Under the general civil-law regime in Section 420 of the Civil Code, the wrongdoer's fault is presumed and compensation covers actual loss and lost profit. Breach of a commercial obligation, however, is subject to the separate liability regime in Section 373 et seq. of the Commercial Code. Unjust enrichment is a benefit obtained without legal grounds and must be returned. Limitation depends on the regime and circumstances: civil-law rules provide a two-year subjective period and specific objective limits, while commercial claims generally have a four-year period.
When does a damages claim arise?
The following explanation concerns general civil-law liability; special categories of damage may be governed by different rules. The basic rule is that everyone is liable for damage caused by breaching a legal duty (Section 420(1) of the Civil Code). Liability is fault-based, but fault is presumed: only someone proving absence of fault escapes liability (Section 420(3)). This benefits the injured party, who need not prove the wrongdoer’s fault; the other side bears the burden of disproving it.
Liability for breach of a commercial obligation is assessed under Section 373 et seq. of the Commercial Code: merely proving absence of fault is insufficient, and the statutory circumstances excluding liability are also decisive.
What is compensated?
Compensation is broad, covering actual loss and lost profit (Section 442(1)). Actual loss is a reduction in assets, such as repair costs; lost profit is what the injured party would have gained in the ordinary course of events. Compensation is generally monetary. Restoration of the previous state is available only at the injured party’s request and where possible and appropriate (Section 442(3)).
What is unjust enrichment?
Restitution of unjust enrichment is a different but related claim. Anyone unjustly enriched at another’s expense must return the benefit (Section 451(1)). Unjust enrichment is a financial benefit obtained through performance without legal grounds, under an invalid legal act or on grounds that later ceased to exist (Section 451(2)). Typical examples are overpayments, duplicate payments or performance under an invalid or cancelled contract. Unlike damages, it does not require examining a breach of duty or fault, only whether the recipient obtained a benefit without legal grounds.
Watch limitation periods
Under the civil-law regime, damages become time-barred two years after the injured party learns of the damage and the person liable, subject to an outer limit of three years from the event or ten years for intentional damage; the objective limit does not apply to personal injury (Section 106). Unjust enrichment has a two-year subjective and three-year objective period, extended to a ten-year objective period for intentional enrichment (Section 107). Commercial claims are generally subject to the four-year period in Section 397 of the Commercial Code, with the Section 398 rules applying to damages. The precise starting point and ultimate limit must be determined according to the claim’s nature. Act promptly: we pursue damages and unjust enrichment out of court and through litigation as part of debt recovery and court representation.
This answer provides general information on the law as at 10 September 2026. It does not constitute legal services or replace an assessment of an individual case. The details of your situation may differ. Book a consultation to discuss them.
