THE PRICE OF AN INDEPENDENT WORK CONTRACT AND THE ECONOMIES OF THE INDEPENDENT WORK CONTRACTOR

Ecovis Miskinis , Kvainauskas ir partneriai adokatu kontora

(Part 2 - continued from last week)

In the event where the actual expenses of the independent work contractor prove to be lower than those taken into account in determining the price of work, the independent work contractor retains the right to the payment for work as established in the contract of independent work, unless the customer proves that the economies produced negative effect on the quality of work as determined in the contract.

A distribution of the savings received may be provided for in the contract.
Where a contract does not fix the price or establish an order for determining the price, the parties are considered, in the absence of any indication to the contrary, to have made reference to the price commonly charged at the moment of the conclusion of the contract for such performance in comparable circumstances in the sphere of business concerned, or if such price does not exist, to a reasonable price.

In the event where the price must be determined by one party, and such determination is manifestly unreasonable, it must be substituted by a reasonable price, regardless of any other agreement of the parties.
If the price must be fixed by a third person, and if that person does not, or cannot do so, the price of the contract has to be deemed to be a reasonable price.

Where the price is to be fixed by reference to the criteria which do not exist, or have ceased to exist or cannot be ascertained, it must be fixed every year and by reference to the criteria which are the nearest equivalent.
The performance of a contract is considered obstructed under such circumstances which fundamentally alter the balance of the contractual obligations, i.e. either the cost of performance has essentially increased, or the value thereof has essentially diminished if:

1) these circumstances occur or become known to the aggrieved party after the conclusion of the contract;
2) these circumstances could not reasonably have been foreseen by the aggrieved party at the time of the conclusion of the contract;
3) these circumstances are beyond the control of the aggrieved party;       
4) the risk of occurrence of these circumstances was not assumed by the aggrieved party.

In the event where the performance of a contract becomes obstructed, the aggrieved party has the right to make a request to the other party for the modification of the contract. Such request has to be made immediately after the occurrence of obstructions, with the grounds on which the request is based indicated therein. The request for modification of the contract does not in itself entitle the aggrieved party the right to suspend performance of the contract. Where within a reasonable time the parties fail to reach an agreement on the modification of the contractual obligations, any of them may bring an action into a court.

The court may:
1) dissolve the contract and establish the date and terms of its dissolution;
2) modify the conditions of the contract with a view to restoring the balance of the contractual obligations of the parties.