Pasūtītāja atteikšanās no piegādes līguma

Abstract

The Latvian Civil Law provides for a strict rule regarding the binding force of a contract. The basic rule is that no one has the right to withdraw from the contract due to difficulties in performing the contract at a later date, nor may the withdrawal from the contract take place because the other party is not performing the contract. Thus, the principle of pacta sunt servanda is enshrined in Latvian contract law. However, there are certain provisions in the Civil Law that allow a party to unilaterally withdraw from the contract, if the other party does not comply with it or there are other circumstances that give the right to terminate the contractual relationship, – such as termination of the authorization agreement, early termination of storage, withdrawal from the service agreement in specific cases, etc. Despite the strict regulation regarding the binding force of the contract, there is an article (art. 2108) in the Latvian Civil Law which stipulates that in the case of a supply contract, the customer is entitled to refuse delivery if the circumstances have changed. This right is a unique exception in Latvian contract law, which is additionally supplemented by the customer’s obligation to compensate the supplier for losses. The purpose of this paper is to analyse the historical origins of these exceptions, their rationale, and conclusions as to whether such an exception should be retained in Latvian contract law.