Contract termination and civil liability in Lithuanian business law

Abstract

The termination of a contract, a common remedy for a creditor’s breach of rights, releases both parties from further performance obligations. However, the injured party retains the right to claim damages from the breaching party. This article, taking into approach Lithuanian business law, delves into the specific features of civil liability arising from contract termination, examining restitution, performance in kind, and their relationship to damages. It also differentiates between contractual and tortious liability in termination contexts and analyses the peculiarities of damages and compensatory interest as forms of civil liability. Additionally, the article explores whether civil liability applies exclusively to unlawful termination, if a corresponding claim for damages is always possible, and if an independent claim for declaring termination unlawful can be pursued without seeking damages.