The Plaintiff and the Defendant entered into a Lease Agreement in accordance with Article 1, paragraph 1 of the Law on the Lease of Business Buildings and Premises for a specific period of two years, starting from June 1st, 2018, until June 1st, 2020. As the said Agreement was concluded for a fixed period, it ceased to produce legal effects after the expiration of the agreed time, as per Article 32, paragraph 1 of the Law on the Lease of Business Buildings and Premises.
The lease agreement expired on June 1st, 2020, as the Plaintiff expressed its intention not to renew the contractual relationship by requesting the Defendant to vacate the business premises by June 1st, 2020, in accordance with the concluded Agreement, as stated in act number 02-01-261/20 dated May 8th, 2020, received by the Defendant on May 13th, 2020.
According to Article 324, paragraph 1 of the Law on Obligations, a debtor is considered in default if they do not fulfill their obligation within the specified time, while paragraph 2 of the same article states that if a deadline for performance is not specified, the debtor is in default when the creditor calls on them to fulfill the obligation orally or in writing, through extrajudicial warning, or by initiating a procedure aimed at achieving performance. Article 277, paragraph 1 of the Law on Obligations stipulates that a debtor who is late in fulfilling a monetary obligation owes default interest, in addition to the principal, at the rate determined by law. According to Article 279, paragraph 3 of the same Law, default interest on periodic matured monetary obligations runs from the day when a request for their payment is submitted to the court.
In a court case where this law firm represented the client before the Municipal Court in Sarajevo, case number 65 0 Ps 851122 20 Ps, a judgment was rendered on June 29th, 2021. According to this judgment, the Defendant is obligated to transfer real estate – an adapted building with a total area of business premises of 214.68 m2 in Sarajevo, free from people and things, within a period of 30 days under the threat of compulsory execution. The Defendant is also obliged to pay the Plaintiff a monetary amount of 5.616,00 KM on the debt, with statutory default interest from the day of filing the lawsuit until payment. Additionally, the Defendant must reimburse the Plaintiff for the costs of the litigation procedure in the amount of 1.600,56 KM, all within 30 days under the threat of compulsory execution.
The aforementioned judgment of the Municipal Court in Sarajevo, case number 65 0 Ps 851122 20 Ps, was confirmed by the Judgment of the Cantonal Court in Sarajevo, case number 65 0 Ps 851122 21 Pž, dated June 8th, 2022, thereby fully protecting the rights and interests of our client.
If you need legal advice in Sarajevo regarding the transfer of real estate possession and debt payment in Bosnia and Herzegovina – Lease Agreement, whether you are an individual, a company, a member of a company, a director, or a founder, or if you need a corporate lawyer for your business or business idea, you are in the right place. You can contact our corporate lawyers directly by phone at (+387 62 342 463), WhatsApp, Viber, or email (rasid@haracic.ba).
