon a request of a damaged party or upon a  request of a damaging party, a court may respectively decide to increase the installment payment in future or to reduce or cancel the installment payment, provided the circumstances that the court took into consideration when reaching the previous decision have changed significantly.

  

A Compensation Right Cannot be Transferred

Article 186

(1) The right to be compensated in terms of monetary installments due to death of a related person [close relative] or due to a bodily or health injury cannot be transferred to another person.

 

(2) Compensation amounts that have matured may be transferred to another person, provided the compensation amount has been determined by written agreement between the parties or a final court decision.

 

IV.Compensation for Physical Damage in Cases Where Honor Is Injured and Untrue Statements Are Made

Article 187

(1) A person who has injured [insulted] the honor of another person or has made untrue statements of the past, knowledge and capability or of something else related to another person, while he/she was or had to be aware that the statements were not true, and has caused physical damage to that person, is obliged to pay compensation for the damage.

 

(2) However, a person making an untrue statement about another person without knowing that the statement is not true is not liable for the damage caused, if the statement made was of serious importance to him/her or to the person told.

  

V.  COMPENSATION FOR NON-PHYSICAL DAMAGE

 

Announcing Verdict or Correction

 

Article 188

In case of injury [violation] of the rights of a person a court may order that the verdict or the correction be announced [made public] at the expense of the damaging party, or the court may order the damaging party to withdraw the impairing statement, or the court may order something by means of which the purpose otherwise intended by the compensation may be achieved.

 

Monetary Compensation

Article 189

 

(1) For physical and mental distress suffered due to impairment of normal life, deformity, injury to the reputation, the honor, the freedom or the rights of a person, or suffered due to death of a related person or apprehension [fear], a court shall, if it finds that the circumstances of the case and particularly the extent of distress and apprehension [fear] justify it, decide on fair monetary compensation, as a separate compensation from that for physical damage or in its absence.

 

(2) When deciding upon a request for compensation of non-physical damage and on the amount of such compensation, a court shall take into consideration the significance of the injured value and the intended purpose of the compensation, and the court shall see that the compensation does not satisfy any objectives that are unjust and are contrary to its nature.

 

 Persons Entitled to Monetary Compensation in Case of Death or Grave Disability

Article 190

(1) In case of death of a person, a court may decide on an equatable compensation for the psychological distress of the members of the close family (spouse, children and parents).

 

(2) Such compensation may also be decided for the deceased person’s brothers and sisters if they lived in a close family relationship with the deceased.

 

(3) In cases of really grave disability of a person, a court may decide on an equatable compensation for the psychological distress of that person’s  spouse, children and parents.

 

(4) The compensation pursuant to Subarticle 1 and Subarticle 3 of this Article may be decided for a cohabitee, if the cohabitee and the deceased person cohabited continuously together.

  

Satisfaction in Special Cases

Article191

 

 

A person induced through a deceit, compulsion or misuse of a relationship of subordination or dependence to have a [sexual] intercourse or to commit debauched act that is criminal, or a person to whom any other criminal act against his/her dignity and moral is committed, is entitled to an equitable compensation for the psychological distress suffered.


Compensation of Future Damage

Article 192

Upon the request of the damaged party, a court shall also decide on compensation for non-physical damage to be suffered in future, if according to the normal course of events it is it indicated that the damage will continue into the future.

  

Inheriting and Transferring a Compensation Claim for Non-Physical Damage

Article 193

(1) A compensation claim for non-physical damage is transferable to a successor provided it is recognized by a final [court] decision or a written agreement.

 

(2) Under the same conditions, a compensation claim may be the subject of an assignment, set off or mandatory [court ordered] performance.

 

 Divided Liability and Reduction of Compensation

Article 194

Provisions relating to divided liability and reduction of compensation that are applicable to physical damage are appropriately applicable to non-physical damage as well.