- Supreme Court of Lithuania
SALES CONTRACT - BETWEEN TWO LITHUANIAN COMPANIES - REFERENCE TO UNIDROIT PRINCIPLES TO CONFIRM THE SOLUTION ADOPTED UNDER APPLICABLE DOMESTIC LAW (LITHUANIAN LAW).
FORCE MAJEURE - EXEMPTION FROM LIABILITY FOR NON-PERFORMANCE - ARTICLE - REFERENCE TO ARTICLE 6.212 OF THE LITHUANIAN CIVIL CODE AND TO ARTICLE 7.1.7 OF THE UNIDROIT PRINCIPLES
FORCE MAJEURE - IMPORT PROHIBITION
Two Lithuanian companies concluded a contract for the supply of 150 railways wagons to be produced by the particular company in Russia. Subsequently the Lithuanian seller declared that it was not able to deliver the wagons as the Russian manufacturer on its part could not deliver them on the ground that in the meantime the Russian Government had prohibited the import of components necessary for their production from Ukraine. When the buyer requested from the seller the payment of the penalty stipulated in the contract for the case of non-performance, seller refused to pay the penalty invoking force majeure.
In deciding in favor of the buyer the Court invoked Article 6.212 of the Lithuanian Civil Code together with Article 7.1.7 of UNIDROIT Principles, pointing out that contractor cannot rely on the force majeure for non-performance even if one of its subcontractors fails to fulfill its duties due to force majeure.