Lost profit - Legal aspects

Session

Law

Description

One of the main aspects in theory and practice of the Contractual Law is compensation of damages caused by the breach of contract. In every separate case, through special criteria, the scope of compensation is determined, if it is only damnum emergens (the actual harm) or the opposite so called hypothetical harm (loss of profit or lucrum cesans). Besides the specific criteria for the determination of the scope of the compensation, the legal norms usually give an opportunity to the contractual parties through the principle of contractualism or freedom of contract to create the provisions of the contract, including the provisions for compensation of damages in order to reach the economic benefits. The lost profit is the profit that the party claiming damages will have if the contract was accomplished by the other party, the party in breach. There are specific criteria for determination of the existence and the size of the loss in the legal theory and practice. Even though Roma Law had strict rules and criteria for determination of the lost profit - lucrum cessans, the development of the Contractual Law rise the question - are there general rules and criteria acceptable for all types of contracts? This question especially refers to the trade contracts taking into account the dynamic development of the Business Law, more precisely International Business Law. The modern international trade contracts have raised number of questions and dilemmas connected with the lost profit and compensation of damages, in general. Some of the questions are the following: (1) Are there general rules and criteria of lost profit and compensation of damages acceptable for all trade contracts? (2) How to avoid the lost profit? (3) Which are the legal principles governing recovery? (4) How to prove and not to prove lost profits damages?

Keywords:

lost profit, lucrum cesans, damages, recovering damages, Lex mercatoria, UNIDROIT

Session Chair

Mensur Morina

Session Co-Chair

Jorida Xhafaj

Proceedings Editor

Edmond Hajrizi

ISBN

978-9951-437-96-7

Location

Lipjan, Kosovo

Start Date

31-10-2020 9:00 AM

End Date

31-10-2020 10:30 AM

DOI

10.33107/ubt-ic.2020.267

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Oct 31st, 9:00 AM Oct 31st, 10:30 AM

Lost profit - Legal aspects

Lipjan, Kosovo

One of the main aspects in theory and practice of the Contractual Law is compensation of damages caused by the breach of contract. In every separate case, through special criteria, the scope of compensation is determined, if it is only damnum emergens (the actual harm) or the opposite so called hypothetical harm (loss of profit or lucrum cesans). Besides the specific criteria for the determination of the scope of the compensation, the legal norms usually give an opportunity to the contractual parties through the principle of contractualism or freedom of contract to create the provisions of the contract, including the provisions for compensation of damages in order to reach the economic benefits. The lost profit is the profit that the party claiming damages will have if the contract was accomplished by the other party, the party in breach. There are specific criteria for determination of the existence and the size of the loss in the legal theory and practice. Even though Roma Law had strict rules and criteria for determination of the lost profit - lucrum cessans, the development of the Contractual Law rise the question - are there general rules and criteria acceptable for all types of contracts? This question especially refers to the trade contracts taking into account the dynamic development of the Business Law, more precisely International Business Law. The modern international trade contracts have raised number of questions and dilemmas connected with the lost profit and compensation of damages, in general. Some of the questions are the following: (1) Are there general rules and criteria of lost profit and compensation of damages acceptable for all trade contracts? (2) How to avoid the lost profit? (3) Which are the legal principles governing recovery? (4) How to prove and not to prove lost profits damages?