- Supreme Court of Lithuania
CONTRACT BETWEEN TWO LITHUANIAN COMPANIES - SUBJECT TO A PARTICULAR DOMESTIC LAW (LITHUANIAN LAW) - REFERENCE TO THE UNIDROIT PRINCIPLES IN SUPPORT OF SOLUTION ADOPTED UNDER APPLICABLE DOMESTIC LAW
CONTRACT INTERPRETATION - REFERENCE TO COMMON INTENTION OF THE PARTIES OR WHERE NO SUCH INTENTION CAN BE ESTABLISHED TO UNDERSTANDING OF "REASONABLE PERSON" (ARTICLE 6.193 OF LITHUANIAN CIVIL CODE BASED ON ARTICLE 4.1 UNIDROIT PRINCIPLES)
In a dispute between two Lithuanian companies concerning the interpretation of the contract the Court held that reference has to be made first of all to the real intention of the parties and where such intention cannot be established reference has to be made to the meaning that a reasonable person in the same situation of the parties would attach to the contract term in question. In this respect the Court referred to Art. 6.193 of the Lithuanian Civil Code mentioning that the article according to the accompanying Commentary is based among others on Art. 4.1 of the UNIDROIT Principles.