The Court of Appeals of Lithuania in its 20 December 2005 ruling in civil case No 2A-376/2005 UAB Švaresta v Vilkaviškis District Municipality has stated that a contracting party may waiver an agreement or any separate provision thereof if at the time of conclusion of such agreement the agreement or any provision thereof unreasonably grants a significant advantage to the other party. In such cases inter alia account should be also taken of the fact that one party unfairly took advantage over the situation where the other party is dependent on it, has economic difficulties, immediate needs, is economically weak, noninformed, non-experienced, is acting negligently, has no experience of conducting negotiations, as well as of the nature and purpose of the agreement.

      At the request of the party entitled to waive an agreement or any separate provision thereof, the court is entitled to examine an agreement or any separate provision thereof and amend them accordingly so that the agreement or any separate provision thereof would meet the requirements of good faith and reasonable business practice.

      Also, the court has stated that in cases where the forfeit is too excessive or the obligation has been fulfilled in part the court may reduce the forfeit, however, to the extent not below the loss incurred due to non-fulfilment or improper fulfilment of the obligation.

      The court in such cases will take account of the nature and purpose of an agreement as well as the facts whether the creditor has suffered direct loss due to non-fulfilment of the debtor's obligation, whether the debtor has fulfilled the obligation in part and whether the creditor has terminated the agreement upon reasonable notification to the other contracting party. requirements.