Share option versus preliminary agreement. Long-awaited interpretations in Lithuanian case law :

Abstract

In the ruling of 8 March 2023,1 the Supreme Court of Lithuania (hereinafter – SCL) for the first time in Lithuanian case law ruled on the concept of an option and an option agreement, the relationship between the option agreement and the preliminary agreement, the application of legal norms regulating the interpretation of contracts in the classification of the agreement concluded between the parties on the transfer of shares in the future. Until then, these issues had been dealt with in single cases before the lower court,2 so that in legal practice there was a certain legal uncertainty as to whether the share option agreements could be enforced, i.e., executed in kind. [...].