The institute of pre-contractual liability attests to the need to adapt the law to contemporary challenges in trade and the protection of parties in negotiations. Precise definitions in legislation and representation in international documents emphasize its importance for legal certainty in business relationships. Negotiations are crucial in the process of contract formation, recognized by the legislator, with established mechanisms for the protection of participants. The principle of good faith and fair dealing obliges parties to cooperation, disclosure, and loyal conduct, ensuring fair business relations. This thesis particularly focuses on how Croatian legislation has regulated the institute of pre-contractual liability. It explores the legal nature of liability for damages, the assumptions of its occurrence, and the scope of compensation. Special attention is dedicated to analyzing recent judicial practice in Croatia, the costs of contract formation, and the issue of statute of limitations. The discussion on the scope of compensation in pre-contractual liability points to the need for further consideration and adjustment of legislation to strengthen legal certainty and clarity. It is expected that the courts will continue to develop their approaches, which could lead to greater coherence in resolving similar cases in the future.