Dispute regarding the interpretation of legal norms dealing with contractual obligations

Motieka & Audzevičius has represented a client in a commercial dispute at the Court of Appeal of Lithuania. The dispute concerns the interpretation of legal norms dealing with contractual obligations.

In particular what level of deviation from the agreed conditions shall be considered a failure to perform contractual obligations. The court of first instance ruled that contractual obligations have been fulfilled when a real estate broker has introduced its client (a real estate owner) to a potential leaseholder even though a lease agreement was not concluded. Consequently a payment for the agent’s services is due but reduced. The Court of Appeal affirmed the position of the lower court.