About contract conversion in Serbian law with special reference to the court conversion

Abstract

In theoretical works of domestic authors the institute of conversion seems to be unjustifiably neglected. Nevertheless, this institute raises a number of questions that our theory and practice do not answer uniquely. In the absence of more complete regulation, the theory created a new form of conversion (judicial conversion), for which we cannot be sure whether it could fall under the existing norms of our law. Courts, however, enthusiastically accept such theoretical creation and use it to resolve "unsolved" disputes. Recently, the issue of judicial conversion has become very topical in our theory and practice due to numerous disputes against banks for determination of the nullity of credit agreements indexed in CHF. The recently adopted Legal opinion of the Supreme Court of Cassation on Validity of the Foreign Currency Clause in Credit Agreements in Swiss Francs and Conversion, speaks in favor of the actuality of the topic.

Keywords

• conversion
• judicial conversion
• nullity
• non-existent contract
• legal opinion of the supreme court of cassation