Abstract

This paper aims to analyse the rules concerning the limitations on liability for the loss arising out of business contracts from the perspective of the principle of full compensation as the general principle of the Law on Obligations (Law of Contracts and Torts) and its limitations by way of the foreseeability rule. Special attention is given to the rules of the Law concerning the proportionate reduction of damages in cases when the aggrieved party contributed to the occurrence or increase of the loss, and when the aggrieved party, as a result of the breach of contract, received certain benefit in addition to the loss suffered. Given that contractual liability may apply only if no circumstances that exclude it have occurred, the paper provides a careful analysis of the rules of the Law relating to the exemption of liability, as well as contractual clauses on the exclusion and limitation of liability in terms of their validity and legal effects. The analysis of these rules is followed by their general evaluation in the final considerations.

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