In a relationship based on a gratuitous favour, the favour provider performs a service for the recipient of the favour without being legally obliged to do so and without being entitled to any remuneration. Such relationships differ from contracts in the criterion of intent to enter into a legally binding agreement, which is absent in a relationship of gratuitous favour, as the act is performed with an altruistic motive. In order to distinguish them from contracts, German and Austrian courts developed a list of indicators which they consider in order to determine the nature of the relationship. Because of their quasi-contractual nature, these relationships most closely resemble those created by agency without authority or by a duty of care in the context of pre-contractual negotiations. Determination of the legal nature of favours has decisive effect on their legal consequences, in particular liability for damages. Pure favours do not create any legal consequences for the participants. In presence of the elements indicating contractual nature of the relationship, the consequences correspond those of the relevant contract. If a participant breaches its duty of care, it shall be liable for that breach under the rules of tort liability. Various authors argue in favour of both a more lenient and a more stringent approach to liability than that of tort. Since the service in question is gratuitous and benevolent and most often performed within a circle of friends or family, the tort liability as stipulated by the German law may be considered too strict. At the same time, the recipient of the favour relies on the performance of the favour, thereby allowing the provider of the favour to affect his legal interests. Considering this, a stricter liability, similar to contract liability, may also seem appropriate. The Slovenian courts have so far not addressed the problem of gratuitous favours systematically. With help of established German and Austrian case law in this matter, this master's thesis presents the legal character and liability for damages in those relationships. By drawing the parallels and acknowledging the differences between German, Austrian and Slovenian legal systems, it attempts to position favours in the Slovenian legal order.
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