| Abstract [eng] |
The share purchase agreement is the one of the methods to transfer and to acquire the business. The laws do not provide the specific regulation the share purchase agreement – it is regulated by the general provisions of sale – purchase provided by civil code. However the parties of the agreement have created specific provisions which regulate the conclusion and execution of the share purchase agreement. Accordingly to the fact that the laws are not the mean to warrant the right of the buyer, the practice has formulated the guarantee of the seller‘s rights and effective mean to compensate the losses. These means are formulated as representations and warranties. By giving these representations and warranties, the seller warrants that particular circumstances shall not occur or shall occur within the time provided by the parties. In order to know the warranties which shall be given by the seller and the scope of these warranties, the seller must examine the target and to calculate the value of it. The seller is obliged to disclose all information which shall be essential to the buyer. If this obligation of the seller is in breach, the seller is endowed to invoke all measures to protect its rights. Despite the fact that the share purchase agreement provides different measures, the buyer shall have the right to demand damages and other legal means. According to the Lithuanian case-law, provisions regarding defect of the object of the agreement are not applied to the shares. However, in cases when the buyer of the shares obtains the right to control the target company, these provisions shall be applied. Besides, the buyer shall be endowed to lean upon the rights of subject which acquires the target company fairly. |
