Qualification of pre-contractual liability and the value of lost opportunity as a form of losses

Abstract

The article examines the problem of compensation for the value of lost opportunity at the pre-contractual stage. It has been determined that such measure of recovery depends on the nature of pre-contractual liability. However, although the Supreme Court of Lithuania recognizes the possibility for the aggrieved party of pre-contractual negotiations to recover the value of lost opportunity, the motivation of the Supreme Court’s decisions is too incoherent. Moreover, Lithuanian courts have not yet adopted any methods of awarding and calculation of the damages. The conclusion of the analysis is that in cases of breach of the general obligation of good faith in pre-contractual negotiations, the Supreme Court of Lithuania allows the recoveryof lost opportunity, i.e. awards delictual damages. The same motivation applies even in certain cases where there is a possibility of broadening the scope of pre-contractual liability by applying contractual damages. The article provides a general description of doctrine culpa in contrahendo, setting forth the basic elements of the doctrine, introduces the practical significance of this doctrine for the pre-contractual stage. Further, the Principles of International Commercial Contracts are broadly discussed. Finally, it provides a comprehensive analysis of the nature of the pre-contractual liability and determines the lost opportunity calculation principles.