TERMINATION OF CONTINUING OBLIGATIONS

Abstract

The paper deals with the general rules on termination of continuing obligation relationships which are in Croatian law contained in the provisions of Art. 211 and Art. 212 of the Law on Obligations. According to these general rules, the passing of time is the regular way of termination of fixed-term continuing obligation relationships,
while termination by notice is the regular way of termination of continuing obligation relationships concluded for indefinite period of time. Both of the regular ways of termination of continuing obligation relationships have effects only pro futuro and, unlike the unilateral revocation, they do not result with the obligation to return what was received as performance before the termination of continuing obligation
relationship. A prevailing standpoint of the Swiss, Austrian and German law is that any continuing obligation relationship may be terminated by extraordinary termination by notice for an important reason. By contrast, Croatian law prevails on the view that continuing obligation relationships are terminated extraordinarily by unilateral revocation, with the effects of the termination of the continuing obligation
relationship being teleologically reduced only to the ex nunc effects. The aim of this paper is to re-examine this predominant standpoint of Croatian law. The paper argues that in Croatian law every continuing obligation relationship is terminated in an extraordinary manner by an extraordinary termination by notice for an important reason, not by unilateral revocation.