| Abstract [eng] |
This paper analyses the right to terminate the contract under the Civil Code of Lithuania and its application in the practice of the Supreme Court of Lithuania, as well as in comparison to the UNIDROIT Principles of the international Commercial Contracts. Initially, the possibility to terminate the contract under the modern law of contract is discussed. Likewise, limited freedom to invoke this legal remedy under the Civil Code of Lithuania is acknowledged. Secondly, non-performance of the contract – the main ground for the termination of contract – is examined. A conclusion is reached that non-performance is to be defined so as to include all forms of defective performance, including late performance, as well as complete failure to perform. Moreover, a party is given a possibility to terminate the contract despite the fact that the non-performing party is not responsible for the non-performance. Afterwards, possible ways of termination of the contract under the Lithuanian legal system are described: termination on contract by agreement, judicial termination of contractual obligations and termination of contract by unilateral notification. The focus is on the latter, as it is considered to be the most controversial way to end contractual relations. Comprehensive analysis is presented, comprising all possible means of unilateral termination of contract: right to terminate the contract dependent on fundamental breach of the contract, termination of the contract after an additional period for performance and possibility to negotiate on accessory grounds for termination of contract, exclusive exceptions provided under the civil Code of Lithuania are noted. Eventually, legal procedures, necessary in order for termination of the contract to be binding and principal obscurities of the process are presented. Finally, objective conclusions and recommendations for improving national legislation are given. |
