SOME DISPUTABLE ISSUES CONCERNING REVOCATION OF A CONTRACT ON ASSIGNMENT AND DISTRIBUTION OF PROPERTY FOR LIFE

Abstract

With the introduction of the notary public into the legal system of the Republic of
Serbia, there has been a certain reaffirmation of a contract on assignment and distribution of
property for life, which has been increasingly concluded in recent years. At the same time,
an increase in the number of revocations of this contract should be expected. The legislation
of Serbia and North Macedonia prescribe specific reasons for the revocation of the contract
on assignment and distribution of property for life by the assignor of the property in order
to protect his interests. Both legal systems provide for gross ingratitude of the descendants
towards the assignor of the property as a reason for unilateral termination of the contract.
When the descendants under this contract undertake obligations towards the assignor, the
Macedonian legislator prescribes the possibility of unilateral termination of the contract
according to the provisions governing the unilateral termination of bilaterally binding
contracts. On the other hand, the Serbian legislator gives different significance to the certain
obligations under the contract, and prescribes the possibility of its unilateral revocation only
in the case when the descendant did not give the settled maintenance or did not pay the debts
of the assignor. Insufficiently precise regulation of this type of termination of a valid contract
on assignment and distribution of property for life raises a number of controversial issues.
In this paper, the authors give a detailed analysis of the reasons for revoking this contract.
They take into consideration courts’ interpretation of the legal standard of gross ingratitude,
as well as under which conditions they allow the termination of the contract in the case of not
provided maintenance and non-payment of the debts.