No, Serbian law does not contain a legal definition of consequential loss. This term is also seldom, if ever, used in the judicial practice of the Serbian courts and has no clear meaning in Serbian judicature.
The words “consequential loss” do not have a given meaning in Serbian law.
The Serbian Law on Obligations (the “LO”) provides essentially two main types of damage that are recoverable in contractual and non-contractual relations:
- pecuniary damage, which can be:
- ordinary damage (obična šteta);
- loss of profit (izmakla korist); and
- non-pecuniary damage (neimovinska šteta).
Although all types of damage are recoverable, contractual claims have an additional requirement of foreseeability of the damage at the time of entering into an agreement. The court will consider whether the damage was foreseeable at the time of the conclusion of the contract as a possible consequence of the breach, taking into account the facts that the party in breach knew or should have known.
In the event of fraud, intentional non-performance, or non-performance as a result of one of the party’s gross negligence, the innocent party is entitled to recover the total damage (i.e. not only foreseeable damage), notwithstanding the special circumstances that caused the damage.