UNLOCKING THE ESSENCE OF FUNDAMENTAL BREACH– Exploring Sales Legislation in Southeast European Context –

Abstract

This paper explores the concept of a fundamental breach of contract and its implications within the contract laws of Bosnia & Herzegovina, Croatia, Montenegro, North Macedonia, and Serbia, with a particular emphasis on sales contracts. It delves into the role of the “Vienna Convention on Contracts for the International Sale of Goods” (CISG) as a foundational framework for comprehending fundamental breaches and their impact on international trade. Although regional legislation lacks explicit terminology, the paper explains how fundamental breaches are implicitly acknowledged and managed within national obligations laws. By conducting a comparative analysis of these legal frameworks, similarities and differences in addressing breaches are highlighted, revealing common approaches and regional variations. Significantly, while regional laws focus on timely notification and outline conditions for termination, they do not precisely categorize fundamental breaches. The paper suggests amendments in the drafting of national civil codes to provide clearer definitions and align with international standards. Adopting the concept of “fundamental breach” could help Southeast European countries achieve legal coherence with modern international trade laws and facilitate smoother integration into the global market.