Data

Date:
26-06-2012
Country:
Lithuania
Number:
K-7-306/2012
Court:
Supreme Court of Lithuania
Parties:
J.G. v. AB SEB bankas

Keywords

LONG-TERM CONTRACTS - LOAN AGREEMENT - BETWEEN A LITHUANIAN INDIVIDUAL AND A SCANDINAVIAN BANK - REFERENCE TO UNIDROIT PRINCIPLES TO CONFIRM THE SOLUTION ADOPTED UNDER APPLICABLE DOMESTIC LAW (LITHUANIAN LAW)

HARDSHIP - REQUEST FOR RENEGOTIATION OF THE CONTRACT TO BE MADE "WITHOUT UNDUE DELAY" - ARTICLE 6.204 OF THE LITHUANIAN CIVIL CODE INTERPRETED IN ACCORDANCE WITH ARTICLES 6.2.1, 6.2.2, 6.2.3 OF THE UNIDROIT PRINCIPLES

HARDSHIP - THE REQUEST FOR RENEGOTIATION OF ONE PARTY DOES NOT PREVENT THE OTHER PARTY FROM TERMINATING THE CONTRACT FOR NON-PERFORMANCE

Abstract

Lithuanian natural person and Scandinavian bank entered into a loan contract. Due to its financial situation the debtor was delayed with monthly payments and requested the bank 5 times to revise the repayment terms. When the bank refused the revision and terminated the contract, the debtor brought an action for declaring the termination ineffective.

The Court rejected debtor's claim and in support of its decision invoked both Article 6.204 of the Lithuanian Civil Code and Articles 6.2.1, 6.2.2. and 6.2.3 of the UNIDROIT Principles, stating that claim for adaptation for the contract should be submitted without an unreasonable delay after the party gets the refusal for alteration of another party. However, the request for renegotiation does not restrict the right of the other party to terminate the contract for non performance.

Fulltext

http://liteko.teismai.lt/viesasprendimupaieska/tekstas.aspx?id=3a632370-0ab6-4e38-b210-8fcd8632bf20

(Lithuanian)}}

Source

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