Termination of the Preliminary Contract: Seller’s Risk and Buyer’s Protection.
The article addresses the consequences of terminating preliminary real estate sale contracts, focusing on sellers who back out to secure higher prices elsewhere. It highlights the growing number of disputes and the use of the “price difference method” to calculate buyer losses. The Lithuanian Supreme Court requires specific conditions for this method, ensuring compensation reflects actual damages. Sellers are warned that unjustified contract termination can lead to substantial financial penalties.
For article in Lithuanian check here.
NOEWE LEGAL Dispute Resolution team:
- Andrius Lukašonokas
Associate Partner | Attorney at Law | Dispute Resolution
- Lukas Seržantas
Associate | Assistant Attorney at Law