LUMP SUM COMPENSATION FOR RECOVERY COSTS IN COMMERCIAL TRANSACTIONS

THE STATUTORY AMOUNT AND ITS RELATIONSHIP WITH THE COMPENSATION OF DAMAGES INCURRED DUE TO LATE PAYMENT

Authors

  • Ivan Tot University of Zagreb, Faculty of Economics and Bussines, Zagreb, Croatia

DOI:

https://doi.org/10.30925/zpfsr.41.2.3

Keywords:

late payment; commercial transactions; lump sum compensation for recovery costs; Directive 2011/7/EU

Abstract

The Financial Operations and Pre-Bankruptcy Settlement Act of 2012 (ZFPPN) has introduced into Croatian law “a special compensation for the creditor's recovery costs incurred due to debtor's late payment in commercial transactions”, as a new legal consequence of late payment. The statutory amount of this lump sum compensation for recovery costs is prescribed in the Art. 13 (1) of the ZFPPN, which provides that the
creditor of a monetary obligation is entitled to a lump sum compensation in Croatian kunas in the amount equivalent of 40 €. The paper discusses the permissibility of a contract term setting out an amount of compensation different than the one prescribed by the Art. 13 (1) of the ZFPPN, and the relationship between the creditor's claim for payment of the lump sum compensation and his claim for compensation of damages incurred due to the debtor's late payment.

Additional Files

Published

2020-10-14

How to Cite

Tot, I. (2020). LUMP SUM COMPENSATION FOR RECOVERY COSTS IN COMMERCIAL TRANSACTIONS: THE STATUTORY AMOUNT AND ITS RELATIONSHIP WITH THE COMPENSATION OF DAMAGES INCURRED DUE TO LATE PAYMENT. Collected Papers of the Law Faculty of the University of Rijeka, 41(2), 487–505. https://doi.org/10.30925/zpfsr.41.2.3

Issue

Vol. 41 No. 2 (2020): Collected papers of the Law Faculty of the University of Rijeka

Section

ARTICLES

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