In this situation, are you obliged to exercise extreme caution when driving past a vehicle from the opposite direction?

In the photo you are driving in town along a street next to tram tracks; a yellow driving school car with an "L" plate is coming from the opposite direction, driving close to the centre of the road, and on the right, behind bollards, there is a car park with cars. When passing this oncoming car you are obliged to exercise particular caution. The answer is: yes.

The Road Traffic Act states that when passing an oncoming vehicle, a driver is obliged to keep a safe distance from that vehicle and, if necessary, move to the right and reduce speed or stop. The general rule requires you always to be careful, and to exercise particular caution when the Act requires it; however, the principle of limited trust tells you to be prepared for unusual behaviour by a road user when the circumstances suggest it, and the exam answer key calls this increased attention and readiness to react particular caution. The "L" plate is exactly such a signal: behind the wheel is a learner, who may misjudge the width of the car, cross the centre of the road or brake suddenly. That is why, when passing, you slow down, move over to the right towards the edge of the roadway, and keep your foot over the brake until you have passed each other.

Legal basis: Art. 23 para. 1 point 1, Art. 3 para. 1 and Art. 4 of the Road Traffic Act (Prawo o ruchu drogowym)