| Abstract [eng] |
Execution of the Contract in the Event of a Change in Circumstances During Global Crises. This master's thesis analyzes the execution of contracts in the event of a change in circumstances during global crises and whether based on Article 6.204 of the Civil Code of the Republic of Lithuania (hereinafter – CC), commercial lease contracts of non-residential premises may be modified or terminated in the context of the COVID-19 pandemic. Based on relevant and significant Lithuanian legal acts, case law as well as Lithuanian and foreign legal doctrine, the thesis examines the contents of the prerequisites of application of the legal institute of changed circumstances established in the CC. After the aforementioned examination, it is concluded that the legal institute of changed circumstances cannot be formally assessed. To assess the substantial change in the balance of obligations, it is necessary to not only use the objective criteria established in the CC, but also the subjective criteria. Accordingly, it was identified that it is not objectively possible to set out an exhaustive list of circumstances to be assessed and the criteria to be used. Analysis of the mandatory pre-litigation dispute settlement procedure and the court's discretion to terminate or modify the contract concluded that the mandatory negotiations are to be welcomed, as they encourage the parties to settle a dispute directly without the intervention of the court. The analysis also determined that the court's discretion to choose to terminate or modify the contract is limited by claims of the parties and principles of civil and civil procedure law. When analyzing the possibility of applying Article 6.204 of the CC in the context of the COVID-19 pandemic, it has been established that quarantine or Coronavirus per se is not a circumstance that substantially changes the equilibrium of the contract. However, after establishing all the circumstances and all prerequisites of Article 6.204 Part 2, it is possible to utilize the institute of the changed circumstances to lease contracts in the context of the COVID-19 pandemic. The nature of this crisis necessitates the application of subjective criteria for assessing a change in the equilibrium of the contract, and in some cases, these criteria may be decisive in determining that change. This thesis also establishes that the COVID-19 pandemic did not remove the opportunity and obligation to negotiate. Depending on the claims of the parties, the court may make a decision setting a specific date until which the amendments to the contract made by the court will take effect. |
