Pledge in Lithuania
Concept of Pledge A pledge is the encumbrance of movable property or proprietary rights to secure the performance of an existing or future debt obligation, where the pledged asset is…
Collection in Lithuania
Collection Operations Collection – operations carried out by a bank (the remitting bank) with documents on the client’s instructions, for the purpose of obtaining payment and/or payment acceptance, or releasing…
Set-off in Lithuania
Modification and termination of contractual obligations Set-off is a unilateral declaration (legal act) by one party that changes the contractual relationship between a creditor and a debtor, provided there are…
Joint Activity Agreement in Lithuania
Partnership Agreement A joint activity agreement (partnership agreement) – under this agreement, two or more persons (partners), combining their property, work, or knowledge, undertake to act jointly for a specific…
Legal Capacity and Active Legal Capacity of a Legal Entity in Lithuania
Definition of Legal Capacity Civil legal capacity is one of the fundamental characteristics of a legal entity. The legal capacity of a legal entity is the ability to possess rights…
Commission in Lithuania
Commission Contract Commission – under a commission contract, one party (the commission agent) undertakes, at the request of the other party (the principal), to conclude one or more transactions in…
Suretyship in Lithuania
Concept and Legal Basis of Suretyship Suretyship is a contract under which a guarantor, for compensation or free of charge, undertakes to be liable to the creditor of another person…
Liquidation of a Legal Entity in Lithuania
Termination of Legal Entities: Reorganization and Liquidation Legal entities may cease to exist in two ways: through reorganization or liquidation. The difference between these methods lies in the fact that…
Lease in Lithuania
Definition of a Lease Agreement A lease is the granting of the right to use a created object, the object of neighboring rights, or its original or duplicate for a…
Loan-for-Use Agreement in Lithuania
Conditions of Gratuitous Use of Property Loan for Use (Gratuitous Use of Property) – is a right granted by the lender to the borrower to possess and use property free…
Mandate in Lithuania
Mandate Agreement A mandate – under a mandate agreement, one party (the agent) undertakes, on behalf of and at the expense of the other party (the principal), to carry out…
Primary and Secondary Legal Aid in Lithuania
State-Guaranteed Legal Assistance The state (in the Republic of Lithuania) guarantees the provision of legal aid to natural persons so that they can properly defend their violated or disputed rights…