Civil Code of Georgia

Law of Georgia

Civil Code of Georgia

Article 1. Concept. Scope of Application🔗

This Code regulates property, family and personal relations of a private nature based on the equality of persons.

Article 2. Civil Legislation🔗

1. The Civil Code, other laws of private law and their interpretations shall comply with the Constitution of Georgia.

2. In the event of a conflict between legal norms of the same level, the special and more recent law shall apply. In the event of a conflict between the general norms and special norms provided for by this Code, the special norms shall apply.

3. For the regulation of civil relations, subordinate normative acts shall be applied only if they supplement the norms of the law. If these acts contradict the law, the law shall apply.

4. Customs shall be applied only if they do not contradict the generally recognized norms of law and morality or public order.

Article 3. Entry into Force of Civil Law🔗

1. A law and subordinate normative acts shall enter into force only after their publication, in accordance with the established procedure, in an official body for general information.

2. Ignorance of the law or its improper understanding may not be grounds for non-application of the law or exemption from liability provided for by this law.

3. A law loses force if a new law directly so provides, or the old law contradicts the new one, or the new law covers a relation regulated by the old law, or if the relation that the law regulated no longer exists.

4. A law of a general nature does not repeal a special law unless such repeal constitutes the direct purpose of the legislator.

5. The repeal of the law by which the old law was repealed does not mean the entry into force of the old law.

Article 4. Prohibition of Refusal to Administer Justice in the Examination of Civil Cases🔗

1. A court shall not be entitled to refuse to administer justice in civil cases even if a legal norm does not exist or is ambiguous.

2. A court shall not be entitled to refuse to apply a law on the ground that it considers the norm of the law unjust or immoral.

Article 5. Analogy of Statute and Analogy of Law🔗

1. To regulate a relation not directly provided for in a law, the legal norm regulating the most similar relation shall be applied (analogy of statute).

2. If the application of the analogy of statute is impossible, the relation shall be regulated on the basis of the general principles of law, as well as in accordance with the requirements of justice, good faith and morality (analogy of law).

3. Norms regulating special relations (exceptional norms) may not be applied by analogy.

Article 6. Retroactive effect of civil laws🔗

Laws and subordinate normative acts shall not have retroactive effect, except in cases where this is directly provided by law. A law may not be given retroactive effect if it is harmful or worsens a person's situation.

Article 7. Objects of private law🔗

The object of a private-law relationship may be a material or immaterial good of pecuniary or non-pecuniary value that has not been withdrawn from circulation in accordance with the procedure established by law.

Article 8. Subjects of private law🔗

1. The subject of a private-law relationship may be any natural or legal person. This rule applies to both entrepreneurial and non-entrepreneurial persons of Georgia or another country.

2. Private-law relations of state bodies and legal entities of public law with other persons are also governed by civil laws, unless these relations, proceeding from state or public interests, should not be regulated by public law.

3. Participants in a legal relationship shall exercise their rights and obligations in good faith.

Article 9. Purpose of civil laws🔗

Civil laws ensure freedom of civil circulation in the territory of Georgia, if the exercise of this freedom does not infringe the rights of third persons.

Article 10. Independence of civil rights from political rights. Mandatory norms of civil law🔗

1. The exercise of civil rights does not depend on political rights, which are determined by the Constitution or other laws of public law.

2. Participants in civil relations may perform any action not prohibited by law, including any action not directly provided for by law.

3. Mandatory norms of civil laws protect the freedom of others from abuse of rights. Actions that contradict these norms are void, except in cases where the law directly indicates other consequences. Individual interventions through administrative acts are prohibited, unless these acts are applied on the basis of a specific law.

Article 11. Legal capacity🔗

1. The legal capacity of a natural person – the capacity to have civil rights and obligations – arises from the moment of birth.

2. The right to be an heir arises upon conception; the exercise of this right depends on birth.

3. The legal capacity of a natural person terminates upon his/her death. The moment of death is considered to be the cessation of brain function.

4. A natural person may not be deprived of legal capacity.

Article 12. Capacity to Act🔗

1. Capacity to act, that is, the ability of a natural person to acquire and exercise civil rights and obligations in full by his/her own will and action, arises upon attaining full age.

2. A person who has attained the age of 18 is of full age.

3. A person who married before attaining the age of 18 shall be deemed to have capacity to act.

4. A person with psychosocial needs (hereinafter – the recipient of support), that is, a person who has persistent mental, mental/intellectual impairments, the interaction of which with various barriers may hinder his/her full and effective participation in public life on an equal basis with others, shall be deemed to have capacity to act, if this person meets the conditions of paragraph 2 or 3 of this Article, and, moreover, the said barriers, without appropriate advice and assistance, significantly impede the person's free expression of his/her own will and making an informed and reasoned choice in the field determined by the court.

5. The court may also recognise a minor as a recipient of support to the extent that, in accordance with the legislation of Georgia, he/she does not need the consent of a legal representative when exercising his/her rights and obligations.

6. A minor under 7 years of age (young child) shall be deemed incapable of acting.

Decision No. 2/4/532,533 of the Constitutional Court of Georgia of 8 October 2014 – website, 28.10.2014.

Law of Georgia No. 3339 of 20 March 2015 – website, 31.03.2015.

Article 13. Inadmissibility of Restriction of Capacity to Act by Transaction🔗

Restriction of capacity to act shall be permitted only in cases provided by law. Restriction of capacity to act by transaction shall be inadmissible.

Article 14. Limited Capacity to Act🔗

1. A minor from seven to eighteen years of age has limited capacity to act.

2. A person of full age in respect of whom the court has imposed curatorship shall also be deemed to have limited capacity to act. A person with limited capacity to act is equated in his/her capacity to act to a minor.

3. The restriction of capacity to act shall be lifted when the ground on which the person's capacity to act was restricted no longer exists.

Article 15. Consent of the Representative in Case of Limited Capacity to Act🔗

For the validity of the expression of will of a person with limited capacity to act, the consent of his/her legal representative is necessary, except in cases where the person with limited capacity to act derives benefit from the transaction.

Article 16. Restriction of Capacity to Act Due to the Use of Alcohol or Narcotic Substances🔗

1. Curatorship may be imposed by a court on a person of full age who abuses alcohol or narcotic substances and thereby places his/her family in a grave material situation. He/she is entitled to conclude a transaction for the disposal of property, as well as to dispose of wages, pension or other income only with the consent of the curator, except for the conclusion of minor everyday transactions.

2. Full restoration of capacity to act entails the termination of curatorship.

Article 17. Right to a name🔗

1. Every natural person has the right to a name, which includes a first name and a surname.

2. Change of name is permissible. For this, a reasoned application of the person is required, which shall be considered in accordance with the established procedure by the appropriate body.

3. Change of name does not constitute grounds for the termination or change of the rights and obligations that were acquired under the previous name. The person is obliged to take the necessary measures to notify creditors and debtors about the change of name.

Article 18. Personal non-property rights🔗

1. A person whose right to bear a name is contested, or whose interests are infringed by unauthorized use of their name, has the right to demand that the infringer cease the action or refrain from it.

2. A person has the right to defend, through court, in accordance with the procedure established by law, their own honour, dignity, privacy, personal inviolability or business reputation from defamation.

3. If information defaming a person's honour, dignity, business reputation or privacy is disseminated through the mass media, its refutation must also be made through the same media. If such data is contained in a document issued by an organization, this document must be replaced and the interested persons must be notified thereof.

4. A person whose honour and dignity have been defamed by information published in the mass media has the right to publish a response in the same media.

5. The right to demand provided for in paragraphs 1 and 2 of this Article also belongs to a person when their image (photograph, film, video and a.y.) is published without their consent. A person's consent is not required when photographing (video recording and a.y.) is connected with their public recognition, the position held, the requirements of justice or police, scientific, educational or cultural purposes, or the photographing (video recording and a.y.) took place in a public setting, or the person received payment for posing.

6. Protection of the benefit provided for by this Article is carried out regardless of the fault of the infringer. And if the violation is caused by a culpable act, the person may also demand compensation for damage (loss). Compensation for damage may be demanded in the form of the profit derived by the infringer. In the case of culpable infringement, the authorized person has the right to demand compensation for non-property (moral) damage as well. Compensation for moral damage may be independent of compensation for property damage.

Law of Georgia of 24 June 2004 No. 222 - LHG I, No. 19, 15.07.2004, Art. 91

Article 18¹. Right to receive personal data🔗

1. A person shall be entitled to review the personal data and records held about him/her that are related to his/her financial/property status or other private matters, and to receive copies of such data, except in the cases determined by the legislation of Georgia.

2. A person may not be refused the provision of information that contains personal data or records about him/her.

3. Any person shall be obliged, on the basis of a written request, to transfer to another person the personal data and records kept with him/her, if he/she presents the written consent of the person whose personal data the relevant information constitutes. In such a case, the person shall be obliged to maintain the confidentiality of the said data and information.

Law of Georgia No. 5919 of 14 March 2008 – LHG I, No. 7, 26.03.2008, Art. 39

Article 19. Protection of personal rights after death🔗

The rights referred to in Article 18 may also be exercised by a person who, although he/she is not himself/herself the holder of the right to a name or personal dignity, has an interest worthy of protection for that purpose. He/she may exercise a claim for such protection of the name and dignity as is determinative of the essence of the personality and continues after death. A claim for pecuniary compensation for moral damage for the defamation of a name, honour, dignity or business reputation shall be inadmissible after death.

Article 20. Place of residence🔗

1. The place of residence of a natural person shall be the place that he/she chooses as his/her habitual residence. A person may have several places of residence.

2. The place of residence of a minor shall be the place of residence of the parents having parental rights, and that of a person under guardianship – the place of residence of the guardian.

3. A person's place of residence shall not be extinguished if he/she leaves that place by way of compulsion or for a specified period for the performance of a state duty.

Article 21. Declaration of a person as missing🔗

1. On the basis of an application by an interested person, a natural person may be declared missing by a court judgment if his/her whereabouts are unknown and he/she has not appeared at his/her place of residence for two years. After the judgment enters into legal force, the heirs under law shall acquire the authority to administer the property of the missing person in the form of fiduciary ownership, including to receive benefits therefrom. Out of this property, maintenance shall be provided to persons dependent on the missing person, and debts shall be covered.

2. In the event of the return of a person declared missing or the discovery of his/her whereabouts, the court judgment on the administration of his/her property shall be revoked. He/she shall not have the right to claim compensation for the benefits received through the proper management of the estate.

Article 22. Declaration of a person as deceased🔗

1. A person may be declared deceased by court procedure if no information on the whereabouts of this person is available at his place of residence for five years, and also if he went missing under circumstances threatening him with death, or his death is presumed to have occurred as a result of some accident, and such information is not available for six months.

2. A military servant or another person who went missing in connection with military operations may be declared deceased by court procedure not earlier than two years after the day of the end of the military operations.

3. The day of a person's death shall be considered the day of entry into legal force of the court judgment on declaring him deceased.

4. In the cases provided for by paragraphs 1 and 2 of this article, the court may recognise as the day of the person's death the day of his presumed death.

Article 23. Consequences of the return of a person declared deceased🔗

1. In the event of the return of a person declared deceased or the discovery of his whereabouts, the court shall annul the corresponding judgment.

2. Regardless of the time of return, the person is entitled to demand the preserved property which, after his declaration as deceased, was transferred gratuitously to another person.

3. The person who acquired for consideration the property of a person declared deceased shall be obliged to return this property to him if it is proven that, at the time of acquiring the property, he knew that the person declared deceased was alive.

4. If the property of a person declared deceased was transferred to the State and it effected its sale, then, after the annulment of the judgment on declaration as deceased, the person shall be returned the amount received from the sale of the property.

Law of Georgia of 9 December 2005 No. 2239 - LHG I, No. 54, 20.12.2005, Art. 360

Article 24. Concept. Types🔗

1. A legal person is an organised formation created for the attainment of a defined purpose, possessing its own property, which is independently liable with its property and acquires rights and obligations in its own name, enters into transactions and may appear in court as claimant and defendant.

2. A legal person may be organised corporately, based on membership, dependent on or independent of the status of members, and may or may not pursue entrepreneurship.

3. Legal entities of public law participate in civil-law relations in the same way as legal entities of private law. The rules for their creation, organisation and activity are determined by law.

4. The State and a municipality participate in civil-law relations in the same way as legal entities of private law. The powers of the State or a municipality are exercised in this case by their bodies (agencies, institutions, etc.) in such a way that they are not legal persons.

5. A legal person whose purpose is entrepreneurial (commercial) activity, as well as its branch, shall be created in accordance with the Law of Georgia "On Entrepreneurs".

6. A legal person whose purpose is non-entrepreneurial activity shall be registered in the manner established by this Code.

Law of Georgia of 14 December 2006 No. 3967 - LHG I, No. 48, 22.12.2006, Art. 336

Law of Georgia of 15 July 2020 No. 6989 – website, 28.07.2020

Article 25. Legal capacity of a legal person🔗

1. A legal entity of public law is entitled to carry out activity corresponding to the purposes provided for by law or by its founding documents.

2. A legal entity of private law (entrepreneurial or non-entrepreneurial (non-commercial)) has the right to carry out any activity not prohibited by law, regardless of whether or not that activity is provided for by its founding documents.

3. Certain activities, the list of which is determined by law, may be carried out by a legal person only on the basis of holding a special licence/permit or passing authorisation. The right to carry out the said activity arises for the legal person from the moment of obtaining the licence/permit or passing authorisation.

4. The legal capacity of a legal person arises from the moment of its registration and terminates from the moment of registration of the fact of completion of its liquidation.

5. A non-entrepreneurial (non-commercial) legal entity is entitled to pursue entrepreneurial activity of an auxiliary nature, the profit from which shall be used for the realisation of the purposes of the non-entrepreneurial (non-commercial) legal entity. Distribution of the profit received as a result of such activity among the founders, members, donors of the non-entrepreneurial (non-commercial) legal entity, as well as persons with management and representative powers, is inadmissible.

Law of Georgia of 14 December 2006 No. 3967 - LHG I, No. 48, 22.12.2006, Art. 336

Law of Georgia of 21 July 2010 No. 3537 - LHG I, No. 47, 05.08.2010, Art. 304

Article 26. Location of a legal entity🔗

1. The location of a legal entity shall be deemed to be the place where its administration is located. A legal entity may have only one location (legal address).

2. Another location of a legal entity shall be deemed to be the location of its branch.

Law of Georgia No. 3967 of 14 December 2006 – LHG I, No. 48, 22.12.2006, Art. 336

II. Non-entrepreneurial (non-commercial) legal entity

Law of Georgia No. 3967 of 14 December 2006 – LHG I, No. 48, 22.12.2006, Art. 336

Article 27. Name of a non-entrepreneurial (non-commercial) legal entity🔗

1. A non-entrepreneurial (non-commercial) legal entity has a name which indicates its belonging to a non-entrepreneurial (non-commercial) legal entity.

2. In the name of a non-entrepreneurial (non-commercial) legal entity, it shall not be permitted to use graphic symbols which have no phonetic or verbal equivalent established by language norms, as well as designations characteristic of the legal forms of a legal entity and of a legal entity of public law provided for by the Law of Georgia on Entrepreneurs and the Organic Law of Georgia on Political Unions of Citizens. At the same time, the name shall not contain any addition which may mislead a third party and/or cause error and/or misunderstanding due to the form or activity of the subject.

3. The name of a non-entrepreneurial (non-commercial) legal entity may not coincide with the name of an already registered non-entrepreneurial (non-commercial) legal entity.

4. A person who unlawfully uses the name of another legal entity shall be obliged, upon the demand of the authorised person, to cease such use and to compensate the damage caused by the unlawful use.

4¹. When determining the name of a non-entrepreneurial (non-commercial) legal entity, the rules established by Article 16 of the Law of Georgia on Entrepreneurs for the firm name of an entrepreneur shall additionally apply.

5. In the event of damage to the business reputation of a legal entity, the rules provided for by Article 18 of this Code shall apply.

Law of Georgia No. 3967 of 14 December 2006 – LHG I, No. 48, 22.12.2006, Art. 336

Law of Georgia No. 5017 of 1 July 2011 – website, 14.07.2011

Law of Georgia No. 887 of 2 August 2021 – website, 04.08.2021

Article 28. Rules for the registration of a non-entrepreneurial (non-commercial) legal entity and a branch (representation) of a non-entrepreneurial (non-commercial) legal entity of a foreign country🔗

1. The registration of a non-entrepreneurial (non-commercial) legal entity and a branch (representation) of a non-entrepreneurial (non-commercial) legal entity of a foreign country shall be carried out in the Register of Entrepreneurs and Non-Entrepreneurial (Non-Commercial) Legal Entities.

2. The Register of Entrepreneurs and Non-Entrepreneurial (Non-Commercial) Legal Entities shall be maintained by a Legal Entity of Public Law operating in the sphere of governance of the Ministry of Justice of Georgia – the National Agency of Public Registry (hereinafter – the registering authority).

3. The registration of a non-entrepreneurial (non-commercial) legal entity and a branch (representation) of a non-entrepreneurial (non-commercial) legal entity of a foreign country shall be carried out in accordance with the procedure established by this Code and by the legislation of Georgia for the registration of entrepreneurial subjects and a branch (representation) of an entrepreneurial legal entity of a foreign country.

Law of Georgia of 28 December 2002 No. 1902 – LHG I, No. 4, 22.01.2003, Art. 20

Law of Georgia of 24 June 2004 No. 179 – LHG I, No. 19, 15.07.2004, Art. 79

Law of Georgia of 25 May 2006 No. 3140 – LHG I, No. 18, 31.05.2006, Art. 134

Law of Georgia of 14 December 2006 No. 3967 – LHG I, No. 48, 22.12.2006, Art. 336

Law of Georgia of 3 November 2009 No. 1964 – LHG I, No. 35, 19.11.2009, Art. 253

Law of Georgia of 25 December 2009 No. 2458 – LHG I, No. 49, 30.12.2009, Art. 370

Law of Georgia of 27 April 2010 No. 2978 – LHG I, No. 24, 10.05.2010, Art. 144

Law of Georgia of 1 July 2011 No. 5017 – website, 14.07.2011

Article 29. Conditions for registration of a non-entrepreneurial (non-commercial) legal entity🔗

1. In the case of a request for registration of a non-entrepreneurial (non-commercial) legal entity, the interested person shall submit to the registering authority the partnership agreement and an application. The said application shall contain the mandatory data established by paragraph 2 of this Article and by the Law of Georgia "On Entrepreneurs" for the registration of an entrepreneurial legal entity.

2. In the case of a request for registration of a non-entrepreneurial (non-commercial) legal entity, its founding documentation shall, in addition to the data established by paragraph 1 of this Article, indicate:

a) the purpose of the activity of the non-entrepreneurial (non-commercial) legal entity;

b) the procedure for admission to membership, withdrawal from membership and expulsion from membership of the non-entrepreneurial (non-commercial) legal entity, if it is a membership-based non-entrepreneurial (non-commercial) legal entity;

c) the name of the body (person) adopting the decision on reorganisation or liquidation, the procedure and process for adopting the decision;

d) the procedure for establishing (electing) the governing body (governing person) of the non-entrepreneurial (non-commercial) legal entity and the term of its authority.

2¹. The registering authority, together with the registration of a non-entrepreneurial (non-commercial) legal entity, within the framework of the unified electronic portal, creates an electronic address of the non-entrepreneurial (non-commercial) legal entity, to which the rules established by Article 18 of the Law of Georgia "On Entrepreneurs" apply.

2². A non-entrepreneurial (non-commercial) legal entity is entitled to have a registered telephone number and/or e-mail address to which an electronic message may be sent. Sending an electronic message to the registered telephone number and/or e-mail address shall be deemed delivery of that message to the respective person.

3. Other rules for the registration of a non-entrepreneurial (non-commercial) legal entity are determined by the Law of Georgia "On Entrepreneurs", the Law of Georgia "On Creative Workers and Creative Unions", the Law of Georgia "On Copyright and Related Rights" and the Organic Law of Georgia "On Trade Unions".

Law of Georgia of 14 December 2006 No. 3967 - LHG I, No. 48, 22.12.2006, Art. 336

Law of Georgia of 3 November 2009 No. 1964 - LHG I, No. 35, 19.11.2009, Art. 253

Law of Georgia of 25 December 2009 No. 2458 - LHG I, No. 49, 30.12.2009, Art. 370

Law of Georgia of 27 April 2010 No. 2978 - LHG I, No. 24, 10.05.2010, Art. 144

Law of Georgia of 1 July 2011 No. 5017 - website, 14.07.2011

Law of Georgia of 30 November 2018 No. 3827 – website, 14.12.2018

Law of Georgia of 2 August 2021 No. 887 – website, 04.08.2021

Law of Georgia of 3 July 2023 No. 3451 - website, 25.07.2023

Article 30. (removed)🔗

Law of Georgia No. 3967 of 14 December 2006 – LHG I, No. 48, 22.12.2006, Art. 336

Law of Georgia No. 1964 of 3 November 2009 – LHG I, No. 35, 19.11.2009, Art. 253

Law of Georgia No. 2458 of 25 December 2009 – LHG I, No. 49, 30.12.2009, Art. 370

Law of Georgia No. 2978 of 27 April 2010 – LHG I, No. 24, 10.05.2010, Art. 144

Law of Georgia No. 5017 of 1 July 2011 – website, 14.07.2011

Article 31. Registration of changes made by a non-entrepreneurial (non-commercial) legal entity, a branch (representation) of a non-entrepreneurial (non-commercial) legal entity of a foreign country🔗

1. The basis for changing the registered data is a decision duly adopted and certified by an authorised person/body or a transaction concluded by authorised persons in the manner determined by the legislation of Georgia.

2. Changes made by a non-entrepreneurial (non-commercial) legal entity, a branch (representation) of a non-entrepreneurial (non-commercial) legal entity of a foreign country, which entail changes in their registration documentation, shall require registration. A change shall be considered made from the moment of its registration in the Register of Entrepreneurs and Non-entrepreneurial (Non-commercial) Legal Entities.

3. Registration of changes to the registered data of a non-entrepreneurial (non-commercial) legal entity/a branch (representation) of a non-entrepreneurial (non-commercial) legal entity of a foreign country shall be carried out in the manner established for the registration of an entrepreneurial legal entity/a branch (representation).

Law of Georgia No. 179 of 24 June 2004 – LHG I, No. 19, 15.07.2004, Art. 79

Law of Georgia No. 3140 of 25 May 2006 – LHG I, No. 18, 31.05.2006, Art. 134

Law of Georgia No. 3967 of 14 December 2006 – LHG I, No. 48, 22.12.2006, Art. 336

Law of Georgia No. 1964 of 3 November 2009 – LHG I, No. 35, 19.11.2009, Art. 253

Law of Georgia No. 2458 of 25 December 2009 – LHG I, No. 49, 30.12.2009, Art. 370

Law of Georgia No. 2978 of 27 April 2010 – LHG I, No. 24, 10.05.2010, Art. 144

Law of Georgia No. 5017 of 1 July 2011 – website, 14.07.2011

Article 32. Rule for adopting a decision on the registration of a non-entrepreneurial (non-commercial) legal entity, a branch (representation) of a non-entrepreneurial (non-commercial) legal entity of a foreign country🔗

1. The registering authority shall, on the matters defined by this Chapter and falling within its competence, adopt the decisions provided for by the Laws of Georgia “On the Public Registry” and “On Entrepreneurs” for registration and access to information.

2. The dissolution of a non-entrepreneurial (non-commercial) legal entity shall be carried out in accordance with the general procedure established by the Law of Georgia “On Entrepreneurs”.

2¹. The procedure for the dissolution of a non-entrepreneurial (non-commercial) legal entity whose founder is the State or a municipality shall be approved by the Minister of Economy and Sustainable Development of Georgia.

3. In the case of registration of a non-entrepreneurial (non-commercial) legal entity, a branch (representation) of a non-entrepreneurial (non-commercial) legal entity of a foreign country, and of a request for amendment of registered data, the registering authority shall, in addition to the grounds defined by the legislation of Georgia for an entrepreneurial entity, adopt a decision on suspension of the registration proceedings if:

a) the goals of the non-entrepreneurial (non-commercial) legal entity, the branch (representation) of the non-entrepreneurial (non-commercial) legal entity of a foreign country submitted for registration contradict the law in force, recognised moral norms or the constitutional-legal principles of Georgia;

b) the conditions provided for by paragraph 3 of Article 26 of the Constitution of Georgia exist.

Law of Georgia of 14 December 2006 No. 3967 - LHG I, No. 48, 22.12.2006, Art. 336

Law of Georgia of 3 November 2009 No. 1964 - LHG I, No. 35, 19.11.2009, Art. 253

Law of Georgia of 25 December 2009 No. 2458 - LHG I, No. 49, 30.12.2009, Art. 370

Law of Georgia of 27 April 2010 No. 2978 - LHG I, No. 24, 10.05.2010, Art. 144

Law of Georgia of 1 July 2011 No. 5017 - website, 14.07.2011

Law of Georgia of 2 August 2021 No. 887 – website, 04.08.2021

Article 33. State control of the activity of a non-entrepreneurial (non-commercial) legal entity🔗

1. The decision on suspension or prohibition of the activity of a non-entrepreneurial (non-commercial) legal entity shall be adopted by a court in the cases defined by an Organic Law of Georgia and in accordance with the established procedure.

2. If a non-entrepreneurial (non-commercial) legal entity has substantially switched to entrepreneurial activity, the court shall, on the basis of a claim of the registering authority and/or an interested person, consider and decide the issue of suspension or prohibition of the activity of the non-entrepreneurial (non-commercial) legal entity.

3. After the court adopts a decision on prohibition of the activity of a non-entrepreneurial (non-commercial) legal entity, the registering authority shall cancel the registration of the non-entrepreneurial (non-commercial) legal entity.

Law of Georgia of 14 December 2006 No. 3967 - LHG I, No. 48, 22.12.2006, Art. 336

Law of Georgia of 3 November 2009 No. 1964 - LHG I, No. 35, 19.11.2009, Art. 253

Article 33¹. (repealed)🔗

Law of Georgia No. 5282 of 11 July 2007 – LHG I, No. 30, 30.07.2007, Art. 346

Law of Georgia No. 1964 of 3 November 2009 – LHG I, No. 35, 19.11.2009, Art. 253

Article 34. (repealed)🔗

Law of Georgia No. 179 of 24 June 2004 – LHG I, No. 19, 15.07.2004, Art. 79

Law of Georgia No. 3140 of 25 May 2006 – LHG I, No. 18, 31.05.2006, Art. 134

Law of Georgia No. 3967 of 14 December 2006 – LHG I, No. 48, 22.12.2006, Art. 336

Law of Georgia No. 1964 of 3 November 2009 – LHG I, No. 35, 19.11.2009, Art. 253

Law of Georgia No. 2978 of 27 April 2010 – LHG I, No. 24, 10.05.2010, Art. 144

Law of Georgia No. 5017 of 1 July 2011 – website, 14.07.2011

Article 35. Management and representation of a non-entrepreneurial (non-commercial) legal entity🔗

1. The founder/member of a non-entrepreneurial (non-commercial) legal entity is entitled to confer on one person the authority to manage the affairs single-handedly and/or to establish joint management and/or representation by two or more persons.

2. Management authority implies the adoption of decisions on behalf of the non-entrepreneurial (non-commercial) legal entity within the scope of the authority, while representative authority implies acting on behalf of the non-entrepreneurial (non-commercial) legal entity in relations with third parties. Unless otherwise provided by the registration documentation, management authority also implies representative authority.

3. The organisational structure of a non-entrepreneurial (non-commercial) legal entity shall be regulated by its charter (agreement of the founders/members), which requires due certification.

4. The general rules established by the Law of Georgia on Entrepreneurs for a person with representative authority of an entrepreneur shall apply to the emergence and termination of the management and representative authorities of a non-entrepreneurial (non-commercial) legal entity.

5. The rules established by Article 17 of the Law of Georgia on Entrepreneurs for a business letter and a website shall apply to a non-entrepreneurial (non-commercial) legal entity.

Law of Georgia No. 179 of 24 June 2004 – LHG I, No. 19, 15.07.2004, Art. 79

Law of Georgia No. 617 of 26 November 2004 – LHG I, No. 36, 08.12.2004, Art. 168

Law of Georgia No. 1051 of 25 February 2005 – LHG I, No. 9, 17.03.2005, Art. 59

Law of Georgia No. 3140 of 25 May 2006 – LHG I, No. 18, 31.05.2006, Art. 134

Law of Georgia No. 3967 of 14 December 2006 – LHG I, No. 48, 22.12.2006, Art. 336

Law of Georgia No. 1964 of 3 November 2009 – LHG I, No. 35, 19.11.2009, Art. 253

Law of Georgia No. 2978 of 27 April 2010 – LHG I, No. 24, 10.05.2010, Art. 144

Law of Georgia No. 5017 of 1 July 2011 – website, 14.07.2011

Law of Georgia No. 887 of 2 August 2021 – website, 04.08.2021

Article 36. Alienation of property in the ownership of a non-entrepreneurial (non-commercial) legal entity🔗

Alienation of property in the ownership of a non-entrepreneurial (non-commercial) legal entity is possible if the alienation serves the activity of the non-entrepreneurial (non-commercial) legal entity, its organisational development, promotes the realisation of its goals or serves charitable purposes.

Law of Georgia of 14 December 2006 No. 3967 - LHG I, No. 48, 22.12.2006, Art. 336

Article 37. Compensation for damage🔗

1. A non-entrepreneurial (non-commercial) legal entity shall be liable for the damage caused to third parties in the performance of the duty imposed on the person (persons) having management and representative authority, as a result of an act which gives rise to an obligation to compensate for damage.

2. The person (persons) having management and representative authority shall manage the affairs in good faith. In the event of non-performance of this duty, he/she shall be liable to the non-entrepreneurial (non-commercial) legal entity for the damage incurred. Refusal of a claim for compensation for damage shall be void if this is necessary to satisfy the claims of third parties.

3. A non-entrepreneurial (non-commercial) legal entity is independent of the status of its member (members), as well as of the person (persons) having management and representative authority. The liability of a non-entrepreneurial (non-commercial) legal entity is limited to its property. Its members, as well as the person (persons) having management and representative authority thereof, shall not be liable for the obligations of the non-entrepreneurial (non-commercial) legal entity. Likewise, the non-entrepreneurial (non-commercial) legal entity shall not be liable for the obligations of its own members, as well as of the person (persons) having management and representative authority thereof.

Law of Georgia of 14 December 2006 No. 3967 - LHG I, No. 48, 22.12.2006, Art. 336

Article 38. Reorganization and liquidation of a non-entrepreneurial (non-commercial) legal entity🔗

1. Change of the legal form of a non-entrepreneurial (non-commercial) legal entity shall be inadmissible, except where, by change of the legal form, it is transformed into a Legal Entity of Public Law.

1¹. Division (separation, spin-off), merger (consolidation, accession) and liquidation of a non-entrepreneurial (non-commercial) legal entity shall be carried out in accordance with the procedure established by the legislation of Georgia for liquidation/reorganization of an entrepreneurial entity.

2. The founders/members of a non-entrepreneurial (non-commercial) legal entity shall determine, by an application for registration, the person entitled to receive the property remaining as a result of the liquidation of the non-entrepreneurial (non-commercial) legal entity. Upon liquidation of a non-entrepreneurial (non-commercial) legal entity, alienation of the property shall be possible if:

a) the alienation contributes to the achievement of the goals set by it;

b) the alienation serves charitable purposes;

c) the property is transferred to another non-entrepreneurial (non-commercial) legal entity.

3. It shall be prohibited to distribute the property remaining as a result of the liquidation of a non-entrepreneurial (non-commercial) legal entity among its founders/members and persons with managerial and representative authority.

4. If the founders/members of a non-entrepreneurial (non-commercial) legal entity have not determined the person entitled to receive the property remaining as a result of its liquidation, the court shall transfer the property remaining as a result of the liquidation of the non-entrepreneurial (non-commercial) legal entity to one or several non-entrepreneurial (non-commercial) legal entities which have the same or similar goals as the liquidated non-entrepreneurial (non-commercial) legal entity. If such legal entity (entities) does not exist or it is impossible to identify such legal entity (entities), a decision may be taken on transferring this property to the State. The court may distribute the said property 6 months after registration of the commencement of the liquidation process.

5. On the basis of a court judgment of conviction that has entered into legal force in a criminal case, the liquidation of a non-entrepreneurial (non-commercial) legal entity shall be carried out by a liquidator (liquidators) appointed by the court. It shall be prohibited to carry out liquidation and reorganization-related procedures in respect of a non-entrepreneurial (non-commercial) legal entity from the moment of initiation of criminal proceedings against it until the court judgment of conviction enters into legal force or the criminal proceedings are terminated.

Law of Georgia of 14 December 2006 No. 3967 - LHG I, No. 48, 22.12.2006, Art. 336

Law of Georgia of 3 November 2009 No. 1964 - LHG I, No. 35, 19.11.2009, Art. 253

Law of Georgia of 27 April 2010 No. 2978 - LHG I, No. 24, 10.05.2010, Art. 144

Law of Georgia of 1 July 2011 No. 5017 - website, 14.07.2011

Law of Georgia of 30 May 2013 No. 651 - website, 12.06.2013

Article 38¹. (removed)🔗

Law of Georgia of 3 November 2009 No. 1964 – LHG I, No. 35, 19.11.2009, Art. 253

Law of Georgia of 27 April 2010 No. 2978 – LHG I, No. 24, 10.05.2010, Art. 144

Law of Georgia of 1 July 2011 No. 5017 – website, 14.07.2011

Article 39. Unregistered union (association)🔗

1. The issues of the organisation and structure of an unregistered union (association) shall be determined by mutual agreement of its members. An unregistered union (association) is not a legal entity.

2. Members' membership contributions and the property acquired with these contributions constitute the common property of the unregistered union (association).

3. An unregistered union (association) may be represented in court or in out-of-court relations by its members or by persons authorised for that purpose.

4. Creditors' claims may be satisfied out of the common property of the unregistered union (association). At the same time, the persons who acted in the name of the unregistered union (association) shall also be personally liable as joint and several debtors.

Law of Georgia of 24 June 2004 No. 179 – LHG I, No. 19, 15.07.2004, Art. 79

Law of Georgia of 25 May 2006 No. 3140 – LHG I, No. 18, 31.05.2006, Art. 134

Law of Georgia of 25 July 2006 No. 3536 – LHG I, No. 37, 07.08.2006, Art. 277

Law of Georgia of 14 December 2006 No. 3967 – LHG I, No. 48, 22.12.2006, Art. 336

Article 40. (removed)🔗

Law of Georgia of 14 December 2006 No. 3967 – LHG I, No. 48, 22.12.2006, Art. 336

Article 41. (removed)🔗

Law of Georgia of 14 December 2006 No. 3967 – LHG I, No. 48, 22.12.2006, Art. 336

Article 42. (removed)🔗

Law of Georgia of 14 December 2006 No. 3967 – LHG I, No. 48, 22.12.2006, Art. 336

Article 43. (removed)🔗

Law of Georgia of 14 December 2006 No. 3967 – LHG I, No. 48, 22.12.2006, Art. 336

Article 44. (removed)🔗

Law of Georgia of 14 December 2006 No. 3967 – LHG I, No. 48, 22.12.2006, Art. 336

Article 45. (removed)🔗

Law of Georgia of 14 December 2006 No. 3967 – LHG I, No. 48, 22.12.2006, Art. 336

Article 46. (removed)🔗

Law of Georgia of 25 May 2006 No. 3140 – LHG I, No. 18, 31.05.2006, Art. 134

Law of Georgia of 14 December 2006 No. 3967 – LHG I, No. 48, 22.12.2006, Art. 336

Article 47. (removed)🔗

Law of Georgia of 14 December 2006 No. 3967 – LHG I, No. 48, 22.12.2006, Art. 336

Article 48. (removed)🔗

Law of Georgia of 25 May 2006 No. 3140 – LHG I, No. 18, 31.05.2006, Art. 134

Law of Georgia of 14 December 2006 No. 3967 – LHG I, No. 48, 22.12.2006, Art. 336

Article 49. (removed)🔗

Law of Georgia of 25 May 2006 No. 3140 – LHG I, No. 18, 31.05.2006, Art. 134

Law of Georgia of 14 December 2006 No. 3967 – LHG I, No. 48, 22.12.2006, Art. 336

III. Joint Investment Fund, Sub-fund of an Investment Fund

Law of Georgia of 14 July 2020 No. 6814 – website, 22.07.2020

Article 49¹. Joint investment fund🔗

1. The issues of the organisation and structure of a joint investment fund shall be determined by the Law of Georgia on Investment Funds. A joint investment fund is an organisational formation that is not a legal entity.

2. A joint investment fund shall be represented in court or in out-of-court relations by the company managing its assets.

Law of Georgia of 14 July 2020 No. 6814 – website, 22.07.2020.

Article 49². Sub-fund of an investment fund (sub-fund)🔗

1. A sub-fund of an umbrella fund is an independent part of the umbrella fund (an investment company or a joint investment fund), the issues of whose organisation and structure shall be determined by the Law of Georgia on Investment Funds. A sub-fund of an investment fund is not a legal entity.

2. A sub-fund of a joint investment fund shall be represented in court or in out-of-court relations by the company managing the assets of the joint investment fund.

3. A sub-fund of an investment company shall be represented in court or in out-of-court relations by a person authorised to represent the investment company or by the asset management company, if it was appointed by the investment company.

Law of Georgia of 14 July 2020 No. 6814 – website, 22.07.2020.

IV. Securitisation fund, securitisation division

Law of Georgia of 15 December 2023 No. 3942 – website, 27.12.2023.

Article 49³. Securitisation fund🔗

1. The issues of the organisation and structure of a securitisation fund shall be determined by the Law of Georgia on Transformation into Securities. A securitisation fund is an organisational formation that is not a legal entity.

2. A securitisation fund shall be represented in court or in out-of-court relations by the company managing its assets.

Law of Georgia of 15 December 2023 No. 3942 – website, 27.12.2023.

Article 49⁴. Securitisation division🔗

1. A securitisation division is an independent part of a special purpose entity for securitisation (a securitisation fund or a securitisation company), the issues of whose organisation and structure shall be determined by the Law of Georgia on Transformation into Securities. A securitisation division is not a legal entity.

2. A division of a securitisation fund shall be represented in court or in out-of-court relations by the company managing the assets of the joint investment fund.

3. A division of a securitisation company shall be represented in court or in out-of-court relations by a person having representative authority of the securitisation company or by the asset management company, if it was appointed by the securitisation company.

Law of Georgia of 15 December 2023 No. 3942 – website, 27.12.2023.

Article 50. Concept🔗

A transaction is a unilateral, bilateral or multilateral expression of will aimed at the origin, change or termination of a legal relationship.

Article 51. Validity of a unilateral declaration of intent🔗

1. A declaration of intent that requires its receipt by the other party shall be considered valid from the moment it reaches the other party.

2. A declaration of intent shall not be considered valid if the other party declares refusal in advance or immediately.

3. The death of the person concluding the transaction or the case provided for by paragraph 4 of Article 1293 of this Code may not affect the validity of the declaration of intent if this event occurred after the declaration of intent.

Law of Georgia No. 3339 of 20 March 2015 – website, 31.03.2015.

Article 52. Interpretation of a declaration of intent🔗

When interpreting a declaration of intent, the intent shall be determined as a result of reasonable judgment, and not merely from the literal meaning of the expression.

Article 53. Non-existence of a transaction due to indeterminacy of its content🔗

A transaction does not exist if the content of the transaction cannot be precisely determined either from the external expression or from other circumstances.

Article 54. Unlawful and immoral transactions🔗

A transaction that violates the rules and prohibitions established by law, contradicts public order or moral norms, is void.

Article 55. Voidness of a transaction due to abuse of influence🔗

A transaction concluded by one party through abuse of influence over the other, when their relationship is based on special trust, is void.

Law of Georgia No. 6151 of 8 May 2012 – website, 25.05.2012.

Article 56. Simulated and dissimulated transactions🔗

1. A transaction concluded only for show, without the intention that it produce corresponding legal effects, is void (simulated transaction).

2. If, by a transaction concluded for show, the parties wish to conceal another transaction, then the rules applicable to the concealed transaction shall apply (dissimulated transaction).

Article 57. Voidness of a transaction due to non-seriousness of the declaration of intent🔗

1. A declaration of intent made non-seriously (in jest) with the assumption that the non-seriousness would be recognized is void.

2. The recipient of the declaration shall be compensated for the damage that arose because he trusted the seriousness of the declaration of intent, if he did not know and could not have known about the non-seriousness.

Article 58. Voidness of a transaction due to minority under 7 or mental disorder🔗

1. A declaration of intent by a minor under 7 is void.

2. A declaration of intent by a person during loss of consciousness or temporary mental disorder may be considered void.

3. A declaration of intent by a person with a mental disorder at the time of concluding a transaction is void when it does not correspond to a correct perception of the actual situation, if this person does not receive benefit from this transaction, even if he has not been recognized by the court as a recipient of support.

Judgment of the Constitutional Court of Georgia No. 2/4/532,533 of 8 October 2014 – website, 28.10.2014.

Law of Georgia No. 3339 of 20 March 2015 – website, 31.03.2015.

Article 58¹. Conclusion of a Transaction by a Support Recipient🔗

1. If a support recipient concludes a transaction without receiving the support determined by a court judgment, the validity of the transaction depends on whether the supporter subsequently approves it, except where the support recipient derives a benefit from this transaction.

2. The rule established by Articles 64 and 66 of this Code applies to the conclusion of a transaction by a support recipient without receiving the support determined by a court judgment.

Law of Georgia No. 3339 of 20 March 2015 – website, 31.03.2015.

Article 59. Transaction Concluded without Observing the Form🔗

1. A transaction concluded without observing the mandatory form provided by law or contract, as well as a transaction concluded without a permit, if a permit is required for this transaction, is void.

2. A contestable transaction is void from the moment of its conclusion if it is contested. Contestation is effected against the other party to the contract.

3. An interested person has the right to contest.

Article 60. Conversion of a Transaction🔗

If a void transaction meets the requirements provided for another transaction, the latter applies if, upon discovering the invalidity of the transaction, the parties wish it to be valid.

Article 61. Significance of Confirmation in Case of Invalidity of Transactions🔗

1. A transaction void without contestation (void) is considered void from the moment of its conclusion.

2. If a person who concludes a transaction void without contestation confirms it, then his action is considered as the re-conclusion of the transaction.

3. If a person entitled to contest confirms the transaction, then he thereby loses the right to contest.

4. If the parties confirm a bilateral transaction void without contestation, then in case of doubt they are obliged to transfer to each other everything that would have accrued to them if the transaction had been valid from the outset.

5. Confirmation becomes valid only when the contract or transaction does not contradict moral norms and the requirements of public order.

Article 62. Invalidity of Part of a Transaction🔗

The invalidity of part of a transaction does not entail the invalidity of its other parts if it is presumed that the transaction would have been concluded without its invalid part.

Article 63. Transaction Concluded by a Minor🔗

1. If a minor concludes a bilateral transaction (contract) without the required consent of his legal representative, then the validity of the contract depends on whether his representative subsequently approves it, except in cases where he derives a benefit.

2. If a minor becomes capable to act, then he himself decides the question of the validity of his expression of will.

Article 64. Refusal of a Transaction Concluded by a Minor🔗

1. Before the approval of a contract concluded by a minor, the other party has the right to refuse the contract.

2. If the other party knew about the minority of the person, then he may refuse only in the case where the minor deceived him into believing that he had received consent from the representative.

Article 65. Emancipation of a Minor🔗

1. A contract concluded by a minor without the consent of the legal representative shall be considered valid if the minor, for the performance of the actions provided for by the contract, disposed of the funds that were transferred to him or her by the legal representatives, or — with the consent of these representatives — by third parties for this purpose or for the purpose of free disposal.

2. If the legal representative grants a minor who has reached the age of sixteen the right to independently manage an enterprise, then in ordinary relations for this sphere he or she becomes capable without restriction. This rule applies both to the establishment of an enterprise and to its liquidation and to the commencement or termination of employment relations.

3. Permission to manage an enterprise requires the consent of the legal representative in agreement with the guardianship and curatorship authority.

Article 66. Invalidity of a Transaction Concluded Without the Mandatory Consent of the Representative🔗

A unilateral transaction concluded by a minor without the mandatory consent of the legal representative shall be invalid. Such a transaction shall also be invalid when the consent of the legal representative exists, but the minor has not presented a written document confirming this, as a result of which the other party to the transaction immediately refused it. Such refusal shall not be permitted if the other party was informed of this consent of the legal representative.

Article 67. Obligation of Permission Prior to Restriction of Legal Capacity🔗

A transaction concluded prior to the restriction of legal capacity requires permission if it is established that the ground on which the restriction of legal capacity occurred clearly existed also at the time of conclusion of the transaction.

Article 68. Significance of Form for the Validity of a Transaction🔗

For the validity of a transaction, compliance with the form established by law is required. If such a form is not prescribed, the parties may determine it themselves.

Article 69. Form of transaction🔗

1. A transaction may be concluded orally or in written form.

2. A transaction may be concluded in written form in cases provided by legislation or by agreement of the parties.

3. Where a written form of the transaction exists, the signatures of the parties participating in the transaction shall be sufficient.

3¹. When a transaction is concluded in written form by a recipient of support, in addition to the parties, the supporter shall sign it. By his/her signature the supporter confirms the provision of the support determined by a court judgment upon the conclusion of the transaction by the recipient of support.

4. Restoration, reproduction or imprinting of a signature by mechanical means shall be permissible where this is accepted as custom, including when signing securities issued in large quantities.

5. Where a written form exists, in cases provided by law or by agreement of the parties, the transaction or the authenticity of the signatures of the parties participating in the transaction shall be certified by a notary or another person provided by law.

Law of Georgia of 8 December 2006 No. 3879 – LHG I, No. 48, 22.12.2006, Art. 321

Law of Georgia of 20 March 2015 No. 3339 – website, 31.03.2015

Article 70. Delegation of signing a transaction to another person🔗

A person who cannot sign a transaction himself/herself due to illiteracy or a long-term or irreversible stable physical, mental, intellectual or sensory impairment, or in another case provided by law, may delegate the signing of the transaction to another person. The signature of the latter shall be officially certified. At the same time, the reason why the person concluding the transaction could not sign the transaction shall be noted.

Law of Georgia of 15 October 2010 No. 3709 – LHG I, No. 57, 25.10.2010, Art. 366

Law of Georgia of 2 November 2022 No. 1982 – website, 11.11.2022

Article 70¹. Conclusion of a transaction by a literate blind person🔗

1. A literate blind person, in the case of concluding a transaction in written form, shall sign the transaction independently, without delegating the signing of the transaction to another person, or shall delegate the signing of the transaction to another person in the manner established by Article 70 of this Code.

2. A literate blind person, in the case provided for by this article, shall sign the transaction independently using a mechanical signature, a facsimile or another appropriate technical means established by the legislation of Georgia. When signing a transaction using a facsimile of a signature, the signing literate blind person shall also present an identity document and a document certified by notarial procedure on the authenticity of the facsimile.

3. In the case of concluding a transaction with the participation of a literate blind person, using Braille, by agreement of the parties, the transaction concluded using Braille shall be attached to the transaction concluded using flat print.

Law of Georgia of 2 November 2022 No. 1982 – website, 11.11.2022

Article 71. Conclusion of a transaction by drawing up several documents🔗

If, when concluding a transaction, several documents of the same content are drawn up, it is sufficient for each party to sign the copy of the document intended for the respective party.

Article 72. Concept🔗

A transaction may become voidable if the expression of will occurred on the basis of a material mistake.

Article 73. Types of material mistake🔗

A mistake is considered material when:

a) the person intended to conclude a transaction other than the one to which he gave his consent;

b) the person is mistaken as to the content of the transaction which he intended to conclude;

c) the circumstances do not exist which the parties, proceeding from the principles of good faith, regard as the basis of the transaction.

Article 74. Mistake as to the person of the counterparty🔗

1. A mistake as to the person of the counterparty is considered material only when the person of the counterparty himself or the taking into account of his personal qualities is the main basis for concluding the transaction.

2. A mistake as to the essential qualities of the object shall be considered material only if they are of significance for determining the value of the object.

Article 75. Mistake in law🔗

A mistake in law is of material significance only if, at the time of concluding the transaction, it was the sole and main basis.

Article 76. Mistake in the motive of the transaction🔗

A mistake in the motive of the transaction shall not be considered material, except in cases where the motive constituted the subject of the agreement.

Article 77. Consent of the counterparty in transactions concluded by mistake🔗

An expression of will made by mistake cannot become voidable if the other party agrees to perform the transaction in accordance with the wish of the party who wishes to make the transaction voidable.

Article 78. Minor mistakes🔗

Minor mistakes in calculations or in an expression of will effected in writing give the right only to correction, but not to avoidance.

Article 79. Validity of avoidance🔗

1. Avoidance must occur within one month from the moment of becoming aware of the ground for avoidance.

2. If the transaction became voidable and the mistake was caused by the negligence of the person having the right of avoidance, then he is obliged to compensate the other party for the damage arising from the invalidity of the transaction. The obligation to compensate damage does not arise if the other party knew of the mistake, or if it was unknown to him through negligence.

Article 80. Mistake caused by an intermediary🔗

An expression of will which was incorrectly communicated by a person used as an intermediary may become voidable on the same conditions as a transaction concluded by mistake under Article 73.

II. Transactions concluded by deception

Article 81. Concept🔗

1. If a person was deceived for the purpose of concluding a transaction, he is entitled to demand the invalidity of that transaction. This occurs when it is obvious that without the deception the transaction would not have been concluded.

2. If one party remains silent as to circumstances the disclosure of which would have caused the other party not to express his will, then the deceived person may demand the invalidity of the transaction. The obligation of disclosure exists only when the party expected this in good faith.

Article 82. Declaration of a transaction as invalid due to deception🔗

For declaring a transaction concluded by deception invalid, it is irrelevant whether, by communicating incorrect information, the party aimed at obtaining any benefit or at causing damage to the other party.

Article 83. Deception by a third party🔗

1. In the case of deception by a third party, invalidity of the transaction may be demanded if the person who receives benefit from this transaction knew or ought to have known about the deception.

2. If both parties to the transaction acted by deception, then neither of them has the right to demand invalidity of the transaction or compensation for damage by reference to the deception.

Article 84. Time limit for challenge🔗

A transaction concluded by deception may be contested within one year. The time limit is counted from the moment when the person entitled to challenge learned of the existence of the ground for challenge.

III. Transactions concluded by coercion

Article 85. Concept🔗

Coercion (violence or threat) of the person who concluded the transaction, for the purpose of concluding the transaction, grants this person the right to demand invalidity of the transaction also when the coercion originates from a third party.

Article 86. Nature of coercion🔗

1. Invalidity of a transaction is caused by such coercion as is capable by its nature of influencing the person and making him think that his person or property is under real threat.

2. When assessing the nature of the coercion, the age, sex and life circumstances of the persons are taken into account.

Article 87. Coercion against persons close to the person🔗

Coercion is a ground for demanding invalidity of a transaction also when it is directed against the spouse, other family members or close relatives of one of the parties to the transaction.

Article 88. Coercion by lawful means🔗

Under Articles 85–87, such actions are not considered coercion as are carried out neither for an unlawful purpose nor by use of unlawful means, except for cases when the means and the purpose do not correspond to each other.

Article 89. Time limit for challenge🔗

A transaction concluded by coercion may be contested within one year from the moment the coercion ends.

Article 90. Concept🔗

A transaction is considered conditional when it depends on a future and unknown event in that either the performance of the transaction is deferred until its occurrence, or the termination of the transaction — upon the occurrence of this event.

Article 91. Invalidity of an unlawful and/or immoral condition🔗

A condition which contradicts the requirements of law or the norms of morality, or the performance of which is impossible, is invalid. A transaction which depends on any such condition is entirely invalid.

Article 92. Condition dependent on the will🔗

A condition the occurrence or non-occurrence of which depends only on the parties to the transaction is considered dependent on the will. A transaction concluded with such a condition is invalid.

Article 93. Positive condition🔗

1. If a transaction is concluded subject to the condition that an event occurs within a specified period, the condition shall be deemed invalid if that period has expired and the event has not occurred.

2. If no period is specified, the condition may be fulfilled at any time. The condition may be deemed invalid when it is obvious that the occurrence of the event is already impossible.

Article 94. Negative condition🔗

1. If a transaction is concluded subject to the condition that an event does not occur within a specified period, the condition shall be deemed fulfilled if the said period expires without the occurrence of the event; the condition shall also be deemed fulfilled when, before the expiry of the period, it is obvious that the occurrence of the event is impossible.

2. If no period is specified, the condition shall be deemed fulfilled only when it becomes clear that the event will not occur.

Article 95. Inadmissibility of influencing the occurrence of a condition🔗

1. A person who has concluded a transaction subject to a specified condition shall not have the right, before the occurrence of the condition, to perform any act that may hinder the performance of his or her obligation.

2. If the condition occurs at a specified time and the person has already performed such an act, he or she shall be obliged to compensate the other party for the damage caused by such act.

Article 96. Transaction subject to a suspensive condition🔗

A transaction shall be deemed concluded subject to a suspensive condition if the arising of the rights and obligations provided for by the transaction depends on a future and unknown event, or on an event that has already occurred but is still unknown to the parties.

Article 97. Transaction subject to a resolutory condition🔗

A transaction shall be deemed concluded subject to a resolutory condition when the occurrence of this condition causes the termination of the transaction and restores the situation existing before the conclusion of the transaction.

Article 98. Significance of good faith upon the occurrence of a condition🔗

1. If the occurrence of the condition was prevented in bad faith by a party for whom the occurrence of the condition is unfavourable, the condition shall be deemed to have occurred.

2. If a party for whom the occurrence of the condition is favourable contributed in bad faith to the occurrence of the condition, the condition shall not be deemed to have occurred.

Article 99. Concept🔗

1. If the validity of a transaction depends on the consent of a third person, both the consent and the refusal thereof may be expressed to either party.

2. Consent does not require observance of the form prescribed for the transaction.

3. If a transaction whose validity depends on the consent of a third person is concluded with his or her consent, the second and third sentences of Article 66 shall apply accordingly.

Article 100. Prior consent (authorisation)🔗

Prior consent (authorisation) may be revoked before the conclusion of the transaction, unless the parties have agreed otherwise. Both parties shall be notified of the revocation of the consent (authorisation).

Article 101. Subsequent consent (approval)🔗

Subsequent consent (approval) has retroactive effect from the moment of conclusion of the transaction, unless otherwise provided.

Article 102. Disposal of an object by an unauthorised person🔗

1. Disposal of an object by an unauthorised person is valid if it is carried out with the prior consent of the authorised person.

2. Disposal becomes valid if the authorised person approves it.

Article 103. Concept🔗

1. A transaction may also be concluded through a representative. The authority of the representative either derives from law or arises on the basis of an assignment (power of attorney).

2. This rule does not apply where, due to the nature of the transaction, it must be concluded directly by the person, or where the conclusion of a transaction through a representative is prohibited by law.

Article 104. Addressee of the consequences of a transaction in representation🔗

1. By the transaction which the representative concludes within the scope of his authority and in the name of the person whom he represents, rights and obligations arise only for the represented person.

2. If the transaction is concluded in the name of another person, the absence of the representative authority may not be invoked by the other party to the transaction if the represented person created such circumstances that the other party to the transaction in good faith believed that such authority existed.

3. If, when concluding the transaction, the representative does not indicate his representative authority, the transaction produces consequences directly for the represented person only if the other party should have presumed representation. The same rule applies where the other party does not care with whom he concludes the transaction.

Article 105. Limited capacity of the representative🔗

A transaction concluded by a representative is valid also where the representative had limited capacity to act.

Article 106. Defect in the expression of will in representation🔗

1. In the case of contestability of a transaction due to a defect in the expression of will, the will of the representative is decisive.

2. If the defect in the expression of will concerns circumstances which were predetermined by the represented person, the said defect gives the right to contest only if this defect originates from the represented person.

Article 107. Representative authority🔗

1. The granting of authority (authorisation) is effected by an expression of will towards the authorised person or the third person with whom the representation is to be established.

2. The expression of will does not require the form which is necessary for concluding the transaction for which the authority is granted. This rule does not apply where a special form is established.

Article 108. Obligation to notify in case of change of authority🔗

Changes in authority and its revocation must be notified to third persons. In case of failure to comply with this requirement, these changes and the revocation of authority may not be invoked against third persons, except in cases where the parties knew or should have known thereof when concluding the contract.

Article 109. Grounds for termination of representative authority🔗

Representative authority is extinguished:

a) by expiry of the term for which the authority was granted;

b) by refusal of the authorised person;

c) by revocation of the authority by the person granting the authority;

d) by death of the person granting the authority;

e) by performance;

f) by recognition of the person granting the authority as a recipient of support, if support was imposed on him for the exercise of representative authority or the right to dispose of property.

Law of Georgia of 20 March 2015 No. 3339 - website, 31.03.2015.

Article 110. Obligation of the representative upon extinction of authority🔗

After the extinction of authority, the representative shall return the document of authority to the person granting the authority; he has no right to retain the document.

Article 111. Conclusion of a transaction without representative authority🔗

1. If a person concludes a contract in the name of another without representative authority, the validity of this contract depends on the consent of the represented person.

2. If the other party demands consent from the represented person, then only he shall be notified of this consent. Consent may be given within two weeks of the demand; if this does not happen, the demand for consent shall be deemed rejected.

Article 112. Right to refuse the contract🔗

Before consent to conclude the contract is given, the other party has the right to refuse the contract, except in the case where he knew of the lack of representative authority at the time of conclusion of the contract. Refusal to conclude the contract may also be expressed towards the representative.

Article 113. Obligation of the representative in the absence of representative authority🔗

1. If a person who concludes a contract as a representative cannot confirm his representative authority, he is obliged, at the wish of the other party, either to perform the assumed obligation or to compensate the damage, if the represented person refuses to give consent to the contract.

2. If the representative did not know of the lack of representative authority, he is obliged to compensate only the damage that was caused to the other party because he trusted this authority.

3. The representative shall not be liable if the other party knew or should have known of the lack of representative authority. The representative shall also not be liable when he had limited legal capacity, except in cases where he acted with the consent of his legal representative.

Article 114. Inadmissibility of concluding a transaction with oneself🔗

Unless otherwise provided by consent, the representative cannot conclude, in the name of the represented person, a transaction with himself in his own name, or as a representative of a third person, except in cases where the transaction already exists for the performance of some obligation.

Article 115. Prohibition of abuse of right🔗

A civil right shall be exercised lawfully. Abuse of a right solely for the purpose of causing damage to another is inadmissible.

Article 116. Damage caused within the scope of necessary defence🔗

1. An act performed within the scope of necessary defence is not unlawful, and the damage occurring at that time shall not be compensated.

2. Such defence as is necessary to repel a real unlawful attack on oneself or others shall be considered necessary defence.

Article 117. Damage caused by extreme necessity🔗

1. Damage caused in order to avert a danger which in the given circumstances could not have been averted by other means and, if the damage caused is less significant than the damage averted, shall be compensated by the person who caused the damage (extreme necessity).

2. Taking into account the factual circumstances in which the damage was caused, compensation thereof may be imposed on a third person in whose interests the person who caused the damage acted, or both the third person and the person who caused the damage may be fully or partially released from compensation.

Article 118. Self-help🔗

If the assistance of the competent bodies cannot be obtained in time and without prompt intervention there is a danger that the right cannot be exercised, or its exercise will be substantially complicated, then the act of a person who, for the purpose of self-help, takes away, destroys or damages a thing, or for the same purpose seizes an obligated person who may abscond, or prevents the resistance of the obligated person to the act which he was obliged to perform, shall not be considered unlawful.

Article 119. Scope of self-help🔗

1. Self-help may not exceed the limits necessary to avert the danger.

2. In the case of taking away a thing, a statement on the attachment of the thing must be made immediately.

3. In the case of seizure of an obligated person, he must be immediately handed over to the appropriate bodies.

Article 120. Obligation to compensate damage🔗

A person who performs the act provided for in Article 118 under the mistaken assumption that this was necessary to avert an unlawful act shall be obliged to compensate the other party for the damage arising at that time.

Article 121. Scope of application of the rules for calculation of time limits🔗

The rules provided for in this Chapter shall apply to time limits specified in laws, court judgments and transactions.

Article 122. Time determining the beginning of a time limit🔗

If a particular event or any part of a day is taken as the beginning of a time limit, then in calculating the time limit, the day on which that event occurs or the above-mentioned time of day shall not be counted.

Article 123. Expiry of a time limit🔗

1. A time limit determined by days expires upon the passing of the last day of the time limit.

2. A time limit determined by weeks, months or a period comprising several months – a year, half a year, a quarter – expires upon the end of the day of the last week or the last month that corresponds to the day of the occurrence of the event or to the above-mentioned time of day.

3. If a time limit determined by months lacks a specific day to mark the expiry of the time limit, the time limit expires at the end of the last day of that month.

Article 124. Concepts🔗

1. Half a year means a six-month time limit, a quarter – a three-month time limit counted from the beginning of the year, and half a month – a fifteen-day time limit.

2. If a time limit consists of one or several whole and half months, fifteen days shall be counted last.

Article 125. Calculation of a time limit upon extension of the time limit🔗

In the event of extension of a time limit, the new time limit shall be calculated from the expiry of the elapsed time limit.

Article 126. Calculation of a time limit by months🔗

1. If time is determined by months or years in such a way that their running together is not required, a month shall be calculated as thirty days and a year as three hundred and sixty-five.

2. The first day of a month shall be considered the beginning of the month, the fifteenth day of the month – the middle of the month, and the last day of the month – the end of the month.

Article 127. Days off and holidays🔗

If an act is to be performed on a specified day and that day or the last day of the time limit coincides with a non-working day or with holidays or other days off declared at the place of performance of the act, the next working day shall be used instead of that day.

Article 128. Concept. Types🔗

1. Limitation applies to the right to demand from another person the performance of any act or the refraining from an act.

2. The limitation period shall not apply to:

a) personal non-property rights, unless otherwise provided by law;

b) the claims of depositors in respect of deposits made with a bank and other credit institutions.

3. The general limitation period shall be ten years.

Article 129. Limitation period for contractual claims🔗

1. The limitation period for contractual claims shall be three years, and for contractual claims relating to immovable things – six years.

2. The limitation period for claims arising from obligations to be performed periodically shall be three years.

3. In individual cases, other limitation periods may also be provided by law.

Article 130. Commencement of the limitation period🔗

1. The limitation period begins from the moment the claim arises. The moment when the claim arises shall be deemed to be the time when the person learned or should have learned of the violation of the right.

2. In the case of sexual, economic, domestic violence or another form of violence against a minor, the limitation period for the right to apply to court for compensation of damage shall be suspended until the minor reaches majority or until the minor applies to court during minority.

Law of Georgia of 20 September 2019 No. 5013 – website, 27.09.2019.

Law of Georgia of 21 May 2020 No. 5913 – website, 25.05.2020.

Article 131. Arising of a claim🔗

If the arising of a claim depends on the creditor's action, limitation begins from the time when the creditor could have performed that action.

Article 132. Suspension of the running of the limitation period🔗

The running of the limitation period shall be suspended if:

a) performance of the obligation is deferred by the executive authority or by the National Bank of Georgia, under the Organic Law of Georgia "On the National Bank of Georgia", in the resolution regime of a commercial bank (moratorium);

b) the filing of a claim is prevented by extraordinary and, under the given circumstances, unavoidable force majeure;

c) the creditor or the debtor is in a unit of the Defence Forces of Georgia that has been placed on a war footing;

c¹) private mediation provided for by the Law of Georgia "On Mediation" has commenced;

d) in other cases provided for by law.

Law of Georgia of 31 October 2018 No. 3607 – website, 21.11.2018.

Law of Georgia of 18 September 2019 No. 4956 – website, 27.09.2019.

Law of Georgia of 20 December 2019 No. 5667 – website, 31.12.2019.

Article 133. Suspension of the running of the limitation period during marriage🔗

As long as the marriage exists, the running of the limitation period for claims between spouses shall be suspended. The same rule applies to claims between parents and children until the children reach majority, as well as to claims between guardians (curators) and persons under guardianship throughout the entire period of guardianship.

Article 134. Suspension of the running of the limitation period where a person with limited legal capacity or a recipient of support participates🔗

If the claim originates from a person with limited legal capacity who has no legal representative, or from a recipient of support who was not provided support in the proper manner, or the claim is directed against such a person, the running of the limitation period shall be deemed suspended until that person becomes fully capable or a legal representative or supporter is appointed to that person.

Law of Georgia of 20 March 2015 No. 3339 – website, 31.03.2015.

Article 135. Time during which the running of the limitation period is suspended🔗

The time during which the running of the limitation period is suspended shall not be counted in the limitation period.

Article 136. Moment of suspension of the running of the limitation period🔗

1. The limitation period shall be suspended if the circumstances provided for by Article 132 arose or continued to exist within the last six months of the limitation period; and if this period is less than six months, during the limitation period.

2. From the day of cessation of the circumstances that gave rise to the suspension of the limitation period, the limitation shall continue for up to six months; and if the limitation period is less than six months, until the limitation period.

Article 137. Interruption of the running of the limitation period🔗

The running of the limitation period shall be interrupted if the obligated person, by payment of an advance, interest, provision of a guarantee or otherwise, acknowledges the existence of the claim before the entitled person.

Article 138. Interruption of the running of the limitation period by filing a claim🔗

The running of the limitation period shall be interrupted if the entitled person files a claim for satisfaction of the claim or for its establishment, or attempts to satisfy the claim by other means, such as applying to a state body or to a court with an application regarding the existence of the claim, or performing an enforcement action. Articles 139 and 140 shall apply accordingly.

Article 139. Duration of interruption of the running of the limitation period🔗

1. The interruption of the running of the limitation period on the basis of filing a claim shall continue until the judgment rendered by the court enters into legal force, or the proceedings are otherwise terminated.

2. If the proceedings are terminated as a result of an agreement of the parties or due to the impossibility of further continuation, then the running of the limitation period shall be interrupted together with the completion of the last procedural action of the parties or the court. If one of the parties continues the proceedings again, the new limitation period that began after the interruption shall be interrupted in the same way as the running of the limitation period is interrupted by filing a claim.

Article 140. Waiver of claim🔗

1. The filing of a claim shall not cause interruption of the running of the limitation period if the claimant waives the claim, or by a court judgment that has entered into legal force the claim is left without consideration.

2. If the entitled person files a new claim within six months, then the limitation period shall be considered interrupted from the time of filing the first claim.

Article 141. Reckoning of the commencement of the running of the limitation period anew🔗

If the running of the limitation period is interrupted, then the time elapsed before the interruption shall not be taken into account and the period shall begin anew.

Article 142. Limitation period for a claim confirmed by a court judgment🔗

1. The limitation period for a claim confirmed by a court judgment that has entered into legal force is ten years, even when this claim is subject to a shorter limitation period.

2. If the confirmation concerns periodically recurring actions that are to be performed in the future, then the limitation established by the second paragraph of Article 129 shall apply to them.

Article 143. Limitation period for claims in rem🔗

If a thing in respect of which a claim in rem exists comes into the possession of a third person by way of succession of rights, the limitation period that has elapsed in the possession of the legal predecessor shall also apply to the successor in title.

Article 144. Right of the obligated person upon expiry of the limitation period🔗

1. After expiry of the limitation period, the obligated person is entitled to refuse performance of the action.

2. If the obligated person has performed the obligation after expiry of the limitation period, he shall not be entitled to demand the return of what has been performed, even if at the moment of performance of the obligation he did not know that the limitation period had expired.

3. The same rule applies to the acknowledgment by the obligated person and to the means of securing.

Article 145. Limitation period of an accessory claim🔗

Upon expiry of the limitation period of the principal claim, the limitation period shall be deemed to have expired also for accessory claims, even where the limitation period of those claims has not yet expired.

Article 146. Inadmissibility of changing the limitation period by agreement of the parties🔗

Changing the limitation periods and the rules for their calculation by agreement of the parties is inadmissible.

Article 147. Concept🔗

Property, under this Code, is all things and non-material property benefits which natural and legal persons are able to possess, use and dispose of and which may be acquired without restriction, unless this is prohibited by law or contrary to moral norms.

Article 148. Types of things🔗

A thing may be movable or immovable.

Article 149. Concept of an immovable thing🔗

Immovable things include a land plot with the minerals therein, plants growing on the land, as well as buildings and structures which stand firmly on the land.

Article 150. Essential component part of a thing🔗

1. A component part of a thing the separation of which is impossible without destruction of the whole thing or of that part, or without destroying their purpose (essential component part of a thing), may be the object of a separate right only in cases provided by law.

2. Essential component parts of a land plot include buildings and structures and things which are firmly connected to the land and are not intended for temporary use, which may also be determined by contract.

Article 151. Accessory🔗

1. An accessory is a movable thing which, although not a component part of the principal thing, is intended for the service of the principal thing, is connected to it by a common economic purpose, as a result of which it is in spatial connection with the principal thing and, according to established view, is considered an accessory.

2. A thing which is connected to the land and the removal of which from the land is possible without loss of commodity value or substantial loss is also considered an accessory.

Article 152. Concept of an intangible property asset🔗

An intangible property asset is those claims and rights which may be transferred to other persons, or are intended to create a material benefit for their holder, or confer the right to demand something from other persons.

Article 153. Accessory and limited rights🔗

1. A right is accessory if it is so connected with another right that it cannot exist without it.

2. A right is limited if it derives from the broader right which is encumbered by this limited right.

Article 154. Fruits of a thing and of a right🔗

1. The fruits of a thing are the income, increment and/or advantage which this thing yields.

2. The fruits of a right are the income and/or advantage obtained as a result of the exercise of this right.

3. The fruits of a thing or of a right also constitute the income and advantage the receipt of which this thing or right secures through a legal relationship.

4. An authority over a thing or a right makes it possible to receive the fruits of this thing or right in accordance with the term and scope of this authority, unless otherwise provided by law.

5. If a person is obliged to return the fruits, he may demand reimbursement of the expenses incurred on the fruits, if these expenses are the result of proper economic management and do not exceed the value of the fruits.

Law of Georgia of 30 June 2005 No. 1826 – LHG I, No. 41, 19.07.2005, Art. 284

Article 155. Concept. Types🔗

1. Possession arises from the voluntary acquisition of actual control over a thing.

2. A person shall not be considered a possessor who, although exercising actual control over a thing, does so for the benefit of another person and who has received the authority to possess the thing from that person. Only the person granting the authority shall be considered the possessor.

3. If a person possesses a thing on the basis of a legal relationship which grants him the right to possess the thing for a definite term or obliges him to possess the thing, then this person shall be considered the direct possessor, while the person granting the right or imposing the obligation shall be considered the indirect possessor.

4. If several persons jointly possess one thing, they shall be considered co-possessors.

5. If several persons possess parts of one thing, they shall be considered possessors of the separate parts.

Article 156. Termination of possession🔗

Possession shall be considered terminated if the possessor permanently relinquishes the thing or otherwise loses actual control over the thing.

Article 157. Transfer of possession to heirs🔗

Possession passes to the heirs in the same form in which it existed with the testator (the person leaving the estate).

Article 158. Presumption of being an owner🔗

1. It shall be presumed that the possessor of a thing is its owner.

2. This rule shall not apply in the case where the nature of the ownership relationship to the thing is apparent from the public register. The presumption of ownership shall not apply either with respect to the former possessor if he lost this thing, it was stolen from him or it otherwise left his possession. The presumption of ownership shall operate in favour of the former possessor only during the period of his possession.

Article 159. Good faith possessor🔗

A possessor is in good faith if he possesses the thing lawfully, or if he may be considered an authorised person on the basis of the diligent examination required in business relations.

Article 160. Claim by a good faith possessor for the return of a thing from unlawful possession🔗

If a good faith possessor is deprived of possession, he may, within three years, demand the return of the thing from the new possessor. This rule does not apply where the new possessor has a better right to possession. A claim for the return of possession may also be brought against a person having a better right if he acquired the thing by violence or deception.

Article 161. Claim by a good faith possessor for the cessation of unlawful interference🔗

If a good faith possessor is not deprived of the thing, but is otherwise hindered in the exercise of his possession, he may, like an owner, demand the cessation of the interference. At the same time, he may demand compensation for the damage caused by the infringement of possession. This rule on compensation for damage applies also where a claim for the cessation of the interference is impossible.

Article 162. Rights of a lawful possessor🔗

1. It is inadmissible to demand the return of the thing from a lawful possessor. During lawful possession, the fruits of the thing and of the right are considered to belong to him.

2. This rule also applies to the relationship of a direct possessor with an indirect possessor.

Article 163. Obligation of an unauthorised good faith possessor🔗

1. A good faith possessor who from the outset did not have the right to possess the thing or who has lost that right is obliged to return the thing to the authorised person. Until the authorised person exercises this right, the fruits of the thing and of the right belong to the possessor.

2. A good faith possessor may demand from the authorised person reimbursement of the improvements and expenses which he incurred in respect of the thing during good faith possession and which are not compensated by the use of this thing and the fruits obtained from it. The value of fruits not received through the fault of the possessor shall be deducted. The same rule applies to improvements as a result of which the value of the thing has increased, if the increased value still existed at the time of the return of the thing.

3. A good faith possessor may refuse to return the thing until his claims are satisfied.

Article 164. Obligations of a possessor in bad faith🔗

A possessor in bad faith shall return to the authorised person both the thing and the benefit received, the fruits of the thing or of the right. The possessor is obliged to compensate the fruits which he failed to receive through his fault. He may claim the expenses incurred and improvements made in respect of the thing only if they have resulted in the enrichment of the authorised person at the time of the return of the thing. Other claims against a possessor in bad faith remain unaffected.

Article 165. Acquisition of ownership of movable things by prescription🔗

1. If a person continuously possesses a movable thing as his own for five years, he shall acquire the right of ownership thereto (acquisition of ownership by prescription).

2. Acquisition of a movable thing shall be inadmissible if the acquirer possessed the thing in bad faith, or if he later learned that the thing did not belong to him.

Article 166. Presumption of continuity of possession of a thing🔗

If a person possessed a thing at the beginning and at the end of a certain period of time, it shall be presumed that he also possessed this thing during the intervening period.

Article 167. Acquisition of ownership of immovable things by prescription🔗

If a person is entered in the public register as the owner of a land plot or other immovable property without having acquired the right of ownership thereto, he shall acquire this right of ownership if the registration existed for fifteen years and during this time the person possessed them as his own.

Article 168. Termination of possession of a thing due to the owner's claim🔗

Possession of a thing shall terminate if the owner makes a substantiated claim against the possessor.

Article 169. (Removed)🔗

Law of Georgia of 11 May 2007 No. 4744 - LHG I, No. 18, 22.05.2007, Art. 158

Article 170. Concept. Content of the right of ownership🔗

1. The owner may, within the limits of statutory or other, in particular contractual, obligations, freely possess and use property (a thing), prevent other persons from using this property, dispose of it, if this does not infringe the rights of neighbours or other third persons, or if this action does not constitute an abuse of right.

2. Abuse of right shall be deemed to be such use of property which causes damage only to others, without there being a clearly predominant interest of the owner, and the necessity of his action is unjustified.

3. The right of use also includes the possibility for a person not to use his thing. A law may impose an obligation of use or of care and maintenance if the non-use or lack of care of this thing infringes public interests. In this case, the owner may either be himself charged with the performance of the obligation, or the thing may be transferred for use to another person for an appropriate remuneration.

Article 171. Right of ownership of an essential component part of a thing🔗

The right of ownership of a thing extends also to the essential component parts of this thing.

Article 172. Reclamation of a thing from unlawful possession and claim to prevent interference🔗

1. The owner may demand the return of the thing from the possessor, except in cases where the possessor had the right to possess this thing.

2. If an infringement of ownership or other interference occurs without the removal or deprivation of the thing, the owner may demand that the interferer cease this action. If such interference continues, the owner may demand the cessation of the action by filing a claim in court.

3. (Removed - 11.12.2015, No. 4625).

Law of Georgia of 8 December 2006 No. 3885 - LHG I, No. 48, 22.12.2006,

Art. 327

Law of Georgia of 1¹ December 2015 No. 4625 - website, 29.12.2015.

Article 173. Common Ownership🔗

1. Common (joint and fractional) ownership arises by operation of law or on the basis of a transaction. Each co-owner may present claims to third parties in respect of property in common ownership. Every co-owner has the right to reclaim the thing only for the benefit of all co-owners.

2. A thing in common ownership may, on the basis of agreement with the co-owners, be mortgaged or otherwise encumbered with rights in favour of one of the owners and for his interests.

3. The costs of care and preservation of a thing in common ownership shall be borne equally by the co-owners, unless otherwise provided by law or contract.

4. If not directly established by Georgian legislation, the right of pre-emptive purchase of a share in common ownership may be determined by agreement of the parties.

Law of Georgia of 11 May 2007 No. 4744 - LHG I, No. 18, 22.05.2007, Art. 158

Law of Georgia of 25 June 2019 No. 4851 - website, 02.07.2019

Article 174. Concept. Duty of Mutual Respect🔗

Owners of a neighbouring land plot or other immovable property, in addition to the rights and obligations provided by law, are obliged to respect each other. Every plot or other immovable property from which mutual impact may emanate shall be considered neighbouring.

Article 175. Duty to Tolerate Neighbourhood Impacts🔗

1. The owner of a land plot or other immovable property may not prohibit impacts from a neighbouring plot onto his plot of gas, steam, odour, soot, smoke, noise, heat, vibrations or other similar phenomena, if they do not hinder the owner in the use of his plot, or insignificantly infringe his right.

2. The same rule applies also in the case where the impact is substantial, but it is caused by the ordinary use of another plot or other immovable property and its prevention is not possible by such measures as are considered normal economic activity for users of this type.

3. If the owner is obliged to tolerate such impact, he may demand from the owner of the plot causing the impact appropriate monetary compensation in the case where the impact exceeds the use ordinarily considered at the given place and economically permissible limits.

Article 176. Inadmissible Infringement🔗

The owner of a land plot may demand the prohibition of the construction or operation on neighbouring plots of such structures as inadmissibly infringe the right to use the plot and this is obvious from the outset.

Article 177. Demand for Prevention of Danger🔗

If a land plot is threatened by the collapse of a building from a neighbouring plot, the owner may demand that the neighbour take the necessary measures to avert this danger. It is inadmissible to change the direction of waters flowing over several land plots and underground waters or to manipulate these waters in such a way as to cause a reduction in the quantity and/or deterioration in the quality of water on another land plot; it is inadmissible to infringe the natural flow of rivers.

Article 178. Right of the owner of a neighbouring plot to fruit🔗

1. If the fruit of a tree or bush falls on a neighbouring land plot, it shall be considered the fruit of that plot.

2. The owner of a land plot may cut the roots and branches of that tree or bush which have spread onto his plot.

Article 179. Monetary compensation for the obligation to tolerate🔗

1. If the owner of a land plot, during construction, unintentionally crossed the boundaries of the neighbouring plot, the owner of the neighbouring plot must tolerate this, except in cases where he declared against it in advance or immediately upon noticing.

2. The neighbour who violated the boundary is obliged to pay monetary compensation, which must be paid annually in advance.

Article 180. Necessary way🔗

1. If a land plot does not have the connection with public roads, electricity, oil, gas and water supply networks necessary for its proper use, then the owner may demand of the neighbour that he tolerate the use of his land plot in order to ensure such necessary connection. Those neighbours whose plot is crossed by the necessary way or line shall be given appropriate compensation, which, by agreement of the parties, may be expressed in a one-time payment.

2. The obligation to tolerate the necessary way or line does not arise if the already existing connection of the land plot was destroyed by the arbitrary action of the owner.

Article 181. Obligation to erect a boundary marker🔗

1. The owner of a land plot may demand of the owner of the neighbouring plot participation in erecting a solid boundary marker, or in restoring an already existing but erased or damaged marker. The costs of demarcation are distributed equally between the neighbours, unless otherwise provided by mutual agreement or another legal relationship.

2. If it is impossible to establish the exact boundary, then the actual possession of the neighbours is of decisive importance for demarcation. If it is impossible to establish the actual possession precisely, then the disputed plot shall be distributed equally between the plots. If this distribution leads to unjust results, then, on the basis of the application of one of the parties, the boundary shall be established by the court.

Article 182. Right to use a boundary structure🔗

1. If two land plots are separated from each other by a fence or another structure used as a boundary, it is presumed that the owners of the land plots have an equal right to use this structure, unless the external side of the structure directly indicates that it is the property of only one of the neighbours.

2. If both neighbours are entitled to jointly use the structure used as a boundary, each of them may use the structure only in such a way as not to hinder the other neighbour in the joint use.

3. The costs of maintenance and upkeep of the structure are distributed equally between the neighbours.

4. As long as one of the neighbours is interested in the existence of this boundary structure, its removal or alteration without the neighbour's consent is inadmissible.

Article 183. Acquisition of ownership of an immovable thing on the basis of a transaction🔗

1. In order to acquire an immovable thing, it is necessary to conclude a transaction in written form and to register in the public registry the right of ownership determined by this transaction in the name of the acquirer.

2. Disposal of an immovable thing in the ownership of a child by his/her parent or other legal representative shall be permissible in accordance with the best interests of the child, on the basis of the court's consent.

Law of Georgia of 8 December 2006 No. 3879 - LHG I, No. 48, 22.12.2006, Art. 321

Law of Georgia of 23 March 2010 No. 2799 - LHG I, No. 14, 30.03.2010, Art. 94

Law of Georgia of 1 July 2011 No. 5017 - website, 14.07.2011

Law of Georgia of 20 September 2019 No. 5013 – website, 27.09.2019

Law of Georgia of 21 May 2020 No. 5913 – website, 25.05.2020

Article 184. Abandonment of the right of ownership of an immovable thing🔗

In order to abandon ownership or another right in an immovable thing, a declaration of the authorised person on the abandonment of this right, and the registration of this declaration in the public registry, are necessary. The declaration shall be submitted to the registry service. Only after this does the declaration of abandonment of the right acquire binding force.

Article 185. Protection of the acquirer's interests🔗

Proceeding from the interests of the acquirer, the transferor shall be deemed to be the owner if he/she is registered as such in the public registry, except for cases where the acquirer knew that the transferor was not the owner. (The normative content of Article 185, according to which "the transferor shall be deemed to be the owner if he/she is registered as such in the public registry", was declared unconstitutional in the case where a complaint has been filed against the registry record and this fact is known to the acquirer) - Judgment of the Constitutional Court of Georgia of 17 October 2017 No. 3/4/550 – website, 26.10.2017.

II. Acquisition of ownership of movable things

Article 186. Grounds for acquisition of ownership of a movable thing🔗

1. In order to transfer ownership of a movable thing, it is necessary that the owner transfer the thing to the acquirer on the basis of a valid right.

1¹. Disposal of a movable thing in the ownership of a child with a value of more than GEL 1,000 by his/her parent or other legal representative shall be permissible in accordance with the best interests of the child, on the basis of the court's consent.

2. Transfer of a thing shall be deemed to be: delivery of the thing to the acquirer into direct possession; transfer of indirect possession by contract, under which the previous owner may remain the direct possessor; granting by the owner to the acquirer of the right to demand possession from a third person.

Law of Georgia of 20 September 2019 No. 5013 – website, 27.09.2019.

Law of Georgia of 21 May 2020 No. 5913 – website, 25.05.2020.

Article 187. Bona fide acquirer🔗

1. An acquirer becomes the owner of a thing also when the transferor was not the owner of the thing, but the acquirer is bona fide in relation to this fact. An acquirer shall not be considered bona fide if he knew or should have known that the transferor was not the owner. The fact of good faith must exist before delivery of the thing.

2. A bona fide acquirer cannot become the owner of a thing if the owner lost this thing, it was stolen from him, or it otherwise left his possession against his will, or the acquirer received it gratuitously. These restrictions shall not apply to money, securities, and things alienated at auction.

Law of Georgia of 28 December 2011 No. 5667– website, 30.12.2011.

Article 188. Conditional ownership🔗

1. If the transferor stipulated as a condition that ownership pass to the acquirer only after payment of the price of the thing, it shall be presumed that ownership passes to the acquirer after full payment of the price. If the acquirer delays payment of the price, and the transferor refuses the contract, the performance already effected by both parties must be returned by the parties.

2. The condition referred to in paragraph 1 shall be deemed fulfilled also if the transferor is satisfied in any other way than payment of the price, or if the acquirer invokes the limitation period of the claim.

Article 189. Transfer of ownership by means of securities🔗

If, for ownership to pass to the acquirer, delivery of a security is necessary instead of delivery of the thing, ownership shall be deemed transferred from the moment the transferor delivers the security to the acquirer.

Article 190. Acquisition of ownership over an ownerless movable thing🔗

1. If a person takes an ownerless movable thing into possession, he acquires ownership of the thing, provided that its appropriation is not prohibited by law, or if the rights of the person who had the right to appropriate this thing are not infringed by the appropriation.

2. A movable thing shall be deemed ownerless if the previous owner abandons possession of the thing with the aim of renouncing ownership.

Article 191. Find🔗

1. The finder of a lost thing shall immediately notify the person who lost the thing, the owner, the authorised person, or, if their identity is unknown, the police or another local body, and shall hand over this thing.

2. After one year has elapsed from the making of the notification, the finder acquires ownership of the find, except in cases where the owner has become known to him, or the owner's right to the thing had already been declared to the police. Upon acquisition of the right of ownership, all other rights to this thing are extinguished.

3. If the authorised person reclaims the thing, the finder may demand from him a reward (finder's reward) of up to five per cent of the value of the thing. In addition, the finder may demand from the authorised person or the competent body reimbursement of the costs of keeping the thing.

4. If the finder refuses ownership, the competent body may, after one year, sell the thing at auction and receive the proceeds, or, if a thing of low value is concerned, dispose of it free of charge or destroy it.

5. If animals, perishable things or things the keeping of which requires large expenses are found, then the one-year period shall not apply, and the amount received from their disposal shall be returned to the owner.

Article 192. Treasure🔗

If an object is discovered that has been buried for so long that it is impossible to identify its owner (treasure), then ownership passes in equal shares to the discoverer and to the owner of the thing in which the treasure was found.

Article 193. Acquisition of Ownership of an Essential Component Part of a Land Plot🔗

If a movable thing is connected to a land plot in such a way that it has become an essential component part of this plot, then the owner of the land plot, in accordance with paragraph 2 of Article 150, simultaneously becomes the owner of this thing as well.

Article 194. Co-ownership of a Thing Resulting from the Merger of Movable Things🔗

1. If movable things are connected to one another in such a way that they have become essential component parts of a new single thing, or movable things have merged with one another, then the previous owners become co-owners of this new thing. The share is determined in accordance with the value that the things had at the time of their connection.

2. If one of the things, according to established opinion, is considered the principal thing, then its owner acquires ownership of the accessory as well.

Article 195. Co-ownership of a New Movable Thing Created as a Result of Processing Material🔗

If as a result of processing or remaking of material a new movable thing is created, then the producer and the owner of the material become co-owners of the new thing. The share is determined in proportion to the value of the material and the production costs, unless otherwise provided by agreement.

Article 196. Extinction of Rights upon Transfer of Ownership🔗

If ownership passes in accordance with Articles 193-195, then all other rights existing in respect of the given thing are extinguished.

Article 197. Claim for Compensation for Damage from the New Owner🔗

1. A person who, under Articles 193-195, loses his/her ownership, or whose right is otherwise infringed, may demand compensation for damage from the person who became the owner. A claim for restoration of the original state is inadmissible.

2. The claim provided for by paragraph 1 of this Article does not arise if the new owner acquired the thing from a third party under an onerous contract.

III. Acquisition of Ownership in Rights and Claims

Article 198. Concept. Content🔗

1. A claim or right that may be assigned and pledged may be transferred as property by its holder to another person. Claims and rights pass to the new person in the same condition in which they were in the hands of the previous holder.

2. The previous holder shall be obliged to transfer to the new holder all documents in his/her possession that relate to the claims and rights, and all information necessary for the exercise of these claims and rights.

3. The previous holder shall also be obliged, upon demand, to transfer to the acquirer a duly certified document concerning the assignment of this right and claim. The costs of certification of this document shall be borne by the new holder.

[ 4. The operation of this Article and of Articles 199-205 and 207 of this Code shall not extend to relations arising from the Law of Georgia on Factoring. (Shall enter into force from 1 January 2027)]

Law of Georgia of 1 April 2026 No. 1454 – website, 06.04.2026.

Article 199. Assignment of Claim🔗

1. The holder of a claim (creditor) may, without the debtor's consent, assign the claim to a third party, if this does not contradict the essence of the obligation, his/her agreement with the debtor, or the law (assignment of claim). An agreement with the debtor on the inadmissibility of assignment may be made only if there is a legitimate interest of the debtor.

2. The assignment of a claim is effected by a contract concluded between the holder of the claim and a third party. In such cases, the third party takes the place of the original holder.

Article 200. Right of the Debtor upon Assignment of Claim🔗

Until the debtor is notified of the assignment of the claim, he/she has the right to perform the obligation to the original holder of the claim.

Article 201. Transfer of Security Rights upon Assignment of Claim🔗

1. Upon assignment of a claim, its security rights and other rights related to the claim also pass to the new holder.

2. The debtor has the right to raise against the new holder all objections that he/she had against the original holder at the time of receipt of notice of the assignment of the claim.

Article 202. Priority among Holders of a Claim🔗

If the holder of a claim agrees with several persons on the assignment of the same claim, then the person with whom the holder of the claim established relations earlier than with the others shall be entitled as against the debtor. If it is impossible to establish this, then preference shall be given to the person of whom the debtor was notified earlier.

Article 203. Assumption of debt🔗

1. By a contract concluded with the holder of the claim, a third person may also assume the debt (assumption of debt). In such a case, the third person shall take the place of the original debtor.

2. The original debtor has the right not to consent to such agreement between the holder of the claim and the third person and to pay the debt himself.

Article 204. Consent of the holder of the claim upon assumption of debt🔗

If a third person and the debtor have agreed on the assumption of the debt, the validity of its assumption depends on the consent of the holder of the claim. Exceptional cases to this rule shall be determined by law.

Law of Georgia of 23 December 2017 No. 1901 – website, 11.01.2018.

Law of Georgia of 29 November 2022 No. 2117 – website, 16.12.2022.

Article 205. Rights of the new debtor🔗

The new debtor may raise against the holder of the claim all those objections that arise from the relationship existing between the holder of the claim and the original debtor. He shall not have the right to set off those claims that belonged to the original debtor.

Article 206. Termination of the means of securing the claim upon assumption of debt🔗

Immediately upon the assumption of the debt, the suretyship or pledge provided for the securing of the claim shall terminate, unless the surety or the pledgor declares consent to the continuation of this relationship. Exceptional cases to this rule shall be determined by law.

Law of Georgia of 28 December 2002 No. 1902 – LHG I, No. 4, 22.01.2003, Art. 20

Law of Georgia of 20 December 2019 No. 5667 – website, 31.12.2019.

Law of Georgia of 29 November 2022 No. 2117 – website, 16.12.2022.

Article 207. Assignment of claim by operation of law🔗

The rules on the acquisition of ownership of rights and claims shall apply accordingly in relation to the assignment of those claims that are effected by operation of law, on the basis of a judgment of a court or of a competent state body.

Article 208. Grounds for the acquisition of the object of individual ownership (an apartment and/or non-residential space) in a multi-apartment building🔗

In order to acquire the object of individual ownership (an apartment and/or non-residential space), it is necessary to conclude the transaction in written form and to register in the Public Registry the ownership right determined by this transaction in favour of the acquirer.

Law of Georgia of 11 May 2007 No. 4744 – LHG I, No. 18, 22.05.2007, Art. 158

Law of Georgia of 11 July 2007 No. 5278 – LHG I, No. 29, 27.07.2007, Art. 322

Article 209. Acquisition of a leased apartment🔗

If a person acquires a leased apartment, he shall take the place of the lessor.

Law of Georgia of 11 May 2007 No. 4744 – LHG I, No. 18, 22.05.2007, Art. 158

Law of Georgia of 11 July 2007 No. 5278 – LHG I, No. 29, 27.07.2007, Art. 322

Article 210. (deleted)🔗

Law of Georgia of 8 December 2006 No. 3879 – LHG I, No. 48, 22.12.2006, Art. 321

Law of Georgia of 11 July 2007 No. 5278 – LHG I, No. 29, 27.07.2007, Art. 322

Article 211. (removed)🔗

Law of Georgia of 11 July 2007 No. 5278 – LHG I, No. 29, 27.07.2007, Art. 322

Article 212. (removed)🔗

Law of Georgia of 11 July 2007 No. 5278 – LHG I, No. 29, 27.07.2007, Art. 322

Article 213. (removed)🔗

Law of Georgia of 30 June 2005 No. 1826 – LHG I, No. 41, 19.07.2005, Art. 284

Law of Georgia of 11 July 2007 No. 5278 – LHG I, No. 29, 27.07.2007, Art. 322

Article 214. (removed)🔗

Law of Georgia of 11 May 2007 No. 4744 – LHG I, No. 18, 22.05.2007, Art. 158

Article 215. (removed)🔗

Law of Georgia of 11 May 2007 No. 4744 – LHG I, No. 18, 22.05.2007, Art. 158

Law of Georgia of 11 July 2007 No. 5278 – LHG I, No. 29, 27.07.2007, Art. 322

Article 216. (removed)🔗

Law of Georgia of 11 July 2007 No. 5278 – LHG I, No. 29, 27.07.2007, Art. 322

Article 217. (removed)🔗

Law of Georgia of 11 July 2007 No. 5278 – LHG I, No. 29, 27.07.2007, Art. 322

Article 218. (removed)🔗

Law of Georgia of 11 July 2007 No. 5278 – LHG I, No. 29, 27.07.2007, Art. 322

Article 219. (removed)🔗

Law of Georgia of 11 July 2007 No. 5278 – LHG I, No. 29, 27.07.2007, Art. 322

Article 220. (removed)🔗

Law of Georgia of 11 July 2007 No. 5278 – LHG I, No. 29, 27.07.2007, Art. 322

Article 221. (removed)🔗

Law of Georgia of 11 July 2007 No. 5278 – LHG I, No. 29, 27.07.2007, Art. 322

Article 222. (removed)🔗

Law of Georgia of 11 July 2007 No. 5278 – LHG I, No. 29, 27.07.2007, Art. 322

Article 223. (removed)🔗

Law of Georgia of 11 July 2007 No. 5278 – LHG I, No. 29, 27.07.2007, Art. 322

Article 224. (removed)🔗

Law of Georgia of 11 July 2007 No. 5278 – LHG I, No. 29, 27.07.2007, Art. 322

Article 225. (removed)🔗

Law of Georgia of 11 July 2007 No. 5278 – LHG I, No. 29, 27.07.2007, Art. 322

Article 226. (removed)🔗

Law of Georgia of 11 July 2007 No. 5278 – LHG I, No. 29, 27.07.2007, Art. 322

Article 227. (removed)🔗

Law of Georgia of 11 July 2007 No. 5278 – LHG I, No. 29, 27.07.2007, Art. 322

Article 228. (removed)🔗

Law of Georgia of 11 July 2007 No. 5278 – LHG I, No. 29, 27.07.2007, Art. 322

Article 229. (removed)🔗

Law of Georgia of 11 July 2007 No. 5278 – LHG I, No. 29, 27.07.2007, Art. 322

Article 230. (removed)🔗

Law of Georgia of 11 July 2007 No. 5278 – LHG I, No. 29, 27.07.2007, Art. 322

Article 231. (removed)🔗

Law of Georgia of 11 July 2007 No. 5278 – LHG I, No. 29, 27.07.2007, Art. 322

Article 232. (removed)🔗

Law of Georgia of 11 July 2007 No. 5278 – LHG I, No. 29, 27.07.2007, Art. 322

Article 233. Concept🔗

1. A land plot may be transferred to another person for temporary use in such a way that he has the right to erect any structure on or under this plot, as well as the right to alienate, transfer by inheritance, lend, lease this right (right of superficies).

2. The right of superficies may extend to that part of the land plot which is not necessary for the construction but provides the possibility of better use of the structure.

3. The term of the right of superficies shall be determined by agreement of the parties and shall not exceed ninety-nine years.

Law of Georgia of 27 April 2010 No. 2978 - LHG I, No. 24, 10.05.2010, Art. 144

Article 234. Origin, acquisition and termination of the right of superficies. Ownership of the structure🔗

1. The rules for acquisition of an immovable thing shall apply accordingly to the origin and acquisition of the right of superficies.

2. A structure built on the basis of the right of superficies shall be considered an essential component of the right of superficies and shall be registered as the ownership of the person holding the right of superficies.

3. Upon termination of the right of superficies, the structure built on the basis of the right of superficies shall become an essential component of the land plot.

Law of Georgia of 27 April 2010 No. 2978 - LHG I, No. 24, 10.05.2010, Art. 144

Article 235. Alienation of the right of superficies🔗

If, by agreement of the parties, the consent of the owner of the land plot is required for the alienation or lease of the right of superficies, the owner may refuse to grant such consent only if there are significant grounds for doing so.

Article 236. Remuneration for the right of superficies🔗

1. The holder of the right of superficies may be obliged by contract to pay remuneration. This right of the owner of the land plot is inseparable from the right of ownership of the plot.

2. Due to non-payment of remuneration, the right of superficies may be unilaterally terminated by the owner in the event of non-performance of this obligation for 2 years, unless otherwise provided by agreement of the parties.

3. The parties may determine the remuneration for the right of superficies at intervals of ten years. If economic conditions change substantially, the parties shall be obliged to agree anew on the remuneration.

Law of Georgia of 16 October 2015 No. 4336 - website, 20.10.2015

Article 237. Registration of the right of superficies🔗

The right of superficies shall be entered in the public register among the rights in rem of non-owners over a land plot only as a first-rank right. This rank may not be changed.

Article 238. Termination of the right of superficies🔗

1. The consent of the owner is required for termination of the right of superficies.

2. The right of superficies shall not be extinguished by the demolition of a building erected on the land plot.

Article 239. Termination of the right of paid construction🔗

1. In the event of expiry of the term of the right of paid construction, unless otherwise provided by agreement of the parties, the owner of the land plot shall give the holder of the construction right compensation in the amount of two thirds of the value of the structure erected on this plot.

2. The owner of the land plot may, in exchange for payment of compensation to the holder of the construction right, extend the construction right on this plot for the estimated term of existence of the structure erected on this plot, unless otherwise provided by agreement of the parties. If the holder of the construction right refuses to extend the term of the construction right, he also loses the right to claim compensation.

3. Upon termination of the construction right, the holder of the construction right shall not be entitled to remove the structure or its component parts.

Law of Georgia of 16 October 2015 No. 4336 – website, 20.10.2015.

Article 240. Registration of the claim for compensation in the public register🔗

1. After termination of the construction right, the right to claim compensation arising from the construction (if any) takes the place of the construction right in the public register and replaces it with the same rank.

2. If, at the time of expiry of its term, the construction right is still encumbered by a mortgage, the mortgagee has the right of pledge over the claim for compensation.

Law of Georgia of 16 October 2015 No. 4336 – website, 20.10.2015.

Article 241. Succession upon termination of the construction right🔗

Upon termination of the construction right, the owner of the land plot becomes a party to the lease or tenancy contract concluded by the person holding the construction right.

II. Usufruct

Article 242. Concept🔗

An immovable thing may be transferred to another person for use in such a way that he is entitled, as the owner, to use this thing and not to allow third parties to use it, but, unlike the owner, he has no right to alienate this thing, encumber it with a mortgage or transfer it by inheritance (usufruct). The consent of the owner is required for renting out or leasing this thing. After termination of the usufruct, the owner becomes a party to the existing lease or tenancy relations.

Law of Georgia of 30 June 2005 No. 1826 – LHG I, No. 41, 19.07.2005, Art. 284

Article 243. Legal regulation of the establishment of usufruct🔗

At the time of establishment of usufruct, the same rules apply as at the time of acquisition of immovable things.

Article 244. Types of usufruct🔗

1. Usufruct may be paid or gratuitous.

2. Usufruct may exist temporarily or for the lifetime of its recipient (usufructuary). Usufruct is terminated by the death of the natural person or the liquidation of the legal entity in whose favour the usufruct was established.

Article 245. Rights and obligations of the usufructuary🔗

1. Before the commencement of the usufruct, the parties may describe the condition of the objects to be transferred under the usufruct.

2. The usufructuary shall not have the right to change the purpose of use without the owner's consent.

3. The usufructuary is entitled to receive also those fruits and benefits of this thing which are not obtained as a result of the ordinary economic use of the thing. In this case, he shall be obliged to compensate the owner for the damage caused to the thing as a result of such use.

4. The usufructuary shall not be liable for the normal wear and tear of the thing. He shall be obliged to cover the current expenses, to repair the thing, and also to take care of the normal economic maintenance of the thing.

5. The usufructuary shall be obliged, for the duration of the existence of the usufruct, to insure the thing, if this is provided by law or by agreement of the parties. If the object of the usufruct is an immovable thing in the ownership of the state or a municipality and the usufructuary is a legal entity of public law, a municipality (if the owner of the object of the usufruct is another municipality) or a non-entrepreneurial (non-commercial) legal entity founded by the state or a municipality, insurance of the thing shall not be mandatory.

6. If the thing is destroyed, damaged or unforeseen expenses arise for its preservation, the usufructuary shall immediately notify the owner thereof. He shall tolerate those measures which the owner has taken to prevent this situation. The owner shall not be obliged to take the relevant measures. If these measures are taken by the usufructuary himself, then he may, after the termination of the usufruct, remove from the thing those items which he added as a result of these measures, or demand from the owner appropriate compensation for these items.

7. If, within the framework of normal economic activity, the usufructuary alienates individual items, then the place of the alienated items shall be taken by the items acquired by him.

Law of Georgia of 17 July 2009 No. 1541 - LHG I, No. 21, 03.08.2009, Art. 124

Law of Georgia of 15 July 2020 No. 6989 – website, 28.07.2020

Article 246. Termination of the usufruct🔗

1. The usufructuary shall be obliged, after the termination of the usufruct, to return the thing to the owner.

2. The usufruct shall be extinguished if it comes into the hands of one person together with the ownership.

III. Servitudes

Article 247. Concept🔗

1. A land plot or other immovable property may be used (encumbered) in favour of the owner of another land plot or other immovable property in such a way that this owner has the right, in individual cases, to use this plot, or is prohibited from carrying out certain actions on this plot, or the exercise of certain rights of the owner of the encumbered plot in respect of another plot is excluded (servitude). For the establishment of a servitude, the rules provided for the acquisition of an immovable thing shall apply.

2. The remuneration may be determined in the form of a periodic payment.

Law of Georgia of 11 May 2007 No. 4744 - LHG I, No. 18, 22.05.2007, Art. 158

Article 248. Conditions of a servitude🔗

1. A servitude may exist only where it creates for the person entitled an advantage in the use of that person's land plot.

2. In exercising a servitude, the person entitled shall have regard for the interests of the owner of the used (encumbered) land plot.

Article 249. Obligation to maintain a structure🔗

If the proper exercise of a servitude also covers a structure located on the encumbered land plot, the person entitled shall be under the obligation to maintain that structure properly. At the same time, the parties may agree that the obligation to maintain the structure shall be imposed on the owner of the encumbered land plot, if the interests of the person entitled so require.

Article 250. Consequences of the division of a land plot🔗

If the land plot of the person entitled is divided, the servitude shall continue separately in respect of each plot. In such case, the exercise of the servitude shall be permissible only on the condition that it does not worsen the position of the owner of the encumbered land plot.

Article 251. Part free from the servitude as a result of division🔗

If the encumbered land plot has been divided and the servitude extended only to one part, then, after the division as well, that part of the land plot over which there was no servitude shall remain free from it.

Article 252. Protection of the rights of the person entitled🔗

If the person entitled is hindered in the exercise of that person's right, then, in order to prevent this, that person shall have the same rights as a possessor in good faith.

Article 253. Personal servitude🔗

1. An immovable thing may be encumbered with a servitude in favour of one or another person under the condition provided for in Article 247. Such encumbrance may consist in the person entitled being able, to the exclusion of the owner, to use a building or part of that building as a dwelling for himself or herself or for his or her family.

2. Such a limited personal servitude as provided for in paragraph 1 of this Article shall not pass to other persons.

Article 254. Concept🔗

1. A movable thing or/and an intangible property benefit of the debtor or of a third person, the transfer of which to other persons is permissible, may be used as a means of securing both a monetary and a non-monetary claim, in such a way that the creditor (pledgee) acquires the right to satisfy the claim through the realisation of the pledged property (object of pledge) or, by agreement of the parties, through receiving it into his ownership in the event of non-performance or improper performance of the obligation by the debtor.

2. The pledgee has the right to preferential satisfaction of his claim from the object of pledge in comparison with other creditors.

3. Future or conditional claims may be secured by pledge.

3¹. In the case of a pledge of an intangible property benefit, the rule established by Article 7 of the Organic Law of Georgia "On Ownership of Agricultural Land" shall also be taken into account.

3². The pledgor shall be prohibited from pledging an intangible property benefit which is an asset included in the pool of securing assets provided for by subparagraph "b" of paragraph 1 of Article 2 of the Law of Georgia "On Mortgage-Backed Securities".

4. A pledge securing a non-monetary claim is valid only if it can be expressed in monetary form.

4¹. The right of pledge may extend both to a thing or its part, to a set of things or their part, or/and to an intangible property benefit, as well as to the entire movable property.

5. Those things and intangible property benefits which the pledgor will acquire in the future (future property) may be used as a means of securing a claim. Future property becomes a means of securing a claim immediately upon its acquisition, while the ranking of rights of pledge over future property is determined in accordance with the moment of registration of the right of pledge.

6. A means of transport as defined by paragraph 1 of Article 53 of the Law of Georgia "On Road Traffic" or/and auxiliary technical equipment of an agricultural machine, as well as a railway means of transport, may not be used as a means of securing a claim arising from a loan/credit contract to be granted/granted to a natural person (including an individual entrepreneur).

(paragraph 6 of Article 254 was declared invalid) - Decision of the Constitutional Court of Georgia of 18 December 2020 No. 1/4/1380 – website, 22.12.2020.

7. (deleted - 22.07.2021, No. 808).

Law of Georgia of 30 June 2005 No. 1826 - LHG I, No. 41, 19.07.2005, Art. 284

Law of Georgia of 29 June 2007 No. 5127 - LHG I, No. 27, 17.07.2007, Art. 260

Law of Georgia of 9 March 2011 No. 4323 - website, 22.03.2011.

Law of Georgia of 21 July 2018 No. 3315 – website, 07.08.2018.

Law of Georgia of 25 June 2019 No. 4851 - website, 02.07.2019.

Decision of the Constitutional Court of Georgia of 18 December 2020 No. 1/4/1380 – website, 22.12.2020.

Law of Georgia of 22 July 2021 No. 808 – website, 26.07.2021.

Law of Georgia of 29 November 2022 No. 2117 – website, 16.12.2022.

Article 255. Types of pledge🔗

The types of pledge are:

a) possessory pledge;

b) registered pledge.

Law of Georgia of 30 June 2005 No. 1826 - LHG I, No. 41, 19.07.2005, Art. 284

Article 256. Scope of pledge🔗

1. A pledge secures a claim and other ancillary rights related thereto (including interest and penalty), as well as the costs of care and preservation of the property, court and realisation costs, unless otherwise provided by law or by agreement of the parties.

2. The right of pledge extends to the fruits obtained from the object of pledge, unless otherwise provided by agreement of the parties.

Law of Georgia of 30 June 2005 No. 1826 - LHG I, No. 41, 19.07.2005, Art. 284

Law of Georgia of 9 March 2011 No. 4323 - website, 22.03.2011.

Law of Georgia of 28 December 2011 No. 5668 – website, 16.01.2012.

Article 257. Possessory pledge🔗

1. A possessory pledge over a movable thing arises by way of an agreement of the parties and transfer of the thing into the possession of the pledgee or of a third person designated by the pledgee.

2. If the thing is already in the possession of the pledgee or of a person duly authorised by the pledgee, the agreement of the parties is sufficient for the pledge to arise.

Law of Georgia of 30 June 2005 No. 1826 - LHG I, No. 41, 19.07.2005, Art. 284

Article 258. Registered pledge🔗

1. For the creation of a registered pledge, it is necessary to conclude a transaction in written form and to register the pledge right determined by this transaction in the public registry (except for the case provided for by paragraph 4 of this Article). In this case, the transfer of the movable thing into the possession of the pledgee is not mandatory.

2. The transaction shall state:

a) the date of its drawing up;

b) data on the pledgee, the pledgor, and a possible third-party debtor;

c) a description of the object of the pledge by general or specific characteristics in such a way that it can be determined. If the object of the pledge is the entire movable property, its description is not required, unless otherwise provided by agreement of the parties;

d) a general or specific description of the secured principal claim and the maximum amount within which the secured claim must be satisfied.

3. The rules for registration of the pledge right shall be determined by law.

3¹. Relations related to financial collateral shall be regulated in accordance with the Law of Georgia on Financial Collateral, Netting and Derivatives.

4. For the creation of a registered pledge over a vehicle and auxiliary technical means of an agricultural machine as defined by paragraph 1 of Article 53 of the Law of Georgia on Road Traffic, it is necessary to conclude a transaction in written form and to register the pledge right determined by this transaction with a legal entity of public law – the Service Agency of the Ministry of Internal Affairs of Georgia. At the same time, for the validity of the transaction, certification of the authenticity of the signatures of the transaction or of the parties participating in the transaction is not required if:

a) the parties participating in the transaction sign the transaction in the registering body in the presence of an authorised person;

b) a contract has been concluded between the pledgee and the legal entity of public law – the Service Agency of the Ministry of Internal Affairs of Georgia on the registration of a pledge over a vehicle using an electronic document exchange system.

5. The rules for registration of a pledge right over a vehicle and auxiliary technical means of an agricultural machine as defined by paragraph 1 of Article 53 of the Law of Georgia on Road Traffic, on the basis of material or electronic documents, by the legal entity of public law – the Service Agency of the Ministry of Internal Affairs of Georgia, shall be determined by the Minister of Internal Affairs of Georgia.

Law of Georgia of 30 June 2005 No. 1826 - LHG I, No. 41, 19.07.2005, Art. 284

Law of Georgia of 8 December 2006 No. 3879 - LHG I, No. 48, 22.12.2006, Art. 321

Law of Georgia of 29 December 2006 No. 4310 - LHG I, No. 2, 04.01.2007, Art. 35

Law of Georgia of 11 May 2007 No. 4744 - LHG I, No. 18, 22.05.2007, Art. 158

Law of Georgia of 2 October 2008 No. 314 - LHG I, No. 24, 20.10.2008, Art. 160

Law of Georgia of 9 March 2011 No. 4323 - website, 22.03.2011

Law of Georgia No. 6311 of 25 May 2012 – website, 12.06.2012.

Law of Georgia No. 1833 of 24 December 2013 – website, 03.01.2014.

Law of Georgia No. 5674 of 20 December 2019 – website, 31.12.2019.

Article 258¹. Pledge certificate🔗

1. Within two weeks from the pledgee's written demand, in the event of the debtor's failure to perform the obligation defined by paragraph 1 of Article 281 of this Code, on the basis of the pledgee's application, the Legal Entity of Public Law – the Service Agency of the Ministry of Internal Affairs of Georgia shall issue a pledge certificate.

2. A pledge certificate is an act subject to enforcement, which confirms the fact of registration of the pledge right defined by paragraph 4 of Article 258 of this Code in the Legal Entity of Public Law – the Service Agency of the Ministry of Internal Affairs of Georgia, and, where the circumstances established by the legislation of Georgia exist, the pledgee is entitled to demand from the authorised body (official) the transfer into his possession of the pledged thing for the purpose of satisfying the claim secured by the pledge.

3. A pledge certificate shall not be issued if the registered pledge transaction does not contain the agreement of the parties defined by paragraph 1 of Article 283 and/or Article 260¹ of this Code for the securing of the claim.

4. The pledgee shall be responsible for the lawfulness of the demand for the issuance of a pledge certificate made by the pledgee to the Legal Entity of Public Law – the Service Agency of the Ministry of Internal Affairs of Georgia.

5. The form and the procedure for issuing a pledge certificate shall be determined by an Order of the Minister of Internal Affairs of Georgia.

Law of Georgia No. 1541 of 17 July 2009 – LHG I, No 21, 03.08.2009, Art. 124

Law of Georgia No. 1833 of 24 December 2013 – website, 03.01.2014.

Article 259. Procedure for the pledging of claims and securities🔗

1. A claim shall be pledged by concluding a transaction in written form and by registering in the public register the right defined by this transaction. The requirements established by paragraph 2 of Article 258 of this Code shall apply to the said transaction.

2. Until the debtor is notified in writing of the pledging of the claim, he is entitled to perform the obligation towards the holder of the claim. In such a case, the rule provided for by paragraph 1 of Article 264 shall apply.

3. Securities shall be pledged in accordance with the procedure established for their acquisition. In respect of dematerialised securities, the pledge right shall arise in accordance with the Law of Georgia on the Holding of Dematerialised Securities.

Law of Georgia No. 1826 of 30 June 2005 – LHG I, No 41, 19.07.2005, Art. 284

Law of Georgia No. 3879 of 8 December 2006 – LHG I, No 48, 22.12.2006, Art. 321

Law of Georgia No. 3726 of 16 November 2023 – website, 07.12.2023.

Article 260. Rule for pledging things in a pawnshop🔗

1. Pledging of things in a pawnshop shall be effected by means of a written agreement between the parties and transfer of the thing into the direct possession of the pawnshop.

2. (Removed – 21.07.2018, No. 3315).

Law of Georgia No. 1826 of 30 June 2005 – LHG I, No. 41, 19.07.2005, Art. 284

Law of Georgia No. 3315 of 21 July 2018 – website, 07.08.2018

Article 260¹. Transfer of a pledged thing into the ownership of the creditor (pledgee)🔗

A pledged thing may be transferred into the ownership of the creditor (pledgee) on the grounds provided for by this Law only in the case of a registered pledge, and this must be expressly stated in the contract.

Law of Georgia No. 5127 of 29 June 2007 – LHG I, No. 27, 17.07.2007, Art. 260

Article 261. Rights and obligations of the pledgee and the pledgor🔗

1. In the case of a registered pledge, the pledgor or the pledgee, and in the case of a possessory pledge – the pledgee or a third person designated by the pledgee, shall bear the obligation to properly care for and preserve the object of pledge in their possession. Each party has the right to inspect the condition (including size, weight, storage conditions, etc.) of the object of pledge held in the possession of the other party.

2. If the object of pledge is in the possession of the pledgor, he has the right to receive benefits from the object of pledge. The pledgee may receive benefits from the object of pledge transferred into his possession if this is provided for by agreement of the parties. It is presumed that the pledgee is entitled to receive fruits from the object of pledge if the receipt of fruits follows from the nature of the object of pledge. Benefits received by the pledgee shall be credited against the secured claim. The pledgee shall, at the request of the pledgor, present to him an account of the benefits received by him.

3. The pledgee has the right to demand from the pledgor reimbursement of the necessary expenses incurred in respect of the object of pledge. The procedure for reimbursement of other expenses shall be determined in accordance with the rules on performance of another's affairs without instruction.

4. If the pledgor fails to perform the obligation to properly care for and preserve the object of pledge, the pledgee has the right to demand transfer of the object of pledge to him or to a third person, and if the pledgee fails to perform the obligation to properly care for and preserve the object of pledge, the pledgor has the right to demand transfer of the object of pledge to a third person.

5. If the object of pledge is a share or an interest in a business company, the pledgor, when taking decisions relating to the business company or concluding a transaction, shall act on the principle of good faith, taking into account his own interests and the interests of the pledgee.

Law of Georgia No. 1826 of 30 June 2005 – LHG I, No. 41, 19.07.2005, Art. 284

Article 262. Insurance of the object of pledge🔗

The pledgor shall be obliged to insure the object of pledge only if this is provided for by law or by agreement of the parties.

Law of Georgia of 30 June 2005 No. 1826 - LHG I, No. 41, 19.07.2005, Art. 284

Article 263. Rights of the pledgor who is not the personal debtor of the pledgee🔗

A pledgor who is not the personal debtor of the claim secured by the pledge may raise against the pledgee those objections which the personal debtor is entitled to raise, including such objections which the personal debtor of the pledgee waived after the creation of the pledge.

Law of Georgia of 30 June 2005 No. 1826 - LHG I, No. 41, 19.07.2005, Art. 284

Article 264. Surrogation🔗

1. If a claim is pledged and the debtor performs the obligation before the expiry of the pledge term, the performance shall take the place of the claim, unless otherwise provided by agreement of the parties.

2. Any compensation received in connection with the loss, damage, destruction or depreciation of the object of pledge, including insurance compensation, shall take the place of the object of pledge, unless otherwise provided by agreement of the parties.

3. In the cases provided for by paragraph 2 of this Article, the pledgor is entitled, using the amount received by him, to acquire a substitute thing for the lost, damaged, destroyed or depreciated thing, which shall take the place of the object of pledge.

Law of Georgia of 30 June 2005 No. 1826 - LHG I, No. 41, 19.07.2005, Art. 284

Law of Georgia of 9 March 2011 No. 4323 - website, 22.03.2011

Article 265. Legal consequences of processing the object of pledge and/or combining it with another movable thing🔗

1. Processing of the object of pledge and/or combining it with another movable thing in such a way that their restoration to the original state is impossible or involves significant expenses shall not result in termination of the right of pledge, unless otherwise provided by agreement of the parties. If ownership passes as a result of processing the object of pledge or combining it with another movable thing, the rule provided for by Article 196 of this Code shall apply.

2. In the case provided for by paragraph 1 of this Article, the prior consent of the pledgee is required for processing the object of pledge and/or combining it with another movable thing, unless otherwise provided by agreement of the parties.

3. In the case provided for by this Article, the ranking of claims arising from the pledge shall be determined in accordance with the moment of creation of the rights of pledge existing before the processing of the object of pledge or combining it with another movable thing.

Law of Georgia of 30 June 2005 No. 1826 - LHG I, No. 41, 19.07.2005, Art. 284

Law of Georgia of 9 March 2011 No. 4323 - website, 22.03.2011

Article 266. Conclusion of a transaction on the object of a pledge🔗

1. The parties may agree that the pledgor shall not alienate or pledge the object of the pledge until the termination of the right of pledge.

2. In the event of non-performance by the pledgor of the obligation provided for by paragraph 1 of this Article, the pledgee has the right to immediate satisfaction of his claim.

Law of Georgia of 30 June 2005 No. 1826 – LHG I, No. 41, 19.07.2005, Art. 284

Article 267. Multiple pledging of an object and priority of rights of pledge🔗

1. The same property may be pledged several times. The priority of rights of pledge is determined in accordance with the time of their submission for registration.

2. If the object of the pledge is future property, then, in the event of acquisition of the property by the pledgor, a right of pledge arising during the time of the previous owner shall take precedence over a right of pledge arising during the time of the new owner, regardless of the date of their origin.

3. In the cases provided for by Articles 568, 586, 596, 634, 685 and 796 of this Code, the pledgee has the right to preferential satisfaction of his claims out of the object of the pledge in comparison with all other pledgees.

Law of Georgia of 30 June 2005 No. 1826 – LHG I, No. 41, 19.07.2005, Art. 284

Law of Georgia of 11 May 2007 No. 4744 – LHG I, No. 18, 22.05.2007, Art. 158

Article 268. Protection of the pledgee's rights🔗

If the pledgee is hindered in the exercise of his rights, he may exercise the same rights as the owner.

Law of Georgia of 30 June 2005 No. 1826 – LHG I, No. 41, 19.07.2005, Art. 284

Article 269. Transfer of the right of pledge to a new creditor🔗

1. By assignment of a claim to another person, the right of pledge also passes to that person (the new creditor).

2. The right of pledge terminates if, upon assignment of a claim secured by a possessory pledge, the new creditor does not, within a reasonable time from the moment of the assignment of the claim, demand the transfer of the object of the pledge to him or to a person authorised by him, or the registration of the right of pledge.

3. Any third person whose legal position may be worsened as a result of the realisation of the object of the pledge is entitled to satisfy the pledgee's claim and thereby acquire his rights against the pledgor and a possible third-party debtor.

4. The right of pledge may not be transferred to another person without the transfer of the corresponding claim. If, upon the transfer of the claim, the transfer of the right of pledge is excluded, the right of pledge terminates.

Law of Georgia of 30 June 2005 No. 1826 – LHG I, No. 41, 19.07.2005, Art. 284

Article 270. Termination of the right of pledge due to extinguishment of the claim🔗

The right of pledge terminates together with the extinguishment of the claim to secure which it exists.

Law of Georgia of 30 June 2005 No. 1826 – LHG I, No. 41, 19.07.2005, Art. 284

Article 271. Termination of the right of pledge due to destruction of the object of the pledge🔗

The right of pledge terminates if the object of the pledge physically ceases to exist.

Law of Georgia of 30 June 2005 No. 1826 – LHG I, No. 41, 19.07.2005, Art. 284

Article 272. Termination of the right of pledge by waiver of the pledge🔗

1. The right of a registered pledge terminates where the pledgee waives the pledge by way of registration.

2. The right of a possessory pledge terminates where possession is returned to the pledgor or the pledgee waives the right of pledge.

Law of Georgia of 30 June 2005 No. 1826 - LHG I, No. 41, 19.07.2005, Art. 284

Article 273. Termination of the right of pledge due to the transfer of the object of pledge into the ownership of the pledgee (consolidation)🔗

The right of pledge terminates if the object of pledge passes into the ownership of the pledgee.

Law of Georgia of 30 June 2005 No. 1826 - LHG I, No. 41, 19.07.2005, Art. 284

Article 274. Alienation of the object of pledge🔗

1. Upon alienation of the object of pledge, ownership encumbered by the pledge passes to the acquirer, except for the cases provided for by paragraphs 3 and 4 of this Article.

[ 1. Upon alienation of the object of pledge, ownership encumbered by the pledge passes to the acquirer, except for the cases provided for by paragraphs 3–5 of this Article. (shall enter into force from 1 January 2027)]

2. In the case of a registered pledge, upon alienation of the object of pledge, the pledgor and the acquirer shall jointly bear the obligation to register the acquirer as pledgor in the public registry, and in respect of a vehicle and an auxiliary technical means of agricultural machinery as defined by paragraph 1 of Article 53 of the Law of Georgia "On Road Traffic" – in a legal entity of public law – the Service Agency of the Ministry of Internal Affairs of Georgia, and in the event of failure to fulfil which they shall be jointly and severally liable for any damage caused by the failure to fulfil this obligation.

3. In the case of a possessory pledge, upon alienation of the object of pledge by the pledgor, the pledge right terminates and unencumbered ownership passes to the acquirer, if the pledgee or a person duly authorised by him transfers possession of the object of pledge to the acquirer.

4. Upon alienation by the pledgor of the object of pledge within the scope of ordinary business activity, unencumbered ownership passes to the acquirer, regardless of whether the acquirer knew about the pledge. This rule shall not apply if the acquirer and the pledgor acted in bad faith.

[ 5. In the case of transfer of a receivable to a factor as a result of factoring as defined by the Law of Georgia "On Factoring", the pledge right over the receivable terminates and the property free from the pledge right passes into the factor's ownership. In this case, the pledge right continues to exist over the income received as a result of the transfer of the said receivable into the factor's ownership. If part of the receivable is transferred to the factor, this rule shall apply only to the transferred part of the said receivable. (shall enter into force from 1 January 2027)]

Law of Georgia of 30 June 2005 No. 1826 - LHG I, No. 41, 19.07.2005, Art. 284

Law of Georgia of 29 December 2006 No. 4310 - LHG I, No. 2, 04.01.2007, Art. 35

Law of Georgia of 24 December 2013 No. 1833 - website, 03.01.2014

Law of Georgia of 1 April 2026 No. 1454 – website, 06.04.2026

Article 275. Obligation of the pledgee upon termination of the right of pledge🔗

1. In the event of termination of the right of pledge, the pledgee shall be obliged to return the item in his possession to the pledgor.

2. Upon termination of a registered right of pledge, the pledgor shall be entitled to demand from the pledgee the immediate registration of the termination of the right of pledge in the public registry, and in the case of termination of a right of pledge registered on a means of transport and on an auxiliary technical means of an agricultural machine as defined by paragraph 1 of Article 53 of the Law of Georgia "On Road Traffic" – in a Legal Entity of Public Law – the Service Agency of the Ministry of Internal Affairs of Georgia. If there is no demand of the pledgor for the immediate registration of the termination of the right of pledge, the pledgee shall be obliged, within 5 working days from the termination of the right of pledge, to apply to the public registry or to the Legal Entity of Public Law – the Service Agency of the Ministry of Internal Affairs of Georgia for the purpose of registering the termination of the right of pledge. In the event of non-fulfilment of this obligation, the pledgor shall have the right to demand compensation for damage from the pledgee.

3. The pledgor shall also have the right to demand the registration of the termination of the right of pledge. In such a case, the registration application on the termination of the right of pledge shall be accompanied by a written document issued by the pledgee confirming the termination of the right of pledge.

Law of Georgia of 30 June 2005 No. 1826 - LHG I, No. 41, 19.07.2005, Art. 284

Law of Georgia of 29 December 2006 No. 4310 - LHG I, No. 2, 04.01.2007, Art. 35

Law of Georgia of 24 December 2013 No. 1833 - website, 03.01.2014

Article 276. Satisfaction of the pledgee🔗

1. The satisfaction of the pledgee is effected by the realisation of the object of pledge or by the transfer of the pledged thing into the ownership of the pledgee for the purpose of satisfying the claim, unless otherwise provided by law.

2. A claim shall be deemed satisfied also where the proceeds from the realisation of the object of pledge are insufficient to cover the claim secured by the pledge, or the value of the object of pledge does not fully cover the amount of that claim, unless otherwise established by agreement of the parties.

3. If the lender/credit provider is not a subject subordinate to the supervision of the National Bank of Georgia, a claim arising from a loan/credit contract granted to a natural person (including an individual entrepreneur) shall be deemed satisfied also where the proceeds from the realisation of the object(s) of pledge or of the object(s) of pledge and the immovable thing(s) encumbered by mortgage are insufficient to cover the claim secured by pledge or by pledge and mortgage, or the value of the object(s) of pledge or the value of the object(s) of pledge and the immovable thing(s) encumbered by mortgage does not fully cover the amount of that claim. Any other agreement between the parties shall be inadmissible. The National Bank of Georgia is entitled to establish for the subjects subordinate to its supervision a rule different from and/or additional to that provided for by this paragraph.

Law of Georgia of 29 June 2007 No. 5127 – LHG I, No. 27, 17.07.2007, Art. 260

Law of Georgia of 21 July 2018 No. 3315 – website, 07.08.2018

Article 277. (Removed)🔗

Law of Georgia of 30 June 2005 No. 1826 – LHG I, No. 41, 19.07.2005, Art. 284

Law of Georgia of 29 June 2007 No. 5127 – LHG I, No. 27, 17.07.2007, Art. 260

Article 278. Right to demand the realisation of the object of pledge and its transfer into the ownership of the pledgee🔗

The pledgee has the right to demand the realisation of the object of pledge or its transfer into his ownership in the event of non-performance or improper performance by the debtor of the claim secured by the pledge.

Law of Georgia of 30 June 2005 No. 1826 – LHG I, No. 41, 19.07.2005, Art. 284

Law of Georgia of 29 June 2007 No. 5127 – LHG I, No. 27, 17.07.2007, Art. 260

Article 279. Right to Realize an Item Pledged Several Times🔗

1. If the object of a pledge has been pledged several times, then any pledgee has the right to realize it upon the due date for performance of the claim.

2. A pledgee whose pledge right precedes the right of the pledgee carrying out the realization may, within two weeks from the day of receipt of the written notification from the subsequent pledgee regarding the possible realization of the object of the pledge, notify the subsequent pledgee that:

a) it enjoys the right to realize the object of the pledge provided for by paragraph 1 of this Article. In this case, the subsequent pledgee cannot carry out the realization and the obligation to carry out the realization shall be imposed on the preceding pledgee;

b) it agrees that the realization of the object of the pledge be carried out by the subsequent pledgee, but on the condition that its claim be satisfied with priority out of the proceeds from the realization.

3. In the cases of realization provided for by paragraph 2 of this Article, the claim of the preceding pledgee shall be satisfied with priority out of the proceeds from the realization.

4. If the preceding pledgee does not exercise the rights provided for by paragraph 2 of this Article, the object of the pledge remains encumbered with the rights of those pledgees whose pledge right precedes the right of the pledgee carrying out the realization.

5. The pledgee carrying out the realization and the acquirer shall be obliged to register the acquirer as pledgor in the public registry, and in the case provided for by law – in a legal entity of public law – in the Service Agency of the Ministry of Internal Affairs of Georgia, and in the event of failure to fulfil this, they shall be jointly and severally liable for any damage caused by the failure to fulfil this obligation.

Law of Georgia of 30 June 2005 No. 1826 - LHG I, No. 41, 19.07.2005, Art. 284

Law of Georgia of 29 December 2006 No. 4310 - LHG I, No. 2, 04.01.2007, Art. 35

Article 280. Distribution of the Proceeds from Realization🔗

1. Out of the proceeds from the realization of the object of the pledge, the costs of realization shall first be covered and the claim of the pledgee carrying out the realization shall be satisfied.

2. The pledgee carrying out the realization of an object encumbered several times by pledge shall, after covering the costs of realization and satisfying its own claim, keep the remaining amount on deposit with a notary in order to ensure satisfaction of the claims of subsequent pledgees. The claim of each subsequent pledgee shall be satisfied after the claim of the preceding pledgee has been satisfied in full.

3. After full satisfaction of all claims secured by the pledge, as well as in the absence of subsequent pledgees, the amount remaining from the proceeds shall be transferred to the pledgor.

4. The pledgee carrying out the realization of the object of the pledge shall be liable towards other pledgees for the damage arising from the failure to fulfil the obligation provided for by paragraph 2 of this Article.

Law of Georgia of 30 June 2005 No. 1826 - LHG I, No. 41, 19.07.2005, Art. 284

Article 281. Transfer of the object of pledge to the pledgee entitled to realize it🔗

1. A pledgee entitled to demand the realization of the object of pledge or its transfer into his ownership shall be entitled to demand the transfer of the object of pledge into his possession. The pledgee's demand for the transfer of the object of pledge into his possession shall be satisfied immediately.

2. If the realization of the claim depends on the performance of a particular legal act, the pledgee may require the pledgor to perform it. If the pledgor fails to comply with the pledgee's demand within two weeks, the pledgee shall be entitled to perform this act in the name of the pledgor vis-à-vis third parties.

Law of Georgia of 30 June 2005 No. 1826 - LHG I, No. 41, 19.07.2005, Art. 284

Law of Georgia of 17 July 2009 No. 1541 - LHG I, No. 21, 03.08.2009, Art. 124

Article 281¹. Transfer to the Pledgee of a Pledged Vehicle and/or Auxiliary Technical Means of an Agricultural Machine🔗

1. The pledgee shall have the right, without court, on the basis of submission of the pledge certificate to the enforcement institution, to request the compulsory transfer into his possession of a pledged vehicle and/or auxiliary technical means of an agricultural machine as defined by paragraph 1 of Article 53 of the Law of Georgia on Road Traffic.

2. The transfer by the enforcement institution to the pledgee of a pledged vehicle and/or auxiliary technical means of an agricultural machine as defined by paragraph 1 of Article 53 of the Law of Georgia on Road Traffic shall be carried out in accordance with the procedure established by the Law of Georgia on Enforcement Proceedings.

3. If, for the transfer into possession of the same vehicle and/or auxiliary technical means of an agricultural machine as defined by paragraph 1 of Article 53 of the Law of Georgia on Road Traffic, pledge certificates are submitted to the enforcement institution by different pledgees, the object of pledge shall be transferred to the pledgee that has the priority right to satisfaction of the claim secured by the pledge.

4. An appeal against the pledge certificate shall not entail the suspension of its enforcement.

5. The pledgee to whom, in accordance with paragraph 2 of this Article, a vehicle and/or auxiliary technical means of an agricultural machine as defined by paragraph 1 of Article 53 of the Law of Georgia on Road Traffic has been transferred into possession shall be obliged to carry out its sale or registration as property in accordance with the procedure established by the legislation of Georgia.

6. The costs related to the compulsory transfer to the pledgee of a vehicle and/or auxiliary technical means of an agricultural machine as defined by paragraph 1 of Article 53 of the Law of Georgia on Road Traffic shall be imposed on the debtor.

7. The pledgee shall be liable for the lawfulness of the submission of the pledge certificate to the enforcement institution by the pledgee.

Law of Georgia of 17 July 2009 No. 1541 - LHG I, No. 21, 3 August 2009, Art. 124

Law of Georgia of 24 December 2013 No. 1833 - website, 3 January 2014

Article 282. Obligation to notify about the expected realization of the object of pledge🔗

1. The pledgee shall be obliged, two weeks before realization, to warn the pledgor and other pledgees in writing about the realization of the object of pledge.

2. (Removed - 11.05.2007, No. 4744).

3. Realization may be carried out without prior written warning of the pledgor and other pledgees, if:

a) there is a real threat of a fall in the market or exchange price of the object of pledge;

b) the object of pledge is perishable.

4. The pledgee loses the right to realize the object of pledge if, at any time from the day of delivery to the pledgor of the notification provided for by paragraph 1 of this Article, until the realization of the object of pledge has been carried out, the secured claim is performed.

Law of Georgia of 30 June 2005 No. 1826 - LHG I, No. 41, 19.07.2005, Art. 284

Law of Georgia of 29 December 2006 No. 4310 - LHG I, No. 2, 04.01.2007, Art. 35

Law of Georgia of 11 May 2007 No. 4744 - LHG I, No. 18, 22.05.2007, Art. 158

Article 283. Realization of the object of pledge🔗

1. The pledgee is entitled to directly carry out the realization of the object of pledge if there is an agreement between the pledgee and the pledgor to that effect. In the case of realization by way of direct sale of the object of pledge directly by the pledgee, the pledgee shall be obliged to alienate the object of pledge at a fair and reasonable price, taking into account his own interests and those of the pledgor and other pledgees; in the event of non-fulfilment of this obligation, the pledgee shall be liable for the damage caused to the pledgor and other pledgees.

2. If the object of pledge has an exchange or market price, the pledgee may entrust the sale of the object of pledge to a special trading establishment.

3. If the realization of the pledged claim is carried out by performance by the debtor in favour of the pledgee, the pledgee shall be obliged to submit to the pledgor a report on the performance carried out by the debtor in his favour.

Law of Georgia of 30 June 2005 No. 1826 - LHG I, No. 41, 19.07.2005, Art. 284

Article 284. Agreement of the parties on another procedure of realization🔗

1. The pledgee and the pledgor may provide in a transaction concluded in written form that the transfer of the object of pledge to the pledgee and its realization may be carried out on the basis of a writ of execution issued by a notary. In such a case, the transaction concluded between the parties must be certified in notarial form.

2. The pledgor and the pledgee may also agree on a different procedure for the realization of the object of pledge, which differs from the rules given in this Chapter. In such a case, the realization of the object of pledge shall be carried out at a reasonable and fair price, taking into account the interests of the pledgor and other pledgees.

Law of Georgia of 30 June 2005 No. 1826 - LHG I, No. 41, 19.07.2005, Art. 284

Law of Georgia of 8 December 2006 No. 3879 - LHG I, No. 48, 22.12.2006, Art. 321

Article 285. Results of the realisation of the object of pledge🔗

1. Upon the realisation of the object of pledge, unencumbered ownership passes to the acquirer, except for the case provided for by paragraph 4 of Article 279.

2. In the case of unlawful realisation of the object of pledge by the pledgee, the acquirer acquires the right of ownership if he or she is bona fide in respect of this fact.

Law of Georgia of 30 June 2005 No. 1826 - LHG I, No. 41, 19.07.2005, Art. 284

Article 285¹. Report on the realisation of the object of pledge🔗

The pledgee effecting the realisation shall, within a reasonable time after the realisation, without unjustified delay, submit to the pledgor a written report on the realisation of the object of pledge, which shall contain information on the realisation expenses, the amount received from the realisation and the use of that amount.

Law of Georgia of 30 June 2005 No. 1826 - LHG I, No. 41, 19.07.2005, Art. 284

II. Mortgage

Article 286. Concept🔗

1. An immovable thing may be used (encumbered) to satisfy a claim in such a way that the secured creditor is granted the right to receive satisfaction of his claim in priority over other creditors through the realization of this thing or its transfer into his ownership (mortgage).

2. A mortgage may also be used in connection with a future or conditional claim if, at the time of establishment of the mortgage, it is possible to determine this claim.

3. The claim secured by a mortgage may be replaced by another claim. For this, the agreement of the owner and the creditor (mortgagee) and the registration of this agreement in the registry are required.

3¹. In the case of the use (encumbrance) of an agricultural land plot to satisfy a claim, the rule established by the Organic Law of Georgia "On Ownership of Agricultural Land" shall also be taken into account.

4. As a means of securing a claim arising from a loan/credit contract to be granted/granted to a natural person (including an individual entrepreneur), an immovable thing owned by him or another natural person, as well as a water and air transport vehicle, may not be used.

5. The restriction provided for by paragraph 4 of this Article shall not apply to the securing of claims arising from loan/credit contracts to be concluded/concluded by a commercial bank, microbank, microfinance organization, non-bank deposit institution − credit union, and lending entity subject to supervision by the National Bank of Georgia in accordance with the Organic Law of Georgia "On the National Bank of Georgia".

6. The restriction provided for by paragraph 4 of this Article shall not apply if the contract concluded between the parties establishes that the immovable thing encumbered by mortgage is transferred for use to the mortgagee natural person (including an individual entrepreneur) for the purpose of use as residential premises, or is transferred to the mortgagee legal person for the purpose of use as a location (legal address). At the same time, if two mortgage rights are registered in favour of the same natural person (including an individual entrepreneur) or legal person, upon conclusion of a third and each subsequent mortgage contract, the restriction provided for by paragraph 4 of this Article shall apply to it.

[ 6¹. The use of residential-type immovable property of a natural person (including an individual entrepreneur) as a means of securing a claim arising from a factoring contract, including reverse factoring, is prohibited, unless it is confirmed that in the public registry, in the ownership of the provider of the means of securing the said claim / a member of his household, additionally at least 1 residential-type immovable property is registered. (shall enter into force from 1 January 2027)]

7. The parties to the mortgage contract shall be directly responsible for the content of the mortgage contract submitted to the registering authority for the purpose of registering the mortgage right, and for the veracity and lawfulness of the factual circumstances indicated therein.

Law of Georgia of 11 May 2007 No. 4744 - LHG I, No. 18, 22.05.2007, Art. 158

Law of Georgia of 29 June 2007 No. 5127 - LHG I, No. 27, 17.07.2007, Art. 260

Law of Georgia of 21 July 2018 No. 3315 – website, 07.08.2018

Law of Georgia of 25 June 2019 No. 4851 - website, 02.07.2019

Law of Georgia of 22 February 2023 No. 2622 – website, 10.03.2023

Law of Georgia of 1 April 2026 No. 1454 – website, 06.04.2026

Article 287. General mortgage🔗

If a claim is secured by a mortgage existing over several immovable things (general mortgage), each thing shall be used to satisfy the common claim. The creditor may, at its discretion, satisfy the claim from any thing, unless the parties have agreed otherwise.

Law of Georgia of 29 June 2007 No. 5127 - LHG I, No. 27, 17.07.2007, Art. 260

Article 288. Owner's mortgage🔗

If the claim for the securing of which the mortgage exists has not arisen, is extinguished, or passes to the owner of the immovable thing, then the mortgage also passes to the latter (owner's mortgage).

Article 289. Registration of mortgage🔗

1. A mortgage acquires legal force from the moment of registration in the public registry. Registration is effected on the basis of the submission of a transaction by one of the parties, concluded in the manner established by Article 311¹ of this Code. The transaction shall indicate the owner of the immovable thing, the mortgagee, and the presumed third-party debtor. By agreement of the parties, the transaction may also indicate the amount of the secured claim, the interest, the term of performance and other conditions.

1¹. A mortgage contract concluded to secure a claim arising from a loan contract shall be certified notarially. When certifying a mortgage contract, the notary shall explain to the parties to the contract the legal consequences that follow from their breach of the obligations provided for by the loan and mortgage contracts.

1². For the purpose of registering a mortgage in the public registry, the notary shall ensure the implementation of the procedures provided for by the legislation of Georgia. The rule and conditions for registering a mortgage in the public registry shall be determined by an Order of the Minister of Justice of Georgia.

1³. The condition defined by paragraph 1¹ of this Article shall not apply to a mortgage contract concluded to secure the claims of a commercial bank, a microbank, a microfinance organization, a non-bank depository institution − a credit union, and an investment fund authorized or registered under the Law of Georgia "On Investment Funds".

2. By agreement of the parties, at the request of the creditor, the public registry shall issue a mortgage certificate. The issuance of a mortgage certificate shall be registered in the public registry.

3. A mortgage contract in respect of which, by agreement of the parties, a mortgage certificate is issued, shall be certified notarially. Any legal act arising from the mortgage contract that requires notarial certification shall be certified by the same notary who certified the said mortgage contract.

4. Only one mortgage certificate shall be issued for a joint mortgage.

Law of Georgia of 8 December 2006 No. 3879 - LHG I, No. 48, 22.12.2006, Art. 321

Law of Georgia of 29 June 2007 No. 5127 - LHG I, No. 27, 17.07.2007, Art. 260

Law of Georgia of 25 December 2013 No. 1864 - website, 30.12.2013

Law of Georgia of 23 December 2017 No. 1901 – website, 11.01.2018

Law of Georgia of 22 February 2023 No. 2622 – website, 10.03.2023

Law of Georgia of 15 December 2023 No. 3942 - website, 27.12.2023

Article 289¹. Mortgage certificate🔗

1. A mortgage certificate is a security which confirms the right of its lawful holder:

a) to demand performance of the obligation arising from the mortgage contract;

b) in the event of non-performance of the obligation, to have the claim satisfied from the object of the mortgage.

2. A mortgage certificate shall be drawn up in one copy.

Law of Georgia of 29 June 2007 No. 5127 - LHG I, No. 27, 17.07.2007, Art. 260

Article 289². Content of the mortgage certificate🔗

1. The mortgage certificate shall contain:

a) in the title, the designation “mortgage certificate”;

b) the name and address of the mortgagee;

c) the name and address of the debtor;

d) the name and address of the owner of the immovable thing;

e) the registration code of the property encumbered by the mortgage, and the address of the object of the mortgage;

f) a notation on the registration of the mortgage certificate in the Public Registry, indicating the relevant particulars;

g) an indication as to whether the object of the mortgage or a part thereof is encumbered by another mortgage or another right in rem or obligation right;

h) the place and date of the conclusion of the mortgage contract;

i) the amount of the secured claim;

j) the time limit for the performance of the obligation provided for by the mortgage contract, and, where the obligation is to be performed in parts, the time limits for its performance;

k) the date of issue of the mortgage certificate.

2. The authenticity of the mortgage certificate shall be confirmed by the seal of the Public Registry.

3. A violation of the requirements referred to in paragraphs 1 and 2 of this Article shall result in the invalidity of the mortgage certificate.

Law of Georgia No. 5127 of 29 June 2007 – LHG I, No. 27, 17.07.2007, Art. 260

Article 289³. Exercise of the right arising from the mortgage certificate🔗

1. The actual holder of the mortgage certificate shall be deemed its lawful holder until the contrary is proved.

2. Where a mortgage certificate exists, the secured claim shall be performed only upon presentation of the mortgage certificate. The creditor shall be obliged, upon satisfaction of its claim, to hand over the mortgage certificate to the person who performed the obligation.

3. Upon partial satisfaction of the claim, the creditor shall be obliged to enter the relevant notation in the mortgage certificate.

4. By depositing the amount in the deposit account of the notary certifying the transaction on the mortgage, the debtor shall be released from the obligation towards the creditor.

Law of Georgia No. 5127 of 29 June 2007 – LHG I, No. 27, 17.07.2007, Art. 260

Article 289⁴. Transfer of the right to the mortgage certificate🔗

1. The assignment of the claim embodied in the mortgage certificate shall be effected by a signature certified in notarial form by the person transferring the right to the mortgage certificate.

2. If the assignment of the claim is effected by selling the mortgage certificate at an auction, the notation “sold at auction” shall be made on the mortgage certificate and shall be confirmed by the signature of a specialist certified in notarial form.

3. Any prohibition on transferring the mortgage certificate to another person shall be void.

4. The person in whose favour the assignment of the claim was made shall be obliged to notify the debtor thereof.

5. Upon assignment of the claim, the procedure established by the Organic Law of Georgia “On Ownership of Agricultural Land” shall also be taken into account.

Law of Georgia No. 5127 of 29 June 2007 – LHG I, No. 27, 17.07.2007, Art. 260

Law of Georgia No. 4851 of 25 June 2019 – website, 02.07.2019

Article 289⁵. Declaration of a mortgage certificate as invalid🔗

In the event of damage, loss or destruction of a mortgage certificate, the holder of the mortgage certificate shall notify the Public Registry thereof. In such case, the court declares it invalid on the basis of the general rule (challenge proceedings).

Law of Georgia of 29 June 2007 No. 5127 - LHG I, No. 27, 17.07.2007, Art. 260

Article 289⁶. Pledge of a mortgage certificate🔗

1. A mortgage certificate may be pledged in favour of its holder or any other person, in accordance with the procedure established for the pledge of securities.

2. The pledge of a mortgage certificate shall be registered in the Public Registry.

Law of Georgia of 29 June 2007 No. 5127 - LHG I, No. 27, 17.07.2007, Art. 260

Article 289⁷. Cancellation of a mortgage certificate🔗

1. A mortgage certificate shall be cancelled:

a) in the event of satisfaction of the claim arising from the mortgage certificate;

b) in the event of voluntary transfer of the mortgage certificate to the owner of the immovable thing.

2. Cancellation of a mortgage certificate shall be registered in the Public Registry.

Law of Georgia of 29 June 2007 No. 5127 - LHG I, No. 27, 17.07.2007, Art. 260

Article 289⁸. Priority of a mortgage certificate over a Public Registry record🔗

In the event of a discrepancy between a mortgage certificate and a Public Registry record, priority shall be given to the mortgage certificate.

Law of Georgia of 29 June 2007 No. 5127 - LHG I, No. 27, 17.07.2007, Art. 260

Article 290. Multiple encumbrance of an immovable thing with a mortgage🔗

One immovable thing may be encumbered with a mortgage several times. The order shall be determined according to the date of registration of the application on the mortgage.

Law of Georgia of 29 June 2007 No. 5127 - LHG I, No. 27, 17.07.2007, Art. 260

Article 291. Right of the owner of an immovable thing who is not the personal debtor of the claim secured by a mortgage🔗

1. If the owner of the immovable thing is not at the same time the personal debtor of the claim secured by a mortgage, he may nevertheless raise against the mortgagee those defences to which only the personal debtor is entitled, including defences on account of the set-off of monetary obligations and the contestation of the claim.

2. If the time for performance of the claim depends on notice of termination of the legal relationship, the termination shall be deemed valid only if the owner notifies the creditor thereof or the creditor notifies the owner.

Law of Georgia of 29 June 2007 No. 5127 - LHG I, No. 27, 17.07.2007, Art. 260

Article 292. Right of the owner upon satisfaction of the creditor🔗

1. The owner of the immovable thing is entitled to satisfy the creditor when the time for performance of the claim has already arrived, or when the personal debtor is entitled to perform the corresponding action.

2. If the owner is not the personal debtor, the claim passes to him when the owner satisfies the creditor.

3. (Removed - 11.05.2007, No. 4744).

Law of Georgia of 11 May 2007 No. 4744 - LHG I, No. 18, 22.05.2007, Art. 158

Article 293. Extension of mortgage to the fruits of an immovable thing🔗

A mortgage does not extend to the fruits of an immovable thing, unless otherwise provided by agreement of the parties.

Law of Georgia of 29 June 2007 No. 5127 - LHG I, No. 27, 17.07.2007, Art. 260

Article 294. Duty to care for a thing encumbered with a mortgage🔗

1. The owner is obliged to carry out the care of the thing in such a way as not to create a threat to the purpose of the mortgage. In the event of a threat, the creditor may set the owner an appropriate term for averting this threat. If the thing encumbered with a mortgage is held by the creditor, the duty to care for the thing is imposed on him as well.

2. If the thing is insured, the insurer may pay the insurance sum to the insured after the deterioration of the situation only when the creditor has already been notified of the fact of infliction of damage. The creditor may oppose the payment of the sum if he fears that the sum will not be used for the restoration of the thing.

3. If it becomes clear that the owner cannot perform the duty to care for the thing, the creditor has the right to demand that the thing be transferred to him for administration. The decision on such a demand is taken by the court.

4. Unless otherwise provided by law, an agreement by which the owner assumes an obligation towards the creditor not to alienate, not to use or otherwise not to encumber the immovable thing is void. The validity of such transactions for third parties cannot depend on the consent of creditors.

5. Under a mortgage contract, the owner may assume an obligation towards the creditor not to encumber the land plot in his ownership with the right of construction.

Law of Georgia of 29 June 2007 No. 5127 - LHG I, No. 27, 17.07.2007, Art. 260

Law of Georgia of 1 July 2011 No. 5017 - website, 14.07.2011

Article 295. Transfer of a mortgage and the claim underlying it to another person🔗

A mortgage and the claim underlying it may be transferred to another person only simultaneously and jointly. Together with the transfer of the claim, the mortgage also passes to the new creditor. The transfer of the claim shall be considered valid only when the transaction concluded in written form on the establishment of the mortgage or the mortgage certificate (if any) is transferred to the new creditor (subject to the requirements provided by Article 289⁴ of this Code). The transfer of the claim is registered in the public registry, except when a mortgage certificate has been issued.

Law of Georgia of 8 December 2006 No. 3879 - LHG I, No. 48, 22.12.2006, Art. 321

Law of Georgia of 29 June 2007 No. 5127 - LHG I, No. 27, 17.07.2007, Art. 260

Article 296. Obligation of the debtor towards the new creditor🔗

If, after the transfer of the claim to the new creditor, the debtor pays the old creditor, this payment does not release him from the obligation towards the new creditor even when he knew nothing about the transfer.

Article 297. Presumption of the correctness of a public registry record upon the transfer of a mortgage and a claim to a new creditor🔗

The mortgage and the claim pass to the new creditor just as they were in the hands of the old creditor. Data registered in the public registry are, in the interests of the creditor, considered correct. In this case the debtor cannot point out that the claim does not exist. This rule does not apply when the new creditor knew of the incorrect record in the registry.

Article 298. Rights of a third party🔗

1. (Removed - 11.05.2007, No. 4744).

2. If the personal debtor satisfies the creditor, the mortgage passes to him to the extent that he may demand reimbursement from the owner.

Law of Georgia of 28 December 2002 No. 1902 – LHG I, No. 4, 22.01.2003, Art. 20

Law of Georgia of 11 May 2007 No. 4744 - LHG I, No. 18, 22.05.2007, Art. 158

Law of Georgia of 29 June 2007 No. 5127 - LHG I, No. 27, 17.07.2007, Art. 260

Article 299. Waiver by the creditor of the claim or the mortgage🔗

1. If the owner is not the personal debtor and the creditor waives the claim or the mortgage, the owner becomes the mortgagee. The waiver has legal force when it is registered in the public registry.

2. If the creditor waives the mortgage but not the claim, the personal debtor shall nevertheless be free if he, in turn, could have received reimbursement from the mortgage.

3. If the owner has a right of objection by which the long-term exercise of the mortgage is excluded, he may demand that the creditor waive the mortgage.

Law of Georgia of 29 June 2007 No. 5127 - LHG I, No. 27, 17.07.2007, Art. 260

Article 300. Transfer of a mortgaged immovable thing into the ownership of the creditor (mortgagee)🔗

1. If the owner of a mortgaged immovable thing delays the satisfaction of a claim secured by mortgage, the mortgaged immovable thing may pass into the ownership of the creditor (mortgagee) if the creditor (mortgagee) and the owner of the mortgaged immovable thing apply to the registering authority with a joint statement to that effect.

1¹. If the mortgaged immovable thing is an agricultural land plot, it may pass into the ownership of the creditor (mortgagee) subject to the requirement established by the Organic Law of Georgia "On Ownership of Agricultural Land".

2. Upon the transfer of a mortgaged immovable thing into the ownership of the creditor (mortgagee), the claim secured by mortgage shall be deemed satisfied also in the case where the value of the mortgaged immovable thing does not fully cover the amount of that claim, unless otherwise provided by law or by agreement of the parties.

2¹. If the lender/credit provider is not an entity subject to the supervision of the National Bank of Georgia, a claim arising from a loan/credit contract granted to a natural person (including an individual entrepreneur) shall be deemed satisfied also in the case where, upon the transfer into the ownership of the creditor (mortgagee) of the mortgaged immovable thing (things) or of the mortgaged immovable thing (things) and the object (objects) of pledge, the value of the mortgaged immovable thing (things) or of the mortgaged immovable thing (things) and the object (objects) of pledge does not fully cover the amount of the claim secured by mortgage or by mortgage and pledge. Any other agreement between the parties shall be inadmissible. The National Bank of Georgia is entitled to establish for entities subject to its supervision a rule different from and/or additional to that provided for by this paragraph.

3. If the owner of a mortgaged immovable thing delays the satisfaction of a claim secured by mortgage and the mortgaged immovable thing does not pass into the ownership of the creditor (mortgagee) in accordance with paragraph 1 of this Article, the notary shall issue a writ of execution if there is an agreement of the parties to that effect and the notary has explained in writing in the notarial act the legal consequences of issuing the writ of execution. Compulsory enforcement on the basis of the writ of execution issued by the notary shall be carried out in accordance with the Law of Georgia "On Enforcement Proceedings".

Law of Georgia of 5 December 2000 No. 638 – LHG I, No. 48, 16.12.2000, Art. 138

Law of Georgia of 29 June 2007 No. 5127 – LHG I, No. 27, 17.07.2007, Art. 260

Law of Georgia of 4 December 2009 No. 2284 – LHG I, No. 45, 21.12.2009, Art. 329

Law of Georgia of 25 December 2013 No. 1864 – website, 30.12.2013

Law of Georgia of 21 July 2018 No. 3315 – website, 07.08.2018

Law of Georgia of 25 June 2019 No. 4851 – website, 02.07.2019

Article 301. Claim for realization of an immovable thing encumbered with mortgage🔗

1. If the debtor fails to satisfy the claim secured by a mortgage, the mortgagee shall be entitled to demand the realization of the immovable thing, unless otherwise provided by the mortgage contract.

1¹. A claim secured by a mortgage shall be deemed satisfied also where the proceeds from the realization of the immovable thing encumbered with mortgage are insufficient to cover the claim secured by the mortgage, unless otherwise provided by law or by agreement of the parties.

1². If the lender/credit provider is not an entity subject to supervision by the National Bank of Georgia, a claim arising from a loan/credit contract granted to a natural person (including an individual entrepreneur) shall be deemed satisfied also where the proceeds from the realization of the immovable thing(s) encumbered with mortgage or of the immovable thing(s) encumbered with mortgage and the subject(s) of pledge are insufficient to cover the claim secured by mortgage or by mortgage and pledge. Any other agreement between the parties shall be inadmissible. The National Bank of Georgia shall be entitled to establish for entities subject to its supervision a rule different from and/or additional to that provided for by this paragraph.

2. The realization shall be carried out in accordance with the rules set out in this Chapter and the Law of Georgia “on Enforcement Proceedings”.

3. The parties may agree on a different rule for conducting the auction only subject to the requirements established by paragraph 6 of Article 302, Articles 3061–306³, paragraph 1 of Article 306⁵ and paragraph 2 of Article 307 of this Code.

Law of Georgia of 29 June 2007 No. 5127 - LHG I, No. 27, 17 July 2007, Art. 260

Law of Georgia of 19 December 2008 No. 826 - LHG I, No. 41, 30 December 2008, Art. 304

Law of Georgia of 4 December 2009 No. 2284 - LHG I, No. 45, 21 December 2009, Art. 329

Law of Georgia of 21 July 2018 No. 3315 – website, 7 August 2018

Article 302. Realization of an immovable thing encumbered by mortgage🔗

1. The sale of an immovable thing encumbered by mortgage takes place at auction on the basis of a written agreement between the creditor and the owner, who, for the purpose of conducting the auction, appoint a specialist, with the latter's consent. The agreement determines the specialist's remuneration.

1¹. Realization of the thing at auction by the specialist on the basis of an agreement of the parties is not considered compulsory enforcement.

2. Any stipulation that imposes obligations on third persons without their consent is void, which does not entail the invalidity of the agreement on the auction.

3. By agreement between the creditor and the owner, a form of realization different from auction may be established.

3¹. In a transaction concluded in written form by the creditor and the owner, the parties may provide that the transfer of the immovable thing encumbered by mortgage to the creditor and its realization may be carried out on the basis of a writ of execution issued by a notary. In such case, the transaction concluded between the parties must be certified by notarial procedure.

4. If the creditor and the owner cannot agree on the conduct of the auction or on another form of realization of the immovable thing, the court, on the basis of the creditor's application, decides the issue of the compulsory sale of the immovable thing at auction. The court's judgment on the compulsory sale of the immovable thing at auction shall be enforced in the manner established by the Law of Georgia "On Enforcement Proceedings".

5. A specialist may be any capable person, including the creditor, the debtor or the owner.

6. The specialist is obliged to notify the authorized persons entered in the public registry of the auction.

7. Realization of a seized thing through a specialist is inadmissible.

Law of Georgia of 29 June 2007 No. 5127 – LHG I, No. 27, 17.07.2007, Art. 260

Law of Georgia of 15 July 2008 No. 219 – LHG I, No. 17, 28.07.2008, Art. 135

Law of Georgia of 19 December 2008 No. 826 – LHG I, No. 41, 30.12.2008, Art. 304

Law of Georgia of 4 December 2009 No. 2284 – LHG I, No. 45, 21.12.2009, Art. 329

Law of Georgia of 6 July 2010 No. 3368 – LHG I, No. 39, 19.07.2010, Art. 241

Article 303. Fruits of an immovable thing encumbered by mortgage🔗

From the announcement of the auction on the immovable thing or from the adoption of the court's judgment, the owner loses the right to retain the fruits of the thing.

Law of Georgia of 29 June 2007 No. 5127 – LHG I, No. 27, 17.07.2007, Art. 260

Article 304. Avoidance of the auction🔗

1. The owner or any person by agreement with the owner and/or a third person whose right may be infringed as a result of the auction has the right, before the auction is conducted, to avoid the auction by satisfying the claim.

2. The fact of infringement of a third person's right is established by the court.

Law of Georgia of 29 June 2007 No. 5127 – LHG I, No. 27, 17.07.2007, Art. 260

Article 305. Participation of the creditor, the debtor and the owner in the auction🔗

The creditor, the debtor and the owner are entitled to participate in the auction themselves, during which the debtor and the creditor shall provide such security as the expert deems appropriate.

Article 306. Application for holding the auction🔗

The application for holding the auction on the basis of a contract shall be submitted to the specialist by the creditor (creditors). The application shall indicate the immovable thing encumbered with a mortgage, the owner, the debtor, the claim and the contract.

Law of Georgia of 29 June 2007 No. 5127 – LHG I, No. 27, 17.07.2007, Art. 260

Law of Georgia of 15 July 2008 No. 219 – LHG I, No. 17, 28.07.2008, Art. 135

Law of Georgia of 19 December 2008 No. 826 – LHG I, No. 41, 30.12.2008, Art. 304.

Law of Georgia of 6 July 2010 No. 3368 – LHG I, No. 39, 19.07.2010, Art. 241

Article 306¹. Cancellation or termination of the auction🔗

1. The auction shall be cancelled if the creditor who submitted the application for the auction withdraws it.

2. The auction shall be terminated if, before the holding of the auction, the debtor or a third person who is entitled to satisfy the creditor pays the amount necessary to satisfy the creditor and to cover all other expenses.

Law of Georgia of 29 June 2007 No. 5127 – LHG I, No. 27, 17.07.2007, Art. 260

Article 306². Determination of the time and place of the auction🔗

1. The time and place of the auction shall be determined by the specialist, of which he shall publish a notice not less than 7 days before the holding of the auction, which shall indicate:

a) the name and address of the owner of the immovable thing;

b) the name and address of the specialist;

c) the time and place of the auction;

d) the initial price of the immovable thing;

e) the location and a brief description of the immovable thing;

f) a statement that all other persons who have rights over the immovable thing are obliged to submit evidence confirming these rights before the start of the auction;

g) the terms of the auction.

1¹. If the auction is held for the purpose of selling a plot of agricultural land, the notice shall also indicate that a person participating in the auction must meet the requirements established by the Organic Law of Georgia "On Ownership of Agricultural Land".

2. The notice on the time and place of the auction shall be published publicly, through the mass media.

3. The specialist shall notify the parties of the time and place of the auction in the manner established by the Civil Procedure Code of Georgia.

Law of Georgia of 29 June 2007 No. 5127 – LHG I, No. 27, 17.07.2007, Art. 260

Law of Georgia of 15 July 2008 No. 219 – LHG I, No. 17, 28.07.2008, Art. 135

Law of Georgia of 19 December 2008 No. 826 – LHG I, No. 41, 30.12.2008, Art. 304

Law of Georgia of 25 June 2019 No. 4851 – website, 02.07.2019

Article 306³. Rules for conducting an auction🔗

1. The auction shall be conducted by a specialist. He shall declare the auction open and offer the starting price.

2. Before conducting the auction, the specialist shall determine which of the rights registered in the public registry enjoys priority over the claim of the creditor for whom enforcement is being carried out.

3. At the auction the specialist shall announce:

a) that the priority rights registered in the public registry, as compared with the claim of the creditor for whom enforcement is being carried out, remain in force and shall not be satisfied by payment;

b) what value the transferable rights have (rights having priority over the creditor's claim or rights that pass with the immovable thing after its realization by way of auction).

4. The specialist shall explain the terms of the auction to the participating parties before the auction process begins.

Law of Georgia of 29 June 2007 No. 5127 - LHG I, No. 27, 17.07.2007, Art. 260

Law of Georgia of 15 July 2008 No. 219 - LHG I, No. 17, 28.07.2008, Art. 135

Law of Georgia of 19 December 2008 No. 826 - LHG I, No. 41, 30.12.2008, Art. 304

Article 306⁴. Conducting of an auction🔗

1. The auction shall be held within one month from the submission of an application by the creditor to the specialist.

2. The starting price of the immovable thing shall be determined by the total amount of the procedural expenses and the creditor's claim. The auction shall continue until another bid is made. The specialist shall announce the last price bid and the end of the auction.

3. The last price bid shall be announced three times and loudly.

4. Every person wishing to participate in the auction shall submit a bank guarantee ensuring full payment of the amount by the participant in the event of winning the auction. The amount of the bank guarantee shall be one tenth of the starting price of the immovable thing. The primary beneficiary of the bank guarantee is the creditor.

5. If the auction is held for the purpose of realizing an agricultural land plot, a person wishing to participate in the auction shall submit information confirming that he meets the requirement established by the Organic Law of Georgia "On Ownership of Agricultural Land".

Law of Georgia of 29 June 2007 No. 5127 - LHG I, No. 27, 17.07.2007, Art. 260

Law of Georgia of 15 July 2008 No. 219 - LHG I, No. 17, 28.07.2008, Art. 135

Law of Georgia of 19 December 2008 No. 826 - LHG I, No. 41, 30.12.2008, Art. 304

Law of Georgia of 25 June 2019 No. 4851 - website, 02.07.2019

Article 306⁵. Origin of the right of ownership over property purchased at an auction🔗

1. The purchaser of property at an auction shall be given the relevant order of the specialist, which shall indicate the purchased property, the purchaser of the property at the auction, the price and the terms of the auction. Notarisation of the specialist's signature on orders relating to an auction is mandatory.

2. The purchaser of property at an auction shall be obliged to deposit the payable amount into the specialist's deposit account within one week. By agreement of the parties to the mortgage contract, another procedure for payment of the amount may be established, which must be determined in advance in the terms of the auction.

3. The order shall be announced at the auction.

4. The order shall be valid upon its announcement. After the entry into force of the order, the right of ownership shall arise for the purchaser of property at the auction only after full payment of the price.

5. As a result of the transfer of ownership, all mortgages and rights in rem encumbering the immovable thing and registered after the mortgage of the enforcement creditor shall be extinguished. Previously registered rights over the thing shall remain unchanged.

6. The new owner of the immovable thing sold at an auction shall take the place of the old owner and shall become a participant in the legal relations connected with this thing as at the moment of transfer of ownership.

7. From the moment of transfer of the immovable thing encumbered with a mortgage to the new owner, the old owner shall lose any right over this thing.

Law of Georgia No. 5127 of 29 June 2007 - LHG I, No. 27, 17.07.2007, Art. 260

Law of Georgia No. 219 of 15 July 2008 - LHG I, No. 17, 28.07.2008, Art. 135

Law of Georgia No. 826 of 19 December 2008 - LHG I, No. 41, 30.12.2008, Art. 304

Law of Georgia No. 3887 of 7 December 2010 - LHG I, No. 67, 09.12.2010, Art. 415

Article 306⁶. Cancellation of the transfer of right over property purchased at an auction🔗

If the specialist does not receive, within the period determined by the terms of the auction, into the deposit account indicated by him the amount payable by the purchaser of the property at the auction, and/or if he establishes that the purchaser of an agricultural land plot does not meet the requirements established by the Organic Law of Georgia "On Ownership of Agricultural Land", the specialist shall cancel the order on the transfer of right over the property purchased at the auction and shall hold a new auction, which shall not be considered a repeat auction.

Law of Georgia No. 5127 of 29 June 2007 - LHG I, No. 27, 17.07.2007, Art. 260

Law of Georgia No. 219 of 15 July 2008 - LHG I, No. 17, 28.07.2008, Art. 135

Law of Georgia No. 826 of 19 December 2008 - LHG I, No. 41, 30.12.2008, Art. 304

Law of Georgia No. 4851 of 25 June 2019 - website, 02.07.2019

Article 307. Second auction🔗

1. If no corresponding bid is made during the first auction, the specialist shall schedule a second auction within 10 days.

2. The second auction shall be announced in the same form in which the first auction was announced. At the same time, it shall be indicated that the auction is being held for the second time.

3. During the holding of the second auction, the starting price of the immovable thing shall be half of the starting price offered at the first auction or, with the creditor's written consent, a smaller amount.

4. (Removed - 19.12.2008, No. 826).

5. If the immovable thing encumbered with a mortgage could not be sold at the second auction, by agreement between the creditor and the debtor (the owner of the immovable thing), the claim may be satisfied by transferring the immovable thing into the creditor's ownership. In this case, the covering of expenses shall be imposed on the creditor.

6. In the event of failure to reach the agreement provided for by paragraph 5 of this Article, the specialist shall conduct a third auction within the period established by paragraph 1 of this Article. The rules for the sale of the immovable thing at the third auction shall be determined by the specialist. The third auction shall be organized in such a way that the immovable thing is sold.

Law of Georgia of 29 June 2007 No. 5127 - LHG I, No. 27, 17.07.2007, Art. 260

Law of Georgia of 15 July 2008 No. 219 - LHG I, No. 17, 28.07.2008, Art. 135

Law of Georgia of 19 December 2008 No. 826 - LHG I, No. 41, 30.12.2008, Art. 304

Article 308. Covering of expenses🔗

From the revenue received as a result of the realisation of the immovable thing encumbered with a mortgage, the claims shall be covered in the following order: expenses, the creditor's claim in full amount. If the expenses are not fully covered by the proceeds, the obligation to pay the difference shall be imposed on the creditor.

Law of Georgia of 29 June 2007 No. 5127 - LHG I, No. 27, 17.07.2007, Art. 260

Law of Georgia of 15 July 2008 No. 219 - LHG I, No. 17, 28.07.2008, Art. 135

Law of Georgia of 19 December 2008 No. 826 - LHG I, No. 41, 30.12.2008, Art. 304

Article 309. Liability for improper conduct of an auction🔗

If the specialist fails to perform the duties imposed on him in connection with the conduct of the auction, he shall be liable for the damage caused to the participants.

Law of Georgia of 29 June 2007 No. 5127 - LHG I, No. 27, 17.07.2007, Art. 260

Law of Georgia of 15 July 2008 No. 219 - LHG I, No. 17, 28.07.2008, Art. 135

Law of Georgia of 19 December 2008 No. 826 - LHG I, No. 41, 30.12.2008, Art. 304

Article 310. Forced administration of a thing (sequestration)🔗

1. On the basis of an application by a mortgagee entitled to compulsory enforcement, the court may, instead of compulsory sale at auction, order the forced administration of the thing (sequestration). In such a case, the court transfers the administration function to an administrator, who may also be the mortgagee.

2. Before adopting a judgment, the court shall hear the persons registered in the public register whose rights may be affected by the forced administration.

3. The administrator takes the fruits of the thing and, on the basis of a distribution plan which he himself draws up and which the court approves, distributes them at the end of the year after deducting all expenses, which include administration expenses.

4. Forced administration shall be terminated when the creditor is satisfied or it is obvious that the creditor cannot be satisfied through administration.

5. The rules and conditions for the application of the forced administration of a thing (sequestration) by the National Enforcement Bureau, a legal entity of public law operating in the sphere of governance of the Ministry of Justice of Georgia, shall be determined by the Law of Georgia "On Enforcement Proceedings".

Law of Georgia of 29 June 2007 No. 5127 - LHG I, No. 27, 17.07.2007, Art. 260

Law of Georgia of 25 December 2013 No. 1864 - website, 30.12.2013

Article 311. Purpose of the public register🔗

1. The public register is a set of data on the origin, change and termination of rights to a thing and to an intangible property benefit, of attachment and of tax pledge/mortgage, as well as on the origin and change of the abandonment of the right of ownership to an immovable thing.

2. The rules and conditions for keeping and accessing the public register shall be determined by law.

Law of Georgia of 11 May 2007 No. 4744 - LHG I, No. 18, 22.05.2007, Art. 158

Article 311¹. Rule for submitting a transaction to the public register🔗

1. For registration in the public register of the respective right to a thing and to an intangible property benefit, a transaction concluded in written form shall be submitted. The authenticity of the transaction or of the signatures of the participating parties to the transaction shall be certified in the manner established by law.

2. If the participating parties to the transaction sign the transaction in the registering body in the presence of an authorised person, then for the validity of the transaction no certification of the authenticity of the transaction or of the signatures of the participating parties to the transaction shall be required.

3. In cases provided for by law, transactions concluded in respect of a thing and an intangible property benefit shall enter into force from the moment of registration in the public register of the rights determined by these transactions.

Law of Georgia of 8 December 2006 No. 3879 - LHG I, No. 48, 22.12.2006, Art. 321

Law of Georgia of 11 May 2007 No. 4744 - LHG I, No. 18, 22.05.2007, Art. 158

Article 312. Presumption of accuracy and completeness of register data🔗

1. The presumption of accuracy and completeness applies to register data, i.e. register entries are considered correct until their inaccuracy is proven.

2. In favour of a person who, on the basis of a transaction, acquires a right from another person and that right was registered in the register in the name of the transferor, the register entry is considered correct, except in cases where a complaint has been filed against that entry, or the acquirer knew that the entry was inaccurate.

3. If an owner alienates immovable property or encumbers it with rights, it is inadmissible, when concluding the transaction (when registering the right), to require the consent of a co-owner if the latter is not registered as such in the public register.

4. In the case provided for by paragraph 3 of this Article, proceeding from the interests of the acquirer, the transferor is considered the sole owner if he is registered as such in the public register, except in cases where the acquirer knew that, besides the transferor, there exists another co-owner as well.

Law of Georgia of 29 June 2007 No. 5127 – LHG I, No. 27, 17.07.2007, Art. 260

Article 313. (repealed)🔗

Law of Georgia of 11 May 2007 No. 4744 – LHG I, No. 18, 22.05.2007, Art. 158

Article 314. (repealed)🔗

Law of Georgia of 11 May 2007 No. 4744 – LHG I, No. 18, 22.05.2007, Art. 158

Article 315. (repealed)🔗

Law of Georgia of 11 May 2007 No. 4744 – LHG I, No. 18, 22.05.2007, Art. 158

Article 316. Concept🔗

1. By virtue of an obligation the creditor is entitled to demand that the debtor perform some act. Performance may also consist in refraining from an act.

2. Depending on its content and nature, an obligation may impose on each party particular consideration for the rights and property of the other party.

Article 317. Grounds for the origin of an obligation🔗

1. For an obligation to arise, a contract between the participants is necessary, except in cases where the obligation arises from the infliction of damage (delict), unjust enrichment or other grounds provided for by law.

2. By the duties provided for by Article 316, an obligation may also arise on the basis of the preparation of a contract.

3. A participant in negotiations may demand from the other participant reimbursement of the expenses which he incurred for the conclusion of the contract, but that contract was not concluded as a result of the culpable act of the other participant.

Article 318. Obligation to provide information🔗

An obligation may give rise to the right to receive certain information. The provision of information must be ensured when it is relevant for determining the content of the obligation and the counterparty can provide that information without infringing his own right. The costs of providing the information must be reimbursed to the obligated person by its recipient.

Article 319. Freedom of contract. Obligation to conclude a contract🔗

1. Subjects of private law may, within the limits of law, freely conclude contracts and determine the content of these contracts. They may also conclude such contracts as are not provided for by law but do not contradict it. If, for the protection of the essential interests of society or of an individual, the validity of a contract depends on state permission, then this shall be regulated by a separate law.

2. If one of the parties to a contract holds a dominant position on the market, then in this field of activity it shall bear the obligation to conclude a contract. It may not unreasonably offer the counterparty unequal terms of the contract.

3. Persons who acquire or use property and services for non-entrepreneurial purposes or for the satisfaction of subsistence needs may not be unreasonably refused the conclusion of a contract, if the other party to the contract acts within the scope of its entrepreneurial activity.

Article 320. Invalidity of a contract concluded in respect of future property🔗

A contract by which one party assumes the obligation to transfer all of its future property or part of this property to another, or to encumber it with a usufruct, shall be invalid, except in cases where the contract is concluded in respect of individual items of future property.

Article 321. Contract on the transfer of property🔗

A contract by which one party assumes the obligation to transfer all of its present property or part of this property to another, or to encumber it with a usufruct, shall require written form, except in cases where the contract is concluded in respect of individual items of present property.

Law of Georgia No. 3879 of 8 December 2006 - LHG I, No. 48, 22.12.2006, Art. 321

Article 322. Invalidity of a contract concluded in respect of inherited property🔗

1. A contract concluded by other persons during a person's lifetime in respect of that person's inheritance shall be invalid. The same rule shall apply to contracts concluded during a person's lifetime in respect of the compulsory share arising from that person's inheritance and/or a testamentary burden.

2. The rule of paragraph 1 of this Article shall not apply to a contract concluded between heirs at law in respect of the statutory share of inheritance and the compulsory share of one of them.

Article 323. Rule for the alienation of an immovable thing🔗

A contract by which one party assumes the obligation to transfer ownership of an immovable thing to another or to acquire it shall require written form.

Law of Georgia No. 3879 of 8 December 2006 - LHG I, No. 48, 22.12.2006, Art. 321

Article 324. Scope of a contract on the encumbrance of a thing🔗

If a person assumes the obligation to alienate or encumber his/her thing, this obligation shall extend also to the accessories of the thing, unless otherwise provided in the contract.

Article 325. Determination of terms of obligation on the basis of equity🔗

1. If the terms for performance of an obligation are to be determined by one of the parties to the contract or by a third person, then in case of doubt it shall be presumed that such determination must be made on the basis of equity.

2. If a party does not consider the terms equitable, or their determination is delayed, the court shall render a judgment.

Article 326. Application of rules on contractual obligations to non-contractual obligations🔗

The rules on contractual obligation shall also apply to other non-contractual obligations, unless otherwise follows from the nature of the obligation.

Article 327. Agreement on essential terms of contract🔗

1. A contract shall be considered concluded if the parties have agreed on all its essential terms in the form provided for that purpose.

2. The terms of a contract shall be considered essential if agreement on them must be reached at the request of one of the parties, or if they are considered as such by law.

3. A contract may give rise to an obligation to conclude a future contract. The form provided for a contract shall also extend to the preliminary contract.

Article 328. Form of contract🔗

1. If a specific form is established by law for the validity of a contract, or the parties have provided for such a form for the contract, then the contract enters into force only after the requirement concerning this form has been fulfilled.

2. If the parties have agreed on a written form, the contract may be concluded by drawing up a single document signed by the parties; to ensure the form, a telegram, telex, or exchange of letters is also sufficient.

Article 329. Making an offer🔗

1. A proposal to conclude a contract (offer) shall be considered made if in this proposal, addressed to one or several persons, it is expressed that the person making the proposal (offeror) is ready, in the event of consent (acceptance), to perform his proposal.

2. A proposal addressed to an indefinite circle of persons constitutes an invitation to make an offer, unless otherwise directly indicated in this proposal.

Article 330. Offer made to present and absent persons🔗

1. A response to an offer made to a present person must be received immediately.

2. An offer made to an absent person may be accepted only until the time when the offeror can ordinarily expect a response.

Article 331. Acceptance🔗

If the offeror has set a time limit for acceptance, then acceptance may be effected only within this time limit.

Article 332. Late acceptance🔗

If an acceptance reaches the offeror late, but it is clear from the acceptance that it was sent in time, the acceptance shall be considered late only if the offeror has immediately notified the other party thereof.

Article 333. New offer🔗

1. An acceptance made late to an offer shall be considered a new offer.

2. When a reply expresses consent to the conclusion of a contract, but on terms other than those provided for by the offer, such a reply shall be considered a refusal of the offer and, at the same time, a new proposal.

Article 334. Presumption of the offeror's consent🔗

If in business relations acceptance is made on modified terms, the contract shall be considered concluded if the acceptor was entitled to presume the offeror's consent and the latter does not immediately declare refusal.

Article 335. Silence as a form of acceptance🔗

1. If an entrepreneur who is to perform the business operations of other persons receives an offer to perform such business from a person with whom he is in business relations, he shall be obliged to reply to this proposal within a reasonable time; his silence shall be considered acceptance. The same rule applies also when the entrepreneur receives such an offer from the person from whom he requested orders for the performance of such business.

2. Also in the case where the entrepreneur refuses the offer, but the goods have already been dispatched, he shall be obliged, in order to prevent damage, to keep the goods temporarily at the offeror's expense in such a way that no damage is caused to him thereby.

Article 336. (Repealed)🔗

Law of Georgia of 29 March 2022 No. 1456 – website, 6 April 2022.

Article 337. Interpretation of individual expressions of a contract🔗

If individual expressions of a contract may be understood in different ways, preference shall be given to that which is customarily accepted at the place of residence of the parties concluding the contract. If the parties have different places of residence, the place of residence of the acceptor shall be decisive.

Article 338. Mutually exclusive and ambiguous expressions in a contract🔗

In the case of mutually exclusive or ambiguous expressions in a contract, preference shall be given to the expression which most closely corresponds to the content of the contract.

Article 339. Commercial usages and traditions🔗

In determining the rights and obligations of the parties to a contract, commercial usages and traditions may be taken into account.

Article 340. Interpretation of mixed contracts🔗

In interpreting mixed contracts, the norms on those contracts which are closest to the essence of performance and correspond to it shall be taken into account.

Article 341. Acknowledgement of the existence of a debt🔗

1. For the validity of a contract by which the existence of an obligatory relationship has been acknowledged (acknowledgement of the existence of a debt), written acknowledgement is necessary. If another form is provided for the origin of the obligatory relationship whose existence has been acknowledged, then the acknowledgement also requires this form.

2. If the existence of a debt is acknowledged on the basis of settlement (payment) or by way of compromise, then compliance with the form is not necessary.

Article 342. Concept🔗

1. Standard terms of a contract are pre-formulated terms intended for multiple use, which one party (the offeror) sets for the other party and by means of which rules differing from or supplementing the norms established by law are to be established.

2. If the terms of a contract are defined in detail by the parties, this shall not be considered standard terms of contracts.

3. Terms agreed directly by the parties take precedence over standard terms.

Article 343. Transformation of standard terms of a contract into an integral part of the contract🔗

1. Standard terms of a contract become an integral part of the contract concluded between the offeror thereof and the other party to the contract only when:

a) the offeror makes a conspicuous inscription at the place of conclusion of the contract and refers to these terms and

b) the other party to the contract has the opportunity to become acquainted with the content of these terms and, if it agrees, to accept these terms.

2. If the other party to the contract is an entrepreneur, the standard terms of contracts become an integral part of the contract when, in showing the diligence necessary in business relations, it should have taken them into account.

Article 344. Unusual provisions of standard terms of a contract🔗

Those provisions of standard terms of a contract which in form are so unusual that the other party could not have taken them into account do not become an integral part of the contract.

Article 345. Interpretation of ambiguous text in favour of the other party🔗

If the text of standard terms of a contract is ambiguous, it shall be interpreted in favour of the other party.

Article 346. Invalidity of terms contrary to the principles of trust and good faith🔗

A standard term of contracts is invalid, notwithstanding its inclusion in the contract, if it is contrary to the principles of trust and good faith and is detrimental to the other party to the contract. At the same time, the circumstances under which these terms were included in the contract, the mutual interests of the parties and others shall be taken into account.

Article 347. Invalidity of Standard Terms of a Contract🔗

In the standard terms of a contract which the offeror uses in relation to natural persons who do not pursue entrepreneurial activity, the following shall be considered invalid:

a) a provision by which the offeror imposes unreasonably long or clearly short time limits for acceptance or rejection of the offer made, or for performance of this or that work (time limits for acceptance and performance of the offer);

b) a provision by which the offeror imposes, for the performance of its own obligations, time limits different from the norms established by law, unreasonably long or insufficiently defined (time limits in case of breach of obligation);

c) a provision which entitles the offeror to refuse, without justification and without the ground specified in the contract, to perform its obligation (condition of refusal of the contract);

d) a provision which entitles the offeror to change the promised work or deviate from it, if agreement on this is unacceptable to the other party to the contract (condition of modification);

e) a provision which entitles the offeror to demand from the other party to the contract unreasonably high reimbursement of expenses incurred (unreasonably high reimbursement of expenses incurred).

Article 348. Other grounds for invalidity of standard contract terms🔗

In standard contract terms used by the offeror in relation to natural persons who do not pursue entrepreneurial activity, the following shall also be considered invalid:

a) a provision which provides for an increase in price within an unjustifiably short period (short-term increase in prices);

b) a provision by which the following is restricted or excluded:

the right to refuse performance, which a party to the contract has under this Law,

or

the right of a party to the contract to refuse performance until the other party has performed the obligation imposed on it (right to refuse performance);

c) a provision by which a party to the contract is deprived of the right to set off an undisputed claim or a claim established by a court judgment (prohibition of set-off of mutual claims);

d) a provision by which the offeror is released from the obligation provided by law to warn a party to the contract or to set a time limit for it for the performance of the obligation (warning on the performance of the obligation; setting of a time limit);

e) an agreement on claiming an amount exceeding the amount of damages (excessive claim for damages);

f) a provision which excludes or restricts liability for the damage caused by the offeror or its representative through gross negligence in breach of an obligation (liability for negligence);

g) a provision by which, in the event of a breach of a principal obligation by the offeror:

the other party to the contract is deprived of or restricted in the right to withdraw from the contract,

or

the other party to the contract is deprived of, or, contrary to subparagraph „f“, restricted in, the right to claim damages for non-performance of the contract (breach of performance of a principal obligation);

h) a provision which, in cases of partial performance of an obligation by the offeror, deprives the other party to the contract of the right to claim damages for non-performance of the entire contract or to withdraw from the contract, if it has lost interest in the partial performance (loss of interest in the case of partial performance of an obligation);

i) provisions which, contrary to the rules provided by law, restrict the offeror's liability for a defect in a thing in the supply of newly produced goods and the performance of works.

Article 349. Concept🔗

Performance of a contract concluded in favour of a third party may be demanded both by the creditor and by the third party, unless otherwise provided by law or contract, or unless otherwise follows from the nature of the obligation itself.

Article 350. Interpretation of a contract concluded in favour of third parties🔗

1. In the absence of a special stipulation, it shall be determined from the circumstances of the case, in particular, from the purpose of the contract:

a) whether the third party is to acquire the right;

b) whether this right arises for him immediately or only upon the existence of certain preconditions;

c) whether the parties to the contract are entitled to revoke or modify the third party's right without his consent.

2. A party that has made a stipulation in the contract in favour of a third party retains the right to replace the third party indicated in the contract, notwithstanding the counterparty's consent.

Article 351. Refusal by a third party of a right acquired under a contract🔗

If a third party refuses a right acquired under a contract, the creditor may himself demand performance of the obligation, unless otherwise follows from the contract or the nature of the obligation.

Article 352. Consequences of Withdrawal from the Contract🔗

1. If one of the parties to the contract, in the presence of the conditions provided for by Article 405, withdraws from the contract, the performance received and the benefit shall be returned to the parties (restitution in kind).

2. Instead of return in kind, the debtor shall be liable for monetary compensation if:

a) due to the nature of what was acquired, its return is excluded;

b) the party uses, alienates, encumbers with rights, processes or transforms the item received;

c) the item received has deteriorated or perished; wear caused by proper use shall not be taken into account.

3. If counter-performance was provided for in the contract, the monetary compensation shall be replaced by such performance.

4. The obligation to pay monetary compensation does not arise if:

a) the defect in the item that gives the right to withdraw from the contract was discovered during the processing or transformation of that item;

b) the deterioration or loss of the item occurred through the fault of the creditor;

c) the item deteriorated or perished while with a person entitled to it, notwithstanding that he treated it with the same care as his own thing; and whatever remains must be returned.

5. For the breach of obligations arising from paragraph 1 of this Article, the creditor may, in accordance with Article 394, demand compensation for damages.

Article 353. Obligation of the debtor in case of failure to obtain benefit due to violation of the rules for proper use of the item🔗

1. If the debtor does not obtain benefit due to violation of the rules for proper use of the item, although he had the opportunity to obtain the benefit, he shall be obliged to compensate the creditor for the damage caused by the failure to obtain the benefit.

2. If the debtor returns the item, compensates in money or, if under subparagraphs „a“ and „b“ of paragraph 4 of Article 352 a claim for compensation for damages is inadmissible, then he shall be compensated for necessary expenses. Other expenses shall be compensated only if the creditor obtained a benefit on their basis.

Article 354. Performance of obligations arising as a result of withdrawal from the contract🔗

Obligations arising as a result of withdrawal from the contract shall be performed by the parties simultaneously.

Article 355. Obligation to Give Notice upon Withdrawal from a Contract🔗

Withdrawal from a contract is effected by notice to the other party to the contract.

Article 356. Time Limit for Withdrawal from a Contract🔗

If no time limit for withdrawal from the contract is established, the other party to the contract may set such a time limit for the withdrawing person. The time limit must be reasonable. The right to withdraw from the contract is extinguished if the withdrawal is not declared before the expiry of the time limit.

Article 357. Withdrawal from a Contract by Several Persons🔗

If several persons participate on one or the other side of the contract, the right to withdraw from the contract may be exercised by all the participants of the side withdrawing from the contract together, by notice to all the participants of the other side. If the right to withdraw from the contract is extinguished for one of the entitled persons, that right is extinguished for all.

Article 358. Inadmissibility of Withdrawal from a Contract🔗

Withdrawal from a contract on the ground of non-performance of an obligation is inadmissible if the debtor could have performed the obligation by way of set-off and, after the withdrawal, immediately declares the set-off of the obligation.

Article 359. Creditor's Withdrawal from a Contract🔗

If a contract is concluded with the stipulation that the debtor, arising from the contract, must lose his rights if he fails to perform his obligations, the creditor may, upon the occurrence of this event, withdraw from the contract.

Article 360. Mistake in the Basis of a Settlement🔗

1. A contract by which a dispute or uncertainty between the parties is eliminated by way of mutual concession (settlement) is void if, arising from the content of the contract, this settlement is based on circumstances inconsistent with reality, and the dispute or uncertainty would not have arisen had the parties known the true state of the matter.

2. Uncertainty is equated with a situation where the enforcement of any claim is doubtful.

Article 361. Presumption of the Existence of an Obligation🔗

1. Every performance implies the existence of an obligation.

2. An obligation must be performed duly, in good faith, at the stipulated time and place.

Article 362. Place of Performance of an Obligation🔗

If the place of performance is not determined and does not follow from the essence of the obligatory relationship, the thing shall be delivered as follows:

a) in the case of an individually determined thing – at the place where it was located at the moment of the origin of the obligation;

b) in the case of a thing determined by kind – at the place where the debtor's enterprise is located; if there is no such enterprise, then – according to his place of residence (legal address).

Article 363. Change of location of debtor or creditor🔗

1. If before performance of the obligation the place of residence of the debtor or the location of the enterprise changes and the creditor incurs additional expenses as a result, the debtor must reimburse these expenses to the creditor.

2. If before performance of the obligation the place of residence or legal address of the creditor changes and as a result expenses increase or performance is endangered, then the creditor shall bear both the reimbursement of the increased expenses and the risk of the anticipated danger of transfer of the object.

Article 364. Performance of obligation before term🔗

The debtor has the right to perform the obligation before the term if, for a valid reason, the creditor does not refuse to accept the performance.

Article 365. Performance of obligation in the absence of a time determined for performance🔗

If no time is determined for performance of the obligation and it does not follow from other circumstances either, then the creditor may demand its performance at any time, and the debtor may perform it immediately.

Article 366. Inadmissibility of demanding performance of obligation before term🔗

If a time is determined, then in case of doubt it is presumed that the creditor cannot demand performance before this term, and the debtor may perform the obligation before the term.

Article 367. Right to demand immediate performance of obligation🔗

If, for performance of the obligation, some term is established in favour of the debtor, the creditor may demand performance immediately if the debtor has become insolvent, or has reduced the promised security, or has not provided it at all.

Article 368. Performance of obligation in the presence of a conditional transaction🔗

If the validity of a transaction depends on the occurrence of some condition, then the obligation is to be performed from the day when this condition occurs.

Article 369. Refusal to perform obligation🔗

A person who has an obligation arising from a bilateral contract may refuse to perform the obligation before the performance of the counter action, except in cases where he was obliged to perform his obligation in advance.

Article 370. Consumer credit🔗

1. In the case of consumer credit, the recipient of the credit may refuse to repay the credit if, under a compensated contract connected with this credit, a claim against the seller would grant him the right to refuse performance of his obligation.

2. A contract of sale together with a credit contract creates an interconnected transaction if the credit serves to finance the purchase price and both contracts are regarded as an economic unity. It shall be considered an economic unity when the credit provider used the seller's participation at the time of preparation or conclusion of the credit contract.

Article 371. Performance of obligation by a third person🔗

1. If it does not follow from law, contract or the nature of the obligation that the debtor must perform the obligation personally, then this obligation may also be performed by a third person.

2. The creditor may not accept performance offered by a third person if the debtor is against this.

Article 372. Satisfaction of creditor by a third person🔗

If a creditor applies enforcement to a thing belonging to the debtor, then any person who faces the risk that he may lose his right to this thing through enforcement is entitled to satisfy the creditor. When a third person satisfies the creditor, the right of claim passes to this person.

Article 373. Acceptance of performance of an obligation by an unauthorised person🔗

1. The debtor is obliged to perform the obligation to the creditor or to the person who is authorised by law or by a court judgment to accept the performance.

2. If the performance of the obligation was accepted by a person who was not authorised, the obligation shall be deemed performed when the creditor gave his consent thereto or received benefit from this performance.

Article 374. Alternative obligations🔗

If one of several obligations must be performed (alternative obligations), the debtor has the right of choice, unless otherwise follows from the contract, law or the nature of the obligation.

Article 375. Choice of obligations to be performed🔗

If it turns out that the debtor can refuse one of two performances, the obligation to perform the other act remains in force.

Article 376. Rule for choosing alternative obligations🔗

Under Article 374, the choice is made by a declaration to the other party to the contract or by effecting performance. The chosen obligation is deemed to be the obligation to be performed from the outset.

Article 377. Choice of more than two obligations to be performed🔗

The rules of Articles 374–376 apply also to cases where the subject of the choice of obligation consists of more than two performances.

Article 378. Partial performance of an obligation🔗

The debtor has the right to perform the obligation in parts (partial performance of an obligation) if the creditor agrees thereto.

Article 379. Creditor's right to accept another performance🔗

The creditor is not obliged to accept a performance other than that provided for by the contract. This rule applies also where the performance is of greater value.

Article 380. Quality of performance of an obligation🔗

If the quality of performance is not specified in detail in the contract, the debtor is obliged to perform at least work of average quality and to deliver a thing of average quality.

Article 381. Performance of an obligation where an individually defined item exists🔗

If the subject of the contract is an individually defined thing, the creditor is not obliged to accept another thing, even one of higher value.

Article 382. Performance of an obligation where a generic thing exists🔗

If the subject of performance is a thing that can be replaced (generic thing), the debtor must always perform the obligation.

Article 383. Concept🔗

A monetary obligation is expressed in the national currency. The parties may also establish a monetary obligation in foreign currency, unless this is prohibited by law.

Article 384. (Removed)🔗

Law of Georgia of 29 June 2007 No. 5127 – LHG I, No. 27, 17.07.2007, Art. 260

Article 385. Rule for reclaiming what was paid without an obligation🔗

What has been paid without an obligation may be reclaimed back in accordance with the rules on unjust enrichment.

Article 386. Place of performance of a monetary obligation🔗

1. In case of doubt as to the place of performance, a monetary obligation shall be performed at the creditor's place of residence (domicile or legal address).

2. If the creditor has a bank account intended for the transfer of money at the place or in the country where the payment is to be made, then the debtor may perform his monetary obligation by transfer to that account, except where the creditor objects thereto.

Article 387. Order of satisfaction of monetary obligations🔗

1. If the debtor owes the creditor several performances of a similar nature arising from different obligations, and what has been performed is not sufficient to cover all debts, then the obligation which the debtor chooses at the time of performance shall be covered; and if the debtor does not choose, then the debt whose payment became due first shall be covered.

2. If the time for performance of the claims arrived simultaneously, then the claim which is the most burdensome for the debtor to perform shall be performed first.

3. If the claims are equally burdensome, the one which is least secured shall be performed first.

Article 388. Priority of covering court costs🔗

From the debtor's payment which is not sufficient to cover the entire due debt, court costs shall be covered first, then the principal performance (debt), and finally interest.

Article 389. Payment of a monetary obligation upon a change in the rate of a monetary unit🔗

If, before the time for payment arrived, the monetary unit (rate) increased or decreased, or the currency changed, the debtor is obliged to pay at the rate corresponding to the time when the obligation arose. Upon a change of currency, the exchange relations shall be based on the rate that existed between these monetary units on the day of the currency change.

Article 390. Concept🔗

1. Default of the creditor is deemed to occur if he does not accept the performance offered to him, the time for which has arrived.

2. If the performance of the obligation requires a certain act of the creditor, default shall be deemed to occur if he does not perform that act.

Article 391. Obligation of the creditor to compensate damage🔗

The creditor shall compensate the damage caused to the debtor due to culpable delay in accepting the performance due.

Article 392. Liability of the debtor in case of default of the creditor🔗

In case of default of the creditor, the debtor is liable for non-performance of the obligation only if the performance became impossible due to the debtor's intent or gross negligence.

Article 393. Consequences of Default by the Creditor🔗

In case of default by the creditor, irrespective of his fault:

a ) he shall compensate the debtor for the excess expenses incurred for the preservation of the subject matter of the contract;

b ) he shall bear the risk of accidental deterioration or loss of the thing;

c ) he shall no longer have the right to receive interest on a monetary obligation.

Article 394. Claim for Damages upon Breach of Obligation🔗

1. In case of breach of an obligation by the debtor, the creditor may claim compensation for the damages caused thereby. This rule does not apply where the debtor is not liable for the breach of the obligation.

2. In case of default by the debtor, the creditor may set the debtor a time necessary for the performance of the obligation. If the debtor fails to perform the obligation within this time as well, the creditor has the right to claim compensation for damages instead of performance of the obligation.

3. The determination of an additional time is not necessary if it is obvious that it will have no result, or when there are special circumstances which, taking into account the interests of both parties, justify the immediate exercise of the claim for damages.

Article 395. Inadmissibility of a Prior Agreement on Release from the Obligation to Compensate Damages🔗

1. The debtor shall be liable only for damages caused by an intentional or negligent act, unless otherwise provided and unless otherwise follows from the essence of the obligation.

2. A prior agreement of the parties on the release of the debtor from compensation for damages in the event of breach of the obligation by an intentional act is inadmissible.

Article 396. Debtor's Liability for the Actions of His Representative🔗

The debtor shall be liable to the same extent for the actions of his legal representative and of those persons whom he uses for the performance of his own obligations as for his own culpable action.

Article 397. Debtor's Liability upon Receipt of the Subject Matter of Performance from Another Person🔗

The debtor shall also be liable for performance when he was to receive the subject matter of performance from another person and failed to receive it, unless otherwise follows from the contract or other circumstances.

Article 398. Adaptation of the contract to changed circumstances🔗

1. If those circumstances which became the basis for the conclusion of the contract have clearly changed after the conclusion of the contract, and the parties would not have concluded this contract or would have concluded it with different content had they taken these changes into account, then adaptation of the contract to the changed circumstances may be demanded. Otherwise, taking into account individual circumstances, a party to the contract may not demand strict adherence to the unchanged contract.

2. A change of circumstances is equated to the case where the representations which became the basis of the contract proved to be incorrect.

3. The parties must first attempt to adapt the contract to the changed circumstances. If adaptation of the contract to the changed circumstances is impossible, or the other party does not agree to it, then the party whose interests have been infringed may withdraw from the contract.

Article 399. Withdrawal from a long-term obligation relationship🔗

1. Any party to the contract may, on the basis of a valid ground, withdraw from the long-term obligation relationship without observing the period established for termination of the contract. A ground is valid when, taking into account the specific situation, including force majeure and mutual interests, the party terminating the contract cannot be required to continue the contractual relationship until the expiry of the agreed period or of the period established for termination of the contract.

2. If the ground is also a breach of contractual obligations, termination of the contract is permissible only after the period established for the elimination of defects has expired without result or after an unsuccessful warning. Accordingly, paragraph 2 of Article 405 applies.

3. The entitled person may withdraw from the contract within a reasonable period after he becomes aware of the ground for termination of the contract.

4. If what has already been performed no longer represents any interest for the entitled person as a result of the termination of the contract, then the termination of the contract may extend to this performance as well. To ensure the return of what has already been performed, Articles 352–354 apply accordingly.

5. Article 407 applies accordingly to a claim for damages.

Article 400. Concept🔗

Delay by the debtor in the performance of an obligation is deemed to occur if:

a) the obligation is not performed within the time established for performance;

b) after the onset of the time for performance and after a warning by the creditor, he still does not perform the obligation.

Article 401. Impossibility of performance of the obligation🔗

Delay shall not be deemed to have occurred if the obligation was not performed due to circumstances not caused by the debtor's fault.

Article 402. Liability of the debtor🔗

The debtor in delay is liable for any negligence. He is also liable for accident unless he proves that the damage could have occurred even in the case of timely performance of the obligation.

Article 403. Payment of interest upon delay in payment of a sum of money🔗

1. A debtor who delays the payment of a sum of money shall be obliged to pay, for the period of delay, the interest determined by agreement of the parties, unless the creditor, on another ground, may demand more.

2. In case of delay in the payment of a sum of money, the charging of interest on interest shall be permissible only where directly provided for by contract.

Law of Georgia of 29 June 2007 No. 5127 - LHG I, No. 27, 17.07.2007, Art. 260

Article 404. Right of the creditor to compensation for damage🔗

The creditor shall be entitled to demand compensation for the damage caused by the delay.

Article 405. Setting of an additional period in case of breach of obligation🔗

1. If one party to a contract breaches an obligation arising from a bilateral contract, the other party to the contract may withdraw from the contract after the additional period set by it for the performance of the obligation has expired without result. If, given the nature of the breach of obligation, an additional period is not applicable, a warning shall be equivalent to the setting of an additional period. If the obligation has been breached only in part, the creditor may withdraw from the contract only if performance of the remaining part of the obligation has lost interest for it.

2. It is not necessary to set an additional period or to give a warning if:

a) it is obvious that it will have no effect whatsoever;

b) the obligation was not performed within the period determined by the contract, and the creditor made the continuation of the relationship conditional upon timely performance of the obligation under the contract;

c) on special grounds, taking into account the mutual interests, immediate termination of the contract is justified.

3. Withdrawal from the contract shall not be permissible if:

a) the breach of obligation is insignificant;

b) the requirements of paragraph 2 of Article 316 have been breached and, notwithstanding this, the creditor may be required to keep the contract in force;

c) for the breach of obligation the creditor is itself wholly or mainly responsible;

d) the claim is opposed by a defence which the debtor has already raised or will raise immediately after the withdrawal from the contract.

4. The creditor shall be entitled to withdraw from the contract before the performance period falls due if it is obvious that the grounds for withdrawal from the contract will arise.

5. The debtor shall be entitled to set a reasonable period for the creditor to withdraw from the contract.

Article 406. Right to receive counter-performance🔗

1. If in a bilateral contract the debtor has the right to refuse the obligation imposed on it, and the circumstance which gives it this right is caused by the creditor's fault, it retains the right to receive counter-performance.

2. This rule shall not apply where the ground for counter-performance arose at a time when the creditor was in default of acceptance of performance.

Article 407. Compensation for damage upon withdrawal from a contract🔗

1. Upon withdrawal from a contract, the creditor may demand compensation for the damage caused to him by the non-performance of the contract.

2. This rule does not apply where the ground for withdrawal from the contract was not caused by the debtor's fault.

Article 408. Obligation to restore the original state🔗

1. A person who is obliged to compensate damage shall restore the state that would have existed had the circumstance giving rise to the obligation to compensate not occurred.

2. If, as a result of bodily injury or harm to health, the injured person has lost his capacity for work or it has been reduced, or his needs have increased, the injured person shall be compensated for the damage by payment of a monthly allowance.

3. The injured person is entitled to demand the costs of treatment in advance. The same rule applies where professional retraining becomes necessary.

4. Instead of the allowance, the injured person may demand to receive compensation if there are significant grounds for doing so.

Article 409. Impossibility of restoring the original state🔗

If compensation for damage by restoring the original state is impossible or requires disproportionately large expenditure, the creditor may be granted monetary compensation.

Article 410. Advance waiver of the right to demand compensation for damage🔗

Advance waiver of the right to demand compensation for damage due to breach of an obligation shall be permitted if this is provided for by law or by agreement of the parties.

Law of Georgia No. 2284 of 4 December 2009 - LHG I, No. 45, 21.12.2009, Art. 329

Article 411. Compensation for lost income🔗

Damage shall be compensated not only for the actual property loss incurred, but also for lost income. Income is considered lost which the person did not receive and which he would have received had the obligation been duly performed.

Article 412. Damage covered by the obligation to compensate🔗

Only damage which was foreseeable in advance by the debtor and constitutes the direct consequence of the damaging act shall be subject to compensation.

Article 413. Compensation for non-property damage🔗

1. Monetary compensation for non-property damage may be demanded only in cases precisely defined by law, in the form of reasonable and fair compensation.

2. In cases of bodily injury or harm to health, the injured person may also demand compensation for non-property damage.

Article 414. Determination of the amount of damage🔗

In determining the amount of damage, the interest which the creditor had in the due performance of the obligation shall be taken into account. To establish the amount of damage, the time and place of performance of the contract shall be taken into account.

Article 415. Fault of the injured party in the occurrence of damage🔗

1. If the occurrence of the damage was also contributed to by an act of the injured party, the obligation to compensate the damage and the extent of such compensation depend on which party's fault was more responsible for causing the damage.

2. This rule also applies where the fault of the injured party is manifested in his inaction — failure to avoid or reduce the damage.

Article 416. Types of additional means of securing the performance of an obligation🔗

The parties may, by contract, also provide for additional means to secure the performance of an obligation: penalty, deposit and guarantee of the debtor.

Article 417. Concept🔗

A penalty — a sum of money determined by agreement of the parties — shall be paid by the debtor for non-performance or improper performance of an obligation.

Article 418. Form of determining the penalty🔗

1. The parties to a contract may freely determine the penalty, which may exceed the possible damage, except in the cases provided for by paragraph 8 of Article 625 of this Code.

1¹. A party's net obligation calculated as a result of netting or close-out netting provided for by the Law of Georgia "On Financial Collateral, Netting and Derivatives" is not a penalty or other penalty sanction of similar content and shall not be considered a penalty or other penalty sanction of similar content.

2. An agreement on a penalty requires a written form.

Law of Georgia No. 239 of 29 December 2016 – website, 13.01.2017.

Law of Georgia No. 5674 of 20 December 2019 – website, 31.12.2019.

Article 419. Inadmissibility of simultaneously demanding payment of the penalty and performance of the obligation🔗

1. The creditor may not simultaneously demand both payment of the penalty and performance of the obligation, unless the penalty is provided for the cases where the debtor fails to perform his obligations within the established time.

2. The creditor always has the right to demand compensation for damage.

Article 420. Reduction of the penalty by the court🔗

The court may, taking into account the circumstances of the case, reduce a disproportionately high penalty.

Article 421. Concept🔗

A deposit is considered to be a sum of money which one party to a contract gives to the other party and thereby confirms the fact of conclusion of the contract.

Article 422. Set-off of the deposit against the payment🔗

The deposit shall be set off against the payment provided for by the obligation, and if it is not set off, it shall be returned after performance of the contract.

Article 423. Set-off of the deposit against compensation for damage🔗

1. If the giver of the deposit culpably breaches the obligation imposed on him, the deposit remains with its recipient. At the same time, the deposit shall be set off against compensation for damage.

2. If the non-performance of the obligation is caused by a culpable act of the recipient of the deposit, he shall return the deposit in double. At the same time, the giver of the deposit may demand compensation for damage.

Article 424. Concept🔗

A debtor is considered to be under a guarantee when the debtor assumes the performance of any unconditional act or of an act which goes beyond the subject matter of the contract.

Article 425. Validity of a guarantee🔗

A guarantee shall be considered valid if it does not contradict the rules provided by law, or does not impose excessive obligations on the debtor.

Article 426. Form of a guarantee🔗

A guarantee shall be executed in writing.

Article 427. Termination of an obligation by performance in favour of the creditor🔗

An obligatory relationship is terminated by performance of the obligation in favour of the creditor (performance).

Article 428. Termination of an obligation by acceptance of other performance🔗

An obligatory relationship is also terminated when the creditor, instead of the performance provided for by this obligation, accepts another performance as performance.

Law of Georgia of 28 December 2002 No. 1902 – LHG I, No. 4, 22.01.2003, Art. 20

Article 429. Acceptance of performance of an obligation🔗

1. At the debtor's request, the creditor shall issue a document confirming the acceptance of performance in whole or in part.

2. A document drawn up on the acceptance of a debt which says nothing about interest implies that the interest has also been paid and the monetary obligation has been terminated in full.

3. Where the payment of a debt is made periodically, in instalments, the document on the payment of its last instalment, unless otherwise confirmed, gives rise to the presumption that the previous instalment has also been paid.

Article 430. Requisites of documents on acceptance of performance🔗

A document drawn up by the creditor or by a person authorised for that purpose on performance shall contain data on the amount and type of the debt, the surname and name of the debtor or of the person paying the debt, and the time and place of performance.

Article 431. Right to demand a debt instrument🔗

If a debt instrument has been issued in respect of a claim, the debtor may, together with the document on performance, demand the return of that instrument or its cancellation. If the creditor is unable to return that instrument, the debtor has the right to demand an officially certified certificate to the effect that the obligation has been terminated.

Article 432. Reimbursement of the costs of issuing documents on performance🔗

1. The debtor shall bear the costs of issuing the document on performance, unless otherwise follows from an agreement between him and the creditor.

2. If the creditor changes his place of residence or dies and leaves heirs at another place of residence, the increased costs related to the issuance of the document on performance shall be borne by the creditor or his heirs.

Article 433. Refusal of performance due to the creditor's failure to fulfil his duties🔗

If the creditor refuses to issue the document on performance, to return the debt instrument or to cancel it, or to note in the document on performance that its return is impossible or to acknowledge that the debt has been extinguished, the debtor has the right to refuse performance. In such cases, the creditor shall be considered to be in default.

Article 434. Concept🔗

1. If the creditor delays acceptance of performance, or his whereabouts are unknown, the debtor is entitled to deposit the subject of performance with the court or the notary office, and to deposit money or a security into the notary’s deposit account.

2. By deposit the debtor is released from the obligation toward the creditor.

Article 435. Transfer of Deposited Property to the Creditor🔗

The deposited property shall be transferred to the creditor by the judge or the notary. The court or the notary shall select a custodian, and the documents remain with them.

Article 436. Objects Capable of Deposit🔗

The object must be suitable for storage. Perishable objects shall not be accepted for storage.

Article 437. Place of Storage🔗

Storage shall be effected according to the place of performance.

Article 438. Demand for Acceptance of the Object from the Creditor🔗

The court or the notary shall notify the creditor of the acceptance of the subject of performance for storage and demand from him acceptance of the object.

Article 439. Reimbursement of Expenses Related to Storage🔗

All expenses related to storage shall be borne by the creditor.

Article 440. Reclamation of the Stored Object by the Debtor🔗

1. The debtor has the right to demand back the stored object before its acceptance by the creditor, unless he initially waived return. If the debtor demands the object back, the storage shall be considered not to have taken place.

2. The debtor may recover the delivered object if the creditor refuses it, or if the period determined by Article 441 has expired.

3. If the debtor recovers the object, the storage expenses shall also be borne by him.

Article 441. Storage Period of the Subject of Performance🔗

The court or the notary shall store the subject of performance for a period of up to three years. If during this period the creditor does not accept the object, the debtor shall be notified thereof and required to take back the delivered object. If within the period necessary for return the debtor does not accept the object, it shall be considered state property.

Article 442. Possibility of Set-off of Obligations🔗

1. A mutual claim existing between two persons may be terminated by set-off if the time for performance of these claims has arrived.

2. Set-off of obligations is also possible when the time for performance of one of the claims has not yet arrived, but the party entitled to this claim supports the set-off. Set-off of obligations shall be effected by notification to the other party.

Article 442¹. Mutual Set-off and Final Mutual Set-off🔗

Bilateral obligations arising from a qualified financial contract concluded within the framework of a mutual set-off agreement may be performed by mutual set-off and/or final mutual set-off, which is regulated by the Law of Georgia “On Financial Collateral, Mutual Set-off and Derivatives”.

Law of Georgia No. 5674 of 20 December 2019 – website, 31 December 2019.

Article 443. Possibility of Set-off in Case of Limitation of Claim🔗

The limitation of a claim does not exclude set-off of obligations if the claim was not time-barred at the time when its set-off was still possible.

Article 444. Claims subject to set-off🔗

If the claims subject to set-off do not fully cover each other, only the one whose amount is less than the amount of the other claim shall be set off.

Article 445. Several claims subject to set-off🔗

1. If the party to the contract that is notified of the set-off has several claims subject to set-off, the rules of Article 387 shall apply.

2. If a party, in addition to the principal obligation, is also obliged to pay interest and other expenses to the other party, the rules of Article 388 shall apply.

Article 446. Set-off of obligations where different places of performance exist🔗

Set-off of obligations shall be permissible also where different places of performance are provided for the claims.

Article 447. Inadmissibility of set-off of claims🔗

Set-off of claims shall be inadmissible:

a) if the set-off of claims was excluded in advance by agreement;

b) if execution cannot be levied on the subject matter of the obligation, or the subject matter of the obligation consists of maintenance;

c) if the obligation provides for compensation for the damage caused by injury to health or by death;

d) in other cases provided by law.

Article 448. Concept🔗

Forgiveness of debt by agreement between the parties causes termination of the obligation.

Article 449. Consequences of forgiveness of debt for other solidary debtors🔗

Forgiveness of debt to one of the solidary debtors also releases the other solidary debtors, except where the creditor reserves the claim against them. In this case, the creditor may assert against the remaining solidary debtors only one claim less the share of the released debtor.

Article 450. Consequences of forgiveness of debt to the principal debtor🔗

1. Forgiveness of debt to the principal debtor also releases the sureties.

2. Release of a surety from payment of the debt does not release the principal debtor from performance of the obligation.

3. Release of one of the sureties from payment of the debt also releases the other sureties.

Article 451. Consequences of waiver of a claim in bilateral contracts🔗

In bilateral contracts, waiver by one party of its claim does not cause termination of the obligation. It is obliged to perform its duties provided by the contract until the other party has also waived its claim.

Article 452. Termination of an obligation where the debtor and the creditor prove to be one and the same person🔗

1. An obligation relationship shall terminate if the debtor and the creditor prove to be one and the same person.

2. Notwithstanding paragraph 1 of this Article, an obligation relationship shall not terminate if the obligation arises from a debt security and the issuer acquires the said security. While the issuer holds its own debt security, the obligation relationship shall terminate if the maturity date of this security has passed or the issuer has adopted a decision on termination of the obligation relationship. In the case of a registered or dematerialized security, the issuer's decision on termination of the obligation relationship shall enter into force from the moment of its entry in the securities register or central depositary.

3. In the case provided for by paragraph 2 of this Article, for the purposes of exercising the rights arising from the debt security, the debt security held by the issuer shall not be taken into account, while interest shall continue to accrue without payment of interest.

Law of Georgia of 16 November 2023 No. 3726 – website, 07.12.2023.

Article 453. Termination of an obligation due to the death of the debtor🔗

1. The death of the debtor causes termination of the obligation if performance is impossible without his personal participation.

2. The death of the creditor causes termination of the obligation if performance was provided for personally for the creditor.

Article 454. Termination of an obligation due to liquidation of a legal entity🔗

The obligation of a legal entity terminates from the moment of registration of the completion of its liquidation.

Article 455. Solidary entitlement🔗

If several persons are entitled to demand performance of an obligation in such a way that each of them may demand the entire performance, while the debtor is obliged to perform only once, then they constitute solidarily entitled persons – solidary creditors.

Article 456. Grounds for the emergence of solidary entitlement🔗

Solidary entitlement arises from a contract, by law, or from the indivisibility of the subject matter of the obligation.

Article 457. Performance of an obligation to any creditor🔗

The debtor may, at his discretion, perform the obligation to any creditor, unless one of the creditors has brought against him a claim under Article 455.

Article 458. Performance of an obligation to one of the creditors🔗

Full performance of the obligation to one of the solidary creditors releases the debtor from the obligation to the remaining creditors.

Article 459. Consequences of refusal by one of the solidary creditors🔗

If one of the solidary creditors refuses to demand from the debtor, then the debtor is released only from payment of the part that fell to the given creditor.

Article 460. Inadmissibility of invoking facts relating to another creditor🔗

The debtor may not invoke against one of the creditors facts that relate to another creditor.

Article 461. Rights of the heirs of a solidary creditor🔗

If a solidary creditor has several heirs, only the part of the right to the claim that corresponds to his share in the estate passes to each heir.

Article 462. Obligation of a solidary creditor towards the remaining solidary creditors🔗

1. A solidary creditor who has received performance in full from the debtor is obliged to pay the remaining solidary creditors their respective shares.

2. In their relations with one another, solidary creditors have equal shares, unless otherwise provided between them.

Article 463. Solidary obligation🔗

If several persons are obliged to perform an obligation in such a way that each must participate in the performance of the entire obligation (solidary obligation), and the creditor has the right to demand performance only once, then they constitute solidary debtors.

Article 464. Grounds for the origin of a solidary obligation🔗

A solidary obligation arises by contract, by law, or by the indivisibility of the subject matter of the obligation.

Article 465. Right of the creditor to demand performance from any debtor🔗

The creditor may, at his discretion, demand performance from any debtor, either in full or in part. Until the obligation is performed in full, the obligation of the remaining debtors remains in force.

Article 466. Objections of a solidary debtor against the creditor🔗

A solidary debtor is entitled to raise against the creditor all objections that arise from the essence of the obligation, or to which he alone is entitled, or which are common to all solidary debtors.

Article 467. Consequences of full performance of the obligation by one of the debtors🔗

Full performance of the obligation by one of the debtors releases the remaining debtors from performance. The same rule applies to set-off effected by a debtor against the creditor.

Article 468. Inadmissibility of invoking facts relating to another solidary debtor🔗

Facts relating to one of the solidary debtors may be invoked only against that person, unless otherwise follows from the obligatory relationship.

Article 469. Action against one of the solidary debtors🔗

Bringing an action against one of the solidary debtors does not deprive the creditor of the right to bring an action against the remaining debtors as well.

Article 470. Consequences of delay in accepting performance🔗

1. The consequences of delay by the creditor in accepting performance from one of the solidary debtors are also in force with respect to the remaining solidary debtors.

2. The consequences of delay in the time for performance by one of the solidary debtors may not be applied with respect to the remaining solidary debtors as well.

Article 471. Rights of the heirs of a solidary debtor🔗

If one of the solidary debtors has several heirs, each of them is obliged to perform the claim in accordance with his own share of the inheritance. This rule does not apply when the claim is indivisible.

Article 472. Merger of the creditor's claim with the debt of one of the solidary debtors🔗

If the creditor's claim merges with the debt of one of the solidary debtors, the obligation towards the remaining debtors is extinguished to the extent that fell to the share of that debtor.

Article 473. Right of recourse when one of the debtors performs the obligation in full🔗

1. A debtor who has performed a solidary obligation has the right of recourse against the remaining debtors in proportion to the equality of shares, but excluding his own share, unless otherwise provided by contract or law.

2. When it is impossible to determine the amount of the debtors' liability, they are liable to each other in equal shares.

Article 474. Consequences of the insolvency of a solidary debtor🔗

If one of the debtors turns out to be insolvent, the share determined for him is distributed proportionally among all the other solvent debtors.

Article 475. Compensation by a solidary debtor🔗

If a solidary debtor has received a benefit from the solidary obligation, the solidary debtor who has not received such a benefit may demand from him satisfaction for the performance of his obligation.

Article 476. Consequences of the expiry of the limitation period🔗

The suspension or interruption of the limitation period with respect to one of the solidary debtors has no effect with respect to the other debtors.

Special Part

Article 477. Concept. Content🔗

1. Under a contract of sale, the seller is obliged to transfer to the buyer the right of ownership over the property and the documents related thereto, and to deliver the goods.

2. The buyer is obliged to pay the seller the agreed price and to accept the purchased property.

3. If the price is not directly indicated in the contract, the parties may agree on the means of determining it.

Article 478. Costs of selling a movable thing🔗

The costs related to the transfer of the sold thing, in particular, the costs of weighing, measuring and packaging, shall be borne by the seller, while the costs of receiving and forwarding the goods from the place of conclusion of the contract to another place — by the buyer, unless otherwise provided by the contract.

Article 479. Costs of selling an immovable thing🔗

The seller of a land plot and other immovable thing shall bear the costs of drawing up the contract of sale, of registration in the public registry and of submitting the documents necessary for this, unless otherwise provided by the contract on the basis of the agreement of the parties.

Law of Georgia of 8 December 2006 No. 3879 - LHG I, No. 48, 22.12.2006, Art. 321

Article 480. Obligations of the seller when sending goods🔗

1. If the seller transfers the goods to the carrier under the contract and these goods are not clearly marked either by an identifying mark, or by the documents necessary for shipment, or by any other means, then the seller must notify the buyer of the dispatch of the goods and, at the same time, send him a detailed list of the cargo.

2. If the seller is obliged to send the goods, he must conclude the contracts necessary for the carriage of the cargo to the agreed place and for the usual conditions for such carriage.

3. If the seller is not obliged to insure the cargo during transportation, then he must, at the buyer's request, transfer to him all information at his disposal that is necessary for concluding such an insurance contract.

Article 481. Obligations of the seller of a land plot🔗

1. The seller of a land plot is obliged to pay the expenses incurred before the conclusion of the contract for the development of this plot and for carrying out similar measures, regardless of the moment when the payment obligation arose.

2. (Removed - 11.05.2007, No. 4744).

Law of Georgia of 11 May 2007 No. 4744 - LHG I, No. 18, 22.05.2007, Art. 158

Article 482. Transfer of the risk of accidental loss of a thing🔗

1. Together with the transfer of the sold thing, the risk of accidental loss or deterioration of the thing passes to the buyer, unless the parties have agreed otherwise.

2. If the seller, at the buyer's request, sends the sold thing to a place other than that provided for by the contract, then the risk of accidental loss or deterioration of the thing passes to the buyer from the moment when the seller handed the thing over to the carrier or to the person responsible for performing this.

Article 483. Presumption of receipt of goods🔗

Goods shall be considered received if the buyer performs an action that evidences their receipt.

Article 484. Grounds for refusal of the contract🔗

1. Each party to the contract may refuse to perform its obligations if, after the conclusion of the contract, it turns out that there is a real danger that the other party will not perform a significant part of its obligations.

2. Refusal is inadmissible if the security of this party is ensured.

Article 485. Sale of goods to several persons🔗

If the seller has sold the same goods to several persons, preference is given to the buyer into whose possession it passed first, and if the goods have not been transferred to any of them, then to the one with whom the contract was concluded earlier.

Article 486. Delivery of sold goods in parts🔗

In the case of delivery of sold goods in parts, if, due to the failure to perform only one delivery obligation by one party, a real danger has arisen that future delivery obligations will also not be performed, then the other party may refuse the contract.

Article 487. Obligation to transfer a thing free from defects🔗

The seller must transfer to the buyer a thing free from material and legal defects.

Article 488. Materially defect-free thing🔗

1. A thing is free from material defects if it is of the agreed quality. If the quality has not been agreed in advance, the thing shall be deemed defect-free if it is fit for the use provided for by the contract or for ordinary use.

2. It is equated to a defect if the seller transfers only one part of the thing, an entirely different thing, in a small quantity, or if one part of the thing is defective, except where the defect cannot have a material effect on performance.

Article 489. Legally defect-free thing🔗

1. A thing is free from legal defects if a third party cannot assert a claim against the buyer on account of its rights.

2. It is equated to a legal defect if a non-existent right is registered in the public registry.

Article 490. Obligations of the seller upon sale of a defective thing🔗

1. If the sold thing is defective, the seller must either remedy that defect or, if it concerns a generic thing, replace the thing within the period necessary for that purpose.

2. The seller shall bear the reimbursement of the costs necessary for remedying the defect, including the costs of transportation, travel, performance of the work and materials.

3. The seller may refuse both to remedy the defect and to replace the thing if this requires disproportionately large costs.

4. If the seller, for the purpose of remedying the defect, transfers a defect-free thing to the buyer, he may then demand the return of the defective thing from the buyer.

Article 491. Right of the buyer to terminate the contract🔗

1. The buyer may, on account of a defect in the thing, demand termination of the contract in accordance with Article 352.

2. The seller must reimburse the buyer for the expenses incurred.

Article 492. Demand for reduction of the price🔗

If the buyer does not demand the remedying of the defect in the thing or its replacement with a new one after the expiry of the period given to the seller for that purpose, and does not demand termination of the contract either, he may demand a reduction of the price by the amount necessary to remedy the defect. The price existing at the time of the conclusion of the contract shall be taken into account.

Article 493. Right to refuse to accept the goods🔗

1. The buyer has the right to refuse to accept the goods if the seller has delivered to him goods in a smaller quantity than was provided for by the contract. If the buyer accepts such goods, he shall pay the price in proportion to the contract price.

2. If the quantity of the goods exceeds that provided for by the contract, the buyer may accept that quantity and is obliged to pay in proportion to the contract price, or accept only the quantity provided for by the contract and return the excess back at the seller's expense.

Article 494. Rules for compensation of damage arising from a sale🔗

1. Damage caused by a defect in the thing or by breach of other terms determined by the contract shall be compensated in accordance with the general rules.

2. The buyer does not acquire rights on account of a defect in the thing if at the time of the conclusion of the contract he knew about it.

Article 495. Acceptance of a defective thing by the buyer🔗

1. If the buyer is an entrepreneur, he is obliged to inspect the thing immediately; if, within the relevant period from the discovery of the defect or within the period during which the existence of the defect should have been known to him, he does not submit a claim to the seller, he loses the right to claim because of the defect of the thing.

2. If the seller knowingly remained silent about the defect of the thing, then he cannot rely on the right provided for by this article.

Article 496. Period of suitability of the thing🔗

If the seller determines the period of suitability of the thing, then it is presumed that a defect revealed during this period gives the buyer the right to claim.

Article 497. Exclusion of the seller's liability🔗

By contract, the seller's liability in the sale of a defective thing may be limited or excluded, but such an agreement shall be void if the seller intentionally remained silent about the defect of the thing.

Article 498. Transfer of a right or other property🔗

1. The rules governing the sale of a thing apply accordingly to the sale of a right or other property.

2. In the case of sale of a right, the seller undertakes the costs of substantiating the validity of this right and of its transfer.

3. If a right is sold that provides the possibility of possession of a thing, then the seller is obliged to transfer to the buyer a thing free from material and legal defects.

Article 499. Sale of a thing several times🔗

If a thing is sold several times, the right securing the obligation passes to each subsequent buyer. The buyer may, within the scope of his rights, submit claims to the respective seller in this order of sales.

Article 500. Right to detain the thing🔗

If the buyer does not accept the thing in time or does not pay its price on time, the seller is obliged to keep the thing; the seller has the right to retain the thing or to detain it in transit until the buyer reimburses the corresponding expenses.

Article 501. Return of the thing by the buyer🔗

If the buyer has received the thing but wishes to lawfully return it, he must take care of keeping the thing; the buyer has the right to retain the thing until the seller reimburses the corresponding expenses.

Article 502. Expenses for keeping the thing🔗

A party obliged to keep the thing may keep the thing at the expense of the other party in a third person's warehouse, if this does not give rise to disproportionate expenses.

Article 503. Right of the keeper of the thing🔗

1. A party who, in accordance with the rules specified in Articles 500–502, keeps the thing may sell this thing in compliance with the relevant rules, if the other party delays acceptance of the thing or reimbursement of the keeping expenses; it must notify the other party thereof.

2. The party who sells the thing is entitled to retain from the proceeds the amount corresponding to the expenses of keeping and selling the thing; and the remaining amount must be transferred to the other party.

Article 504. Specifics of the storage of a perishable thing🔗

If, in the cases provided for by Articles 500 and 501, the thing is perishable, or is expected to depreciate, or its storage is associated with great expenses, the party that is charged with the storage of the thing shall be obliged to sell it in accordance with the conditions provided for by Article 503.

II. Sale by instalment payment

Article 505. Concept🔗

In the case of sale by instalments, the seller shall be obliged to deliver the thing to the buyer before payment of the price. The price of the thing shall be paid by the buyer in instalments at specified intervals of time.

Article 505¹. Obligation of the seller in the case of sale by instalments🔗

1. If the seller is an entrepreneur, in the case of sale by instalments he shall be obliged to comply with the requirements provided for by Article 625 of this Code in relation to the interest rate, commission, penalty and the imposition of any form of financial sanction.

2. In the case of sale by instalments, if, as a result of the sale by instalments, the buyer's total obligations towards the same seller do not exceed 200,000 (two hundred thousand) GEL, the acceptance by the seller of the price of a thing of up to 200,000 (two hundred thousand) GEL shall not, in any form, be linked to or indexed to a foreign currency.

Law of Georgia of 29 December 2016 No. 239 – website, 13.01.2017.

Law of Georgia of 21 July 2018 No. 3315 – website, 07.08.2018.

Law of Georgia of 22 December 2018 No. 4104 – website, 10.01.2019.

Article 506. Form of the contract of sale by instalments🔗

1. The contract of sale by instalments shall be concluded in writing.

2. The contract shall state:

a) the amount of the cash payment;

b) the amount of the instalment payment and the time of payment;

c) the amount of the annual interest.

3. The seller shall hand over to the buyer a copy of the documents of sale.

Article 507. Presumption of conclusion of the contract from the moment of delivery of the thing🔗

If the contract is concluded in violation of the requirements of Article 506, the contract shall be considered concluded from the moment of delivery of the thing. In this case, the buyer shall be obliged to pay only the price of the thing without interest.

Article 508. Bilateral restitution in the event of non-performance of an obligation🔗

If the seller reserves the right to withdraw from the contract in the event that the buyer fails to perform the obligations imposed on him, upon withdrawal each party shall be obliged to return to the other what they received under the contract. An agreement to the contrary shall be void.

III. Redemption

Article 509. Concept🔗

If, under a contract of sale, the seller has the right of redemption, the exercise of this right depends on the will of the seller.

Article 510. Redemption price🔗

Redemption shall be effected at the original price. At the same time, the buyer shall be entitled to demand also the amount by which the value of the goods increased as a result of useful expenditures before the moment of redemption, while the redeemer may demand the deduction of the amount by which the value of the goods decreased before its redemption.

Article 511. Fate of the appurtenances in the case of sale🔗

The buyer shall be obliged to return the purchased thing together with the appurtenances.

Article 512. Compensation for damage arising before redemption🔗

If, before exercising the right of redemption, the buyer has spoiled (damaged) or altered the purchased thing, he shall compensate the damage caused thereby.

Article 513. Invalidity of alienation of the thing before redemption🔗

If, before exercising the right of redemption, the buyer has alienated the purchased thing, such alienation is void.

Article 514. Limitation period of the right of redemption🔗

The redemption period may not exceed ten years. Extension of this period is inadmissible.

Law of Georgia of 9 December 2011 No. 5445 – website, 20.12.2011.

Article 515. Option🔗

The parties may agree that the buyer has the unilateral right to acquire a particular object by a specified time or until a specified event (purchase option), or, under the same conditions, the seller has the right to sell the object to the buyer (sale option). The provisions on the contract of sale apply to the option contract, unless the parties agree otherwise.

IV. Pre-emptive right of purchase

Article 516. Concept🔗

1. A person holding the pre-emptive right of purchase may exercise this right if the obligated person concludes a contract of sale of the given thing with a third person.

2. The pre-emptive right of purchase is neither transferred to another person nor passes by inheritance, unless otherwise provided.

Article 517. Obligation to notify of the intended sale of the thing🔗

1. The obligated person shall immediately notify the holder of the pre-emptive right of purchase of the content of the contract which he intends to conclude with third persons.

2. The pre-emptive right of purchase is exercised by notification to the obligated person. Through the notification, a contract of sale is concluded between the entitled person and the obligated person on the terms which the obligated person offered to the third person.

3. The holder of the pre-emptive right of purchase may exercise this right only within the period determined by the obligated person.

Article 518. Invalidity of an agreement on the non-exercise of the pre-emptive right of purchase🔗

An agreement existing between the obligated person and a third person is void if by it the contract of sale becomes dependent on the non-exercise of the pre-emptive right of purchase, or the obligated person has the right to withdraw from the contract if the pre-emptive right of purchase is exercised.

Article 519. Performance of an additional obligation🔗

1. If a third person has assumed by contract an additional obligation which the holder of the pre-emptive right of purchase is unable to perform, he shall pay its value instead of the additional obligation.

2. If a monetary assessment of the additional obligation is impossible, the exercise of the pre-emptive right of purchase is inadmissible; the agreement on the additional obligation loses force if the contract was concluded in order to circumvent the pre-emptive right of purchase.

Article 520. Sale subject to approval of the thing🔗

A contract of sale may be concluded subject to approval of the thing, if the buyer does not reject the thing within the agreed period. In the event of rejection, the parties are obliged to return to each other what they received under the contract.

V. Exchange

Article 521. Concept🔗

1. Under an exchange contract the parties shall be obliged to transfer ownership of property to each other.

2. Each party to an exchange contract is considered the seller of the property that it exchanges and the buyer of that which it receives in exchange.

Article 522. Unequal value of property to be exchanged🔗

If the property to be exchanged is unequal in value, by agreement of the parties part of the property may be compensated in money.

Article 523. Rules applied to exchange🔗

The corresponding rules of sale apply to an exchange contract.

Article 524. Concept🔗

Under a gift contract the donor transfers property to the donee gratuitously as ownership with the latter's consent.

Article 525. Conclusion of a gift contract. Promise of gift🔗

1. A gift contract for a movable thing is considered concluded from the moment of transfer of the property.

2. A gift contract for an immovable thing is considered concluded from the moment of registration in the public registry of the ownership right determined by the contract.

3. A promise of gift creates a gift obligation only if it is concluded in written form.

Law of Georgia of 8 December 2006 No. 3879 - LHG I, No. 48, 22.12.2006, Art. 321

Article 526. Inadmissibility of gift🔗

A person has no right to gift property if the gifting of the property deprives the donor or persons dependent on him of a means of subsistence.

Article 527. Defect of gifted property🔗

If the donor maliciously conceals a defect of the gifted property, he is obliged to compensate the donee for the damage caused thereby.

Article 528. Donation🔗

1. The parties may determine that the validity of the gift contract depends on the fulfilment of this or that condition or the achievement of a defined purpose. This purpose may also be for the common benefit (donation).

2. Fulfilment of the condition, in addition to the donor, may also be demanded by the person in whose interests it was stipulated.

3. If the donee does not fulfil the condition, then the donor may withdraw from the contract.

Article 529. Revocation of gift due to ingratitude of the donee🔗

1. A gift may be revoked if the donee inflicts a grave insult or shows great ingratitude towards the donor or his close relative.

2. If the gift is revoked, then the gifted property may be reclaimed by the donor.

3. A gift may be revoked within one year after the donor learns of the circumstance that gives him the right to revoke the gift.

Article 530. Reclamation of gifted thing🔗

1. If after the gift the donor finds himself in a grave situation and is unable to support himself or persons dependent on him, he has the right to demand from the donee the gifted thing, if the latter actually exists and the return will not place the donee in a grave situation.

2. Reclamation of the gifted thing is not possible if the donor intentionally or through gross negligence placed himself in a grave situation.

Article 531. Concept🔗

Under a lease contract the lessor is obliged to transfer to the lessee for use a thing for a defined term. The lessee is obliged to pay the lessor the agreed rent.

Article 532. Transfer of the leased thing in a suitable condition🔗

The lessor is obliged to transfer to the lessee the leased thing in a condition suitable for the use provided for by the contract and to maintain this condition of the thing throughout the entire term of the lease.

Article 533. Obligation to transfer a thing free from defects🔗

The lessor shall transfer to the lessee a thing free from legal and material defects.

Article 534. Thing free from legal defects🔗

A leased thing is free from legal defects if a third party cannot assert claims against the lessee on account of this thing.

Article 535. Thing free from material defects🔗

A leased thing is free from material defects if it has the agreed qualities. If these qualities have not been agreed, the leased thing shall be considered free from defects if it is suitable for the activity provided for by the contract or for ordinary use.

Article 536. Reduction of rent due to a defect in the thing🔗

1. If a defect is discovered in the leased thing, the rent for the lessee shall be reduced by the amount by which the suitability of the thing has been reduced due to the defect. Upon remedying the defect, this right shall lapse. An insignificant defect shall not be taken into account.

2. A lease contract that is clearly detrimental to the lessee of a dwelling shall be void.

Article 537. Compensation for damage arising from a defect in the thing🔗

1. If a defect that reduces the suitability of the thing exists at the time of conclusion of the contract or is subsequently discovered due to circumstances for which the lessor is liable, or if the lessor delays in remedying the defect, the lessee may demand compensation for damage without losing the right to demand a reduction of the rent.

2. If the lessor delays in remedying a defect in the thing, the lessee may remedy it himself and demand reimbursement of expenses.

Article 538. Consequences of failure to assert a claim due to a defect in the thing🔗

If, at the time of conclusion of the contract, the lessee is aware of the defect in the thing and does not assert a claim on this account, the right provided for by Article 536 shall not arise for him.

Article 539. Invalidity of an agreement on exemption from liability🔗

An agreement by which the lessor is exempted from or limited in liability for a defect in the leased thing shall be void if the lessor concealed the defect intentionally.

Article 540. Obligation to tolerate interferences in the case of lease of premises🔗

The lessee of premises shall tolerate the interferences carried out with respect to the leased thing that are necessary for the maintenance of the leased dwelling or building. The lessor shall, if possible, notify the lessee of these measures and shall not permit actions that are not caused by necessity.

Article 541. Right to withdraw from the contract🔗

1. If the leased thing is transferred to the lessee in whole or in part late, or if he is subsequently deprived of the right of use, then the lessee may withdraw from the contract without observing the period provided for termination of the contract. Withdrawal from the contract shall be permitted only if the lessor does not eliminate, within the period determined by the lessee, the circumstances impeding use.

2. Determination of a period shall not be required if, as a result of the circumstances that give grounds for withdrawal from the contract, the lessee has lost interest in this contract.

3. In the case of lease of residential premises, an agreement that prohibits or restricts the right to terminate the contract provided for by the first paragraph of this Article shall be void.

Article 542. Termination of a residential lease contract by the lessee🔗

If residential premises or other premises intended for human habitation are in such a condition that their use poses a significant danger to their health, the lessee may terminate the lease contract without observing a period. The lessee has this right also if, at the time of conclusion of the contract, he knew about the danger but did not state a claim.

Article 543. Obligations of the lessee upon discovery of a defect in the leased thing🔗

If a defect is discovered in the leased thing, or if, in order to protect the thing from unforeseen danger, it is necessary to take necessary measures, the lessee shall immediately notify the lessor thereof. The same rule applies if a third party asserts its rights to the thing.

Article 544. Fate of the legal encumbrance existing on the leased thing🔗

The lessor shall be the bearer of the legal encumbrance existing on the leased thing.

Article 545. Obligation of the lessor🔗

1. The lessor shall reimburse the lessee for necessary expenses incurred on the thing.

2. The obligation to reimburse other expenses shall be determined in accordance with the rules on the performance of another person's affairs without a mandate.

Article 546. Right of the lessee to things added to the leased thing🔗

1. The lessee is entitled to retain that with which he equipped the leased thing.

2. The lessor of residential premises may replace the exercise of the said right with appropriate compensation, except in cases where the lessee, for a respectable reason, does not agree with the lessor.

Article 547. Liability for normal wear and tear of the thing🔗

The lessee shall not be liable for changes in or deterioration of the leased thing caused by the use provided for by the contract.

Article 548. Current repair costs🔗

1. The carrying out of current repairs is, as a rule, the responsibility of the lessee. He has no right to alter or reconstruct the residential premises without the consent of the lessor.

2. The lessee is obliged to perform these works at his own expense.

3. The lessor may demand compensation for the damage caused by the lessee's failure to fulfil the obligation provided for by paragraph 1 of this Article.

Article 549. Lessor's consent to sublease🔗

The lessee has no right to transfer the leased thing to a third person (sublease) without the lessor's consent. Members of the lessee's family are not considered third persons.

Article 550. Inadmissibility of the lessor's refusal of sublease🔗

The lessor cannot refuse the sublease of the residential premises if, where there is a valid reason, the lessee wishes to lease to a third person the leased residential premises in whole or in part. This rule does not apply if the sublessee is a person undesirable to the lessor, or the residential premises would be excessively overcrowded, or if for other reasons the sublease is unacceptable to the lessor.

Article 551. Fate of the sublease upon termination of the lease relationship🔗

If the sublease aims to circumvent the guarantees for termination of the lease contract, then upon termination of the lease relationship the lessor assumes the rights and obligations that existed between the lessee and the sublessee.

Article 552. Amount of security for the lease relationship🔗

1. If under the residential premises lease contract the lessee is charged with providing a means of securing an obligation, the amount of the security must not exceed three times the monthly rent. If the sum of money is payable in advance, the lessee is entitled to pay it monthly in equal instalments over three months.

2. The advance-paid security shall bear the interest established by law and, after the termination of the lease relationship, shall be returned to the lessee together with the interest.

3. Any other agreement concluded to the detriment of the lessee is void.

Article 553. Rule for payment of rent🔗

1. The rent shall be paid at the end of the term of the lease contract. If the payment of rent is determined by periods of time, it shall be paid after the expiry of those periods of time.

2. Payment of additional expenses is mandatory only if there is an agreement between the parties on this matter.

Article 554. Consequences of non-payment of rent through the lessee's fault🔗

If the lessee is prevented from using [the thing] through his own fault, he is not released from payment of the rent.

Article 555. Early termination of the contract at the initiative of the lessee of residential premises🔗

The lessee of residential premises is entitled to terminate the lease contract early if he gives the lessor one month's notice thereof and offers him a solvent and acceptable lessee who agrees to be the lessee for the remaining period of the lease.

Article 556. Counterclaims of the lessee against the lessor🔗

If, in opposition to the claim for the rent of the apartment, the lessee has the right to set off a retention or other claims arising from the lease relationship, the lessee may exercise this right also where the contract provides otherwise, if he notifies the lessor thereof in advance.

Article 557. Termination of the contract at the lessor's initiative🔗

The lessor may terminate the contract prematurely if the lessee, despite the lessor's warning, significantly damages the leased thing or creates a real danger of significant damage.

Article 558. Termination of the contract due to non-payment of rent🔗

The lessor may terminate the contract prematurely if the lessee has not paid the rent for three months.

Article 559. Termination of the lease relationship upon expiry of the term🔗

1. The lease relationship shall terminate after the expiry of the contract term.

2. If the lessee uses the thing also after the expiry of the contract term and the lessor does not object thereto, the contract shall be renewed for an indefinite term.

3. If the term of the lease contract is not determined, the lease relationship shall terminate by making a declaration on the termination of the contract.

Article 560. Right to demand extension of a lease contract for an indefinite term🔗

If a residential premises lease contract is concluded for a definite term, the lessee may, not later than two months before the termination of the lease relationship, demand by written declaration the extension of the lease contract for an indefinite term, if the lessor declares his consent thereto.

Article 561. Term of termination of the contract🔗

The term of termination of a lease contract shall be three months, except where otherwise follows from the circumstances of the case or from the agreement of the parties.

Article 562. Termination of a residential premises lease contract in the presence of good cause🔗

1. The lessor may terminate a residential premises lease contract only in the presence of good cause.

2. Good cause exists if:

a) the lessee has culpably materially breached his contractual obligations;

b) the lessor needs the residential premises directly for himself or for close relatives;

c) the lessee refuses to pay the increased rent offered by the lessor, which corresponds to the rent for apartments existing on the market;

d ) the lessee has committed against the lessor such an unlawful or immoral act as renders impossible the further continuation of the relationship between them.

3. If the object of the lease is a furnished apartment, the lessor may always terminate the lease contract subject to compliance with the term of termination of the contract.

Article 563. Form of termination of the contract🔗

The termination of a residential premises lease contract shall be effected in writing.

Article 564. Obligations of the lessee upon termination of the lease contract🔗

Upon termination of a contract for the lease of a thing, the lessee shall be obliged to return to the lessor the thing in the condition in which he received it, taking into account normal wear, or in the condition determined by the contract.

Article 565. Inadmissibility of the right of retention🔗

The lessee of a land plot does not have the right to retain it for the purpose of satisfying his claims.

Article 566. Transfer of the leased property to a third person🔗

If the lessee has transferred the thing to a third person for use, the lessor may, after termination of the lease contract, demand the return of the thing from the third person.

Article 567. Compensation for damage arising from failure to return the leased thing🔗

1. If the lessee does not return the leased thing after the termination of the lease relationship, the lessor has the right to demand payment of the rent established for the period of delay as compensation for damage.

2. Void is an agreement by which the lessee is charged compensation for damage in an amount greater than that caused.

Article 568. Right of pledge on the lessee's things🔗

To secure claims arising from lease relationships, the lessor of a land plot, house or apartment has a right of pledge on the things brought there by the lessee. The right of pledge loses force upon removal of the things from the leased area, if this is done in accordance with ordinary living relations.

Article 569. Form of the land plot lease contract🔗

A land plot lease contract for a term of more than one year shall be concluded in writing. In case of non-observance of the form, it is presumed that the contract was concluded for an indefinite term. Termination of the contract is permissible only after the end of the first year of lease.

Article 570. Rule for termination of a contract concluded for a term of more than ten years🔗

If a lease contract was concluded for a term of more than ten years, after ten years each party may terminate the lease contract within the term established by Article 561.

Article 571. Transfer of the lessee's rights to members of his family🔗

If a lease contract is concluded for residential premises and the lessee there runs a single family household together with members of his family, in the event of the lessee's death, members of his family enter into a legal relationship with the lessor. They have the right to terminate the lease contract within the term established by law.

Article 572. Succession upon alienation of the leased thing🔗

If the lessor alienates the leased thing to a third person after its transfer to the lessee, the acquirer takes the place of the lessor and the rights and obligations arising from the lease relationship pass to him.

Article 573. Limitation period for a claim for damages🔗

1. Due to alteration or deterioration of the leased thing, the lessor has the right to demand compensation for damages, while the lessee has the right to raise a claim against him for reimbursement of the expenses incurred, within six months.

2. The running of the limitation period of the lessor's claim for damages begins from the moment of return of the leased thing, while that of the lessee's claim – from the moment of termination of the lease contract.

Article 574. Dispute between spouses upon divorce🔗

1. When, upon divorce, the spouses cannot agree on which of them should live in the rented apartment, the court resolves the dispute.

2. It is irrelevant to the court which spouse is the lessee. If the court recognizes the right to the apartment of the spouse who is not the lessee, then that spouse becomes a participant in the lease relationship.

Article 575. Protection of the lessee's rights🔗

The lessee has the right to protect his possession against any violator, including against the owner.

Article 576. Concept🔗

1. Unless otherwise provided by the legislation of Georgia, under a leasing contract the lessor shall be obliged to transfer to the lessee specified property for use for the term stipulated by the contract, with or without the right to purchase this property, and the lessee shall be obliged to pay remuneration at the established intervals, provided that:

a) the lessee determines the property and selects the supplier from whom the property is purchased or otherwise received;

b) the lessor acquires the property for the purpose of leasing it out and this fact is known to the supplier.

2. The supplier may at the same time be the lessor if the supplier's ordinary activity is the supply of property or the leasing out of property. The property may also be acquired from the lessee.

3. Property leased out may be leased out again upon expiry of the term of the leasing contract or upon its early termination, but in order for the provisions of this Chapter to apply to it, the lessor must obtain from the lessee confirmation of the independent selection of the property.

4. The subject of leasing may not be money, a security, a share or an interest in an entrepreneurial company.

5. Unless otherwise provided by the legislation of Georgia and where, as a result of the disbursement of the leasing financing amount, the lessee's total obligations towards the same lessor are less than 200,000 (two hundred thousand) GEL, the receipt of remuneration by the lessor must not be linked to or indexed to any foreign currency in any form.

6. If the lessor is an entrepreneur, the annual effective interest rate of leasing shall not exceed 50 per cent when leasing out. At the same time, the lessor shall be obliged to comply with the requirements provided for by paragraphs 5 and 8 of Article 625 of this Code in relation to commission, financial expense, penalty and the imposition of any form of financial sanction. For these purposes, the National Bank of Georgia is entitled to establish by a legal act the rules for calculating the annual effective interest rate of leasing, commission, financial expense, penalty and/or any form of financial sanction.

Law of Georgia of 13 October 2011 No. 5119 – website, 31.10.2011.

Law of Georgia of 21 July 2018 No. 3315 – website, 07.08.2018.

Law of Georgia of 22 December 2018 No. 4104 – website, 10.01.2019.

Article 577. Rights of the lessee against the supplier🔗

1. The supplier's obligations defined by the contract existing between the lessor and the supplier also exist towards the lessee, however the supplier is not liable simultaneously to the lessor and to the lessee for the same damage.

2. The lessor is obliged, upon demand, to assign to the lessee its rights relating to the demand for performance of the contract concluded with the supplier.

3. Amendments to the contract concluded with the supplier which affect the rights of the lessee shall be permissible only with the consent of the lessee.

4. An agreement of the parties contrary to the provisions of paragraphs 1–3 of this Article is void.

5. The lessee shall not have the right to agree with the supplier on the amendment, termination or dissolution of the contract without the consent of the lessor.

Law of Georgia No. 5119 of 13 October 2011 – website, 31.10.2011

Article 578. Rights to the object of leasing🔗

1. The object of leasing is the object of a separate right also in the case where it becomes an essential component of another thing or of an intangible property asset.

2. The acquirer of the object of leasing takes the place of the lessor, and the rights and obligations arising from the leasing contract pass to it.

Law of Georgia No. 5119 of 13 October 2011 – website, 31.10.2011

Article 579. Inadmissibility of refusal to perform an obligation🔗

Under a leasing contract neither party has the right to refuse to perform an obligation on the ground that the other party is not performing its obligation, except in the case where the lessee's right of possession is restricted in accordance with paragraph 2 of Article 580⁵ of this Code.

Law of Georgia No. 5119 of 13 October 2011 – website, 31.10.2011

Article 580. Acceptance of property🔗

1. Property is accepted by the lessee by confirming to the lessor or to the supplier that the property conforms to the terms of the contract concluded with the supplier, or when the lessee does not reject the property after having had a reasonable opportunity to inspect it, or when the lessee begins to use the property.

2. After acceptance of the property, the lessee is entitled to demand compensation for damage from the supplier if the property does not conform to the terms of the contract concluded with the supplier.

3. After acceptance of the property, the risk of loss of or damage to the property passes to the lessee.

Law of Georgia No. 5119 of 13 October 2011 – website, 31.10.2011

Article 580¹. Violation of the terms of delivery of property🔗

1. If the property was not delivered to the lessee, was delivered late, or does not conform to the terms of the leasing contract, the lessee shall be entitled not to accept the property and to demand from the supplier such property as conforms to the terms of the contract, and/or to demand compensation for damages from the supplier.

2. In the event of violation of the terms of delivery of the property, the risk of loss of or damage to the property shall remain with the supplier, subject to the provisions of Article 580⁵ of this Code.

Law of Georgia of 13 October 2011 No. 5119 – website, 31.10.2011.

Article 580². Rights of the lessee upon assignment of a claim🔗

Upon assignment of the lessor's claim provided for by the leasing contract, the parties may agree on a rule different from that defined by paragraph 2 of Article 201 of this Code.

Law of Georgia of 13 October 2011 No. 5119 – website, 31.10.2011.

Article 580³. Obligation to transfer property free from defects🔗

1. The supplier shall be responsible that the property is in the condition defined by the leasing contract and is fit for the use for which such property is normally intended.

2. The lessee shall be responsible for the damage caused by conformity of the property with the description that it provided to the lessor or the supplier.

Law of Georgia of 13 October 2011 No. 5119 – website, 31.10.2011.

Article 580⁴. Obligations of the lessee in relation to the care and return of the object of leasing🔗

1. The lessee shall duly care for the object of leasing, shall use it for its intended purpose, for the purpose for which such property is normally used, and shall keep it in the same condition in which it was received, taking into account normal wear and tear.

2. If the leasing contract defines the obligation of proper use of the object of leasing, or the manufacturer or supplier establishes rules for the use of the property, compliance with the obligation of proper use of the object of leasing by the lessee or with the rules for the use of the property shall be deemed performance of the lessee's obligation defined by paragraph 1 of this Article.

3. Upon expiry of the term of the leasing contract or its early termination, the lessee, if it does not use the property or does not have the right to acquire the property or to retain it under leasing for an additional term, shall be obliged to return the property to the lessor in the condition defined by paragraph 1 of this Article.

Law of Georgia of 13 October 2011 No. 5119 – website, 31.10.2011.

Article 580⁵. Termination of the leasing contract🔗

1. The lessor may terminate the leasing contract if the lessee materially breaches its obligations.

2. The lessee shall not be entitled to terminate the leasing contract after it has received the object of leasing, except where it can no longer exercise possession over the object of leasing or the right of possession has been restricted by the person having a superior right over the property, if that right or claims arise from a culpable action of the lessor. In all other cases where the lessor materially breaches its obligations, the lessee is entitled to claim only compensation for damage and not termination of the leasing contract.

Law of Georgia of 13 October 2011 No. 5119 - website, 31.10.2011.

Article 580⁶. Possession and disposal of property🔗

1. Upon expiry or early termination of the leasing contract, the lessor has the right to recover the property into possession and to dispose of it.

1¹. In the case provided for by paragraph 1 of this Article, the lessor's claim for the return of the object of leasing into its possession as provided for by Article 580⁷ of this Code shall be satisfied immediately.

2. The lessee has the right to demand from the lessor compensation for the damage caused by its action, if the lessor recovers the property into possession by way of unlawful interference with the lessee's possession, or if the lessor has not set an additional time limit in accordance with paragraph 1 of Article 405 of this Code, except where the setting of such a time limit is not necessary in accordance with paragraph 2 of Article 405. At the same time, the lessee shall not be entitled to demand restoration of possession over the object of leasing.

Law of Georgia of 13 October 2011 No. 5119 - website, 31.10.2011.

Law of Georgia of 30 June 2017 No. 1195 - website, 14.07.2017.

Article 580⁷. Return into possession to the lessor of a vehicle and/or auxiliary technical means of an agricultural machine provided for by paragraph 1 of Article 53 of the Law of Georgia “On Road Traffic”🔗

1. The lessor shall have the right to request the return of the object of leasing into its possession by way of enforcement, on the basis of submission of the leasing certificate to the enforcement institution, without applying to court, if the object of leasing is a vehicle and/or auxiliary technical means of an agricultural machine provided for by paragraph 1 of Article 53 of the Law of Georgia “On Road Traffic”.

2. The return by the enforcement institution to the lessor of the object of leasing provided for by paragraph 1 of this Article shall be carried out in accordance with the procedure established by the Law of Georgia “On Enforcement Proceedings”.

3. An appeal against the leasing certificate shall not result in the suspension of its enforcement.

4. The lessor to whom the object of leasing has been returned into possession in accordance with paragraph 2 of this Article shall, in the case provided for by the legislation of Georgia, be obliged to carry out the registration of the object of leasing provided for by paragraph 1 of this Article in accordance with the procedure established by the legislation of Georgia.

5. The expenses related to the return into possession by way of enforcement to the lessor of the object of leasing provided for by paragraph 1 of this Article shall be borne by the lessee.

Law of Georgia of 30 June 2017 No. 1195 – website, 14.07.2017.

Article 580⁸. Leasing certificate🔗

1. In the Legal Entity of Public Law – the Service Agency of the Ministry of Internal Affairs of Georgia, where leasing is registered in respect of a vehicle and an auxiliary technical means of an agricultural machine provided for by paragraph 1 of Article 53 of the Law of Georgia “On Road Traffic”, within 10 working days from the receipt of a written request of the lessor, in the event of non-fulfilment by the lessee of the obligation defined by paragraph 1¹ of Article 580⁶ of this Code, on the basis of an application of the lessor, the Legal Entity of Public Law – the Service Agency of the Ministry of Internal Affairs of Georgia shall issue a leasing certificate.

2. A leasing certificate is an act subject to enforcement, by which the fact of registration of leasing in respect of a vehicle and an auxiliary technical means of an agricultural machine provided for by paragraph 1 of Article 53 of the Law of Georgia “On Road Traffic” in the Legal Entity of Public Law – the Service Agency of the Ministry of Internal Affairs of Georgia is confirmed and on the basis of which the lessor, in accordance with the legislation of Georgia, has the right to request from the authorised body (official) the return of the object of leasing into its possession.

3. The lessor shall be responsible for the lawfulness of the request for the issuance of a leasing certificate submitted by the lessor to the Legal Entity of Public Law – the Service Agency of the Ministry of Internal Affairs of Georgia.

Law of Georgia of 30 June 2017 No. 1195 – website, 14.07.2017.

Article 581. Concept🔗

1. Under a lease contract, the lessor shall be obliged to transfer to the lessee specified property for temporary use and, during the lease term, to ensure the possibility of obtaining fruits, if they are obtained as income as a result of proper management of the holding. The lessee shall be obliged to pay the lessor the agreed lease rent. The lease rent may be determined both in money and in kind. The parties may also agree on other means of determining the lease rent.

2. The rules on the contract of hire shall apply to a lease contract, unless otherwise provided by Articles 581–606.

Article 582. Termination of a lease contract concluded for a term of more than ten years🔗

If a lease contract is concluded for a term of more than ten years, then after the expiry of ten years each party may terminate the lease relationship within the period established by Article 561 of this Code, if that condition is provided for by the lease contract.

Law of Georgia of 5 May 2011 No. 4627 – website, 18.05.2011.

Article 583. Lease of land together with inventory🔗

1. If a plot of land is leased together with inventory, the lessee shall be liable for the maintenance of every part of the inventory.

2. The lessor shall be obliged to replace those parts of the inventory that have become unusable for reasons independent of the lessee. The lessee shall be obliged to replenish the inventory in respect of the loss of livestock belonging to it, regardless of proper management of the farm.

3. The lessee must keep the inventory in such a condition and, during the lease term, replenish it to the extent that corresponds to a properly managed farm. Individual inventory acquired by him, by being combined with the common inventory, becomes the property of the lessor.

Article 584. Risk of accidental loss of inventory🔗

1. If the lessee of a plot of land receives the inventory with a valuation and undertakes the obligation to return it also with a valuation upon termination of the lease contract, then he bears the risk of accidental loss and deterioration. Within the scope of proper management of the farm, he may dispose of individual parts of the inventory.

2. Upon expiry of the lease contract, the lessee must return the inventory to the lessor. The lessor may refuse to accept inventory acquired by the lessee if it is superfluous for proper management of the farm on the plot of land or is too expensive; upon refusal, the ownership right to the unacceptable inventory passes to the lessee. If there is a difference between the valuations of the inventory received and returned, this difference must be compensated in money. The valuation must be based on the prices that were in effect at the time of termination of the lease contract.

Article 585. Inadmissibility of prohibition of disposal of individual parts of inventory🔗

Contract terms that impose on the lessee the obligation not to dispose of parts of the inventory or to dispose of them only with the lessor's consent are valid only if the lessor undertakes the obligation to purchase the inventory upon termination of the lease relationship at the inventory valuation.

Article 586. Right of pledge over inventory🔗

1. The lessee of a plot of land has a right of pledge over the inventory in his possession for claims raised against the lessor that relate to the inventory received under the lease.

2. The lessor may prevent the lessee's right of pledge if he provides another means of security. He may release each part of the inventory from the right of pledge by offering a means of security corresponding to the value of these parts.

Article 587. Sublease🔗

1. The lessee does not have the right to sublease without the lessor's consent.

2. The lessor may refuse the renting out of individual parts of the leased property if this would cause him significant damage.

3. The lessee shall be liable to the lessor for the sublessee or tenant using the thing otherwise than was permitted by the lessor. The lessor may directly stop such use of the property by the sublessee or tenant.

Article 588. Early Return of Leased Property🔗

1. If the lessee returns the property before termination of the lease relationship, he shall be released from payment of the lease rent only if he offers in his place a new solvent lessee acceptable to the lessor. The new lessee must agree to accept the lease contract on the same terms.

2. If the lessee cannot offer such a lessee, he must pay the lease rent until the end of the lease relationship.

Article 589. Termination of an Open-Ended Lease Contract🔗

1. If, in the lease of a land plot or a right, the lease term is not specified, then termination of the contract is permissible only by the end of the lease year; it may be terminated no later than one month after the end of the lease year.

2. These rules apply also when the lease relationship may be terminated earlier than the term established by law.

Article 590. Termination of Contract Due to Death of Lessee🔗

1. In the event of the death of the lessee, both his heirs and the lessor may terminate the lease relationship within six months after the end of the calendar year.

2. The heirs may refuse termination of the contract and demand continuation of the lease relationship if they, directly or through third parties, are able to make proper economic use of the property transferred under lease.

Article 591. Compensation for Damage in Case of Failure to Return Leased Property🔗

If the lessee does not return the leased property after the end of the lease relationship, the lessor may demand payment of the stipulated lease rent for the delay in returning the property; the lessor may also demand compensation for other types of damage.

Article 592. Concept🔗

1. Under a contract of lease of agricultural land, the land plot is transferred for agricultural purposes for economic use together with residential or economic buildings (enterprise) intended for economic use, or without such building.

2. The rules of lease apply to the lease of agricultural land, unless otherwise provided for the lease of agricultural land.

Article 593. Form of Contract🔗

A contract of lease of agricultural land shall be concluded in writing. If this form is not observed, it shall be presumed that the contract was concluded for an indefinite term.

Article 594. List of Leased Property🔗

At the commencement of the lease relationship, the parties shall jointly draw up a list of the leased property, in which its quantity and condition at the time of transfer under lease shall be noted. The same rule applies at the end of the lease relationship. The list shall be signed by both parties and the date of its drawing up shall be indicated.

Article 595. Condition of Leased Property. Its Repair🔗

The lessor shall transfer the leased property to the lessee in a condition suitable for the use provided for by the contract and shall maintain it in that condition throughout the entire lease term. The lessee shall, at his own expense, carry out current repairs of the property, repair residential and economic buildings, roads, ditches, pipes, fences. He is obliged to use the leased property for economic purposes.

Article 596. Right of pledge on fruits🔗

The lessor has, for the satisfaction of his claims arising from the lease relationship, a right of pledge on the things added by the lessee and on the income (fruits) derived from the leased property.

Article 597. Claim for reduction of the lease rent🔗

If, as a result of a natural disaster or other force majeure circumstances on the leased land, more than half of the lessee's harvest has been destroyed, he is entitled to demand a corresponding proportional reduction of the lease rent. The lessee has the right to demand a reduction of the lease rent only on the basis of an act drawn up before the harvest concerning the amount and the causes of the loss.

Law of Georgia of 14 February 2002 No. 1282 – LHG I, No. 4, 05.03.2002, Art. 18

Correction of error - LHG I, No. 5, 21.03.2002, p. 11

Law of Georgia of 18 November 2008 No. 496 - LHG I, No. 33, 01.12.2008, Art. 210

Article 598. Obligation to reimburse necessary capital expenditures🔗

The lessor is obliged to reimburse the lessee for the capital expenditures incurred for the improvement of the condition of the leased property (including land) provided for by the lease contract.

Law of Georgia of 14 February 2002 No. 1282 – LHG I, No. 4, 05.03.2002, Art. 18

Article 599. Reimbursement of expenditures incurred with the lessor's consent🔗

In addition to that indicated in Article 598, other necessary expenditures to which the lessor gave his consent must be reimbursed by him to the lessee upon termination of the lease relationship.

Article 600. Reimbursement of the unharvested crop🔗

If the lease relationship is terminated during the lease year, the lessor must reimburse the lessee for the value of the crop which, in accordance with the rules of proper management of the holding, has not yet been harvested but is to be harvested by the end of the current lease year.

Article 601. Obligation of the lessee towards the new lessee🔗

1. After expiry of the term of the agricultural lease contract, the lessee must leave to the lessee replacing him the buildings in proper condition, and the equipment and agricultural products – in the amount necessary for the continuation of the holding until the harvest of the following year.

2. If the lessee is obliged to leave products in a greater amount or of better quality than he received at the beginning of the lease, he may demand from the lessor reimbursement of the value.

Article 602. Obligation to return the leased property🔗

The lessee is obliged, after termination of the lease relationship, to return the leased property in a condition which ensures the proper continuation of the holding existing before the return.

Article 603. Rights of the lessee in respect of individual parts of the leased property🔗

1. The lessee is entitled to separate the equipment with which he equipped the leased property; the lessor may replace the right of separation with appropriate reimbursement, except where the lessee has a legitimate interest in separation.

2. An agreement excluding the lessee's right provided for by paragraph 1 of this Article is valid only if such agreement provides for appropriate reimbursement.

Article 604. Request for continuation of lease relationship🔗

The lessee may demand from the lessor continuation of the lease relationship if:

a) the lease of the farm constitutes the basis of subsistence for the lessee's farm;

b) the land plot is vitally necessary for maintaining the lessee's farm and the termination of the lease, even in accordance with the contract, is so burdensome for the lessee or his family that it is not justified even by the lessor's legitimate interests.

Article 605. Termination of lease relationship due to expiry of term🔗

The lease relationship terminates upon expiry of the contract term. A contract concluded for a term of more than three years may be extended for an indefinite term if, to a proposal of one party – to extend the lease relationship – the other party does not refuse within three months. The proposal and the refusal thereto must be made in writing.

Article 606. Termination of lease relationship in the case of an indefinite-term contract🔗

1. If the lease term is not determined, then each party to the contract may, not later than ten days from the beginning of the lease year, give notice of termination of the lease contract for the following lease year. A calendar year shall be considered the lease year. If the parties have agreed on a shorter term, this must be made in writing.

2. If the lease relationship may be terminated earlier than the term established by law, this is permissible only at the end of the lease year.

Article 607. Concept🔗

A franchising contract is a long-term obligation relationship by which independent enterprises mutually undertake, as necessary, to promote the production and sale of goods and the provision of services through the performance of specific obligations.

Article 608. Obligations of the franchisor🔗

1. The franchisor shall provide to the franchisee, in the form used by it, intangible property rights, commodity (trade) marks, designs, packaging, the concept of production, purchase, sale of goods and organization of activity, as well as other information necessary to promote sales.

2. The franchisor shall protect the uniform system of operation from interference by third parties, continuously develop it and, by sharing business practices, providing information and improving qualifications, support the franchisee.

Article 609. Obligations of the franchisee🔗

The franchisee shall pay remuneration, the amount of which is essentially calculated taking into account the contribution made to the implementation of the franchising system, actively carry out activity with the diligence of a conscientious entrepreneur, receive services and purchase goods through the franchisor or persons designated by it, if this is directly related to the purpose of the contract.

Article 610. Obligation to keep entrusted information confidential🔗

When concluding a contract, the parties shall openly and fully inform each other of the circumstances of the business related to franchising, in particular the franchising system, and shall in good faith provide each other with information. They are obliged not to disclose the information entrusted to them even if the contract is not concluded.

Article 611. Form of contract🔗

A franchising contract requires a written form for its validity. In addition to clearly stating the mutual obligations of the parties, the duration of the contract, its termination or extension, and other essential elements of the contract, the parties shall include in the text of the contract a complete description of the franchising system.

Article 612. Duration of contract🔗

1. The duration of the contract shall be determined by the parties taking into account the requirements related to the sale of the given goods and services.

2. If the duration of the contract exceeds ten years, each party is entitled to terminate the contract subject to the one-year period required for termination. If neither party exercises this right to terminate the contract, the contract shall be extended by two years. In the event of termination of the contract due to expiry of its term or at the initiative of the parties, the parties shall endeavour, until the actual end of the business relationship, to continue the contract on the same or modified terms in compliance with the principles of mutual trust.

Article 613. Loyal competition🔗

1. Even after the end of contractual relations, the parties are obliged to conduct loyal competition with each other. Within this framework, a prohibition of competition within a defined territory may be imposed on the franchisee, which may not exceed one year.

2. If the prohibition of competition may endanger professional activity, the franchisee shall be given appropriate financial compensation, regardless of the expiry of the contract.

Article 614. Liability of the franchisor🔗

The franchisor shall be liable for the rights and information provided for by the franchising system. If it culpably breaches a contractual obligation, the franchisee is entitled to reduce the remuneration. The amount of the reduction shall ultimately be determined by the opinion of an independent expert, whose costs shall be borne by the parties.

Article 615. Concept🔗

Under a loan for use contract, the lender undertakes the obligation to transfer property to the borrower for temporary gratuitous use.

Article 616. Liability of the lender🔗

The lender shall be liable only for damage caused intentionally or by gross negligence.

Article 617. Obligation to compensate damage for concealing a defect in the thing🔗

If the lender knowingly does not disclose to the borrower a defect in the right or a defect in the thing lent, then he is obliged to compensate the damage caused.

Article 618. Purposeful use of the borrowed thing🔗

The borrower may not use the borrowed thing otherwise than as determined by the contract. He has no right to transfer the thing for use to a third person without the consent of the lender.

Article 619. Obligation to bear ordinary expenses🔗

1. The borrower shall bear the ordinary expenses necessary for the care of the borrowed thing.

2. The lender's obligation to reimburse other expenses is determined by the rules on the performance of another's affairs without mandate.

Article 620. Wear of the borrowed thing🔗

The borrower shall not be liable for changes in or deterioration of the borrowed thing if this is caused by use in accordance with the contract.

Article 621. Obligation to return the borrowed thing🔗

1. The borrower is obliged to return the borrowed thing after the expiry of the term established by the contract of loan for use.

2. If no term is determined by the contract, the lender may reclaim the thing after the time necessary for the intended use has elapsed; and if the purpose is not determined, he may demand its return at any time.

3. The borrower may return the thing at any time.

Article 622. Consequences of the death of the borrower🔗

If the borrower has died, or the lender needs the thing due to unforeseen circumstances, he may terminate the contract.

Article 623. Concept🔗

Under a loan contract, the lender transfers into ownership to the borrower money or another fungible thing, and the borrower undertakes to return a thing of the same kind, quality and quantity.

Article 624. Form of the loan contract🔗

The loan contract is concluded orally. By agreement of the parties, a written form may also be used. In the case of an oral contract, its validity may not be established solely by witness testimony.

Article 624¹. Rule for granting a secured loan/credit🔗

In the case of granting a loan/credit secured by immovable property and/or a vehicle as defined by paragraph 1 of Article 53 of the Law of Georgia "On Road Traffic", and/or auxiliary technical equipment of an agricultural machine, as well as by water, air and railway transport means, the lender/credit provider shall be obliged to transfer the funds to the borrower/credit recipient in the form of non-cash settlement.

Law of Georgia of 21 July 2018 No. 3315 – website, 07.08.2018.

Article 625. Lender's obligation and interest for a loan🔗

1. By agreement of the parties, interest may be provided for a loan. In a loan contract secured by mortgage, the monthly interest rate provided for by agreement of the parties shall be indicated.

2. When determining interest for a loan by agreement of the parties, the annual effective interest rate of the loan shall not exceed 50 percent.

3. The monthly interest rate specified in a loan contract secured by mortgage, provided for by agreement of the parties, including expenses related to the use of the loan (except expenses related to the notarial certification of the mortgage and registration of the mortgage), shall not exceed one twelfth of an amount equal to 2.5 times the arithmetic average of the market interest rates on loans issued by commercial banks, published monthly on the official website of the National Bank of Georgia, for the previous calendar year, which is in force from 1 March of each year.

3¹. The requirement provided for by paragraph 2 of this Article shall apply to all types of loans, as well as to the annual amount of the monthly interest rate provided for by agreement of the parties in accordance with paragraph 3 of this Article.

4. Unless otherwise provided by the legislation of Georgia, the condition defined by paragraph 3 of this Article shall not apply to loan contracts concluded by a commercial bank, microbank, microfinance organization and non-bank deposit institution − credit union.

5. Unless otherwise provided by the legislation of Georgia, in the case of granting a loan, the amount of any commission, any financial expense (except for such expenses as are included in the calculation of the effective interest rate of the loan), the penalty provided for by/imposed on the borrower under the loan agreement for the breach of any term of the loan agreement, and any form of financial sanction shall not exceed 0.27 per cent of the outstanding principal amount of the loan for each day. For the purposes of the 0.27 per cent provided for by/imposed under the loan agreement, in the penalty provided for by/imposed on the borrower by the lender under the agreement and in any form of financial sanction, there shall not be taken into account the imposition, in the form of a penalty, of a one-time amount of not more than GEL 20 (or its equivalent in foreign currency) upon the loan becoming overdue (until the overdue is fully eliminated), as well as the imposition of an early repayment commission in the case of refinancing of the loan or early repayment of the loan from own funds and/or by a third party in accordance with paragraph 8 of this article. In the event of the loan becoming overdue, until the overdue is fully eliminated, the amount of any commission, any financial expense (including the interest rate of the loan and such expenses as are included in the calculation of the effective interest rate of the loan), the penalty provided for by/imposed on the borrower under the loan agreement for the breach of any term of the loan agreement, and any form of financial sanction, in aggregate for each overdue, shall not exceed 1.5 times the current outstanding principal amount of the loan. For the purposes of this paragraph, the outstanding principal amount of the loan shall not include, in the event of deferral of the loan, refinancing of the loan and/or restructuring of the loan upon the loan becoming overdue, the increase in the outstanding principal amount of the loan, and the elimination of the overdue by way of restructuring of the loan, refinancing of the loan (if the refinancing is effected by concluding an agreement with the original lender) and/or deferral shall not be considered as full elimination of the overdue. For the purposes of this paragraph, restructuring of the loan, refinancing of the loan (if the refinancing is effected by concluding an agreement with the original lender) and deferral shall be considered as full elimination of the overdue only if the borrower has fully paid the corresponding monetary funds of the penalty, any form of financial sanction, commission and financial expense imposed upon the overdue.

6. For the purposes of this article, the “effective interest rate” is defined by a legal act of the National Bank of Georgia.

6¹. For the purposes of paragraph 5 of this article, the National Bank of Georgia is entitled to establish a rule for the calculation of the current outstanding principal amount of the loan and for taking into account commission, financial expense, penalty and/or any form of financial sanction that differs from that determined by paragraph 5 of this article.

7. Unless otherwise provided by Georgian legislation, a loan of up to 200,000 (two hundred thousand) GEL shall be issued only in GEL, except where, as a result of the issuance of the loan, the borrower's total obligations to the same lender exceed 200,000 (two hundred thousand) GEL. For the purposes of this paragraph, any loan linked to or indexed to a foreign currency in any form shall not be considered a loan issued in GEL.

8. Unless otherwise provided by Georgian legislation, in the case of granting a loan, the lender shall be prohibited, in the case of refinancing of the loan granted by it or in the case of repayment of the loan by the consumer's own funds and/or by a third party, in accordance with the procedure established by this Code, from charging the consumer an early repayment commission and/or penalty or any punitive sanction that in substance constitutes an early repayment commission and/or penalty that exceeds 2 percent of the outstanding principal amount of the loan.

Law of Georgia of 29 June 2007 No 5127 - LHG I, No 27, 17 July 2007, Art. 260

Law of Georgia of 25 December 2013 No 1864 - website, 30 December 2013

Law of Georgia of 29 December 2016 No 239 - website, 13 January 2017

Law of Georgia of 23 December 2017 No 1901 – website, 11 January 2018

Law of Georgia of 21 July 2018 No 3315 – website, 7 August 2018

Law of Georgia of 22 December 2018 No 4104 – website, 10 January 2019

Law of Georgia of 22 February 2023 No 2622 – website, 10 March 2023

Article 626. Termination of Contract and Repayment of Debt🔗

1. If the term for repayment of the debt is not determined, the debt shall be repaid upon termination of the contract by the creditor or the debtor.

2. The term for termination of the contract shall be three months. If interest has not been agreed, the debtor may repay the debt before the term. Early repayment of an interest-bearing loan shall be permissible only by prior agreement of the parties or with the lender's consent.

3. Interest shall be paid after the end of each year. If the loan is fixed for a term in advance, then both the debt and the interest shall be paid when the term falls due.

Article 627. Right to Demand Immediate Repayment of Debt🔗

The lender shall have the right to demand immediate repayment of the debt if the borrower's financial condition substantially deteriorates, thereby creating a threat to the claim for repayment of the loan. This right also exists if the deterioration of the borrower's financial condition preceded the conclusion of the contract, but became known to the lender only after the conclusion of the contract.

Article 628. Promise of a Loan🔗

When promising a loan, the promisor may refuse to grant the loan if the financial condition of the other party has deteriorated to such an extent that the repayment of the debt may be endangered. A promise of a loan shall be made in writing.

Article 628¹. Restriction on raising monetary funds🔗

1. An entrepreneurial entity shall have the right to raise repayable monetary funds from more than 20 natural persons (including an individual entrepreneur) only in accordance with the procedure established by the Organic Law of Georgia "On the National Bank of Georgia" and in compliance with the established requirements.

2. If a microfinance organization raises monetary funds in any form from more than 20 natural persons (including an individual entrepreneur), the amount of funds raised from each natural person (including an individual entrepreneur) shall not be less than 100,000 (one hundred thousand) GEL (or its equivalent in foreign currency). If a microfinance organization incurs the obligation to comply with the requirements of this paragraph, it shall repay the amount less than 100,000 (one hundred thousand) GEL (or its equivalent in foreign currency) raised from fewer than 20 natural persons (including an individual entrepreneur) within 1 year from the occurrence of the said obligation.

Law of Georgia of 29 December 2016 No. 239 – website, 13.01.2017.

Law of Georgia of 23 December 2017 No. 1901 – website, 11.01.2018.

Law of Georgia of 21 July 2018 No. 3315 – website, 07.08.2018.

Article 629. Concept🔗

1. Under a contract for work, the contractor undertakes to perform the work provided for by the contract, and the customer (orderer) shall be obliged to pay the contractor the agreed remuneration.

2. If the contract for work provides for the manufacture of any article and the contractor manufactures it from materials purchased by him, then he shall transfer to the customer (orderer) ownership of the manufactured article. If a generic thing is manufactured, the rules of sale shall apply.

3. The preparation of an estimate related to the contract for work shall not be compensated unless otherwise provided by the agreement.

Article 630. Agreement on Remuneration🔗

1. Remuneration shall be deemed agreed even tacitly if, under the circumstances, the contract for work is to be expected only for remuneration.

2. If the amount of remuneration is not agreed, where a tariff exists, the tariff rate shall be deemed agreed, and if no tariffs exist, then the usual remuneration.

Article 631. Consequences of Exceeding an Approximate Estimate🔗

1. If the contractor significantly exceeds the approximate estimate, he may demand only the agreed remuneration, except in cases where the excess expenditure could not have been foreseen in advance.

2. The contractor shall immediately notify the customer (orderer) of such an increase in the approximate estimate that could not have been foreseen at the time of conclusion of the contract. If the customer (orderer) terminates the contract due to the increase in the estimate, then he shall be obliged to compensate the work performed according to the approximate estimate.

Article 632. Obligation to Perform Work Personally🔗

The contractor shall perform the work personally only in cases where this follows from the specific circumstances or the nature of the work.

Article 633. Obligation of the customer to compensate damage🔗

1. The contractor may demand compensation for damage if the customer does not accept the completed work. The customer shall also be obliged to compensate damage when he fails to perform the action necessary for the performance of the work.

2. The amount of compensation is determined, on the one hand, in accordance with the duration of the delay and the amount of the remuneration, and on the other hand, according to what the contractor would have received through other use of his labour, had the customer not been in delay.

Article 634. Right of pledge over movable things🔗

In order to secure his claims, the contractor may exercise a right of pledge over the movable thing manufactured or repaired by him, if this thing is in the contractor's possession for the purpose of manufacture or repair.

Article 635. Right of mortgage over a construction land plot🔗

If the subject of the contract is a building or individual parts of this building, then the contractor may, for his claims arising from the contract, demand a mortgage over the construction land plot.

Article 636. Dissolution of the contract🔗

The customer has the right to withdraw from the contract at any time before completion of the work, but he must compensate the contractor for the work performed and for the damage caused by the dissolution of the contract.

Article 637. Termination of the contract at the initiative of the contractor🔗

The contractor may terminate the contract before completion of the work only in such a way that the customer is able to receive the services otherwise, except in cases where there is some important ground for termination. In this case, the obligation to compensate damage is excluded.

Article 638. Right to demand part of the remuneration🔗

If the contractor terminates the obligation under Article 637, then he may demand a part of the remuneration corresponding to his previous services, if the customer has any interest in the services rendered earlier.

Article 639. Obligation to deliver a defect-free thing🔗

If the service includes the manufacture of any product, then the contractor must deliver to the customer a product free from material and legal defects.

Article 640. Legally defect-free product🔗

A product is free from legal defects if third parties cannot exercise any rights against the customer.

Article 641. Materially defect-free product🔗

1. A product is free from material defects if it corresponds to the agreed terms; and if these terms are not agreed, then the product is considered free from material defects if it is suitable for the use provided for by the contract or for ordinary use.

2. It is equated to a material defect if the contractor manufactures a product different from the ordered one or in a smaller quantity.

Article 642. Claim for supplementary performance🔗

1. If the item is defective, the customer may demand supplementary performance. The contractor may, at his choice, either eliminate the defect or produce a new item.

2. For the purpose of supplementary performance, the contractor shall bear the necessary expenses, including transport, work and material expenses. The contractor may refuse supplementary performance if it requires disproportionate expenses.

3. If the contractor produces a new item, he may demand that the customer return the defective item.

Article 643. Elimination of a defect in the item by the customer🔗

1. If the contractor does not refuse supplementary performance on account of disproportionate expenses, but, on account of the defect in the item, the time limit set for supplementary performance has expired without result, the customer may eliminate the defect himself and demand reimbursement of the expenses incurred.

2. Setting an additional time limit is not required in the cases provided for by paragraph 2 of Article 405.

3. The customer may demand from the contractor an advance payment for the expenses necessary to eliminate the defect.

Article 644. Refusal of the contract on account of a defect in the item🔗

On account of a defect in the item, the customer may, in accordance with Article 405, refuse the contract. In this case, the contractor shall reimburse the customer for the expenses related to the contract.

Article 645. Reduction of remuneration on account of a defect in the item🔗

A customer who neither accepts supplementary performance of the contract after expiry of the time limit set for that purpose, nor refuses the contract, may reduce the remuneration by the amount by which the defect reduces the value of the item.

Article 646. Performance of work with the contractor's material🔗

1. If the contractor performs the work with his own material, he is liable for substandard material.

2. The contractor is liable for the incorrect use of the customer's material. The contractor shall submit to the customer a report on the consumption of the material and return the remaining material to him.

Article 647. Obligation to warn🔗

1. The contractor shall warn the customer in good time that:

a) the material received from the customer is of poor quality and unusable;

b) if the customer's instruction is followed, the work will be not durable or unusable;

c) there is another circumstance independent of the contractor that poses a threat to the durability and suitability of the work.

2. If the customer, despite the contractor's timely warning, does not replace the unusable or substandard material within the relevant time limit, does not change the given instruction on the manner of performing the work, or does not eliminate another circumstance that may cause damage to the suitability or durability of the work, the contractor has the right to refuse the contract and demand compensation for the damage caused thereby.

Article 648. Payment of remuneration for work performed🔗

The customer shall pay the contractor remuneration after performance of the work, unless the contract provides for payment in instalments.

Article 649. Acceptance of work🔗

If, under the contract or given the nature of the work performed, its transfer is required, the customer shall be obliged to accept the work performed. Upon acceptance, the customer shall be obliged to pay the remuneration. The work shall be deemed accepted if the customer does not accept the work performed within the period set by the contractor.

Article 650. Contractor's liability for the loss of the customer's property🔗

The contractor shall also be liable for the loss or damage of the customer's property in the event of negligence.

Article 651. Contractor's risk🔗

1. The contractor shall bear the risk of accidental loss or damage of the work performed until the transfer of the performance to the customer. Upon transfer, the risk of accidental loss or damage shall pass to the customer. The case where the customer delays acceptance shall also be equated with transfer.

2. The risk of accidental loss or damage of the material shall be borne by the party providing the material.

Article 652. Consequences of acceptance of a defective item🔗

If the defect of the item is known to the customer and he nevertheless accepts it without making a claim, the customer shall not acquire rights of claim on account of that defect.

Article 653. Warranty period🔗

If the contractor has assumed a warranty period for the item, a defect revealed during that period shall give rise to the corresponding rights.

Article 654. Consequences of deliberate concealment of a defect by the contractor🔗

If the contractor deliberately conceals a defect, he may not rely on an agreement that excludes or limits the customer's rights on account of a defect of the item.

Article 655. Limitation period🔗

A claim on account of a defect in performance may be brought by the customer within one year, and a claim relating to a structure – within five years from the day of acceptance of the work performed.

Article 656. Computation of the limitation period where the work is accepted in parts🔗

If, under the contract, the work is accepted in parts, the limitation period for a claim on account of a defect shall begin on the day of acceptance of the work as a whole.

Article 657. Concept🔗

1. Under a tourism contract, the tour organiser (tourist enterprise) shall be obliged to provide the tourist (traveller) with the agreed services. The tourist shall be obliged to pay the tour organiser the promised remuneration for the services provided.

2. A tourist service package (hereinafter – package) is a complex consisting of two or more components of tourist services (catering, overnight accommodation, transport services and others), the value of which is included in the price of the package.

Law of Georgia of 28 April 2006 No. 2946 – LHG I, No. 15, 16.05.2006, Art. 99

[Article 657. (removed) (shall enter into force from 1 June 2027)]

Law of Georgia of 15 December 2023 No. 3970 – website, 28.12.2023.

Article 657¹. Prohibition of the provision of improper information🔗

Any descriptive form related to the travel (package), the price and other terms of the contract with which the tourist is provided by the travel organiser shall not contain false, improper and misleading information.

Law of Georgia of 28 April 2006 No. 2946 - LHG I, No. 15, 16.05.2006, Art. 99

[Article 6571. (removed) (shall enter into force from 1 June 2027)]

Law of Georgia of 15 December 2023 No. 3970 - website, 28.12.2023

Article 657². Necessity of the provision of detailed information🔗

1. To the tourist, in connection with the travel (package), before the conclusion of the contract, in writing or in another form acceptable to the tourist, detailed information shall be provided:

a) on the price, the methods and schedule of its payment;

b) on the place of destination and the purposes, the means of transport to be used and their characteristics;

c) on the type of accommodation, location, category, quality of service, its classification and other main characteristics;

d) on meals;

e) on the route;

f) on the requirements related to the passport and visa, as well as the health condition necessary for the travel;

g) on the visits, excursions and/or other services included in the price of the package;

h) in the event that a certain number of tourists is necessary for organising the travel and it has not been collected, on the last deadline for informing the tourist about the termination of the contract.

2. The travel organiser shall, within a reasonable time before the start of the travel, provide the tourist with the following information:

a) on the time and places of intermediate stops;

b) the name, address and telephone number of the travel organiser or its local representative or, in the absence of such, of local agencies and/or appropriate services, to which the tourist may apply for assistance;

c) in the case of travel of a minor, on the means of establishing direct contact with the minor or the person responsible for the minor;

d) on the obligation of the tourist related to the reimbursement of the expenses incurred by the tourist's termination of the contract, as well as for assisting the tourist during repatriation, an accident and/or illness.

3. Information provided to the tourist in writing or in another appropriate form shall be binding on the travel organiser.

Law of Georgia of 28 April 2006 No. 2946 - LHG I, No. 15, 16.05.2006, Art. 99

[Article 6572. (removed) (shall enter into force from 1 June 2027)]

Law of Georgia of 15 December 2023 No. 3970 - website, 28.12.2023

Article 657³. Rules for changing the initial price of the contract and for calculation and obligations of the tour organizer🔗

1. The value of the trip (package) shall not be subject to revision, except for the case provided for by paragraph 1 of Article 660 of this Code, as well as the case where the contract itself provides for the possibilities of revision and the rules for changing the initial price and for calculation, subject to the following conditions:

a) the cost of transport, including the cost of fuel;

b) specific transport and carriage service charges, such as the loading and carriage of cargo at ports and airports, taxi hire and others;

c) the amount of the currency exchange rate provided for in the package.

2. Within twenty days before the day of departure, the value of the trip (package) shall not be subject to increase, and in the case where the tour organizer, for reasons independent of it, is compelled to significantly change the essential terms of the contract before departure, it shall immediately notify the tourist thereof, so that the latter may take an appropriate decision on terminating the contract or accepting it under the changed terms, of which the latter shall notify the tour organizer in a timely manner.

Law of Georgia of 28 April 2006 No. 2946 - LHG I, No. 15, 16.05.2006, Art. 99

[Article 657³. (removed) (shall enter into force from 1 June 2027)]

Law of Georgia of 15 December 2023 No. 3970 - website, 28.12.2023

Article 658. Third person in the trip🔗

1. Before the start of the trip, the tourist may request the participation of a third person in the trip instead of him/her. The tour organizer may refuse the participation of a third person if the latter does not meet the conditions necessary for the trip.

2. The tour organizer may require the tourist to reimburse the additional expenses caused by the participation of a third person in the trip.

[Article 658. (removed) (shall enter into force from 1 June 2027)]

Law of Georgia of 15 December 2023 No. 3970 - website, 28.12.2023

Article 659. Defects of the trip🔗

1. The tour organizer shall be obliged to organize the trip in such a way that it does not have such defects as may impair or reduce the significance of the trip for the usual or contractually provided purposes.

2. If the trip has such defects, the tourist may request their elimination. The tour organizer has the right to refuse to remedy the defects if this requires disproportionately large expenses.

3. If the tour organizer does not eliminate the defects within a reasonable time determined by the tourist, the tourist may eliminate the defects himself/herself and request reimbursement of the necessary expenses incurred for them. Setting a time limit is not necessary if the tour organizer refuses to eliminate the defects, or if the tourist is interested in the immediate elimination of the defect.

[Article 659. (removed) (shall enter into force from 1 June 2027)]

Law of Georgia of 15 December 2023 No. 3970 - website, 28.12.2023

Article 660. Reduction in value due to a travel defect🔗

1. If the travel is defective, its value shall be reduced taking into account the period during which the defects existed.

2. The value shall not be reduced if the tourist, through his/her own fault, fails to notify the tour organiser of the defect.

[Article 660. (deleted) (shall enter into force from 1 June 2027)]

Law of Georgia of 15 December 2023 No. 3970 – website, 28.12.2023.

Article 661. Termination of the contract on the tourist's initiative due to a defect🔗

1. If the tourist has suffered significant damage due to a defect specified in Article 659, he/she may terminate the contract. The same rule applies where he/she is unable to participate in the travel for a valid reason of which the tour organiser is also aware.

2. Termination of the contract shall be permissible where the tour organiser does not eliminate the defects within the time limit set by the tourist. Setting a time limit is not necessary if the elimination of the defects is impossible, or the tour organiser refuses to eliminate them, or termination of the contract is justified by the tourist's special interests.

3. Upon termination of the contract, the tour organiser loses the right to receive the agreed remuneration, but may claim remuneration for defect-free services already rendered.

4. If the contract provided for the return of the tourist, after termination of the contract the tour organiser shall be obliged to take him/her back. In this case, additional expenses shall be borne by the tour organiser.

5. If the tourist terminates the contract before the start of the travel in accordance with paragraph 2 of Article 657³ of this Code, the package shall be cancelled and in such case the tour organiser shall be obliged to the tourist:

a) to offer a new package equivalent to or of better quality than the original package, where possible;

b) or to compensate the difference in price if the new package offered is of lower quality;

c) or to immediately refund the amount paid under the contract.

Law of Georgia of 28 April 2006 No. 2946 – LHG I, No. 15, 16.05.2006, Art. 99

[Article 661. (deleted) (shall enter into force from 1 June 2027)]

Law of Georgia of 15 December 2023 No. 3970 – website, 28.12.2023.

Article 662. Compensation for damage caused by a travel defect🔗

1. If the travel defects arose as a result of circumstances for which the tour organizer is liable, the tourist may, without restriction of the right to a reduction of compensation for the defects or to termination of the contract, demand compensation for damage caused by non-performance.

2. If the travel failed or was improperly organized, the tourist may also demand appropriate monetary compensation for the loss of holiday time.

3. If the contract, through no fault of the tourist, is terminated before the start of the travel, the tourist has the right to demand compensation for damage caused by non-performance, except in cases where:

a) the ground for termination of the contract is the insufficient number of persons necessary for organizing the travel, of which the tourist is notified in written form within the period specified in the description of the travel (package);

b) the reason for termination of the contract is force majeure.

Law of Georgia of 28 April 2006 No. 2946 - LHG I, No. 15, 16.05.2006, Art. 99

[Article 662. (repealed) (shall enter into force from 1 June 2027)]

Law of Georgia of 15 December 2023 No. 3970 - website, 28.12.2023

Article 662¹. Obligation of the tour organizer of a tourist travel to respond promptly to a tourist's complaint🔗

The tour organizer or its representative shall respond promptly to the tourist's complaint and take an appropriate decision.

Law of Georgia of 28 April 2006 No. 2946 - LHG I, No. 15, 16.05.2006, Art. 99

[Article 6621. (repealed) (shall enter into force from 1 June 2027)]

Law of Georgia of 15 December 2023 No. 3970 - website, 28.12.2023

Article 662². Obligation of the tour organizer of a tourist travel to provide guarantees to the tourist🔗

The tour organizer shall provide firm security guarantees in connection with incurring expenses for the purpose of repatriation of consumers in the event of bankruptcy and return of the amounts paid for them.

Law of Georgia of 28 April 2006 No. 2946 - LHG I, No. 15, 16.05.2006, Art. 99

[Article 6622. (repealed) (shall enter into force from 1 June 2027)]

Law of Georgia of 15 December 2023 No. 3970 - website, 28.12.2023

Article 663. Limitation period for claims arising from a travel contract🔗

1. The tourist may submit the claims provided for in Articles 659–662 to the travel organiser within one month after the expiry of the travel period indicated in the contract. After the expiry of the period, the tourist may submit his/her claims only if he/she is not at fault for the delay in submitting the claim.

2. The limitation period for the tourist's claim is six months. This period begins on the day on which the travel under the contract was to have ended. If the tourist submits claims before the commencement of the limitation period, the limitation period shall be suspended until the day on which the travel organiser rejects the claim.

[Article 663. (repealed) (shall enter into force from 1 June 2027)]

Law of Georgia No. 3970 of 15 December 2023 – website, 28.12.2023.

Article 664. Limitation of liability🔗

The travel organiser may, by agreement with the tourist, limit his/her liability to three times the value of the services, if:

a) the damage caused to the tourist was not caused intentionally or by gross negligence,

or

b) the travel organiser does not alone bear full liability towards the tourist for the damage arising as a result of the fault of one of the persons performing the travel organiser's obligation.

[Article 664. (repealed) (shall enter into force from 1 June 2027)]

Law of Georgia No. 3970 of 15 December 2023 – website, 28.12.2023.

Article 665. Withdrawal from the contract before the start of the travel🔗

1. The tourist may withdraw from the contract at any time before the start of the travel.

2. When the tourist withdraws from the contract, the travel organiser loses the right to receive the agreed remuneration. At the same time, he/she may claim appropriate compensation, the amount of which is determined on the basis of the agreed remuneration less the amount which he/she could have received as a result of otherwise using his/her services.

[Article 665. (repealed) (shall enter into force from 1 June 2027)]

Law of Georgia No. 3970 of 15 December 2023 – website, 28.12.2023.

Article 666. Force majeure🔗

1. If the travel becomes substantially more difficult, or other danger arises, or damage is caused to the tourist as a result of the occurrence of force majeure unforeseen at the time of conclusion of the contract, then both the tourist and the travel organiser may terminate the contract.

2. In the case of termination of the contract in the case provided for by paragraph 1 of this Article, the rules of paragraph 3 and of the first sentence of paragraph 4 of Article 661 shall apply. Each party shall bear half of the additional costs of the return. In other cases, the additional costs shall be borne by the tourist.

[Article 666. (repealed) (shall enter into force from 1 June 2027)]

Law of Georgia No. 3970 of 15 December 2023 – website, 28.12.2023.

Article 667. Inadmissibility of agreements to the detriment of the traveller🔗

The rules provided by this Chapter may not be changed to the detriment of the traveller.

[Article 667. (removed) (shall enter into force from 1 June 2027)]

Law of Georgia of 15 December 2023 No. 3970 – website, 28.12.2023.

Article 668. Concept🔗

Under a contract of carriage the carrier shall be obliged, against payment of the agreed remuneration, to transport cargo or to carry a passenger to the place of destination.

Article 669. Liability of the carrier🔗

1. The carrier shall be liable for damage caused to the passenger, as well as for damage to or loss of his/her luggage.

2. Liability shall not arise if the damage is caused by force majeure or by the passenger himself/herself, or by his/her luggage.

3. The carrier's liability may not be excluded or limited by contract.

Article 670. Obligation to conclude a contract🔗

A person who publicly offers the carriage of cargo and the carriage of passengers shall be obliged to conclude a contract of carriage, unless there is a ground for refusal.

Article 671. Carriage by several means of transport🔗

If a loaded motor vehicle is carried over one section of the route by sea, rail or air transport and – in accordance with the cases provided for in Article 682 – the cargo is not unloaded, the norms of this Chapter shall nevertheless apply to the entire carriage.

Article 672. Form of the contract of carriage🔗

The contract of carriage shall be drawn up in the form of a consignment note (or another document). Notwithstanding the absence, defectiveness or loss of the consignment note, the content and validity of the contract of carriage shall be determined by the norms of this Chapter.

Article 673. Rules for drawing up the consignment note🔗

1. The consignment note shall be drawn up in three copies, which shall be signed by the consignor and the carrier. The first copy shall remain with the consignor, the second shall accompany the cargo, and the third shall be retained by the carrier.

2. If the cargo to be carried is distributed among several means of transport, or if the matter concerns cargo of different types or divided into separate lots, both the consignor and the carrier may demand that as many consignment notes be drawn up as there are means of transport or types of cargo.

Article 674. Particulars of the consignment note🔗

1. The consignment note shall contain the following data:

a) the date and place of issue;

b) the name and address of the consignor;

c) the name and address of the carrier;

d) the date and place of taking over the cargo, as well as the place of delivery of the cargo;

e) the name and address of the consignee;

f) the usual designation of the type of cargo and the type of packaging, and in the case of dangerous goods, their generally recognised designation;

g) the quantity, marks and numbers of the cargo to be carried;

h) the weight of the cargo or the quantity otherwise indicated;

i) the expenses related to the carriage (the price of carriage, additional expenses, import taxes and other expenses arising from the conclusion of the contract until the delivery of the cargo);

j) the notes of the Legal Entity of Public Law – the Revenue Service – within the governance sphere of the Ministry of Finance of Georgia;

k) a note that the carriage, notwithstanding a bilateral agreement, is still subject to the norms of this Chapter.

2. Where necessary, the consignment note shall contain additional data:

a) prohibition of transshipment to other transport;

b) the expenses which the consignor assumes;

c) the amount of the price surcharge payable at the time of dispatch of the cargo;

d) the value of the cargo and a note of special interest in delivery;

e) the consignor's instructions to the carrier regarding the insurance of the cargo;

f) the agreed time limit within which the carriage must be completed;

g) the list of documents handed over to the carrier.

3. The parties may also enter in the consignment note other data which they consider appropriate.

Law of Georgia of 12 November 2010 No. 3806 - LHG I, No. 66, 03.12.2010, Art. 414

Article 675. Liability of the consignor🔗

1. The consignor shall be liable for all expenses and damage arising from the fact that the following were provided incorrectly or incompletely:

a) the data indicated in subparagraphs "b", "d", "e", "f", "g", "h" and "j" of the first paragraph of Article 674;

b) the data indicated in paragraph 2 of Article 674;

c) all other data or instructions of the consignor for drawing up the consignment note or for entering therein.

2. If the carrier, at the request of the consignor, enters in the consignment note the data listed in the first paragraph of this Article, it shall be presumed, until the contrary is proved, that the carrier was acting on behalf of the consignor.

3. If the consignment note does not contain the data indicated in subparagraph "k" of the first paragraph of Article 674, the consignor shall be liable for all expenses and damage incurred by the person entitled to the cargo due to the absence of such data.

Article 676. Obligation of the carrier upon receipt of the cargo🔗

1. Upon receipt of the cargo, the carrier shall check:

a) the number of packages of the cargo, the correctness of the data indicated in the consignment note regarding their marks and numbers;

b) the external condition of the cargo and its packaging.

2. If the carrier does not have the appropriate means to check the data indicated in subparagraph „a“ of the first paragraph of this article, then it shall enter into the consignment note the conditions that must be fulfilled. Likewise, it shall enter such conditions as relate to the external condition of the cargo and its packaging. These conditions are not binding on the consignor, except in cases where he has expressly acknowledged them in the consignment note.

3. The consignor may require the carrier to verify the weight of the cargo or its quantity given otherwise. He may also require the carrier to check the contents of the cargo to be carried. The carrier is entitled to demand reimbursement of the costs related to this check. The results of the verification shall be noted in the consignment note.

Article 677. Presumption of the conclusion of a carriage contract🔗

1. Until proof to the contrary, the consignment note (bill of lading or other forms accepted in carriage) is evidence that a carriage contract has been concluded, that its content has been determined and that the cargo has been received by the carrier.

2. If the conditions of carriage are not indicated in the consignment note, until proof to the contrary it shall be presumed that, upon receipt of the cargo by the carrier, the cargo and its packaging were in externally good condition and that the number of packages of the cargo, its marks and numbers correspond to the data entered in the consignment note.

Article 678. Liability of the consignor for damage caused by poor-quality packaging of the cargo🔗

The consignor shall be liable to the carrier for damage caused by poor-quality packaging of the cargo, which was caused to persons, materials and other property, as well as for the costs caused by poor-quality packaging, except in cases where the defect was obvious, or upon receipt of the cargo the carrier knew thereof and, in connection therewith, did not state any condition.

Article 679. Obligation of the sender to provide necessary information🔗

1. The sender shall attach to the consignment note all documents necessary for carrying out customs formalities before delivery of the cargo and for performing other similar actions, or hand these documents over to the carrier and provide it with all necessary information.

2. The carrier is not obliged to check whether these documents and information are correct and sufficient. The sender shall be liable to the carrier for damage caused by the incompleteness and inaccuracy of the documents and data, except where this occurred through the fault of the carrier.

3. The carrier shall be liable for the loss of the documents indicated in the consignment note and attached thereto or handed over to the carrier, or for their incorrect use; it may not be held liable for more than would be established in the event of loss of the cargo.

Law of Georgia of 12 November 2010 No. 3806 - LHG I, No. 66, 03.12.2010, Art. 414

Law of Georgia of 27 March 2012 No. 5964 – website, 12.04.2012

Law of Georgia of 28 June 2019 No. 4925 – website, 04.07.2019

Article 680. Rights of the consignor🔗

1. The consignor is entitled to dispose of the cargo and to demand termination of the carriage; it may also demand that the carrier not change the place of delivery or the cargo, and not hand it over to a person other than the one indicated in the consignment note.

2. This right is extinguished immediately when the second copy of the consignment note is transferred to the consignee, or when the latter exercises its right under the first sentence of Article 681. From that moment, the carrier shall comply with the consignee's instructions.

3. The consignee acquires the right of disposal upon execution of the consignment note if the consignor has made a corresponding notation in the consignment note.

4. If, in exercising the right of disposal, the consignee has given an instruction for delivery of the cargo to a third person, the latter, in turn, is not entitled to designate another consignee.

5. The exercise of the right of disposal shall be carried out in compliance with the following rules:

a) the consignor or – in the case referred to in paragraph 3 of this Article – the consignee, if it wishes to exercise its right of disposal, shall present the first copy of the consignment note, in which the new instructions given to the carrier must be entered, and shall compensate it for all expenses and damage incurred as a result of compliance with those instructions;

b) the instructions must be capable of being carried out at the moment when they reach the person who is to carry out those instructions, and they must not hinder the carrier's ordinary business operations, nor cause damage to other cargo of the consignor or consignee;

c) the instructions must not cause splitting of the cargo.

6. If the carrier, on the basis of subparagraph "b" of paragraph 5 of this Article, is unable to comply with the instructions received, it shall immediately notify the person who gave those instructions thereof.

7. A carrier that fails to comply with instructions given in compliance with the requirements of this Article, or performs them without requiring the first copy of the consignment note, is liable to the authorized person for the damage arising therefrom.

Law of Georgia of 28 December 2002 No. 1902 – LHG I, No. 4, 22 January 2003, Art. 20

Article 681. Rights of the consignee upon delivery of the cargo🔗

Upon delivery of the cargo to the place provided for delivery of the cargo, the consignee is entitled to demand from the carrier the transfer of the second copy of the consignment note with confirmation of receipt of the cargo, and thereby the cargo shall be considered delivered. If a shortage of the cargo is discovered, or the cargo has not been delivered within the period provided for by Article 688, the consignee may exercise the rights arising from the contract of carriage in its own name against the carrier.

Article 682. Impossibility of performance of contract🔗

1. If at the place provided for delivery of the cargo, before acceptance of the cargo, performance of the contract under the conditions indicated in the consignment note is impossible, the carrier shall request the instruction regarding the cargo from the person authorized under Article 680.

2. If circumstances allow carriage differently from the conditions indicated in the consignment note and the carrier was unable to receive the instructions regarding the cargo provided for by Article 680 from the authorized person within a reasonable time, it shall take such measures as, proceeding from the interests of the authorized person, will be considered most appropriate.

Article 683. Circumstances impeding delivery of cargo🔗

1. If after the arrival of the cargo at the place of destination circumstances impeding delivery of the cargo arise, the carrier shall request instructions from the consignor. If the consignee refuses to accept the cargo, the consignor is entitled to dispose of the cargo himself even without presentation of the first copy of the consignment note.

2. The consignee may request delivery of the cargo even when he has refused to accept the cargo, until the carrier has received contrary instructions from the consignor.

3. If a circumstance impeding delivery of the cargo arose after the consignee, in accordance with paragraph 3 of Article 680, issued an instruction on delivery of the cargo to a third party, then in applying paragraphs 1 and 2 of this article, the consignee takes the place of the consignor, and the third party takes the place of the consignee.

Article 684. Right to reimbursement of expenses arising on the basis of the consignor's instructions🔗

1. The carrier has the right to demand reimbursement of those expenses that arise for it as a result of receiving instructions or performing them, except in cases where these expenses arose through its fault.

2. In the cases provided for by paragraph 1 of Article 682 and Article 683, the carrier may unload the cargo immediately at the expense of the authorized person; after unloading, the carriage is considered completed. Thereafter the carrier shall keep the cargo for the authorized person. It may entrust the storage of the cargo to a third party; in such case it bears liability only for the selection of the third party. All claims and expenses arising from the consignment note shall be reimbursed from the value of the cargo.

3. Without waiting for the instruction of the authorized person, the carrier may sell the cargo if the goods are perishable, or if the condition of the cargo justifies such action, or where the storage expenses exceed the value of the cargo. It may also sell the cargo in other cases if within a specified time it does not receive instructions from either party.

4. If the cargo was sold in accordance with the rules of this article, the amount, after deduction of expenses related to the cargo, shall be transferred to the authorized person. If these expenses exceed the proceeds, the carrier may demand reimbursement of the difference.

5. The procedure for sale is determined by the laws and customs of the place where the cargo is located.

Article 685. Right of Pledge on Cargo🔗

The carrier has a right of pledge on the cargo for expenses arising from the contract of carriage, until he is entitled to dispose of this thing.

II. Liability of the Carrier

Article 686. Concept. Content🔗

1. The carrier shall be liable for the total or partial loss of and damage to the cargo if the cargo was damaged or lost in the period between its receipt and delivery, as well as for delay in delivery.

2. The carrier shall be released from liability if the loss of, damage to, or delay in delivery of the cargo occurred through the fault of the person entitled or through an instruction of the same person for which the carrier is not liable; also if the defect of the cargo was caused by circumstances which the carrier could not avoid and the consequences of which he could not have avoided.

3. For the purpose of exemption from liability, the carrier may not invoke either a defect of the means of transport used for the carriage or the fault of the personnel servicing the lessor or lessee of that means.

4. The carrier shall be released from liability, where the conditions provided for by paragraphs 2-5 of Article 687 exist, if the loss or damage to the cargo arose from a special danger associated with the circumstances listed below, namely, when:

a) an open, uncovered means of transport is used, if its use was expressly agreed and noted in the consignment note;

b) the cargo is not packed or is poorly packed, which, given the nature of the cargo, creates a risk of loss or damage;

c) inspection, loading, stowing or unloading of the cargo is carried out by the consignor, the consignee or a third party acting for them;

d) due to the peculiarities of individual cargoes, there is a risk of their total or partial loss or damage, in particular, breakage, oxidation, corrosion, drying out, leakage, normal loss, or the impact of insects and rodents;

e) the cargo to be transported is insufficiently marked or numbered;

f) animals are to be transported.

Article 687. Burden of proof🔗

1. The burden of proving that the loss, damage or delay in delivery of the cargo was caused by the circumstances referred to in paragraph 2 of Article 686 shall lie with the carrier.

2. If the carrier proves that, in the light of the circumstances of the particular case, the loss or damage could have arisen from one or more of the risks listed in paragraph 4 of Article 686, it shall be presumed that the damage arose therefrom. The person entitled may prove that the damage did not arise from that risk or arose only from that risk.

3. The presumption provided for in paragraph 2 of this Article shall not apply in the case of loss or destruction of the cargo carried under extreme conditions as provided for by subparagraph „a“ of paragraph 4 of Article 686.

4. If the carriage is performed by a means of transport equipped with special equipment to protect the cargo from heat, cold, temperature changes or wind, the carrier may invoke paragraph 4 of Article 686 only if it proves that it has performed the necessary actions for the selection, operation and use of such equipment and has complied with all the requirements imposed on it.

5. The carrier may apply subparagraph „d“ of paragraph 4 of Article 686 only if it proves that it has performed all the measures imposed on it and has complied with all the instructions given to it.

Article 688. Delay in delivery of the cargo🔗

Delay in delivery of the cargo shall be deemed to occur when the cargo has not been delivered within the agreed time limit or, if no time limit was agreed, within the ordinary time required for carriage, taking into account the circumstances relating to the determination of the time necessary for assembling the parts in the case of loading in parts, if the time limit which a prudent carrier should have observed in ordinary circumstances has been exceeded.

Article 689. Presumption of loss of cargo🔗

1. The authorized person may, even without submitting additional evidence, consider the cargo lost if the cargo is not delivered to the place of destination within thirty days after expiry of the agreed carriage period or, if no such period was agreed, – after sixty days from receipt of the cargo by the carrier.

2. The authorized person may, when compensating damage for lost cargo, request in writing that he/she be notified immediately if the lost cargo appears within one year after the compensation of damage. The response to this request shall also be given in writing.

3. The authorized person may, within thirty days after receipt of such notification, request that the cargo be delivered to him/her after satisfaction of the rights arising from the consignment note and on condition of return of the compensation received, where necessary – minus the expenses incurred in compensating the damage; his/her claims for compensation of damage due to breach of the carriage period under Articles 692 and 694 remain unchanged.

4. If the request provided for in paragraph 2 of this Article is not submitted, or there is no indication within the thirty-day period provided for in paragraph 3, or the cargo is found after expiry of the one-year period from payment, then the carrier may dispose of the cargo in accordance with the rules in force at the place where the cargo is located.

Article 690. Right to request receipt of the additional charge🔗

If the cargo was delivered to the consignee without payment of the additional charge which the carrier was to receive after delivery of the cargo at the place of destination, then the carrier may, by reference to the right of recourse, demand compensation for damage from the consignor.

Article 691. Rule for sending dangerous cargo🔗

1. If the consignor sends dangerous cargo, then he/she is obliged to provide the carrier with accurate information and to warn about this cargo, and where necessary – to insure this cargo. If this obligation is not entered in the consignment note, then the consignor and the consignee shall prove by other means that the carrier knew precisely the type of cargo and the expected danger.

2. Dangerous cargo, about the danger of which the carrier knew nothing under paragraph 1, the carrier may at any time and at any place unload, destroy or render harmless without obligation to compensate damage; the consignor shall also be liable for the damage and expenses caused by handing over or carrying this cargo.

Article 692. Value of cargo in case of total or partial loss of cargo🔗

1. If, in accordance with the rules of this Chapter, the carrier is obliged to compensate damage for total or partial loss of cargo, compensation for damage shall be calculated according to the price of the cargo prevailing at the place and time of delivery of the cargo.

2. The value of cargo shall be determined by the exchange price, and in the absence of such price – by the market price; if such price also does not exist, then – by analogy with cargo of similar type and value.

3. The freight amount, as well as costs related to customs formalities and other similar expenses, in case of total loss of cargo shall be refunded in full, and in case of partial loss – partially.

4. If the time limit for delivery of cargo has been exceeded and the authorized person proves that damage arose as a result thereof, the carrier shall compensate it only up to the amount of the value of this cargo. A claim for compensation of more may be made only when, in accordance with Article 694, there was a special interest in this carriage, or the value of the cargo was indicated.

Law of Georgia of 12 November 2010 No. 3806 - LHG I, No. 66, 03.12.2010, Art. 414

Law of Georgia of 27 March 2012 No. 5964 – website, 12.04.2012

Law of Georgia of 28 June 2019 No. 4925 – website, 04.07.2019

Article 693. Compensation for damage in case of damage to cargo🔗

1. In case of damage to cargo, the carrier shall pay the compensation by which the value of the cargo has been reduced and which is calculated according to the value of the cargo established in paragraphs 1, 2 and 3 of Article 692.

2. Compensation for damage shall not exceed the amount which:

a) would have to be paid in case of total loss of cargo, if the entire cargo as a result of damage has completely depreciated;

b) would have to be paid in case of loss of the depreciated part of the cargo, if as a result of damage only one part of the cargo has depreciated.

Article 694. Indication of special interest in the consignment note🔗

1. The consignor may, on the basis of payment of an agreed surcharge, indicate in the consignment note his special interest in this carriage for cases where the cargo is lost or damaged, or its delivery time is exceeded.

2. If special interest in the given carriage has already been expressed, independently of the compensation for damage provided for by Articles 692 and 693, additional compensation for damage may be claimed in the amount expressed in the interest.

Article 695. Claim for interest on secured compensation for damage🔗

1. A person entitled to the cargo may claim five percent per annum on the compensation for damage secured to him. Interest shall be calculated from the day of submission of a claim to the carrier or, if no claim was submitted, from the day of filing of the action.

2. If compensation for damage is determined in a monetary unit that does not circulate in the country, and payment is demanded, the exchange rate shall be determined in accordance with the rate in effect on that day at the place of payment of the compensation for damage.

Article 696. Non-contractual claims in carriage🔗

1. If loss, damage or delay, which arose during carriage governed by this Chapter, may under the applicable rules give rise to non-contractual claims, then in response thereto the carrier may invoke those rules of this Chapter which exclude his liability, or determine the amount of compensation for damage, or limit it.

2. If claims for non-contractual liability are brought for loss, damage and delay against one of the persons, then he may rely on those rules of this Chapter which exclude his liability, or determine the amount of compensation for damage, or limit it.

Article 697. Inadmissibility of release of the carrier from liability🔗

The carrier may not rely on those rules of this Chapter which exclude or limit his liability, or release him from the burden of proof, if the damage was caused by his fault.

III. Complaint (claim) and action

Article 698. Concept. Content🔗

1. If the consignee accepts the cargo in such a way that he does not check its condition together with the carrier and does not make a claim of a general nature to the carrier regarding loss and damage, then until the contrary is proved it shall be presumed that the consignee received the cargo in the condition indicated in the consignment note; the said claim must be submitted on the day of delivery of the cargo, if it concerns externally visible loss and damage, and in the case of externally unnoticeable loss and damage – not later than seven days after delivery. If it concerns externally unnoticeable loss and damage, the claim (demand) must be submitted in writing.

2. If the consignee and the carrier jointly checked the condition of the cargo, evidence contrary to the results of the check shall be admitted only if it concerns externally unnoticeable loss and damage and the consignee does not submit written claims within seven days after delivery.

3. A claim for compensation for damage due to delay may be made only if the consignee submits written claims to the carrier within twenty-one days after delivery of the cargo.

4. When calculating the time limits provided for by this Article, the following shall not be counted in these time limits: the days of dispatch of the cargo, inspection, or its delivery to the consignee.

5. The carrier and the consignee shall assist each other in carrying out the necessary inspections and establishing the required facts.

Article 699. Limitation period for rights arising from carriage🔗

The limitation period for rights arising from carriage regulated in this Chapter is one year. In case of intent or gross negligence this period is three years. The running of the limitation period begins:

a) in case of partial loss, damage or exceeding the delivery period of the cargo – from the day of its dispatch;

b) in case of total loss of the cargo – from the thirtieth day after expiry of the agreed carriage period or, if no such period was agreed, on the sixtieth day from receipt of the cargo by the carrier;

c) in all other cases – after the expiry of three months from the day of conclusion of the carriage contract.

Article 700. Suspension of the running of the limitation period🔗

The limitation period is suspended on the basis of a written claim as of the day when the carrier rejects the claim and returns the enclosed documents. If the claim is partially acknowledged, the limitation period for the disputed part of the claim continues. The burden of proving receipt of the claim or the response to it, as well as the return of the documents, lies with the person who relies on them. Other claims relating to the same subject matter cannot suspend the running of the limitation period.

IV. Carriage by successive carriers

Article 701. Liability in case of successive carriage🔗

If carriage is performed under one contract by different successive carriers, each of them is liable for the performance of the entire carriage; the second and each subsequent carrier becomes a party to the contract by receiving the cargo and the consignment note.

Article 702. Obligation to hand over proper documents🔗

1. A carrier who receives the cargo from the previous carrier is obliged to hand over a dated document confirming receipt of the cargo and signed by him. On the second copy of the consignment note he must indicate his name and address. If necessary, the carrier enters in the second copy of the consignment note the conditions provided for by paragraph 2 of Article 676 and confirmation of receipt of the cargo.

2. Relations between successive carriers are regulated by Article 677.

Article 703. Claim for compensation of damage from successive carriers🔗

Claims for compensation of damage due to loss, damage of the cargo or exceeding the carriage period, except for the filing of a counterclaim or objection, may be brought only against the first, last or the carrier during whose carriage the cargo was lost, damaged or the delivery period of the cargo was exceeded; the same claim may be filed against several carriers.

Article 704. Right of recourse upon compensation for damage🔗

If, under this Chapter, the carrier has already compensated the damage, it has the right of recourse in the following cases:

a) If the carrier who caused the loss or damage of the cargo must alone compensate the damage to be compensated by him or by several carriers;

b) If the loss of the cargo or its damage was caused by two or more carriers, each must compensate the amount corresponding to its share of liability; if it is impossible to determine this, then each shall be liable in proportion to its share in the freight received;

c) When it is impossible to determine which carrier should be charged with compensation of the damage, all carriers must pay according to the proportion given in subparagraph "b".

Article 705. Consequences of the carrier's insolvency🔗

If one of the carriers is insolvent, the amount payable by it but not yet paid shall be distributed among the remaining carriers in proportion to their share in the freight received.

Article 706. Objection on account of the exercised right of recourse🔗

A carrier against whom recourse has been exercised in accordance with Articles 704 and 705 may not raise the objection that the carrier exercising the recourse paid the amount without grounds, if the judgment on payment was rendered by a court and if this carrier was duly notified of these court proceedings and could also have participated in these proceedings.

Article 707. Agreement of successive carriers🔗

Carriers have the right to agree on matters different from Articles 704 and 705.

Article 708. Invalidity of an unlawful agreement🔗

1. Except for the rules provided in Article 707, any agreement that directly or indirectly does not comply with the rules of this Chapter is void. The invalidity of such agreements does not entail the invalidity of the other provisions of the contract as a whole.

2. Any agreement by which the carrier waives claims arising from cargo insurance, and any other similar agreement by which the burden of proof is transferred to another person, is void.

Article 709. Concept🔗

Under a contract of mandate, the agent shall be obliged to perform one or more acts entrusted (confided) to him in the name and at the expense of the principal.

Article 710. Remuneration for the mandate🔗

1. The principal shall be obliged to pay the agent remuneration only in cases provided for by the contract or by law.

2. Remuneration shall be considered as tacitly agreed if, according to the circumstances, the performance of the act is to be expected only for remuneration.

3. If the amount of remuneration is not determined, then, if any rate exists, the remuneration according to the rate shall be considered agreed, just as, in the absence of a rate, the customary remuneration.

Article 711. Transfer of the commission to a third party🔗

1. The agent must perform the commission personally, except where he is permitted to transfer it to a third party, or is compelled to do so by the circumstances that have arisen. The involvement of auxiliary persons is permitted.

2. If the transfer of the commission to a third party is permitted, the agent is liable only for the fault attributable to him in the transfer and in the selection of that person.

Article 712. Deviation from the principal's instructions🔗

1. The agent is obliged to comply with the principal's instructions.

2. The agent may deviate from the principal's instructions if, in the circumstances, he may assume that the principal, had he known the state of affairs, would have approved such deviation. The agent is obliged, before deviating from the instructions, to notify the principal and await his decision, unless delay would create a risk of harm to the principal.

3. If the performance of the instructions by the agent may cause significant harm to the principal, he may perform the instructions only if he notifies the principal of the harm, and the latter does not change his instruction.

Article 713. Obligation to provide information🔗

1. The agent is obliged to give the principal the necessary information, and at his request – to provide information about the progress of the performance of the commission, and after performance to submit a report to him.

2. An agreement by which the agent's obligations under paragraph 1 of this Article are in the future restricted or excluded requires written form.

Article 714. Obligation to keep secrets🔗

1. The agent is obliged not to disclose facts that became known to him within the scope of his activity and in the keeping secret of which the principal has a legitimate interest, unless on the basis of law there exists an obligation to disclose the secret, or the principal does not permit the agent to disclose it.

2. The obligation not to disclose facts exists also after the termination of the contractual relations.

Law of Georgia of 28 December 2002 No. 1902 – LHG I, No. 4, 22.01.2003, Art. 20

Article 715. Obligation to return what was transferred for the performance of the commission🔗

1. The agent is obliged to return to the principal everything that he received for the performance of the entrusted act and did not use for that purpose, as well as that which he acquired in connection with the performance of the entrusted act.

2. If the agent uses for himself money which he was to return to the principal or to use for his benefit, the agent is obliged to return the money together with interest.

Article 716. Presumption of the principal's property🔗

Property which the agent acquired in the performance of the entrusted act at the principal's expense and in his own name, or which the principal transferred to him for the performance of the entrusted act, shall, in the agent's relations with creditors, be considered the property of the principal.

Article 717. Obligation to reimburse expenses🔗

1. The principal shall reimburse the agent for the necessary expenses incurred for the performance of the entrusted action.

2. There is no claim under paragraph 1 of this Article if the expenses are to be covered by the remuneration.

3. The agent may demand from the principal an advance for the expenses that are to be reimbursed to him.

Article 718. Compensation for damage incurred without fault🔗

1. The principal shall be obliged to compensate also the damage incurred without his fault which arose for the agent in the performance of the assigned action, if the damage arose as a result of a significant risk connected with the performance of the assigned action due to an instruction of the principal.

2. There is no claim under paragraph 1 if the damage incurred is to be covered by the remuneration, or if the damage was caused by an act of the agent. If the coverage of the damage by the remuneration becomes disputed, then the burden of proof shall lie with the agent.

Article 719. Compensation for damage caused by a culpable act🔗

If the agent performs the actions assigned to him free of charge, he shall be liable only for damage caused intentionally or by gross negligence.

Article 720. Termination of the mandate contract🔗

1. The parties may terminate the mandate contract at any time. An agreement waiving this right is void.

2. If the contract was terminated by the agent at a time when the principal was deprived of the opportunity to otherwise secure his interests, the agent shall compensate the damage caused by the termination of the contract, except in cases where the agent had a significant ground for doing so.

3. If the contract is terminated by the principal, then he shall be obliged to reimburse the agent for all necessary expenses incurred in the performance of the entrusted action, and, if the contract was for consideration, to pay the remuneration in proportion to the work performed.

Article 721. Consequences of the death of the principal or of his being declared a recipient of support🔗

1. The contract is not terminated by reason of the death of the principal or of his being declared a recipient of support, unless otherwise agreed or unless otherwise follows from the content of the power of attorney.

2. If the contract is terminated by reason of the death of the principal or of his being declared a recipient of support, the agent shall be obliged to continue the performance of the assigned action if the delay would create a risk of causing damage to the principal or his heir, until the heir of the principal or the legal representative/recipient of support of the principal takes the necessary measures; at the same time, the contractual relationship shall be deemed continued.

3. If the contract is terminated by reason of the death of the principal or of his being declared a recipient of support, it shall be deemed continued for the agent until he is notified of the ground for termination of the contract.

Law of Georgia of 20 March 2015 No. 3339 - website, 31.03.2015.

Article 722. Consequences of the death of the agent🔗

1. The contract shall terminate in the event of the death of the agent, unless otherwise agreed or unless otherwise follows from the content of the power of attorney.

2. In the event of the death of the agent, his heirs shall be obliged to notify the principal thereof and to take the necessary measures to protect the principal's interests.

Article 723. Commission contract🔗

The Law on Entrepreneurs shall apply to the commission contract.

Article 724. Concept🔗

Under the trust management of property contract, the trustor transfers the property to the trustee, who receives and manages it in accordance with the interests of the trust management of property.

Article 725. Rights and obligations of the trustee🔗

1. The trustee shall be obliged to manage the entrusted property in his own name, but at the risk and expense of the trust management of property.

2. The trustee shall, in relations with third parties, enjoy the powers of an owner. If the trustee, contrary to the interests of the trust management of property, does not exercise such diligence as he should have exercised in respect of his own affairs, he shall be obliged to compensate the damage caused by this action.

Article 726. Reimbursement of the expenses of trust management of property🔗

1. The trustee shall not receive remuneration from the trust management of property for activities related to the entrusted property, unless otherwise provided by agreement of the parties.

2. All expenses related to the entrusted property shall be borne by the trustor.

3. The fruits of the property shall remain with the trustor.

Article 727. Form of the trust management of property contract🔗

The trust management of property contract shall be concluded in writing.

Article 728. Liability of the trustee🔗

In relations with third parties, the trustee shall be liable.

Article 729. Application of the rules on the contract of mandate🔗

The relevant rules on the contract of mandate shall apply to trust management of property, except for the pension scheme contract, which is regulated by the Law of Georgia "On Voluntary Private Pension".

Law of Georgia of 28 June 2023 No. 3353 – website, 19.07.2023.

Article 730. Concept🔗

1. Under the expedition contract, the forwarder undertakes to carry out, in his own name and at the expense of the customer, actions related to the carriage of cargo. The customer shall be obliged to pay the agreed commission.

2. The rules on mandate shall apply accordingly to expedition, unless otherwise follows from this Chapter.

Article 731. Requirement of good faith from the forwarder🔗

The forwarder must, with the diligence of a conscientious forwarder, dispatch the cargo and select the persons participating in the carriage; moreover, he must protect the interests of the consignor and comply with his instructions.

Article 732. Obligations of the customer (orderer)🔗

1. At the freight forwarder's request, the customer shall timely provide him with the relevant information about the cargo, and shall also give the instructions necessary for drawing up the transport documents, provide the information necessary for carrying out customs formalities and performing other actions and, where necessary, for payment of the import tax. In addition, the customer shall hand over to the freight forwarder the documents necessary to confirm the accuracy of the said information.

2. In the presence of dangerous cargo, the customer shall warn the freight forwarder about the exact type of danger and, where necessary, indicate to him the safety measures.

3. Cargo whose dangerous nature was not known to the freight forwarder may be unloaded at any time and at any place, destroyed or neutralized without imposing an obligation to compensate damage.

4. The customer is obliged, if the type of cargo so requires, to have it packed in accordance with the transport requirements.

5. If distinguishing marks are necessary for the identification of the cargo, they shall be affixed in such a way that they are clearly visible before the delivery of the cargo.

6. The customer shall be liable for the damage caused to the freight forwarder due to the non-fulfilment of the obligations provided for in the previous paragraphs of this Article, except in cases where, under paragraphs 3 and 4 of this Article, the freight forwarder did not make a remark about the absence or defect of the packing or the distinguishing mark, although this was obvious, or he had information about this upon receipt of the cargo.

Law of Georgia of 12 November 2010 No. 3806 - LHG I, No. 66, 03.12.2010, Art. 414

Law of Georgia of 27 March 2012 No. 5964 – website, 12.04.2012

Law of Georgia of 28 June 2019 No. 4925 – website, 04.07.2019

Article 733. Separate inspection of the cargo🔗

The customer may, upon payment of a special fee, request the freight forwarder to carry out a separate inspection of the cargo upon its receipt.

Article 734. Obligation to insure the cargo🔗

The freight forwarder shall be charged with insuring the cargo only when he receives an instruction to that effect from the customer. In the absence of a special instruction, the freight forwarder shall be obliged to insure the cargo only on ordinary terms.

Article 735. Contract of insurance of the forwarding operation🔗

If the customer does not expressly refuse in writing, the freight forwarder shall be obliged, at the customer's expense, to insure the damage that may be caused to the customer by the freight forwarder's action in the performance of the order. The freight forwarder shall notify the customer with whom he concluded the contract of insurance of the forwarding operation.

Article 736. Obligation of timely notification of damage🔗

On the basis of the insurance contract concluded under Article 735, the customer shall take care of the timely notification of the damage. If the notification of damage is sent to the freight forwarder, he shall be obliged to immediately forward the notification to the insurer or insurers.

Article 737. Consequences of non-acceptance of cargo🔗

If, at the place of destination, the consignee does not accept the cargo, or if acceptance of the cargo is impossible on another ground, the rights and obligations of the freight forwarder shall be determined by the rules of the contract of carriage.

Article 738. Impossibility of checking the condition of the cargo upon its acceptance🔗

If it is impossible to check the condition of the cargo in the presence of the parties, then, until proof to the contrary, acceptance of the cargo shall be deemed confirmation that the cargo was received without loss and damage, except where the consignee indicates to the person delivering the cargo the general nature of the damage. If the matter concerns apparent loss or damage, this shall be indicated immediately upon acceptance of the cargo, and if the matter does not concern such loss or damage, not later than three days from the day of acceptance of the cargo.

Article 739. Right to carry the cargo by own means🔗

1. Unless otherwise agreed, the freight forwarder shall have the right to carry the cargo by its own means. The exercise of this right shall not contravene the rights and interests of the customer.

2. If the freight forwarder exercises this right, it shall at the same time also have the rights and obligations of a carrier.

Article 740. Liability of the freight forwarder🔗

The freight forwarder shall, as a rule, be liable for the obligations arising from the forwarding contract if any fault is attributable to it or to its auxiliary.

Article 741. Damage caused by a third party🔗

If damage is caused by a third party participating in the contract, then, at the customer's request, the freight forwarder shall be obliged to assign to the customer its claim against the third party, except where, on the basis of a special agreement, the freight forwarder itself undertakes to pursue the claim at the customer's expense and risk.

Article 742. Compensation for damage caused by a culpable act of the freight forwarder🔗

1. The freight forwarder may not rely on rules that exclude or limit its liability, or shift the burden of proof, if it caused the damage intentionally or by gross negligence.

2. The same rule shall apply to the non-contractual liability of an auxiliary if, in accordance with paragraph 1 of this Article, fault is imputed to it.

Article 743. Rule for payment of commission🔗

The commission shall be paid after the freight forwarder transfers the cargo to the transport organisation.

Article 744. Concept🔗

A person who promises to another remuneration for brokerage rendered for the conclusion of a contract shall be obliged to pay this remuneration only if the contract was concluded as a result of this brokerage. If the contract is concluded subject to a suspensive condition, the remuneration may be demanded only after the occurrence of this condition. If the amount of the remuneration is not determined, the customary remuneration shall be considered agreed. An agreement concluded to the detriment of the customer contrary to the first and second sentences of this Article shall be void.

Article 745. Remuneration for services rendered by a broker🔗

1. For those services provided for by the contract and rendered by the broker which are not included in brokerage activity, remuneration may be agreed irrespective of whether the contract is concluded.

2. Under Article 744, a broker may not stipulate an advance or receive it.

3. A broker shall be reimbursed for expenses only if this was agreed. This rule applies also when the contract could not be concluded. An agreement providing for reimbursement of expenses that are not necessary for the performance of the brokerage contract is void.

Article 746. Exclusive assignment🔗

1. If the customer must waive the use of another broker for a specified period (exclusive assignment), the broker shall be obliged to promote the conclusion of the contract during this period. If the customer acts contrary to the obligation referred to in the first sentence, the broker may — if the contract was concluded using another broker — demand compensation for damages. The contract may provide for a lump sum for damages subject to proof of the existence of damage. This sum shall not exceed two percent of the contract price if the contract was aimed at brokerage of the conclusion of a contract of sale.

2. The customer is entitled to conclude the contract with a third party without using the broker as well. At the same time, it may be agreed that the customer is obliged to pay the corresponding remuneration also when he concludes the contract without using the broker. The remuneration may not exceed two percent of the contract price if the contract was aimed at brokerage of the conclusion of a contract of sale.

3. An agreement differing from these rules concluded to the detriment of the customer is void.

4. An agreement on an exclusive assignment requires a written form.

Article 747. Termination of the brokerage contract🔗

1. The brokerage contract may be terminated at any time without observing any time limit, if the term of the contract was not determined.

2. An exclusive assignment may be terminated only for an important reason. After six months have passed, it may be terminated at any time.

3. The right to terminate the contract may be considered inadmissible also when more than six months have passed, but this is required by the peculiarities of the type and subject matter of the contract to be concluded through brokerage.

Article 748. Inadmissibility of granting remuneration to a broker🔗

1. It is inadmissible to grant remuneration to a broker or to reimburse expenses if a contract concluded with a third party concerns an object belonging to the broker; the same rule applies where, due to special circumstances, a risk may arise that would prevent the broker from pursuing the customer's interests. These cases are where:

a) the broker is a legal entity or company in which a third party participates legally and economically;

b) the third party is a legal entity or company in which the broker participates legally and economically;

c) the broker is in a service or employment relationship with the third party;

d) the broker is the spouse of the third party.

2. The broker has the right to receive remuneration or reimbursement of expenses where, before the conclusion of the contract with the third party, he notifies the customer of these circumstances.

3. The broker loses the right to remuneration or reimbursement of expenses if he acted contrary to the content of the contract in favour of the third party.

4. An agreement contrary to the rules provided for by paragraphs 1 and 2 of this Article is void.

II. Mediation in apartment rental

Article 749. Housing broker🔗

1. For a contract by which a person undertakes mediation for the conclusion of an apartment rental contract (housing broker), the general rules of mediation apply, unless otherwise follows from apartment rental mediation.

2. The norms of apartment rental mediation do not apply to contracts whose subject is housing mediation during tourism and business travel.

Article 750. Inadmissibility of receiving remuneration🔗

1. A housing broker's claim for receiving remuneration or reimbursement of expenses is inadmissible where:

a) under the rental contract, an already existing rental relationship continues in respect of the same apartment, or it is otherwise modified;

b) a rental contract is concluded for residential space managed by the housing broker.

2. An agreement concluded to the detriment of the customer is void.

III. Mediation in lending

Article 751. Loan broker🔗

For a contract by which a person undertakes mediation for another person for the conclusion of a loan contract (loan broker), the general rules of mediation apply, unless specific rules follow from Articles 752 and 753.

Article 752. Form of Contract🔗

1. The contract shall be concluded in writing.

2. The contract shall state the amount of the loan broker's remuneration, indicating the interest determined on the loan; in addition, the contract shall state: the amount of the loan, the term, the interest, the time of payment, the payment rate, the duration of the interest period, additional costs, the total amount payable by the customer, and the name and address of the lender. These rules shall not apply where the order concerns a loan secured by mortgage or a loan granted for the purchase of a plot of land, which the customer must use for his independent professional or entrepreneurial or departmental or official activity.

3. The text of the contract shall not be connected with the application for the granting of a loan. The loan broker shall provide the customer with a copy of the contract.

Law of Georgia of 30 June 2005 No. 1826 - LHG I, No. 41, 19.07.2005, Art. 284

Article 753. Obligation to Pay Remuneration🔗

1. The customer shall be obliged to pay remuneration only if, as a result of the brokerage, he received a loan. An agreement concluded contrary to the customer's interests shall be void.

2. The loan broker may not demand any remuneration other than that provided for in paragraph 1 of this Article for an act connected with brokerage for obtaining a loan.

Article 754. Commercial Broker🔗

The Law on Entrepreneurs shall apply to a commercial broker.

Article 755. Concept🔗

A person who, by a public promise, offers a reward for the performance of a certain act, in particular for the achievement of a particular result, shall be obliged to pay the reward to the person who performed the act. A person shall also have the right to receive the reward when he did not act because of the public promise of the reward.

Article 756. Revocation of Public Promise of Reward🔗

1. A public promise of a reward may be revoked before the announced act is performed. The revocation of a public promise of a reward shall be valid if it becomes known by the same means as the public promise of the reward or by special notice.

2. A public promise of a reward may contain an indication of refusal to revoke it; in case of doubt, it shall be presumed that the promise is revoked if the act was not performed before the stipulated period.

Article 757. Performance of Act by Several Persons🔗

1. If the act for which the reward is offered was performed by several persons, the person who performed this act first shall be rewarded.

2. If the act was performed simultaneously by several persons, each performer shall be rewarded in equal shares. If the reward, due to its characteristics, cannot be divided, or – according to the content of the public promise – only one person must receive it, then the question of transferring the reward shall be decided by drawing lots.

Article 758. Establishment of Prize🔗

1. A person who, by a public announcement, offers a prize for the best performance of specified work shall be obliged to transfer it to the best performer of the work.

2. The announcement of a competition shall have effect only if it provides for a specified period for the performance of the work.

Article 759. Inadmissibility of making changes to the competition conditions🔗

It is inadmissible to make such changes to the competition conditions as would cause damage to the participants of the competition.

Article 760. Adoption of a decision on winning the competition🔗

The decision as to whether the work submitted within the stipulated period meets the conditions of the competition, or which of several is the better, shall be taken by the person indicated in the notice on the announcement of the competition, and if no such person is indicated, by the announcer of the competition.

Article 761. Winning of the competition by several persons🔗

If the work for which a prize is established was performed by several persons, the corresponding rules provided for a public promise of reward shall apply to them.

Article 762. Rule for the return of works submitted to the competition🔗

The announcer of the competition shall be obliged to return to its participants the works submitted to the competition, unless otherwise provided by the competition notice.

Article 763. Concept🔗

Under a deposit contract, the depositary undertakes to keep a movable thing handed to it by the depositor.

Article 764. Remuneration for deposit🔗

1. A deposit is gratuitous unless otherwise provided by agreement. If the depositary carries out safekeeping within the scope of entrepreneurial activity, the remuneration shall be deemed agreed even by silence.

2. If the amount of remuneration is not determined, then, where tariffs exist, the tariff rate shall be considered agreed, and where tariffs do not exist, the usual remuneration.

Article 765. Obligation of the depositary in case of gratuitous deposit🔗

If the deposit is gratuitous, the depositary shall be obliged to keep the thing with the same good faith as it would keep its own thing.

Article 766. Inadmissibility of transferring the thing to a third person🔗

1. The depositary shall not have the right to transfer the thing for safekeeping to a third person without the consent of the depositor.

2. If the transfer for safekeeping to a third person occurred with consent, the depositary shall be liable only for the fault attributable to it in the choice of the third person or the place of safekeeping.

Article 767. Inadmissibility of using the deposited thing🔗

The depositary shall not have the right to use the thing deposited with it without the consent of the depositor, except where the use thereof is necessary for the safekeeping of the thing.

Article 768. Change of the manner of safekeeping of the thing🔗

The depositary shall have the right, in case of necessity, to change the manner of safekeeping of the thing. It must notify the depositor thereof. The depositary must also notify the depositor of the claims of third persons to the deposited thing.

Article 769. Compensation for damage caused by the properties of the thing🔗

The depositor must compensate the depositary for the damage caused by the properties of the thing deposited for safekeeping, except where it did not know and could not have known about the dangerous properties of this thing.

Article 770. Time limit for the return of the deposited thing🔗

The depositor may at any time demand the return of the thing deposited for safekeeping, including where the period of safekeeping was determined.

Article 771. Obligation to take back the deposited thing🔗

1. The depositary may at any time demand that the depositor take back the thing deposited for storage, if the storage period was not defined.

2. The depositary may exercise this right only in such a way that the depositor is able to store the thing in another way, except where there is an important ground for the return of the deposited thing.

Article 772. Place of return of the deposited thing🔗

The return of the thing shall take place at the place indicated in the contract, unless agreement has been reached on return at another place. The transport costs shall be borne by the depositor.

Article 773. Obligation to transfer the fruits of the deposited thing🔗

1. The depositary is obliged to transfer to the depositor the fruits which it received during the deposit.

2. The depositor is obliged to reimburse the depositary for the necessary expenses intended for the storage of the thing.

Article 774. Liability of the depositary for intent or gross negligence🔗

If a period is defined for taking away the deposited thing, after the arrival of that period the depositary shall be liable only for intent or gross negligence.

Article 775. Obligation to pay remuneration🔗

If the deposit is for remuneration, then the depositor is obliged, upon termination of the contract, to pay the depositary the agreed remuneration.

Article 776. Right to retain the deposited thing🔗

Until receipt of the remuneration due and reimbursement of the expenses incurred for storage, the depositary may refuse to return the deposited thing.

Article 777. Peculiarities of deposit of a generic thing🔗

1. If a generic thing is deposited in such a way that ownership must pass to the depositary, and the depositary is obliged to return a thing of the same kind, quality and quantity, then the corresponding norms of the loan contract shall apply.

2. In the case of deposit of securities, the agreement defined by the first paragraph of this article shall be valid only if this was directly provided for by the relevant contract.

Law of Georgia of 16 November 2023 No. 3726 – website, 07.12.2023.

Article 778. Peculiarities of deposit in a hotel🔗

A hotel, sanatorium and rest home shall be liable for the damage caused to a guest by the loss, destruction or damage of the property which he had with him. This rule shall not apply to money and valuables, unless they were specially handed over.

Article 779. Exemption from liability due to force majeure🔗

Liability is excluded if the damage is caused by the action of force majeure, by the guest or his accompanying person, or by the properties of the thing itself.

Article 780. Concept🔗

The corresponding norms of the deposit contract shall apply to the contract of deposit in a commodity warehouse, unless otherwise provided by this Chapter.

Article 781. Obligation to perform storage obligations in good faith🔗

The warehouse depositary shall perform the obligations of depositing the goods with the care of a prudent manager.

Article 782. Verification of the quantity of goods by the depositary🔗

1. The depositary shall not be obliged, upon receipt of the goods, to verify their quantity, size, weight, type, quality or other properties, unless otherwise follows from the rules of this Chapter.

2. If the goods transferred to the depositary for storage are found, upon transfer, to be damaged or incomplete, which is noticeable on external inspection, the depositary shall be obliged to notify the depositor thereof without delay; if it fails to fulfil this obligation, it shall compensate the damage incurred.

Article 783. Right to inspect the deposited goods🔗

The depositary shall be obliged, during working hours, to allow the depositor to inspect the deposited goods, take samples or perform necessary actions.

Article 784. Obligation to notify🔗

The depositary shall be obliged to notify the depositor without delay if it moves the goods accepted for storage to another warehouse, or if it discovers that the properties of the goods have changed or there is a risk of their change. It shall notify thereof the last holder of the warehouse certificate known to it. In case of non-fulfilment of this obligation, it shall be obliged to compensate the damage incurred.

Article 785. Obligation to compensate damage🔗

The depositary shall be liable for damage caused by the loss and/or damage of the goods transferred for storage, except in the case where even a bona fide depositary could not have prevented this.

Article 786. Peculiarities of storage of generic things🔗

1. When storing generic things, the depositary shall have the right to commingle them with other things of the same type and property only if there is the depositor's permission for this.

2. The depositors shall have the right of common ownership over the goods resulting from this commingling. The share of each depositor shall be determined in accordance with the quantity of goods delivered by it.

3. The depositary shall be obliged to return to each depositor the deposited goods in accordance with its share, without the consent of the other depositors.

Article 787. Sale of the deposited goods🔗

If the goods accepted for storage spoil or change to such an extent that they may depreciate, and the depositary has no time left to notify thereof or is unable to notify the authorised person, it shall be entitled to sell the goods.

Article 788. Warehouse certificate🔗

Upon receipt of the goods, the depositary shall be obliged to issue a warehouse certificate to the depositor.

Article 789. Requisites of warehouse storage🔗

1. The warehouse certificate shall state:

a) the date of issue and registration number of the warehouse certificate;

b) the identity and address of the parties;

c) the place of storage;

d) the procedure for storage of the goods;

e) description of the goods to be stored (quantity, size or weight) and quality; where the goods are packed – description of the packaging;

f) the amount of the storage remuneration and other necessary expenses;

g) if the goods to be stored are to be insured, then – the insured amount;

h) the term of validity of the contract;

i) the signature of the warehouseman, certified by the relevant seal.

2. If the conditions listed in this Article are not fully reflected in the warehouse certificate, this shall not release the parties from liability. The parties shall be entitled to include other conditions in the warehouse certificate as well.

Article 790. Warrant🔗

The holder of a warehouse certificate may, by means of a pledge certificate, pledge the goods deposited for storage in the warehouse to secure another obligation, without the goods being removed from the warehouse (warrant).

Article 791. Order warehouse certificate🔗

If the warehouseman issues an order warehouse certificate, then this certificate may be transferred to a third person by means of endorsement.

Article 792. Liability for an endorsed warehouse certificate🔗

1. If a warehouse certificate is issued by means of endorsement, the warehouseman shall be liable to the holder of this certificate for the accuracy of the conditions indicated therein, except where the certificate expressly states that these data are based on information from the depositor or a third person.

2. If the warehouseman knew that the data were incorrect, he shall also be liable even if he made the statement referred to in paragraph 1 of this Article.

3. In the case of mixed storage, the warehouseman shall not be entitled to make the statement referred to in paragraph 1.

Article 793. Presumption of the correctness of endorsement🔗

1. A warehouseman who has issued an order warehouse certificate shall, upon return, hand over the goods deposited for storage only to the lawful holder of the warehouse certificate.

2. If a warehouse pledge certificate has been issued, the warehouseman shall demand its return.

3. The warehouseman shall not be obliged to verify the correctness of the endorsement. The transfer shall be confirmed by an appropriate inscription on the warehouse certificate.

Article 794. Loss of warehouse certificate🔗

1. In the event of loss or destruction of a warehouse or pledge certificate, its lawful holder shall be entitled to apply to the court by application and request that the lost document be declared invalid and that a new certificate be issued in its place. The court shall consider the application in accordance with the procedure of special proceedings.

2. On the basis of the court's judgment, the warehouseman shall reissue the warehouse or pledge certificate.

Article 795. Pledge of goods delivered🔗

1. In order to pledge goods delivered to a commodity warehouse for storage, the owner shall make a special inscription (endorsement) on the pledge certificate and transfer it to the interested person.

2. The endorsement shall indicate the identity of the depositor and of the creditor and the amount of the obligation.

3. The warehouseman shall be notified of the transfer of the pledge certificate to the creditor, and he shall make an appropriate notation.

Article 796. Transfer of the right of pledge to the new holder of the warehouse certificate🔗

1. The warehouseman acquires a right of pledge over the goods on account of storage expenses as long as they are in his possession.

2. If the warehouse certificate has been issued by way of endorsement, the right of pledge exists against the new holder of the warehouse certificate.

Article 797. Inadmissibility of demanding the return of goods delivered🔗

The warehouseman may not demand that the depositor take back the goods delivered before the expiry of the agreed term, and if no such term has been established, then before the expiry of three months from delivery.

Article 798. Setting of an additional term upon receipt of the goods🔗

1. If, after the expiry of the storage term, the holder of the warehouse certificate evades taking the goods from the warehouse, the warehouseman shall set him an additional two-week term for taking the goods; if the holder of the certificate does not take the goods within this term either, the warehouseman is entitled to sell them.

2. The amount received as a result of the sale of the goods, less the expenses due to the warehouseman, shall be transferred to the holder of the warehouse certificate.

Article 799. Concept🔗

1. Under an insurance contract the insurer shall be obliged to compensate the insured for the damage caused by the occurrence of an insured event in accordance with the terms of the contract. In the case of insurance with a firmly fixed insured sum, the insurer shall be obliged to pay the insured sum or perform another promised act.

2. The insured shall be obliged to pay the insurance contribution (premium).

3. A derivative is not an insurance contract. Relations related to a derivative are regulated in accordance with the Law of Georgia "On Financial Pledges, Netting and Derivatives". The operation of this Article and Articles 800−858 of this Code does not extend to relations arising from the said Law.

Law of Georgia of 20 December 2019 No. 5674 – website, 31.12.2019.

Article 800. Obligation to conclude an insurance contract🔗

A person who publicly offers to conclude an insurance contract shall be obliged to conclude that contract unless there is a significant ground for refusal.

Article 801. Compulsory insurance🔗

Compulsory insurance may be provided for by law, to which the rules of this Chapter apply, unless this contradicts legislation on compulsory insurance. Relations related to reinsurance shall be settled in the manner established by legislation.

Article 802. Insurance certificate (policy)🔗

1. The insurer is obliged to deliver to the policyholder a document signed in material or electronic form on the insurance contract (insurance certificate (policy)). At the same time, the electronic document issued by the insurer must be certified with a qualified electronic signature and/or a qualified electronic stamp. It is permissible for the insurer to deliver the insurance certificate (policy) to the policyholder electronically, in accordance with the procedure established by the legislation of Georgia.

2. The insurance certificate shall contain:

a) the identity of the parties to the contract and their location (place of residence or legal address);

b) the designation of the object of insurance and the insured person;

c) the definition of the insurance risk;

d) the commencement and duration of insurance;

e) the amount of the insurance sum;

f) the amount of the insurance premium, the place and term of its payment.

3. If the object of insurance is a person's life, then additionally information on the calculation of the insurer's profit and the conditions for the distribution of this profit is necessary.

Law of Georgia of 15 June 2023 No. 3278 – website, 30.06.2023.

Article 803. Types of insurance certificate🔗

If an insurance certificate is issued in the form of a bearer, registered or order certificate, the insurer may assert against the holder of this certificate all claims that it has against the original policyholder. This rule does not apply if the holder of the insurance certificate notifies the insurer of the transfer to it of the rights related to the insurance and the latter does not immediately declare its claims.

Article 804. Consequences of loss of insurance certificate🔗

1. If it is provided by the contract that the insurer must perform its obligation only after presentation of the insurance certificate, but the certificate is lost or destroyed, then the policyholder may demand performance only if the insurance certificate has been declared invalid by special proceedings.

2. In the event of loss or destruction of the insurance certificate, the policyholder may request a copy from the insurer. The costs of issuing the copy shall be borne by the policyholder.

Article 805. Rights of insurance agent🔗

1. If the insurance agent (representative) is authorized to conclude an insurance contract, it may also amend the terms of the contract, extend its term of validity, or terminate it.

2. An insurance agent performing the function of an intermediary when concluding an insurance contract has the right to conclude such a contract.

Article 806. Time of commencement of insurance🔗

1. Insurance commences at 24:00 hours on the day of conclusion of the contract and ends at 24:00 hours on the last day of the term provided for by the contract.

2. If an insurance contract is concluded for a term of more than five years, then each party may terminate the contract after three months from the notice thereof.

Article 807. Consequences of an increase of the insurance premium🔗

If the insurer has increased the insurance premium, the policyholder may, observing the one-month period for withdrawal from the contract, terminate the contract. An insignificant increase of the insurance premium does not give rise to such a right.

Article 808. Obligation to provide information🔗

1. When concluding the contract, the policyholder shall notify the insurer of all circumstances known to him which are of material importance for the occurrence of the risk or of the event covered by the insurance. Material are those circumstances which may influence the insurer's decision to refuse the contract or to conclude it with amended content.

2. A circumstance shall also be considered material if the insurer asks the policyholder about it in writing, clearly and unambiguously.

3. If, contrary to the rules of paragraph 1 of this Article, the insurer is not notified of a material circumstance, then it may refuse the contract. The same shall apply if the policyholder deliberately avoided the notification of material circumstances.

4. Termination of the contract is inadmissible if the insurer knew of the concealed circumstances, or if the policyholder is not at fault for not notifying them.

Article 809. Consequences of the notification of incorrect data🔗

1. The insurer may refuse the contract also if the notification about material circumstances contains incorrect data.

2. Refusal of the contract is inadmissible if the inaccuracy of the data was known to the insurer, or if the policyholder is not at fault for providing incorrect data. Within one month from the notification of these data, the insurer may withdraw from the contract.

Article 810. Withdrawal from the insurance contract due to failure to notify information🔗

If the policyholder was required to answer written questions about the risk circumstance, then the insurer has the right to withdraw from the contract due to the failure to notify those circumstances about which, although no question was asked, the policyholder deliberately remained silent.

Article 811. Period for withdrawal from the contract due to failure to notify information🔗

1. Within one month from the failure to notify the information provided for by this Chapter, the insurer may withdraw from the contract. This period begins from the moment when the insurer learned of the breach of the notification obligation.

2. The policyholder shall be notified of the withdrawal from the contract.

Article 812. Withdrawal from the contract after the occurrence of the insured event🔗

If the insurer withdraws from the contract after the occurrence of the insured event, then it is not released from the performance of its obligation if the circumstance in respect of which the notification obligation was breached has not influenced the occurrence of the insured event and the performance of the insurer's obligation.

Article 813. Obligation to notify of an increase in risk🔗

1. The policyholder shall be obliged to immediately notify the insurer of an increase in risk that arose after the conclusion of the contract, if this would have a material effect on the conclusion of the contract.

2. In the case provided for by paragraph 1 of this article, the insurer has the right to terminate the contract with a one-month termination period or to demand a corresponding increase in the insurance premium. If the policyholder intentionally caused the increase in risk, the insurer may terminate the contract without observing a period.

Article 814. Obligation to notify of the occurrence of an insured event🔗

1. Upon learning of the occurrence of an insured event, the policyholder shall be obliged to notify the insurer thereof.

2. The insurer may, after the occurrence of the insured event, demand from the policyholder any information that is necessary to determine the insured event or the scope of the obligation.

3. The insurer may not rely on an agreement by which it is released from its obligation if the policyholder fails to perform the notification obligation, but the insurer's interests are not materially violated thereby.

4. The insurer shall perform its obligation after determining the insured event and determining the amount of compensation.

II. Insurance premium

Article 815. Obligation to pay the insurance premium🔗

1. The policyholder shall be obliged to pay the insurance premium only after receiving the document confirming the insurance.

2. If the insurance interest is lost, the insurer may demand that part of the insurance premium which corresponds to the duration of the risk assumed. The insurer may demand payment of remuneration corresponding to the service.

Article 816. First insurance premium🔗

Before timely payment of the first or one-time insurance premium, the insurer is free from its obligation.

Article 817. Late payment of the insurance premium🔗

1. If the insurance premium is not paid on time, the insurer may set a two-week payment period in writing, and must indicate the consequences that will follow the expiry of the period.

2. If after the expiry of the period an insured event occurs and at that time the policyholder has overdue the payment of the premium or interest, the insurer is released from its obligations.

Article 818. Termination of the contract due to late payment of the insurance premium🔗

If the policyholder has not paid the insurance premium on time, the insurer may, one month in advance, warn the policyholder about termination of the contract and, after this period has expired without result, terminate it.

Article 819. Discontinuation of payment of the insurance premium🔗

The policyholder may discontinue payment of the insurance premium if, after the conclusion of the contract, it becomes clear that the insurer's economic situation has deteriorated to such an extent that there is a real risk of non-performance of its obligations under the contract upon the occurrence of an insured event.

III. Insurance against damage

a) Content of the contract

Article 820. Obligation of monetary compensation for damage🔗

In insurance against damage, the insurer shall compensate the damage in money.

Article 821. Scope of compensation for damage🔗

The insurer shall compensate damage only within the limits of the insured sum.

Article 822. Insurance comparison🔗

1. If it transpires that the insured sum significantly exceeds the value of the insured interest (insured value), then both the policyholder and the insurer may, in order to avoid over-insurance, demand a reduction of the insured sum with an immediate corresponding reduction of the insurance premium.

2. If the policyholder, with the intention of obtaining unlawful income, concludes a contract by way of increasing the insurance, the contract shall be considered void. The premiums paid to the insurer prior to the invalidity of the contract shall remain with him, if he was not aware of the invalidity at the time of the conclusion of the contract.

Article 823. Peculiarities of property insurance🔗

The value of the property shall be considered the insured sum if the property is insured and nothing else is established by the circumstances of the case.

Article 824. Insurance of lost profit🔗

Insurance shall also extend to the lost profit caused by the occurrence of the insured event, if this is provided for by agreement.

Article 825. Insurance of a set of things🔗

If a set of things is insured, the insurance shall extend to all things included therein.

Article 826. Amount of insurance compensation🔗

The insurer shall not be obliged to pay the policyholder an amount greater than the amount of the damage incurred, even if the insured sum exceeds the insured value at the time of the occurrence of the insured event.

Article 827. Reduced or partial insurance. Double insurance🔗

1. If the insured sum is less than the insured value at the time of the occurrence of the insured event (reduced or partial insurance), the insurer shall compensate the damage in proportion to the ratio of the insured sum to the insured value.

2. A person who has simultaneously insured the same interest with several insurers shall be obliged to notify each insurer thereof immediately. The notification shall indicate the identity of all insurers and the amount of the insured sum.

3. If the given interest is insured against the same risk with several insurers and the insured sums in total exceed the insured value, or if, for other reasons, the total of the compensations which would have been paid by each insurer in the absence of the other contracts exceeds the entire damage (double insurance), the insurers shall be obliged, vis-à-vis the policyholder — as joint and several debtors — within the limits of the amount which they have agreed under the contract concluded with the policyholder, but the policyholder shall not be entitled to receive in total an amount greater than the actual damage.

Article 828. Invalidity of double insurance🔗

If the policyholder has effected double insurance for the purpose of obtaining unlawful income, each contract concluded for this purpose shall be considered void.

Article 829. Fault of the policyholder upon the occurrence of the insured event🔗

The insurer shall be released from the performance of its obligation if the policyholder caused the event provided for by the insurance intentionally or through gross negligence.

Article 830. Obligation to comply with the insurer's instructions🔗

1. The policyholder shall, upon the occurrence of an event provided for by the insurance, avoid or reduce the damage as far as possible and, in this connection, comply with the insurer's instructions.

2. The insurer shall reimburse the expenses incurred on its instruction.

Article 831. Insurance of damage caused by war or other force majeure🔗

The insurer shall be liable for damage caused by war or other force majeure only if this is provided for by a special agreement.

Article 832. Claim for compensation of damage from a third party🔗

1. If the policyholder is able to assert a claim against a third party for compensation of damage, that claim shall pass to the insurer if it compensates the policyholder for the damage. If the policyholder waives its claim against the third party or its right to secure its claim, the insurer shall be released from the obligation to compensate the damage to the extent that it could have received for the reimbursement of its expenses in connection with the exercise of the right or the assertion of the claim.

2. If the policyholder's right to compensation of damage relates to family members living with it, the transfer of the right is excluded where the family member caused the damage intentionally.

Article 833. Consequences of alienation of insured property🔗

If the insured property is alienated, the rights and obligations of the policyholder shall pass to the acquirer.

Article 834. Obligation of notification upon alienation of insured property🔗

The insurer shall be notified immediately of the alienation of the insured property. If the acquirer or the transferor did not immediately notify the insurer thereof, the latter shall be released from the obligation to compensate if the insured event occurred two weeks after the moment at which the insurer should have received the notification.

Article 835. Termination of insurance upon alienation of property🔗

1. The insurer shall be entitled, subject to a one-month notice period for termination of the contract, to terminate the insurance relationship with the acquirer. The right to terminate the contract shall lapse if the insurer has not availed itself thereof within one month from the moment at which it learned of the alienation of the property.

2. The acquirer shall be entitled to terminate the insurance contract; it may terminate it only with immediate effect or at the end of the current insurance period. The right to terminate shall be extinguished if the acquirer does not avail itself of this right within one month of the acquisition; and if the acquirer was not aware of the insurance, the right to terminate shall remain in force until one month has elapsed from the moment at which the acquirer learned of the insurance relationship.

3. If the insurance contract is terminated on the basis of these rules, the transferor shall be obliged to pay the insurance premium to the insurer, but not more than what was to be paid during the insurance period up to the moment of termination of the contract; in this case the acquirer shall not be liable for payment of the insurance premium.

b) Insurance in favour of another person

Article 836. Conclusion of an insurance contract in favour of another person🔗

The policyholder may conclude an insurance contract with the insurer in his/her own name in favour of another person. Naming this person is not mandatory.

Article 837. Rights of another person in an insurance contract🔗

1. When insuring in favour of another person, the rights arising from this contract belong to that person. Only the policyholder has the right to demand the insurance certificate.

2. The insured person may exercise his/her rights without agreement with the policyholder and may demand the enforcement of his/her rights through the court only if the insurance certificate is in his/her possession.

Article 838. Rights of the policyholder🔗

1. The policyholder may, in his/her own name, exercise the rights that, under the insurance contract, belong to the insured person.

2. If an insurance certificate has been issued, the policyholder may receive the compensation without the consent of the insured person or transfer the right to the insured person only if the policyholder holds the insurance certificate.

3. The insurer is obliged to pay the policyholder in favour of the insured only if the policyholder proves that the insured person consented to the insurance contract.

c) Civil liability insurance

Article 839. Concept🔗

Under a civil liability insurance contract, the insurer is obliged to release the policyholder from the obligation incumbent on him/her towards a third person due to liability arising during the insurance period.

Article 840. Claim for direct compensation of damage🔗

The insurer is obliged, within the scope of its obligation, to directly compensate the damage if the person who suffered the damage submits a claim to it.

Article 841. Court and out-of-court costs🔗

The insurance also covers court and out-of-court costs incurred for defence against a third person's claim, if, based on the circumstances of the case, the incurring of such costs is necessary.

Article 842. Release of the insurer from liability🔗

The insurer is released from liability if the policyholder deliberately caused the occurrence of the circumstance for which he/she bears liability towards a third person.

Article 843. Liability in case of compulsory insurance🔗

1. If the insurer is fully or partially released from the obligation towards the policyholder, its liability towards a third person remains in force in the cases provided by the law on compulsory insurance.

2. If the insurer satisfies a third person's claim, the third person's claim against the policyholder passes to the insurer.

III¹. Health insurance

Law of Georgia of 28 June 2017 No. 1115 – website, 10.07.2017.

Article 843¹. Concept🔗

1. Under a health insurance contract, the insurer shall be obliged to reimburse the costs of treatment related to the deterioration of the insured person's health condition or to damage to health, and the costs of other medical services agreed under this contract, in accordance with the procedure and conditions established by the same contract.

2. A health insurance contract may be concluded by the policyholder in favour of the insured person.

Law of Georgia No. 1115 of 28 June 2017 – website, 10.07.2017.

Article 843². Claim for compensation of damage from a third party🔗

1. If the insured person can bring a claim for compensation of damage against a third party, this claim passes to the insurer if the latter compensates the damage to the insured person.

2. The insurer may bring a claim for compensation of damage against a third party only after compensating the damage to the insured person, within the amount of the compensated damage. If the insured person refuses the claim for compensation of damage brought against the third party, the insurer is released from the obligation to compensate the damage.

Law of Georgia No. 1115 of 28 June 2017 – website, 10.07.2017.

Article 843³. Extension of the norms of damage insurance to health insurance🔗

Of the norms of damage insurance, only Articles 820 and 821 of this Code extend to health insurance.

Law of Georgia No. 1115 of 28 June 2017 – website, 10.07.2017.

IV. Life insurance

Article 844. Concept🔗

1. Life insurance may relate to the policyholder or to another person.

2. If a life insurance contract is concluded in favour of another person, the written consent of that person or of their legal representative is required.

Article 845. Inadmissibility of refusal to conclude a contract🔗

If, upon the conclusion of the contract, the policyholder breaches their obligation to notify information, the insurer may not refuse the contract if five years have passed since the conclusion of the contract. Refusal of the contract is admissible if the obligation to notify was not performed intentionally.

Article 846. Termination of the contract upon periodic payment of insurance premiums🔗

If insurance premiums are paid periodically, the insurer may terminate the insurance relationship at any time, but only as of the end of the current insurance period.

Article 847. Transfer of the right to compensation to a third party🔗

1. In the case of endowment insurance, the policyholder may transfer the right to receive the benefit to a third party, and may also replace the third party with another person, unless otherwise provided by the contract.

2. A third party who has the right to receive the benefit may exercise it only upon the occurrence of the insured event, unless the policyholder has given other instructions.

Article 848. Improper third party🔗

1. If, in the case of endowment insurance, the obligation of the insurer does not correspond to the right of the third party, this right remains with the policyholder.

2. If, in the case of endowment insurance, the third party does not exercise their right to receive the benefit, this right remains with the policyholder.

Article 849. Release of the insurer from the obligation to compensate damage🔗

1. If the insurance contract is concluded for the event of the death of another person, the insurer is released from its obligation in the case where the policyholder intentionally caused the death of such person by an unlawful act.

2. If, in life insurance, a third person has the right to receive the benefit, this right shall not be recognized if he intentionally caused the death of the person whose life was insured by an unlawful act.

Article 850. Release from compensation in the case of suicide🔗

1. In life insurance, the insurer is released from its obligation if the person whose life was insured commits suicide.

2. The heir of the policyholder has the right to demand the return of the insurance contributions paid.

Article 851. Amendment of the insurance contract🔗

1. The policyholder may at any time before the end of the current insurance period demand the amendment of the insurance contract by a contract free of insurance contributions.

2. If the policyholder demands such an amendment, then from this moment the amount of the insurance sum or the amount of the benefit provided by the contract is replaced by an amount corresponding to the insurer's obligation, taking into account the age of the insured person, if the reserve of accumulated premiums is considered as a single contribution.

Article 852. Deductions upon termination of the contract🔗

If a life insurance contract is terminated due to refusal, cancellation or contestation, then the insurer is obliged to return the amount of the contribution which it received under this contract. The insurer may also make corresponding deductions.

Article 853. Consequences of compulsory enforcement🔗

1. If compulsory enforcement of a judgment takes place in respect of an insurance claim, or proceedings are conducted in connection with the bankruptcy of the policyholder, then the person who is specifically named as the beneficiary is entitled to take the place of the policyholder in the insurance contract. If the person having the right to receive the benefit participates in the contract, he must satisfy all claims of the creditor or secure the bankruptcy estate within the amount which the policyholder could have received from the insurer upon cancellation of the insurance contract.

2. If there is no person having the right to receive the benefit, or he is not interested in receiving the benefit, or is not designated by name, then the spouse and children of the policyholder acquire such right.

V. Accident insurance

Article 854. Concept🔗

1. An accident insurance contract may be concluded both for the accident of the policyholder and for that of another person.

2. If the insurance contract is concluded not by the insured person, but in his favour, then the rules on life insurance apply to it.

Article 855. Consequences of causing damage to health🔗

If the insurer's obligation depends on the intentional causing of damage (injury) to health, then the absence of intent is presumed until the contrary is proven.

Article 856. Consequences of intentionally causing an accident🔗

1. The insurer shall be released from the performance of its obligation if, when insuring another person, the beneficiary intentionally causes an accident by an unlawful act.

2. If another person has the right to receive benefits, that person shall be deprived of this right if he or she intentionally causes an accident by an unlawful act.

Article 857. Obligation to notify of an accident🔗

If obligations are to be performed in favour of the beneficiary, that person shall be obliged to declare the accident. This rule also applies to the obligations to provide information and to transfer documents.

Article 858. Inadmissibility of the right of recourse🔗

The policyholder shall have no right of recourse against the person who is liable for the damage.

Article 859. Concept🔗

1. Under a settlement contract, the credit institution shall make payments from its client's settlement account within the limits of the funds available in the account and shall credit incoming funds to the account.

2. On the basis of the account holder's instruction, the same operations may be carried out in cash.

3. By agreement of the parties, the account holder may be charged with the payment of service costs.

Article 860. Obligation to provide account statements🔗

1. The credit institution shall keep an accounting book in respect of both cash and non-cash settlements.

2. The credit institution shall, within the periods provided for by the contract, provide the account holder with information on the state of the account (account statements); and the account holder shall be entitled at any time to request information on the state of the account and on the accounting entries of credit and debit.

Article 861. Debiting of funds from the account🔗

The credit institution shall debit funds from the account on the basis of the authorization or instruction of its holder. Otherwise, it shall again credit the damage caused and the incorrectly transferred amount to the account holder's assets.

Article 862. Consequences of revocation of the account holder's instruction🔗

1. The account holder shall have the right to revoke an instruction given to the credit institution as long as the transfer has not actually occurred. Otherwise, the credit institution shall be obliged to immediately notify the relevant persons of the refusal to perform.

2. In the event of timely revocation of the instruction, the credit institution shall be obliged to restore the amount to the holder's account.

Article 863. Obligation to maintain secrecy🔗

1. The credit institution shall maintain the secrecy of facts related to the account and other such facts that became known to it in the course of business relations with the account holder, except for cases provided by law, or if it concerns ordinary banking information that does not prejudice the interests of the account holder.

2. This obligation of the credit institution shall remain in force even after termination of the contract.

Article 864. Termination of the bank account settlement contract🔗

1. The bank account settlement contract may be terminated by either party at any time.

2. A credit institution may terminate the bank account settlement contract only in such a way that the account holder can receive settlement services otherwise, except where there is an important ground for its termination or the termination of the contract by the credit institution is provided for by law.

Law of Georgia of 28 October 2015 No. 4463 – website, 11 November 2015.

Article 865. Payment on the basis of a cheque🔗

Under an appropriate agreement, the credit institution shall be obliged to reimburse, within the limits of the asset, a cheque signed by the account holder in accordance with the Law on Cheques. In this case, the rules of the cashless settlement contract shall apply.

Article 866. Collection of a cheque🔗

A credit institution shall, even without an additional agreement, under the settlement contract be obliged to the account holder to effect the collection of cheques presented by the latter by timely presenting them to the credit institution, and in the event of non-payment – to take the necessary security measures.

II. Bank credit

Article 867. Concept🔗

Under a bank credit contract, the credit provider gives or is obliged to give the borrower a credit for consideration in the form of a loan.

Article 868. Interest rates on bank credit🔗

1. By agreement of the parties, a fixed interest rate or an indexed interest rate may be determined for the creditor.

2. For the purposes of this Article, a fixed interest rate is an interest rate that is fixed in the contract and remains unchanged throughout the entire term of the contract, or the change of which is possible upon the occurrence of individual circumstances provided for by the contract (except for a change in a public index). An automatic change of the interest rate resulting from the occurrence of a circumstance related to the consumer's action, in accordance with the conditions predetermined by the contract, shall not be considered a change of the interest rate.

3. For the purposes of this Article, an indexed interest rate is an interest rate that is linked to a public index in a certain manner and the change of which is caused by a change in the said index.

4. When concluding a credit contract, the limits of increase and decrease of the fixed interest rate and the minimum interval of changes shall be determined.

5. The credit provider shall be obliged to notify the borrower, in an acceptable form, of the interest rate for the credit.

6. If the annual interest rate is not indicated, then only the annual interest provided by law shall apply. If the imposition of costs was not taken into account when calculating the annual interest, then these costs shall not be reimbursed.

7. When granting bank credit, the requirements provided for by Article 625 of this Code regarding the interest rate, penalty, financial cost and the imposition of any form of financial sanction shall be observed.

8. Unless otherwise provided by the legislation of Georgia, bank credit of up to 200,000 (two hundred thousand) GEL shall be granted only in GEL, except where, as a result of the granting of the bank credit, the borrower's total obligations towards the same provider of the bank credit exceed 200,000 (two hundred thousand) GEL. For the purposes of this paragraph, any bank credit linked to or indexed to a foreign currency in any form shall not be considered bank credit granted in GEL.

Law of Georgia of 29 December 2016 No. 239 – website, 13.01.2017.

Law of Georgia of 23 December 2017 No. 1901 – website, 11.01.2018.

Law of Georgia of 21 July 2018 No. 3315 – website, 07.08.2018.

Law of Georgia of 22 December 2018 No. 4104 – website, 10.01.2019.

Article 869. (removed)🔗

Law of Georgia of 29 June 2007 No. 5127 - LHG I, No. 27, 17.07.2007, Art. 260

Article 870. Application of additional security🔗

1. If, upon the granting of credit, material or personal security is agreed, then the credit provider, in the event of incomplete repayment of the loan, may demand the application of additional security.

2. The credit provider shall be obliged, at the request of the credit recipient, to return the security that exceeds the agreed scope of repayment.

Article 871. Termination of the contract🔗

1. If a fixed interest rate is agreed for the credit for a definite period, the credit recipient may terminate the credit contract if the interest obligation ends before the term determined for repayment and no new agreement on the interest rate has been concluded. The termination period is one month.

2. If the credit recipient is a consumer and the credit is not secured by mortgage, the right of termination arises six months after the credit is taken. The termination period is three months.

3. After ten years have passed, the right of termination exists in any case. The termination period is six months.

4. The debtor may at any time terminate a loan taken at a variable interest rate, observing a three-month termination period.

Article 872. Compensation for damage for early repayment of the credit🔗

If the credit recipient returns the credit before the credit relationship ends, the credit grantor may demand appropriate compensation for the damage. At the same time, the compensation for damage shall include the value of the saved expenses, as well as the profit that the credit grantor would have received from another use of the loan currency, or if the credit recipient intentionally did not allow its receipt.

Article 873. Termination of the credit relationship upon repayment of the credit in instalments🔗

The credit grantor may terminate the credit relationship if repayment of the credit in instalments is provided for and the credit recipient has missed at least two consecutive payment dates. The termination shall enter into force if payment is not made even after a two-week additional period has been granted.

III. Deposit

Article 874. Concept. Liability of the heads of a credit institution🔗

1. By depositing a sum of money (deposit), the credit institution acquires the right of ownership thereto and is obliged, upon maturity, to return the amount received in the same currency.

2. If no term is determined, the sum of money may be demanded back at any time.

3. Interest shall be credited to deposits accordingly.

4. The recipient of the deposit and the directors (managers) of the credit institution are obliged to provide the depositor with information on the bank's liquidity and creditworthiness.

5. The person who culpably provides incorrect information or refuses to provide the necessary data is obliged to compensate the depositor for the damage caused by providing incorrect information or by failure to provide information.

6. The bank's directors (managers) who, through advertising brochures or otherwise, publicly disseminate incorrect data on the bank's liquidity and creditworthiness shall also be liable jointly and severally.

Article 875. Savings book🔗

When issuing a savings book, the credit institution is entitled to complete it only in nominal form (for a specific person).

Law of Georgia of 23 July 2003 No. 2617 – LHG I, No. 22, 08.08.2003, Art. 167

IV. Documentary (commodity) letter of credit. Documentary collection

Article 876. Concept🔗

1. By opening a letter of credit, the credit institution (issuing bank) is obliged, at the request and instruction of the client (the person giving the letter of credit order), in exchange for the specified document, to pay to a third person (beneficiary) a sum of money at that person's order, or to cash a bill of exchange transferred by the beneficiary, to effect acceptance, or to instruct another bank to carry out this operation, if the credit conditions have been fulfilled.

2. The client is obliged to pay the agreed remuneration.

Article 877. Collection order🔗

By a collection order, the credit institution (bank) authorized to carry out a collection operation assumes the obligation, at the instruction of the client (principal), to issue commercial securities in exchange for acceptance and/or, if necessary, payment by the payer.

Article 878. Customs of international circulation🔗

Unless otherwise agreed, the rights and obligations of the parties are determined according to the established customs of international circulation of documentary letters of credit or documentary collection.

V. Bank guarantee

Article 879. Concept🔗

By virtue of a bank guarantee, a bank, another credit institution or an insurance organization (guarantor), at the request of another person (principal), assumes a written obligation to pay to the principal's creditor (beneficiary) a sum of money in accordance with the assumed obligation, on the basis of the beneficiary's written demand for payment.

Article 880. Remuneration for a bank guarantee🔗

1. A bank guarantee secures the proper performance by the principal of his obligation towards the beneficiary.

2. For the issuance of a bank guarantee, the principal pays the guarantor the agreed remuneration.

Article 881. Independence of the guarantor's obligation from the principal obligation🔗

The guarantor's obligation towards the beneficiary provided for by a bank guarantee, in the relations between them, does not depend on the principal obligation for the performance of which it was issued, even where the guarantee contains a reference to that obligation.

Article 882. Inadmissibility of revocation of a bank guarantee🔗

A bank guarantee may not be revoked by the guarantor, unless otherwise provided in the guarantee.

Article 882¹. Right to transfer a bank guarantee issued by a bank to another bank🔗

For the purposes of liquidation of a bank, the liquidator of the bank is entitled, without the consent of the beneficiary and the principal of the bank guarantee, to transfer a bank guarantee issued by the bank to another bank.

Law of Georgia of 23 December 2017 No. 1901 – website, 11.01.2018.

Law of Georgia of 22 February 2023 No. 2622 – website, 10.03.2023.

Article 883. Inadmissibility of transfer of the beneficiary's claim to another person🔗

The right of claim belonging to the beneficiary arising from a bank guarantee against the guarantor may not be transferred to another person, unless otherwise provided by the guarantee.

Article 884. Entry into force of a bank guarantee🔗

A bank guarantee enters into force from the day of its issuance, unless otherwise provided by the guarantee.

Article 885. Form of submission of the demand🔗

1. Under a bank guarantee, the beneficiary's demand for payment of a sum of money shall be submitted to the guarantor in written form, with the documents specified in the guarantee attached. In the demand or in its attachment, the beneficiary shall indicate what constitutes the principal's breach of the principal obligation to secure which the guarantee was issued.

1¹. Submission by the beneficiary to the guarantor of a demand for payment of a sum of money in written form is not required if there is an agreement between the beneficiary and the guarantor on receipt of the demand for payment of a sum of money using an electronic document exchange system.

2. The beneficiary's demand shall be submitted to the guarantor before the expiry of the period determined by the guarantee, for which period it was issued.

Law of Georgia of 21 July 2010 No. 3537 - LHG I, No. 47, 05.08.2010, Art. 304

Article 886. Obligation of the guarantor upon receipt of the beneficiary's demand🔗

1. After receipt of the beneficiary's demand, the guarantor shall immediately notify the principal thereof and transmit to him a copy of the demand together with all documents related thereto.

2. The guarantor shall consider the beneficiary's demand with the attached documents within a reasonable time and exercise reasonable care to establish whether the demand and the attached documents conform to the terms of the guarantee.

Article 887. Refusal by the guarantor to satisfy the beneficiary's demand🔗

1. The guarantor shall refuse the beneficiary satisfaction of his demand if that demand or the attached documents do not conform to the terms of the guarantee, or if they were submitted to the guarantor after the expiry of the period determined by the guarantee. The guarantor shall immediately notify the beneficiary of the refusal to satisfy his demand.

2. If, before satisfaction of the beneficiary's demand, it became known to the guarantor that the principal obligation secured by the bank guarantee has in the relevant part already been fully performed, has terminated on other grounds or is void, he shall immediately notify the beneficiary and the principal thereof. A repeated demand of the beneficiary received after such notification by the guarantor shall be subject to satisfaction by the guarantor.

Article 888. Scope of the guarantor's obligation🔗

The guarantor's obligation towards the beneficiary provided by a bank guarantee is limited to payment of the amount for which the guarantee was issued.

Article 889. Grounds for termination of the guarantor's obligation🔗

1. The guarantor's obligation towards the beneficiary terminates:

a ) by payment to the beneficiary of the amount for which the guarantee was issued;

b ) by expiry of the period determined in the guarantee, for which period it was issued;

c ) upon the beneficiary's waiver of his rights arising from the guarantee and their return to the guarantor.

2. A guarantor who has become aware of the termination of the guarantee shall immediately notify the principal thereof.

Article 890. Right to claim recourse reimbursement🔗

1. The guarantor's right to demand from the principal, by way of recourse, payment of the amount reimbursed to the beneficiary under a bank guarantee shall be determined by the guarantor's agreement with the principal for the performance of which the guarantee was issued.

2. The guarantor shall not be entitled to demand from the principal payment of the amount reimbursed to the beneficiary contrary to the terms of the guarantee or by reason of breach of the guarantor's obligation towards the beneficiary, unless otherwise provided by the guarantor's agreement with the principal.

Article 891. Concept🔗

1. Under a suretyship contract, the surety assumes the obligation to stand surety before the creditor for a third person for the performance of the latter's obligation.

2. Suretyship may also be used for future and conditional obligations.

Article 892. Form of suretyship🔗

1. For the validity of suretyship, a written declaration of the surety and the indication, in the suretyship document itself (contract), of the maximum amount of the surety's liability determined in quantitative terms shall be required.

2. If a person declares suretyship within the scope of the performance of his professional activity, compliance with the form shall not be necessary.

Article 893. Basis of the surety's obligation🔗

The existence of the corresponding principal obligation shall be determinative for the surety's obligation. The surety's obligation shall not increase by a transaction concluded by the principal debtor after the assumption of suretyship, and shall not extend to the relations arising from that transaction.

Article 894. Refusal of the surety to satisfy the creditor🔗

The surety may refuse to satisfy the creditor until the creditor attempts enforcement against the principal debtor.

Article 895. Joint and several liability of the surety🔗

If the surety assumes liability jointly and severally or in another equivalent manner, a claim may be brought against him even without an attempt at enforcement, if the principal debtor has exceeded the payment deadline and has been warned without result, or his insolvency is obvious.

Article 896. Liability of several sureties for one and the same obligation🔗

If several persons are sureties for one and the same obligation, they shall be liable as joint and several debtors, even if they did not assume suretyship jointly.

Article 897. Liability for obligations assumed by predecessor sureties🔗

A surety who has undertaken before the creditor to perform the obligation assumed by predecessor sureties shall be liable together with them in the same way as, ordinarily, a surety together with the principal debtor.

Article 898. Scope of the surety's liability🔗

1. The surety shall in all cases be liable only up to the amount of the maximum sum indicated in the suretyship document.

2. Unless otherwise agreed, the surety shall be liable up to the amount of the said maximum sum:

a) for the amount corresponding to the principal debt, in particular also where the principal debt has changed due to the fault of the principal debtor or due to default in payment. For a contractual penalty or the total amount of damages provided for at the time of termination of the contract, the surety shall be liable only where this has been specifically agreed;

b) for the costs of termination of the contract and court costs which are to be reimbursed by the principal debtor, if the surety had the opportunity to avert them by satisfying the creditor;

c) for the interest payable by the principal debtor under the contract, if this was directly agreed.

Article 899. The surety's right to object🔗

1. The surety may raise the objections belonging to the principal debtor. If the principal debtor dies, the surety may not rely on the limited liability of the heir.

2. The surety does not lose the right to object by reason of the fact that the principal debtor has waived it.

Article 900. The surety's refusal to satisfy the creditor🔗

The surety may refuse to satisfy the creditor as long as the principal debtor has the right to contest the transaction which underlies his obligation.

Article 901. Reduction of the surety's liability🔗

If the creditor, to the detriment of the surety, reduces security rights or other means of security and benefits, the surety's liability is reduced by the amount corresponding to the said reduction.

Article 902. Consequences of default in payment by the principal debtor🔗

1. If the principal debtor has defaulted on payment, the creditor shall notify the surety thereof. At the surety's request, the creditor shall at any time provide him with information on the state of the principal debt.

2. If the creditor fails to perform one of these actions, he loses his claims against the surety to the extent to which the non-performance would cause damage.

Article 903. Termination of the contract in the case of open-ended suretyship🔗

1. If the suretyship is open-ended, the surety is obliged to observe a three-month period for termination of the contract.

2. In the case of fixed-term suretyship, after five years have elapsed the contract may be terminated with observance of a three-month period.

3. In the case of unilateral termination, the surety is obliged to perform the obligations assumed before termination.

Article 904. Grounds for release from the obligation of suretyship🔗

I. If the surety assumes suretyship at the instruction of the principal debtor, or if, without instruction, in accordance with the rules on conducting another's affairs, he is granted the rights of an agent vis-à-vis the principal debtor by reason of the suretyship, then he may demand release from the suretyship if:

a) the financial situation of the principal debtor has substantially deteriorated;

b) after the establishment of the suretyship, recovery from the principal debtor has become substantially more difficult due to a change of residence or location;

c) the creditor has against the surety a document with an enforcement endorsement for performance.

2. If the time for performance of the principal obligations has not yet arrived, the debtor may, instead of release, give the surety security.

Article 905. Consequences of satisfaction of the creditor by the surety🔗

If the surety satisfies the creditor, the creditor's claim against the principal debtor passes to him. The principal debtor's defences arising from the legal relationship existing between him and the surety remain unaffected.

Article 906. Concept. Content🔗

1. By a current account agreement, the parties undertake to enter into the account the claims and payments arising from business relations and to consider them as not subject to disposal until the closing of the account.

2. The balance of the account shall be subject to payment within the agreed term. If, upon closing of the account, the party to whom the balance of the amount is due does not demand payment, it shall be entered into the current account.

3. By the closing of the account, a claim to the balance arises, which, for the purpose of performance, takes the place of the claim placed in the current account.

4. The closing of the account shall be effected once a year, unless otherwise provided.

Article 907. Termination of the current account🔗

In case of doubt, the current account may be terminated at any time and the account closed.

Article 908. Interest for payments made🔗

For the payments made, interest shall be paid at the rate of the interest rate provided by law, unless the contract provides otherwise.

Article 909. Personal or real security for a claim entered in the current account🔗

1. If personal or real security exists for a claim entered in the current account, the creditor may, even after the closing of the account, demand satisfaction from such security for the amount of the balance existing in his favour.

2. The rule provided for by paragraph 1 of this Article shall also apply where joint and several liability exists for the claim.

Article 910. Attachment🔗

If a creditor of one of the parties to the agreement obtains an inventory (attachment) of the balance amount owed to the debtor from the current account, then those parts of the debt that arose after the inventory (attachment) by new transactions shall not be taken into account vis-à-vis the creditor. A transaction that has already been effected on the basis of claims existing before the transaction shall not be considered a new transaction.

Article 911. Concept🔗

1. If a person issues a document by which he promises payment to the holder of the document, the holder may demand payment in accordance with the promise, except where he was not entitled to do so.

2. The validity of a signature on an issued document may be made dependent on compliance with a special form, which shall be indicated in the document. The signature may be executed in any technically possible manner.

Article 912. Defences of the Issuer🔗

The issuer of a document (issuer) may raise against the holder of the security only such defences as concern the validity of the execution, the document itself, or which the issuer has directly against the holder.

Article 913. Rule of Transfer of Rights🔗

1. The right embodied in the document passes in accordance with the rules established for the transfer of movable things. It may also be transferred by a contract concluded with a third party.

2. A person who acquires a lost document in any manner shall be deemed a lawful holder, except where, at the time of acquiring the document, he acted intentionally or with gross negligence.

Article 914. Rights of the Issuer🔗

1. The issuer may contest against any holder that he did not issue the security to him. In addition, he may raise against the holder any defence arising from the document.

2. If the issuer uses a technical means to sign the document, he may not justify himself vis-à-vis the holder by the fact that he was not entitled to use that means, except where the acquirer knew of the forgery or acted with gross negligence.

3. If the document was transferred to the holder into ownership, the issuer may not oppose against him defences arising from his direct relations with a previous holder, except where the subsequent holder, at the time of acquiring the document, acted knowingly to the detriment of the issuer.

4. If a defence does not arise from direct relations, it may be raised only against a holder who acquired ownership of the document by way of alienation and, at the time of its acquisition, acted intentionally or with gross negligence.

Article 915. Obligation of the Issuer🔗

1. The issuer is obliged to perform his obligation only if the security is handed over to him.

2. A debtor who performs obligations towards the holder of the document is released from his obligation if he did not act intentionally or with gross negligence, and has the opportunity to prove the holder's bad faith.

3. A debtor who is released from his obligations towards the holder of the document acquires ownership of the document handed over to him.

Article 916. Re-issuance of a Bearer Security🔗

Re-issuance of a bearer security in the name of a specified person may be carried out only by the issuer. At the same time, the issuer is not obliged to re-issue a bearer (to the bearer) security.

Article 917. Replacement of a Security Unfit for Circulation🔗

If a bearer security is no longer fit for circulation due to damage, the holder may, if recognition of the content of the document and essential distinguishing features is still possible, demand a new bearer security in exchange for surrender of the damaged document. The costs associated therewith shall be borne by the holder and paid in advance.

Article 918. Declaration of a Security as Invalid🔗

1. A lost or destroyed security may be declared invalid by a court, unless the document provides otherwise.

2. The issuer shall, upon demand, provide the previous holder with information necessary for the court hearing of the case for declaring the security invalid and for prohibiting payment; it shall also issue a corresponding certificate. The previous holder shall pay the costs of issuing the certificate in advance.

Article 919. Issuance of a New Bearer Document🔗

A person who has obtained a declaration of invalidity of bearer debt obligations may, notwithstanding the exercise of the claim arising from the document, demand from the issuer the issuance of a new bearer document in place of the invalid one. The same person shall reimburse the issuance costs in advance.

Article 920. Limitation Period for Claims🔗

The limitation period for claims arising from securities is thirty years from the due date for performance of the obligations provided for by the documents.

Article 921. Issuance of Low-Value Debt Instruments🔗

If the issuer has issued low-value debt or other similar documents in which the creditor is not indicated, and it is clear from the circumstances of the case that the issuer intends to pay the holder, then the rules of paragraph 1 of Article 911, Articles 913–915 and 920 shall apply.

II. Obligation Arising from Order Securities

Article 922. Definition🔗

1. A debt instrument by which the issuer promises payment upon presentation of the document to a named person may be issued in the form of an order security.

2. The signature may be made in any technically possible manner.

Article 923. Transfer of Rights. Types of Endorsement🔗

1. The right embodied in the document may be transferred by endorsement and transfer of the document.

2. The endorsement is made on the document or on a supplement thereto. Use of technical means is permitted.

3. The endorsement does not require designation of the endorsee and may consist only of a signature (blank endorsement). A blank endorsement may be completed by the authorized holder in his own name or in the name of another, the document may be issued without completion, or the holder may himself effect its subsequent endorsement to a specified person.

Article 924. Rules for Use of a Document Acquired by Endorsement🔗

If an order debt instrument is acquired on the basis of an endorsement, then Article 914 shall apply accordingly.

Article 925. Payment in the Presence of Successive Endorsements🔗

1. The holder of an order security evidenced by successive endorsements may, in exchange for surrender of the signed document, demand payment according to the promise, except where he has no authority to do so.

2. Payment to an unauthorized person who has evidenced his right through successive endorsements releases the debtor, unless he acted intentionally or with gross negligence.

3. A debtor who has performed his obligation toward the endorsee becomes the owner of the document transferred to him.

Article 926. Claims Guaranteed in Writing🔗

If in order securities not only claims of small value are guaranteed in writing, the rules for the issuance and declaration of invalidity of a document replacing a bearer debt instrument shall apply accordingly.

Article 927. Limitation Period for Claims🔗

The rules applicable to bearer debt instruments shall apply accordingly to the limitation of claims arising from order debt instruments.

III. Registered Securities

Law of Georgia of 16 November 2023 No. 3726 – website, 7 December 2023.

Article 928. Definition🔗

1. A registered security is a security ownership of which is confirmed by registration in a register maintained by the issuer or in the issuer's name, or in the records of a nominal holder.

2. Transfer of ownership of a registered security is effected by making a corresponding entry in the register or in the records of a nominal holder.

Law of Georgia of 16 November 2023 No. 3726 – website, 7 December 2023.

Article 929. (Repealed)🔗

Law of Georgia of 16 November 2023 No. 3726 – website, 7 December 2023.

IV. Dematerialized Securities

Law of Georgia of 16 November 2023 No. 3726 – website, 7 December 2023.

Article 929¹. Concept of a Dematerialized Security and Rights and Obligations Arising Therefrom🔗

1. A dematerialized security exists only in the form of an entry in an account. Its circulation and the rights and obligations arising therefrom are determined by the Law of Georgia “On Holding of Dematerialized Securities” and other legislative and subordinate normative acts of Georgia.

2. The issuer has the right to raise against the holder of a dematerialized security only such objections as arise from this security.

3. The limitation period for a claim arising from a dematerialized security is 30 years from the due date for performance of the corresponding obligations.

Law of Georgia of 16 November 2023 No. 3726 – website, 7 December 2023.

Article 930. Definition🔗

By a joint activity (partnership) contract, two or more persons undertake to act jointly to achieve common economic or other goals by means specified in the contract, without creating a legal entity.

Article 931. Form of the contract of joint activity🔗

1. A contract of joint activity may be concluded in writing or orally.

2. If the contract is concluded in writing, then it must contain:

a) the names and addresses of the participants;

b) data on the type and purpose of the joint activity;

c) the rights and obligations of the participants;

d) the structure and functions of the management bodies;

e) the procedure and conditions for the distribution of income and losses among the participants;

f) the procedure for withdrawal from the contract;

g) the duration of the activity;

h) the procedure for termination of the contract and distribution of the remaining property.

Article 932. Obligation to make a contribution🔗

1. The participants shall make the contributions provided for by the contract. If the amount of the contribution is not determined by the contract, each participant is obliged to make it in equal shares.

2. A contribution may be made both by property and by rendering services.

3. Unless the contract provides otherwise, the contributions constitute the common property of the participants. The common property of the participants also comprises that which is acquired on the basis of a right existing in common property, or is received as compensation for the destruction, damage or taking of the common property.

Article 933. Inadmissibility of transfer of a share to a third person🔗

1. A share in the form of property or a right may not be transferred to a third person without the consent of the other participants of the contract. Refusal of consent shall be admissible only where a valid reason exists.

2. The remaining participants of the contract have the right of preferential purchase of the share to be transferred to a third person.

Article 934. Obligation to jointly manage affairs🔗

1. Unless the contract provides otherwise, the participants in the contract shall jointly manage the affairs and represent the partnership in relations with third parties. For the conclusion of each transaction, the consent of all participants in the contract shall be required. If the contract provides that a majority of votes is sufficient for adopting a decision, it shall be determined according to the total number of participants in the contract, and not according to the amount of contribution.

2. If the management of affairs is assigned by contract to one or several participants in the joint activity in such a way that each of them has the right to act independently, then each of them may object to the other when concluding a transaction. In the event of such objection, the transaction shall not be concluded.

3. If by contract the management of the partnership's affairs is assigned to one of the participants, in case of doubt he shall represent the partnership in relations with third parties, and transactions concluded by him shall be valid.

4. A participant in joint activity may be deprived of the authority to manage affairs by a majority of votes and only if he grossly violates the duties assigned to him by the contract. A participant in the contract has the right to refuse to participate in the management of affairs. Such a person may at any time demand from the management the information necessary for him.

5. Unless otherwise follows from the contract, the rights and duties of the managing persons shall be determined in accordance with the rules on mandate.

Article 935. Rule for distribution of income🔗

1. Unless the contract provides otherwise, income shall be distributed among the participants in proportion to their shares.

2. Each participant has the right to demand from every participant the conscientious performance of obligations arising from the joint activity.

Article 936. Inadmissibility of assignment of mutual claims of participants to a third party🔗

The claims of participants in joint activity against each other that arise from the joint activity contract may not be assigned to other persons.

Article 937. Joint and several liability of participants🔗

1. The participants in the contract shall be jointly and severally liable for debts arising from the joint activity. In relations among themselves, the amount of liability shall be determined in proportion to the participants' shares, unless the contract provides otherwise.

2. Participants in joint activity are obliged not to disclose confidential information received as a result of this activity.

Article 938. Refusal of a joint activity contract🔗

1. If the contract does not directly determine the term of the joint activity, each participant may at any time refuse participation in the joint activity. Withdrawal from the contract is inadmissible at a time or in circumstances that would be detrimental to the joint activity.

2. If the term of the joint activity is determined by agreement of the participants, withdrawal from the contract is permitted only where there are valid reasons.

3. Withdrawal of one of the participants results in termination of the joint activity. The contract may provide for the withdrawal of one of the participants without termination of the joint activity. In such case the share of the withdrawing participant is distributed among the other participants. The withdrawing participant shall be given compensation for the share in monetary form. At the same time, transactions unperformed at the time of withdrawal shall be taken into account. If at the moment of withdrawal the common property can no longer cover the common debts, the withdrawing participant is obliged to pay the remaining participants the amount corresponding to his share. The obligation of the withdrawing participant towards the creditors existing at the moment of withdrawal remains unchanged.

4. An agreement that abolishes or restricts the right of a participant to withdraw from the contract is void.

Article 939. Grounds for termination of joint activity🔗

1. The grounds for termination of joint activity are:

a) expiry of the agreed term of the joint activity;

b) decision of the participants;

c) opening of insolvency proceedings over the property of the joint activity;

d) impossibility of achieving the purposes of the joint activity.

2. If the contract does not provide otherwise, the grounds for termination of joint activity are also:

a) death of one of the participants of the contract;

b) opening of insolvency proceedings over the property of one of the participants;

c) dissolution of the contract.

Article 940. Rule for termination of joint activity🔗

1. Upon termination of joint activity, transactions still unperformed must be completed, an inventory list shall be drawn up, and the remaining property shall be distributed among the participants in accordance with their shares.

2. When distributing the property, the debts arising during the joint activity must be covered. If the property is insufficient to cover the debts, the participants of the contract are obliged to discharge the debts in accordance with their shares.

Article 941. Concept🔗

A person who undertakes to pay lifelong maintenance (maintainer) is a debtor obliged to pay it to the recipient of the maintenance (maintenance recipient) for the whole life, unless the contract provides otherwise. Lifelong maintenance may be established in monetary or in kind form (apartment, food, care and other necessary assistance).

Article 942. Form of contract🔗

The lifelong maintenance contract shall be concluded in writing. In the case of transfer of immovable property, the contract shall be certified by notarial procedure.

Article 943. Amount of maintenance🔗

The amount of lifelong maintenance is determined by agreement of the parties.

Article 944. Terms of payment of maintenance🔗

The terms of payment of maintenance are determined based on its nature and purposes, by agreement of the parties.

Article 945. Prohibition of alienation of transferred property🔗

1. During the lifetime of the maintenance recipient, the maintainer has no right to alienate, mortgage, or otherwise encumber the transferred property without the written consent of the maintenance recipient. Enforcement for the maintainer’s debts may not be levied on this property.

2. When the maintenance recipient transfers immovable property to the maintainer, the maintenance recipient has the right of mortgage over this property to secure the claim.

Law of Georgia of 30 June 2005 No. 1826 – LHG I, No. 41, 19.07.2005, Art. 284

Article 946. Objection to payment of maintenance🔗

The payment of lifelong maintenance may be contested by other persons who had a lawful right to receive maintenance from the maintainer but could not receive it because the maintainer pays lifelong maintenance. In the event of termination of the contract, the property is returned to the maintenance recipient.

Article 947. Payment of maintenance in kind🔗

In a contract for the payment of maintenance in kind, the parties may provide for the replacement of maintenance in kind by money.

Article 948. Risk of accidental loss or damage of transferred property🔗

Accidental loss or damage of property transferred to the maintainer does not release him/her from payment of maintenance.

Article 949. Renunciation of a contract for lifelong maintenance🔗

1. Both the maintainer and the maintenance recipient may renounce the contract for lifelong maintenance if, as a result of breach of contractual obligations, the relationship between the parties has become unbearable, or other substantial reasons make its continuation extremely difficult or impossible.

2. Upon termination of the contract, the transferred immovable property is returned to the maintenance recipient, while expenses incurred before termination of the contract are not reimbursed to the maintainer, unless otherwise provided by the contract.

Article 950. Consequences of death of the maintainer🔗

1. Upon the death of the maintainer, the maintenance obligation passes to those heirs of his/her who received the transferred property.

2. If an heir renounces this obligation, this property is returned to the maintenance recipient. In this case, the contract is terminated.

Article 951. Concept🔗

1. Gambling or betting does not give rise to a right of claim. This rule applies to a loan and an advance that were intentionally given for gambling or betting.

2. Performance rendered on the basis of gambling or betting may not be reclaimed.

3. A qualified financial contract is not gambling or betting, and the effect of this article does not apply to it. A qualified financial contract is regulated by the Law of Georgia on Financial Collateral, Netting and Derivatives.

Law of Georgia of 20 December 2019 No. 5674 – website, 31.12.2019

Article 952. Lottery🔗

A lottery contract or similar games give rise to an obligation if they (drawing, lot, balloting) are permitted by the state.

Article 953. Concept🔗

If a right belongs jointly to several persons, the rules of this Chapter apply, unless otherwise follows from the law.

Article 954. Equality of shares🔗

Unless otherwise specifically provided, each co-owner is entitled to an equal share.

Article 955. Right to fruits🔗

1. Each co-owner is entitled to a part of the fruits proportionate to his share.

2. Each co-owner has the right to use the common thing in such a way that no damage is caused to the use of the remaining co-owners.

Article 956. Management of the common thing🔗

1. The co-owners manage the common thing jointly.

2. Each co-owner has the right to take the measures necessary for the preservation of the thing even without the consent of the other co-owners.

Article 957. Adoption of a decision in the management of the common thing🔗

1. By majority of votes a decision may be adopted on the management and use corresponding to the characteristics of the common thing. The majority of votes is calculated according to the shares.

2. Each co-owner may, according to fair consideration, demand management and use corresponding to the interests of all co-owners, if this is not regulated by agreement or by decision of the majority.

3. Without the consent of an individual co-owner, his right to a share of use may not be reduced.

Article 958. Transfer of the rules of management of the common thing to a successor in title🔗

If the co-owners have determined the rules of management and use of the common thing, then these rules apply also to the successor in title.

Article 959. Rules of disposal of the common thing🔗

Each co-owner may dispose of his share, while the common thing is disposed of only jointly. If not directly provided by the legislation of Georgia, in the case of sale of a share the right of the remaining co-owners to preferential purchase may be determined by agreement of the parties.

Law of Georgia of 11 May 2007 No. 4744 - LHG I, No. 18, 22.05.2007, Art. 158

Law of Georgia of 25 June 2019 No. 4851 - website, 02.07.2019

Article 960. Costs of maintenance of the common thing🔗

Each co-owner is obliged towards the other co-owners to bear, proportionately to his share, the costs related to the common thing.

Article 961. Termination of the common right🔗

1. Each co-owner may at any time demand the termination of the common right.

2. If by agreement the right to demand termination is excluded permanently or for a definite period, then in the presence of a valid reason termination may nevertheless be demanded.

3. Void is an agreement by which the right to demand termination is excluded or limited contrary to these rules.

Article 962. Agreement on termination🔗

If the co-owners have excluded for some period the right to demand termination of the common right, then the agreement loses force upon the death of a co-owner, unless otherwise determined.

Article 963. Termination of the common right upon division in kind🔗

The common right is terminated upon division in kind, if the common thing (things) can be divided into homogeneous parts without reduction in value; the distribution of equal shares among the participants is done by drawing lots.

Article 964. Termination of joint ownership by sale of the thing🔗

1. If division in kind is excluded, then joint ownership shall be terminated by sale of the joint thing, the pledged item or the land plot and distribution of the proceeds. In the case of a land plot, the rules for forced sale of immovable property at auction shall apply. If alienation of the joint thing to a third party is inadmissible, then the thing shall be sold at auction among the co-owners.

2. If the thing is not sold, then each co-owner may demand a repeat auction; at the same time, he shall bear the costs if the repeat attempt ended without result.

Article 965. Joint and several liability of co-owners🔗

1. If co-owners, as joint and several debtors, are liable for an obligation which, in accordance with Article 600, they must perform in proportion to their shares, or have assumed the performance of such an obligation, then each co-owner may, upon termination of joint ownership, demand that the debt be paid out of the joint thing.

2. If the sale of the joint thing is necessary for the purpose of paying the debt, this shall be done in accordance with Article 964.

Article 966. Satisfaction of a claim existing against fellow co-owners🔗

If a co-owner has a claim against another co-owner which is based on joint ownership, then, upon termination of this right, he may demand satisfaction of his claim out of the part of the joint property that falls to the debtor.

Article 967. Liability of co-owners upon termination of joint ownership🔗

If, upon termination of joint ownership, the joint thing is assigned to one of the co-owners, then each remaining co-owner shall be liable in accordance with his share, as a seller – for a defect of the thing or right.

Article 968. Limitation period for a claim for termination of joint ownership🔗

A claim for termination of joint ownership is not subject to limitation.

Article 969. Performance of another's affairs without mandate in good faith🔗

A person (the performer) who, without a mandate or other basis, performs the affairs of another person (the principal), shall be obliged to perform them in good faith.

Article 970. Obligation to compensate damage🔗

1. If the performance of the affairs is directed at averting the danger threatening the principal, the performer shall be liable only for intent or gross negligence.

2. A performer who suffered damage while averting a danger that actually threatened another person or property, where the averting of the danger did not constitute a legal obligation of the performer, shall be compensated for the damage by the person who created the danger, or by the person whose benefit the performer sought to save.

Article 971. Obligation to notify the principal🔗

The performer shall be obliged to notify the principal at the first opportunity that he has assumed the performance of the affairs. The performer shall continue the affairs begun until the principal is able to act himself.

Article 972. Submission of a report on the work performed🔗

The performer shall be obliged to submit to the principal a report on the performance and to hand over to him everything that he received as a result of the performance.

Article 973. Right to reimbursement of expenses incurred🔗

A performer has the right to demand reimbursement of the expenses incurred which, in view of the circumstances of the matter, were considered necessary.

Article 974. Inadmissibility of a claim for reimbursement of expenses incurred🔗

1. A performer may not demand reimbursement of the expenses incurred if the performance of the affairs by him contradicts the will of the principal or does not correspond to his interests. If the performer could have known of this, he shall be obliged to compensate the damage caused by the performance.

2. This rule shall not apply if the will of the principal contradicts the norms of law.

Article 975. Presumption of performance of one's own affairs🔗

The rules of this Chapter shall not apply if a person, while performing another's affairs, presumed that these were his own affairs.

Article 976. Grounds for a claim against a supposed creditor🔗

1. A person who has transferred something to another for the performance of an obligation may demand its return from the supposed creditor (the recipient) if:

a) the obligation does not exist, does not arise or has subsequently terminated due to the invalidity of the transaction or another ground;

b) contrary to the obligation, such a defence has been raised that the bringing of a claim is excluded for a long period of time.

2. A claim for return shall be excluded if:

a) the performance corresponds to moral duties, or

b) the limitation period has expired, or

c) the recipient could have presumed that the performer intended the transfer, irrespective of whether the conditions of paragraph 1 of this Article exist, or

d) a claim for return upon the performance of an invalid debt contract contradicts the protective function of the norms on invalidity.

Article 977. Inadmissibility of a claim for the return of transferred property🔗

1. A person who transfers something to a second person not for the performance of an obligation, but for the purpose that the latter perform or refrain from performing any act, may demand the return of what was transferred if the act of the second person does not correspond to the expected purpose.

2. A claim for return shall be excluded if:

a) the achievement of the purpose was impossible from the outset and the transferor knew this, or

b) the transferor in bad faith prevented the achievement of the purpose.

Article 978. Claim for the return of what was transferred on the basis of coercion or threat🔗

A person who transfers something to a second person not for the performance of an obligation, but on the basis of coercion or threat, may demand its return, except in cases where the recipient had a right to what was transferred.

Article 979. Scope of the claim for restitution🔗

1. The claim for restitution extends to what was acquired, the benefit received, as well as everything else that the recipient acquired as compensation in lieu of destruction, damage, or deprivation of the received thing.

2. If restitution is impossible due to the condition of the transferred thing, or if for some reason the recipient cannot return the thing, then he must compensate its total value. The value is determined according to the time when the right to claim compensation arose.

3. There is no obligation to compensate if the recipient, due to use of the thing, transfer to another, loss, deterioration, or other grounds, has been enriched neither by the thing nor by its value.

4. If the parties to a bilateral contract must make restitution, due to the invalidity of the contract, of what they received under that contract, but one of the parties cannot make restitution due to the grounds provided for by paragraph 2 of this Article, then he shall not bear the obligation to make restitution if this follows from the essence of the norm of law on the basis of which the contract was declared invalid.

5. Loss or deterioration of the subject matter of performance, for which the performer is held liable during the validity of the contract, always releases the recipient from the obligation to compensate.

Article 980. Rule for compensation of expenses and losses🔗

1. If the recipient incurred expenses or suffered property loss in connection with the fact that the thing was considered permanently acquired, then he is obliged to return the thing subject to compensation of expenses and losses. This rule does not apply when the transferred thing does not provide a basis for it to be considered permanently acquired.

2. Obligations of compensation under Articles 979 and 980 shall be performed simultaneously. The costs and risk of return shall be borne by the performer.

Article 981. Obligation to compensate damage🔗

1. If the recipient knew at the time of receipt, or due to gross negligence was unaware of the existence of a defect in the legal basis, and learns about it later, or a claim for transfer is received in court proceedings, then the recipient shall be liable from the time of receiving information about the defect or transfer to court proceedings – on the basis of paragraphs 1 and 2 of Article 979, Article 980, as well as the rules set out below.

2. If the recipient does not receive the benefit that he could have received as a result of proper management of the property, then the obligation to compensate shall be imposed if he is at fault. Interest shall be paid on a monetary debt. Income received from the thing shall be returned.

3. For loss or deterioration of the thing transferred upon performance, the recipient is obliged to compensate damage only if he is at fault. The recipient may demand, under the rules on performance of another's affairs without instruction, compensation for the expenses he incurred in connection with the subject matter of performance. Except for necessary expenses, other expenses shall not be compensated.

4. These rules do not apply to the debtor's liability for delay.

Article 982. Consequences of interference with another's legal good🔗

1. A person who interferes with another person's legal good without his consent by disposal, spending, use, joining, mixing, processing or other means, is obliged to compensate the authorized person for the damage caused thereby.

2. In the case of invalid disposal, the authorized person may demand immediate compensation from the holder.

Article 983. Acceptance of performance by an unauthorized person🔗

If performance intended for the authorized person is accepted by an unauthorized person, then he is obliged to return what he received to the authorized person.

Article 984. Release from liability🔗

1. If the holder did not know of the defect of authority, except in the case of gross negligence, he is released from liability if, at the time of the court's consideration of the claim for compensation, the signs of enrichment no longer exist.

2. Expenses incurred by the holder with respect to the good used do not reduce the amount of his enrichment.

Law of Georgia of 28 December 2002 No. 1902 – LHG I, No. 4, 22.01.2003, Art. 20

Article 985. Right to demand profit🔗

1. If the holder deliberately disregarded another person's authority, then the latter may demand the profit that exceeds the property loss.

2. The holder must provide information on what profit he received from the use of another's property.

Article 986. Payment of another's debts by mistake🔗

A person who knowingly or by mistake pays another's debts may demand from this person compensation of his expenses.

Article 987. Incurring expenses on another person's property by mistake🔗

1. A person who knowingly or by mistake incurred expenses on another person's property may demand from him compensation of his expenses if the other person was enriched thereby.

2. The existence of enrichment is determined at the moment when his thing is returned to the debtor, or he otherwise receives a benefit as a result of the increase in value.

3. The claim is excluded if:

a) the person against whom the claim is made may demand removal of the expenses and removes it, or

b) the person making the claim culpably delayed notification of the claim for expenses, or

c) the person against whom the claim is made disputed the expenses before they were incurred.

Article 988. Results of performance on the instruction of a supposed creditor🔗

1. A person who, in accordance with Article 976, transfers something to a third party on the instruction of a supposed creditor, may demand back from the supposed creditor what was performed, as if something had been transferred to him. If the instruction of the supposed creditor is doubtful, then the claim for return may be asserted only against the third party.

2. A person who, under Article 976, transfers something to a new supposed creditor after a claim has been made, may demand return from the original supposed creditor, as if something had been transferred to him. If the instruction of the original supposed creditor is doubtful, then the counterclaim may be asserted only against the new supposed creditor.

3. Articles 979 and 980 shall apply accordingly to the obligation to compensate.

Law of Georgia of 28 December 2002 No. 1902 – LHG I, No. 4, 22 January 2003, Art. 20

Article 989. Obligation of a third party to return what was received without legal ground🔗

1. If, in the cases provided for by Articles 976 and 988, the recipient, who is obliged to return what was received, transfers it to a third party free of charge, then the third party is also obliged to return what was received, as if he had received something from the creditor without legal ground, if satisfaction cannot be obtained from the recipient.

2. The claims of Articles 979–981 shall apply accordingly to compensation for damage.

Article 990. Results of the gratuitous disposal of a thing by an unauthorised person🔗

1. If an unauthorised person gratuitously disposes of a thing and this disposal is valid in relation to the authorised person, then the person who received direct legal benefit as a result of this disposal is obliged to transfer what was received to the authorised person.

2. In the case of fault, the claims of Articles 984 and 985 shall also apply accordingly.

Article 991. Results of unjust enrichment at the expense of another🔗

A person who has been unjustly enriched at the expense of another person by other means as well, apart from that provided for in this Chapter, is obliged to return to him what was received.

Article 992. Concept🔗

A person who, by an unlawful, intentional or negligent act, causes damage to another person, is obliged to compensate him for that damage.

Article 993. Results of the dissemination of information causing damage🔗

1. A person who intentionally or negligently disseminates or publicises facts causing pecuniary damage to another person, is obliged to compensate the damage arising therefrom, if these facts are clearly incorrect.

2. The obligation to compensate damage does not arise in the case of such statements as serve the protection of legitimate public interests.

Article 994. Liability of a minor for caused damage🔗

1. A person who has not reached the age of ten shall not be liable for damage caused by him to another.

2. Parents or other persons obliged to supervise a person who has not reached the age of ten are obliged to compensate damage caused by this person to another by an unlawful act. Their liability is excluded when the persons obliged to supervise could not have prevented the damage.

3. A person over ten years of age but a minor shall be liable for damage caused by him to another, except in cases where at the time of causing the damage he could not understand the significance of his action. In the case where this person does not have sufficient property or income to compensate the damage caused, additional liability shall be borne by his representatives as well.

Article 995. Compensation for damage caused by a recipient of support🔗

1. The obligation to compensate damage caused by a recipient of support shall be borne by the recipient of support, except in the case where a supporter was assigned to him by a court judgment in order to prevent the infliction of damage.

2. If a supporter was assigned to a recipient of support by a court judgment in order to prevent the infliction of damage, the obligation to compensate damage caused by him shall be borne by the supporter, except in the case where prevention of this damage was impossible.

3. In the case provided for by paragraph 2 of this article, the obligation to compensate damage caused by the recipient of support shall not be borne by the supporter if he proves that at the time of inflicting the damage the recipient of support no longer needed support in order to prevent the infliction of damage.

Law of Georgia No. 3339 of 20 March 2015 - website, 31.03.2015.

Article 996. Compensation for damage caused by a person in a temporary state of unconsciousness or a temporary state of mental disorder🔗

A person shall not be liable for damage caused by him while in a temporary state of unconsciousness or a temporary state of mental disorder. If the person brought himself into such a state by use of alcoholic beverage or another similar substance, he shall not be released from liability, except in the case where he found himself in this state without fault.

Law of Georgia No. 837 of 26 June 2025 - website, 03.07.2025.

Article 997. Compensation for damage caused in the performance of official duty🔗

A person shall be obliged to compensate damage caused to a third person by the unlawful act of his worker in the performance of his labour (official) duty. Liability shall not arise if the worker acted without fault.

Article 998. Joint and several liability for caused damage🔗

1. If several persons participate in the occurrence of damage, they shall be liable as joint and several debtors.

2. Not only the person who directly caused the damage, but also the person who instigated it or was an accomplice to it, as well as the person who knowingly benefited from damage caused to another, shall be liable for the damage.

Article 999. Compensation for damage caused as a result of the operation of a vehicle🔗

1. The owner of a vehicle intended for the carriage of passengers and the transportation of cargo, if the operation of his vehicle resulted in the death, injury or impairment of health of a person, or damage to a thing, shall be obliged to compensate the injured person for the damage arising therefrom.

2. The obligation to compensate for damage provided for by paragraph 1 of this Article shall not apply where:

a) cargo to be transported is damaged, except in cases where the passenger carries this cargo with him;

b) a thing accepted by the owner of the vehicle for storage is damaged.

3. The obligation to compensate for damage provided for by paragraph 1 of this Article shall not apply where the damage is caused by force majeure, except in cases where the damage arose during the operation of air transport.

4. If a person uses a vehicle without the owner's permission, he shall be obliged to compensate the damage instead of the owner. At the same time, the owner shall be obliged to compensate the damage caused if the use of the vehicle became possible through his fault. The first sentence of this paragraph shall not apply where the usufructuary is appointed by the owner to drive the vehicle, or where this vehicle had been transferred to him by the owner.

Article 1000. Liability for damage caused by increased danger emanating from a structure🔗

1. If an increased danger emanates from a particular structure from energy produced, placed or supplied in this structure, or from a fire-hazardous or explosive, poisonous or toxic substance, then the owner of this structure shall be obliged, if the practical realisation of this danger resulted in the death of a person, bodily injury or damage to health, or damage to a thing, to compensate the injured person for the damage arising therefrom. The same liability shall apply to the owners of fire-hazardous or explosive, poisonous or toxic substances where an increased danger emanates from these substances.

2. If an increased danger emanates from a particular structure or thing on a basis other than that indicated in paragraph 1 of this Article, the owner of the structure or thing shall be obliged to compensate in a similar manner the damage arising as a result of the realisation of the danger.

3. The obligation to compensate for damage provided for by paragraphs 1 and 2 of this Article shall be excluded if the damage is caused by force majeure, except in cases where the damage is caused by an accident of power transmission lines, or by damage to devices supplying oil, gas, water or petroleum products.

4. Damage caused by the use of a radioactive substance shall be compensated by its user.

Article 1001. Compensation for damage arising during the extinguishing of a fire🔗

Damage caused to other persons during the extinguishing of a fire or the prevention of its spread to neighbouring apartments and structures shall be compensated by the person who is at fault for the outbreak of the fire.

Article 1002. Inadmissibility of prior release from the obligation to compensate damage🔗

The obligation to compensate damage provided for by Articles 999 and 1000, if it concerns damage caused to a person, may not be excluded or limited in advance. The same rule applies to damage caused to a thing, except for cases where release from liability or limitation of liability was agreed between the person obliged to compensate the damage and a legal entity of public law, a public-law fund or an enterprise. Agreements and provisions to the contrary are void.

Article 1003. Compensation for damage caused by an animal🔗

The owner of an animal shall compensate the damage that his animal caused to another. At the same time, it is irrelevant whether the animal was under supervision, was lost, or had escaped. The obligation to compensate damage shall not apply where the owner of the animal took the necessary measures to protect third parties.

Article 1004. Compensation for damage caused by the collapse of a building🔗

1. The owner of a building shall compensate the damage arising as a result of the collapse of the building or the falling down of its individual parts, except for cases where the damage is not caused by improper maintenance of the building or a defect of the building.

2. If damage is caused by throwing, falling or pouring an object from a building, the person who occupies the premises shall be liable, except for cases where the damage occurred through force majeure or through the fault of the injured person.

Article 1005. Liability of the state (municipality) for damage caused by state and public servants🔗

1. If a state servant or public servant intentionally or through gross negligence breaches his official duty toward another person, the state (municipality) or the body in which the said servant works shall be obliged to compensate the damage caused. In case of intent or gross negligence, the state servant or public servant shall be liable jointly and severally together with the state (municipality).

2. The obligation to compensate damage shall not arise if the injured person, intentionally or through gross negligence, did not attempt to avert the damage by legal means.

3. Damage caused to a rehabilitated person as a result of unlawful conviction, unlawful prosecution, unlawful application of detention as a preventive measure, administrative imprisonment, disciplinary imprisonment or incorrect imposition of an administrative penalty in the form of corrective labour shall be compensated by the state, regardless of the fault of officials of the investigation and prosecution bodies and the court. In case of intent or gross negligence, these persons shall be liable jointly and severally together with the state.

Law of Georgia of 9 March 2010 No. 2719 - LHG I, No. 12, 24.03.2010, Art. 56

Law of Georgia of 24 September 2010 No. 3619 - LHG I, No. 51, 29.09.2010, Art. 332

Law of Georgia of 27 October 2015 No. 4369 - website, 11.11.2015

Law of Georgia of 21 December 2016 No. 161 - website, 28.12.2016

Law of Georgia of 1 June 2017 No. 947 - website, 20.06.2017

Article 1006. Compensation for damage in the event of the death of the injured person🔗

1. In the event of the death of the injured person, the person who caused the damage shall, by awarding maintenance, compensate the damage to those persons whose maintenance the injured person was obliged to provide. This obligation shall remain in force as long as the injured person would have been obliged to pay maintenance.

2. In lieu of maintenance, the injured person may demand a lump-sum compensation if there are significant grounds for this.

Article 1007. Compensation for damage caused by a medical institution🔗

Damage caused to a person's health during treatment in a medical institution (the result of a surgical operation or of an incorrect diagnosis, etc.) shall be compensated on general grounds. The person who caused the damage shall be released from liability if he proves that he is not at fault for the occurrence of the damage.

Article 1008. Limitation period for a claim for compensation for damage🔗

The limitation period for the right to claim compensation for damage caused by a delict shall be three years from the moment when the injured person learned of the damage or of the person obliged to compensate the damage.

Article 1009. Liability of the manufacturer of a defective product🔗

1. The manufacturer of a defective product shall be liable for the damage caused by this product, regardless of whether or not he was in a contractual relationship with the injured person, except in the case where:

a) he did not put this product into circulation for sale;

b) based on the circumstances of the case, it may be presumed that the defect which caused the damage did not exist in the product at the time it was put into circulation for sale;

c) the manufacturer did not manufacture the product either for sale or for another commercial purpose, nor within the scope of his professional activity;

d) the product has a defect which, at the time it was put into circulation for sale, complied with the norms in force at that time;

e) it was impossible to detect the defect taking into account the level of science and technology that existed at the time the product was put into circulation for sale.

2. The liability of the manufacturer of a part of a product is also excluded if the defect is caused by the design of the product of which this part became a component.

3. The manufacturer's obligation to compensate for the damage is reduced or excluded altogether if the occurrence of the damage was caused by the culpable act of the injured person or of the person liable in his stead.

4. The manufacturer's liability is not reduced if the damage is caused by a defect of the product and simultaneously by the act of a third person.

Law of Georgia of 8 May 2012 No. 6151 – website, 25.05.2012.

Article 1010. Concept of a defective product🔗

1. A product is considered defective if it does not provide the reliability that, taking into account all circumstances, was to be expected from this product.

2. A product is not considered defective merely because a better product was subsequently put into circulation.

Law of Georgia of 8 May 2012 No. 6151 – website, 25.05.2012.

Article 1011. Concept of product🔗

1. A product is any movable thing and a service related to the thing, even if this thing is a component part of another movable or immovable thing. For the purposes of this Code, "thing" does not include the primary product of food and the product obtained as a result of hunting. "Product" also includes goods placed on the market, regardless of whether or not it is intended directly for the final consumer, which is supplied or otherwise available for commercial or non-commercial purposes.

2. A person who has produced the final product, the main element or a part of the product shall be considered a manufacturer. Any person who, under his own name, with a commodity or other distinguishing mark, appears as a manufacturer shall also be considered a manufacturer.

3. A person who imports the product for sale, rental or in another form, for economic purposes, in the field of his activity, in compliance with the conditions provided for by this Code, shall also be considered a manufacturer.

4. If it is impossible to establish the identity of the manufacturer, then every supplier shall be considered a manufacturer, except when he, within 1 month from the claim, presents to the injured person the manufacturer or the person who supplied him this product. This rule applies also to imported goods, when it is impossible to establish the identity of the original distributor, despite the fact that the name of the manufacturer is known.

Law of Georgia No. 5119 of 13 October 2011 – website, 31.10.2011

Law of Georgia No. 6151 of 8 May 2012 – website, 25.05.2012

Article 1012. Burden of proof🔗

In liability for damage caused by a defective product, the burden of proof shall be borne by the injured person.

Law of Georgia No. 6151 of 8 May 2012 – website, 25.05.2012

Article 1013. Joint and several liability of manufacturers of defective products🔗

If the obligation to compensate damage for one and the same damage is borne by several manufacturers, they shall be liable as joint and several debtors.

Law of Georgia No. 6151 of 8 May 2012 – website, 25.05.2012

Article 1014. Compensation for damage caused by injury to health🔗

The obligation to compensate damage under Article 1009 of this Code extends to damage arising from death or injury to the body or health.

Law of Georgia No. 6151 of 8 May 2012 – website, 25.05.2012

Article 1015. Limitation period of a claim🔗

1. Under Article 1009 of this Code, the limitation period of a claim is 3 years from the moment when the person entitled to compensation for damage learned or should have learned about the damage, the defect or the person obliged to compensate the damage.

2. Under Article 1009 of this Code, the claim shall be extinguished 10 years after the manufacturer placed the damage-causing product on the market for sale.

Law of Georgia No. 6151 of 8 May 2012 – website, 25.05.2012

Article 1016. Inadmissibility of prior exclusion and limitation of the manufacturer's liability🔗

The manufacturer's liability for damage caused by a defective product may be neither excluded nor limited in advance. An agreement to the contrary is void.

Law of Georgia of 8 May 2012 No. 6151 – website, 25.05.2012.

Article 1017. Concept of Copyright🔗

The protection of copyright property and personal non-property rights regulated by copyright law, as well as of certain related rights, shall be effected in accordance with the Law of Georgia "On Copyright and Related Rights".

Law of Georgia of 22 June 1999 No. 2114 – LHG I, No. 26(33), 05.07.1999, Art. 134

Article 1018. (deleted)🔗

Law of Georgia of 22 June 1999 No. 2114 – LHG I, No. 26(33), 05.07.1999, Art. 134

Article 1019. (deleted)🔗

Law of Georgia of 22 June 1999 No. 2114 – LHG I, No. 26(33), 05.07.1999, Art. 134

Article 1020. (deleted)🔗

Law of Georgia of 22 June 1999 No. 2114 – LHG I, No. 26(33), 05.07.1999, Art. 134

Article 1021. (deleted)🔗

Law of Georgia of 22 June 1999 No. 2114 – LHG I, No. 26(33), 05.07.1999, Art. 134

Article 1022. (deleted)🔗

Law of Georgia of 22 June 1999 No. 2114 – LHG I, No. 26(33), 05.07.1999, Art. 134

Article 1023. (deleted)🔗

Law of Georgia of 22 June 1999 No. 2114 – LHG I, No. 26(33), 05.07.1999, Art. 134

Article 1024. (deleted)🔗

Law of Georgia of 22 June 1999 No. 2114 – LHG I, No. 26(33), 05.07.1999, Art. 134

Article 1025. (deleted)🔗

Law of Georgia of 22 June 1999 No. 2114 – LHG I, No. 26(33), 05.07.1999, Art. 134

Article 1026. (deleted)🔗

Law of Georgia of 22 June 1999 No. 2114 – LHG I, No. 26(33), 05.07.1999, Art. 134

Article 1027. (deleted)🔗

Law of Georgia of 22 June 1999 No. 2114 – LHG I, No. 26(33), 05.07.1999, Art. 134

Article 1028. (deleted)🔗

Law of Georgia of 22 June 1999 No. 2114 – LHG I, No. 26(33), 05.07.1999, Art. 134

Article 1029. (deleted)🔗

Law of Georgia of 22 June 1999 No. 2114 – LHG I, No. 26(33), 05.07.1999, Art. 134

Article 1030. (deleted)🔗

Law of Georgia of 22 June 1999 No. 2114 – LHG I, No. 26(33), 05.07.1999, Art. 134

Article 1031. (deleted)🔗

Law of Georgia of 22 June 1999 No. 2114 – LHG I, No. 26(33), 05.07.1999, Art. 134

Article 1032. (deleted)🔗

Law of Georgia of 22 June 1999 No. 2114 – LHG I, No. 26(33), 05.07.1999, Art. 134

Article 1033. (deleted)🔗

Law of Georgia of 22 June 1999 No. 2114 – LHG I, No. 26(33), 05.07.1999, Art. 134

Article 1034. (deleted)🔗

Law of Georgia of 22 June 1999 No. 2114 – LHG I, No. 26(33), 05.07.1999, Art. 134

Article 1035. (deleted)🔗

Law of Georgia of 22 June 1999 No. 2114 – LHG I, No. 26(33), 05.07.1999, Art. 134

Article 1036. (repealed)🔗

Law of Georgia of 22 June 1999 No. 2114 – LHG I, No. 26(33), 05.07.1999, Art. 134

Article 1037. (repealed)🔗

Law of Georgia of 22 June 1999 No. 2114 – LHG I, No. 26(33), 05.07.1999, Art. 134

Article 1038. (repealed)🔗

Law of Georgia of 22 June 1999 No. 2114 – LHG I, No. 26(33), 05.07.1999, Art. 134

Article 1039. (repealed)🔗

Law of Georgia of 22 June 1999 No. 2114 – LHG I, No. 26(33), 05.07.1999, Art. 134

Article 1040. (repealed)🔗

Law of Georgia of 22 June 1999 No. 2114 – LHG I, No. 26(33), 05.07.1999, Art. 134

Article 1041. (repealed)🔗

Law of Georgia of 22 June 1999 No. 2114 – LHG I, No. 26(33), 05.07.1999, Art. 134

Article 1042. (repealed)🔗

Law of Georgia of 22 June 1999 No. 2114 – LHG I, No. 26(33), 05.07.1999, Art. 134

Article 1043. (repealed)🔗

Law of Georgia of 22 June 1999 No. 2114 – LHG I, No. 26(33), 05.07.1999, Art. 134

Article 1044. (repealed)🔗

Law of Georgia of 22 June 1999 No. 2114 – LHG I, No. 26(33), 05.07.1999, Art. 134

Article 1045. (repealed)🔗

Law of Georgia of 22 June 1999 No. 2114 – LHG I, No. 26(33), 05.07.1999, Art. 134

Article 1046. (repealed)🔗

Law of Georgia of 22 June 1999 No. 2114 – LHG I, No. 26(33), 05.07.1999, Art. 134

Article 1047. (repealed)🔗

Law of Georgia of 22 June 1999 No. 2114 – LHG I, No. 26(33), 05.07.1999, Art. 134

Article 1048. (repealed)🔗

Law of Georgia of 22 June 1999 No. 2114 – LHG I, No. 26(33), 05.07.1999, Art. 134

Article 1049. (repealed)🔗

Law of Georgia of 22 June 1999 No. 2114 – LHG I, No. 26(33), 05.07.1999, Art. 134

Article 1050. (repealed)🔗

Law of Georgia of 22 June 1999 No. 2114 – LHG I, No. 26(33), 05.07.1999, Art. 134

Article 1051. (repealed)🔗

Law of Georgia of 22 June 1999 No. 2114 – LHG I, No. 26(33), 05.07.1999, Art. 134

Article 1052. (repealed)🔗

Law of Georgia of 22 June 1999 No. 2114 – LHG I, No. 26(33), 05.07.1999, Art. 134

Article 1053. (repealed)🔗

Law of Georgia of 22 June 1999 No. 2114 – LHG I, No. 26(33), 05.07.1999, Art. 134

Article 1054. (repealed)🔗

Law of Georgia of 22 June 1999 No. 2114 – LHG I, No. 26(33), 05.07.1999, Art. 134

Article 1055. (repealed)🔗

Law of Georgia of 22 June 1999 No. 2114 – LHG I, No. 26(33), 05.07.1999, Art. 134

Article 1056. (repealed)🔗

Law of Georgia of 22 June 1999 No. 2114 – LHG I, No. 26(33), 05.07.1999, Art. 134

Article 1057. (repealed)🔗

Law of Georgia of 22 June 1999 No. 2114 – LHG I, No. 26(33), 05.07.1999, Art. 134

Article 1058. (repealed)🔗

Law of Georgia of 22 June 1999 No. 2114 – LHG I, No. 26(33), 05.07.1999, Art. 134

Article 1059. (repealed)🔗

Law of Georgia of 22 June 1999 No. 2114 – LHG I, No. 26(33), 05.07.1999, Art. 134

Article 1060. (repealed)🔗

Law of Georgia of 22 June 1999 No. 2114 – LHG I, No. 26(33), 05.07.1999, Art. 134

Article 1061. (repealed)🔗

Law of Georgia of 22 June 1999 No. 2114 – LHG I, No. 26(33), 05.07.1999, Art. 134

Article 1062. (removed)🔗

Law of Georgia of 22 June 1999 No. 2114 – LHG I, No. 26(33), 5 July 1999, Art. 134

Article 1063. (removed)🔗

Law of Georgia of 22 June 1999 No. 2114 – LHG I, No. 26(33), 5 July 1999, Art. 134

Article 1064. (removed)🔗

Law of Georgia of 22 June 1999 No. 2114 – LHG I, No. 26(33), 5 July 1999, Art. 134

Article 1065. (removed)🔗

Law of Georgia of 22 June 1999 No. 2114 – LHG I, No. 26(33), 5 July 1999, Art. 134

Article 1066. (removed)🔗

Law of Georgia of 22 June 1999 No. 2114 – LHG I, No. 26(33), 5 July 1999, Art. 134

Article 1067. (removed)🔗

Law of Georgia of 22 June 1999 No. 2114 – LHG I, No. 26(33), 5 July 1999, Art. 134

Article 1068. (removed)🔗

Law of Georgia of 22 June 1999 No. 2114 – LHG I, No. 26(33), 5 July 1999, Art. 134

Article 1069. (removed)🔗

Law of Georgia of 22 June 1999 No. 2114 – LHG I, No. 26(33), 5 July 1999, Art. 134

Article 1070. (removed)🔗

Law of Georgia of 22 June 1999 No. 2114 – LHG I, No. 26(33), 5 July 1999, Art. 134

Article 1071. (removed)🔗

Law of Georgia of 22 June 1999 No. 2114 – LHG I, No. 26(33), 5 July 1999, Art. 134

Article 1072. (removed)🔗

Law of Georgia of 22 June 1999 No. 2114 – LHG I, No. 26(33), 5 July 1999, Art. 134

Article 1073. (removed)🔗

Law of Georgia of 22 June 1999 No. 2114 – LHG I, No. 26(33), 5 July 1999, Art. 134

Article 1074. (removed)🔗

Law of Georgia of 22 June 1999 No. 2114 – LHG I, No. 26(33), 5 July 1999, Art. 134

Article 1075. (removed)🔗

Law of Georgia of 22 June 1999 No. 2114 – LHG I, No. 26(33), 5 July 1999, Art. 134

Article 1076. (removed)🔗

Law of Georgia of 22 June 1999 No. 2114 – LHG I, No. 26(33), 5 July 1999, Art. 134

Article 1077. (removed)🔗

Law of Georgia of 22 June 1999 No. 2114 – LHG I, No. 26(33), 5 July 1999, Art. 134

Article 1078. (removed)🔗

Law of Georgia of 22 June 1999 No. 2114 – LHG I, No. 26(33), 5 July 1999, Art. 134

Article 1079. (removed)🔗

Law of Georgia of 22 June 1999 No. 2114 – LHG I, No. 26(33), 5 July 1999, Art. 134

Article 1080. (removed)🔗

Law of Georgia of 22 June 1999 No. 2114 – LHG I, No. 26(33), 5 July 1999, Art. 134

Article 1081. (removed)🔗

Law of Georgia of 22 June 1999 No. 2114 – LHG I, No. 26(33), 5 July 1999, Art. 134

Article 1082. (removed)🔗

Law of Georgia of 22 June 1999 No. 2114 – LHG I, No. 26(33), 5 July 1999, Art. 134

Article 1083. (removed)🔗

Law of Georgia of 22 June 1999 No. 2114 – LHG I, No. 26(33), 5 July 1999, Art. 134

Article 1084. (removed)🔗

Law of Georgia of 22 June 1999 No. 2114 – LHG I, No. 26(33), 5 July 1999, Art. 134

Article 1085. (repealed)🔗

Law of Georgia No. 2114 of 22 June 1999 – LHG I, No. 26(33), 05.07.1999, Art. 134

Article 1086. (repealed)🔗

Law of Georgia No. 2114 of 22 June 1999 – LHG I, No. 26(33), 05.07.1999, Art. 134

Article 1087. (repealed)🔗

Law of Georgia No. 2114 of 22 June 1999 – LHG I, No. 26(33), 05.07.1999, Art. 134

Article 1088. (repealed)🔗

Law of Georgia No. 2114 of 22 June 1999 – LHG I, No. 26(33), 05.07.1999, Art. 134

Article 1089. (repealed)🔗

Law of Georgia No. 2114 of 22 June 1999 – LHG I, No. 26(33), 05.07.1999, Art. 134

Article 1090. (repealed)🔗

Law of Georgia No. 2114 of 22 June 1999 – LHG I, No. 26(33), 05.07.1999, Art. 134

Article 1091. (repealed)🔗

Law of Georgia No. 2114 of 22 June 1999 – LHG I, No. 26(33), 05.07.1999, Art. 134

Article 1092. (repealed)🔗

Law of Georgia No. 2114 of 22 June 1999 – LHG I, No. 26(33), 05.07.1999, Art. 134

Article 1093. (repealed)🔗

Law of Georgia No. 2114 of 22 June 1999 – LHG I, No. 26(33), 05.07.1999, Art. 134

Article 1094. (repealed)🔗

Law of Georgia No. 2114 of 22 June 1999 – LHG I, No. 26(33), 05.07.1999, Art. 134

Article 1095. (repealed)🔗

Law of Georgia No. 2114 of 22 June 1999 – LHG I, No. 26(33), 05.07.1999, Art. 134

Article 1096. (repealed)🔗

Law of Georgia No. 2114 of 22 June 1999 – LHG I, No. 26(33), 05.07.1999, Art. 134

Article 1097. (repealed)🔗

Law of Georgia No. 2114 of 22 June 1999 – LHG I, No. 26(33), 05.07.1999, Art. 134

Article 1098. (repealed)🔗

Law of Georgia No. 2114 of 22 June 1999 – LHG I, No. 26(33), 05.07.1999, Art. 134

Article 1099. (repealed)🔗

Law of Georgia No. 2114 of 22 June 1999 – LHG I, No. 26(33), 05.07.1999, Art. 134

Article 1100. Protection of rights to an invention, utility model and design🔗

1. Protection of rights to an invention and a utility model shall be effected in accordance with the relevant law.

2. Protection of rights to a design shall be effected in accordance with the relevant law.

3. Personal non-property copyrights arising from an invention, a utility model or a design shall be inalienable and perpetual rights.

Law of Georgia No. 2886 of 16 May 2023 – website, 01.06.2023

Law of Georgia No. 1030 of 11 November 2025 – website, 17.11.2025

Article 1101. Protection of selection rights🔗

Protection of the exclusive right to a plant and animal variety (selection achievement) shall be effected by issuing a certificate on the basis of the relevant law.

Article 1102. Protection of the Exclusive Right to a Trademark🔗

Protection of the exclusive right to a trademark shall be carried out in accordance with the relevant law, on the basis of registration of the trademark.

Law of Georgia of 21 February 2024 No. 4050 – website, 07.03.2024.

Article 1103. Right to a Geographical Indication of Origin and an Appellation of Origin🔗

The right to an appellation of origin and a geographical indication of origin for goods (services) shall be regulated by the relevant law.

Article 1104. Protection of a Firm Name🔗

Protection of the exclusive right to a firm name shall be carried out by this Code, the Law on Entrepreneurs and other legislative acts on industrial property.

Article 1105. Protection of a Production-Commercial Secret🔗

1. An entrepreneur who possesses a production-commercial secret (know-how), which constitutes technological, organizational or commercial information of particular importance, as confirmed by the necessary and sufficient measures taken to keep it secret, shall have an exclusive right to this information.

2. Protection of the exclusive right to know-how shall be carried out by this Code and other legislative acts on industrial property.

Article 1106. Concept of Marriage🔗

Marriage is a voluntary union of a woman and a man for the purpose of creating a family, registered with the territorial service of the Legal Entity of Public Law operating in the field of governance of the Ministry of Justice of Georgia – the State Services Development Agency (hereinafter – the territorial service of the Agency). For the purposes of this Article, a woman is a person of the female sex identified by hereditary genetic characteristics, and a man – a person of the male sex identified by hereditary genetic characteristics.

Law of Georgia of 24 June 2004 No. 179 - LHG I, No. 19, 15.07.2004, Art. 79

Law of Georgia of 28 December 2005 No. 2626 - LHG I, No. 3, 16.01.2006, Art. 20

Law of Georgia of 25 May 2012 No. 6317 – website, 19.06.2012

Law of Georgia of 17 September 2024 No. 4438 – website, 03.10.2024

Article 1107. Conditions of Marriage🔗

For marriage, the following are necessary:

a) marriage age;

b) consent of the persons entering into marriage.

Article 1108. Marriage Age🔗

1. Marriage shall be permitted from the age of 18.

2. Marriage of an adult person with limited legal capacity shall be permitted with the prior written consent of the curator.

3. (Removed - 16.12.2015, No. 4649).

Law of Georgia of 20 December 2011 No. 5568 - website, 28.12.2011

Law of Georgia of 16 December 2015 No. 4649 - website, 28.12.2015

Article 1109. Consent of Persons Entering into Marriage. Engagement🔗

1. The prior consent of the persons entering into marriage (engagement) does not give rise to an obligation to marry subsequently.

2. Engagement is not a ground for filing a claim in court for compulsory marriage.

3. Gifts related to engagement shall be returned to the parties in the event of non-marriage.

Article 1110. (repealed)🔗

Law of Georgia No. 179 of 24 June 2004 - LHG I, No. 19, 15.07.2004, Art. 79

Law of Georgia No. 2626 of 28 December 2005 - LHG I, No. 3, 16.01.2006, Art. 20

Law of Georgia No. 5568 of 20 December 2011 - website, 28.12.2011

Article 1111. (repealed)🔗

Law of Georgia No. 179 of 24 June 2004 - LHG I, No. 19, 15.07.2004, Art. 79

Law of Georgia No. 2626 of 28 December 2005 - LHG I, No. 3, 16.01.2006, Art. 20

Law of Georgia No. 5568 of 20 December 2011 - website, 28.12.2011

Article 1112. (repealed)🔗

Law of Georgia No. 179 of 24 June 2004 - LHG I, No. 19, 15.07.2004, Art. 79

Law of Georgia No. 2626 of 28 December 2005 - LHG I, No. 3, 16.01.2006, Art. 20

Law of Georgia No. 5568 of 20 December 2011 - website, 28.12.2011

Article 1113. (repealed)🔗

Law of Georgia No. 179 of 24 June 2004 - LHG I, No. 19, 15.07.2004, Art. 79

Law of Georgia No. 2626 of 28 December 2005 - LHG I, No. 3, 16.01.2006, Art. 20

Law of Georgia No. 5568 of 20 December 2011 - website, 28.12.2011

Article 1114. (repealed)🔗

Law of Georgia No. 179 of 24 June 2004 - LHG I, No. 19, 15.07.2004, Art. 79

Law of Georgia No. 2626 of 28 December 2005 - LHG I, No. 3, 16.01.2006, Art. 20

Law of Georgia No. 5568 of 20 December 2011 - website, 28.12.2011

Article 1115. (repealed)🔗

Law of Georgia No. 5568 of 20 December 2011 - website, 28.12.2011

Article 1116. (repealed)🔗

Law of Georgia No. 5568 of 20 December 2011 - website, 28.12.2011

Article 1117. (repealed)🔗

Law of Georgia No. 179 of 24 June 2004 - LHG I, No. 19, 15.07.2004, Art. 79

Law of Georgia No. 5568 of 20 December 2011 - website, 28.12.2011

Article 1118. (repealed)🔗

Law of Georgia No. 1393 of 11 July 2009 - LHG I, No. 21, 03.08.2009, Art. 111

Article 1119. (repealed)🔗

Law of Georgia No. 179 of 24 June 2004 - LHG I, No. 19, 15.07.2004, Art. 79

Law of Georgia No. 2626 of 28 December 2005 - LHG I, No. 3, 16.01.2006, Art. 20

Law of Georgia No. 5568 of 20 December 2011 - website, 28.12.2011

Article 1120. Circumstances preventing marriage🔗

1. Marriage shall not be permitted:

a) between persons of whom at least one is married to another;

b) between relatives in the direct ascending or descending line;

c) between biological and non-biological siblings;

d) between an adoptive parent and an adopted child;

e) between persons of whom at least one is a recipient of support and who have not concluded the marriage contract provided for by paragraph 2 of Article 1172 of this Code;

f) between representatives of the same biological sex (in particular, of the same sex identified by hereditary genetic characteristics).

2. Subparagraphs "b", "c", "d" of paragraph 1 of this Article shall apply also when the family relationship has been dissolved as a result of adoption.

Law of Georgia of 18 December 2007 No. 5624 - LHG I, No. 48, 27.12.2007, Art. 414

Decision of the Constitutional Court of Georgia of 8 October 2014 No. 2/4/532,533 – website, 28.10.2014

Law of Georgia of 20 March 2015 No. 3339 - website, 31.03.2015

Law of Georgia of 17 September 2024 No. 4438 – website, 03.10.2024

Article 1121. (repealed)🔗

Law of Georgia of 20 December 2011 No. 5568 - website, 28.12.2011

Article 1122. Grounds for termination of marriage🔗

Marriage shall be terminated:

a) by the death of one of the spouses;

b) by declaring one of the spouses dead in accordance with the procedure established by law;

c) by divorce.

Article 1122¹. Termination of marriage as a result of the death or declaration of death of one of the spouses🔗

1. A marriage shall be considered terminated from the date of death of one of the spouses.

2. If the court judgment on declaring one of the spouses dead does not specify the exact date of death, the marriage shall be considered terminated from the moment the court judgment enters into legal force.

Law of Georgia of 20 December 2011 No. 5568 - website, 28.12.2011

Article 1123. Inadmissibility of divorce🔗

1. Divorce shall be effected by court procedure if there is a dispute between the spouses, and in other cases – in the civil acts registration body.

2. During the wife's pregnancy and for one year after the birth of the child, the husband shall not have the right to initiate divorce proceedings without the wife's consent.

Law of Georgia of 24 June 2004 No. 179 - LHG I, No. 19, 15.07.2004, Art. 79

Law of Georgia of 28 December 2005 No. 2626 - LHG I, No. 3, 16.01.2006, Art. 20

Law of Georgia of 28 December 2007 No. 5672 - LHG I, No. 1, 03.01.2008, Art. 4

Law of Georgia of 20 December 2011 No. 5568 - website, 28.12.2011

Article 1124. (repealed)🔗

Law of Georgia of 24 June 2004 No. 179 - LHG I, No. 19, 15.07.2004, Art. 79

Law of Georgia of 28 December 2005 No. 2626 - LHG I, No. 3, 16.01.2006, Art. 20

Law of Georgia of 28 December 2007 No. 5672 - LHG I, No. 1, 03.01.2008, Art. 4

Law of Georgia of 11 July 2009 No. 1393 - LHG I, No. 21, 03.08.2009, Art. 111

Law of Georgia of 15 December 2010 No. 4055 - LHG I, No. 76, 29.12.2010, Art. 499

Law of Georgia of 20 December 2011 No. 5568 - website, 28.12.2011

Article 1125. (repealed)🔗

Law of Georgia of 24 June 2004 No. 179 - LHG I, No. 19, 15.07.2004, Art. 79

Law of Georgia of 28 December 2005 No. 2626 - LHG I, No. 3, 16.01.2006, Art. 20

Law of Georgia of 20 December 2011 No. 5568 - website, 28.12.2011

Article 1126. (repealed)🔗

Law of Georgia of 28 December 2007 No. 5672 - LHG I, No. 1, 03.01.2008, Art. 4

Article 1127. Consideration of divorce cases by the court🔗

1. Divorce cases shall be considered by the court in accordance with the procedure of claim proceedings established by the Civil Procedure Code of Georgia.

2. The court shall take measures to reconcile the spouses; it shall be entitled to postpone the consideration of the case and to set the spouses a period for reconciliation, which shall not exceed six months.

3. A divorce shall be granted if the court establishes that the further cohabitation of the spouses and the preservation of the family is impossible, notwithstanding the measures taken for reconciliation.

4. When delivering a judgment on divorce, the court, where necessary, shall take measures to protect the interests of minor children under 7 and of the spouse incapable of work.

5. The limitation period provided for by paragraph 1 of Article 142 of this Code shall not apply to the registration of a divorce to be effected on the basis of a court judgment on divorce that has entered into legal force.

Law of Georgia of 27 June 2018 No. 2635 – website, 06.07.2018

Article 1128. Delivery of a judgment on the place of residence of children and their maintenance🔗

1. Where the spouses have not agreed on the place of residence of the children after the divorce and on the funds to be paid for their maintenance, the court shall be obliged, together with the divorce, to determine also which child shall remain with which parent and in what amount maintenance (alimony) must be paid by which parent.

2. In the case provided for by this Article, the guardianship and curatorship authority shall, as necessary, be joined in order to participate in the case.

Article 1129. Delivery of a judgment on the maintenance of a spouse🔗

At the request of the spouse who is entitled to receive maintenance from the other spouse, the court shall be obliged, together with the resolution of the divorce case, to determine the amount of funds that must be paid to the other spouse.

Article 1130. Decision on the division of the spouses' property🔗

1. At the request of the spouses or of one of them, the court shall be obliged, together with the resolution of the divorce case, to consider the issue of the division of the property constituting the joint property of the spouses.

2. If such division affects the rights of a third person, the dispute over the division of property may not be resolved together with the divorce case.

Article 1131. (Removed)🔗

Law of Georgia of 28 December 2005 No. 2626 - LHG I, No. 3, 16.01.2006, Art. 20

Law of Georgia of 20 December 2011 No. 5568 - website, 28.12.2011

Article 1132. (Removed)🔗

Law of Georgia of 24 June 2004 No. 179 - LHG I, No. 19, 15.07.2004, Art. 79

Law of Georgia of 28 December 2005 No. 2626 - LHG I, No. 3, 16.01.2006, Art. 20

Law of Georgia of 20 December 2011 No. 5568 - website, 28.12.2011

Article 1133. (Removed)🔗

Law of Georgia of 20 December 2011 No. 5568 - website, 28.12.2011

Article 1134. (Removed)🔗

Law of Georgia of 24 June 2004 No. 179 - LHG I, No. 19, 15.07.2004, Art. 79

Law of Georgia of 28 December 2005 No. 2626 - LHG I, No. 3, 16.01.2006, Art. 20

Law of Georgia of 20 December 2011 No. 5568 - website, 28.12.2011

Article 1135. Restoration of marriage upon the return of a spouse declared deceased or recognised as missing🔗

1. If a spouse with whom the marriage was terminated on this ground appears, having been declared deceased or recognised as missing in accordance with the procedure established by law, and the court judgment declaring him deceased or recognising him as missing is annulled, the territorial service of the Agency may restore the marriage upon the joint application of the spouses, and if they were divorced by court procedure, the court, upon their application, annuls the judgment on divorce.

2. The marriage may not be restored if the spouse of the person declared deceased or recognised as missing has already married another person.

Law of Georgia of 24 June 2004 No. 179 - LHG I, No. 19, 15.07.2004, Art. 79

Law of Georgia of 28 December 2005 No. 2626 - LHG I, No. 3, 16.01.2006, Art. 20

Article 1136. Right to remarry🔗

Divorced spouses have the right to remarry.

Article 1137. (Removed)🔗

Law of Georgia of 24 June 2004 No. 179 - LHG I, No. 19, 15.07.2004, Art. 79

Law of Georgia of 28 December 2005 No. 2626 - LHG I, No. 3, 16.01.2006, Art. 20

Law of Georgia of 20 December 2011 No. 5568 - website, 28.12.2011

Article 1138. (Removed)🔗

Law of Georgia of 24 June 2004 No. 179 - LHG I, No. 19, 15.07.2004, Art. 79

Law of Georgia of 28 December 2005 No. 2626 - LHG I, No. 3, 16.01.2006, Art. 20

Law of Georgia of 20 December 2011 No. 5568 - website, 28.12.2011

Article 1139. (removed)🔗

Law of Georgia of 24 June 2004 No. 179 - LHG I, No. 19, 15.07.2004, Art. 79

Law of Georgia of 28 December 2005 No. 2626 - LHG I, No. 3, 16.01.2006, Art. 20

Law of Georgia of 9 March 2010 No. 2719 - LHG I, No. 12, 24.03.2010, Art. 56

Law of Georgia of 20 December 2011 No. 5568 - website, 28.12.2011

Article 1139¹. (removed)🔗

Law of Georgia of 1 October 2010 No. 3657 - LHG I, No. 53, 11.10.2010, Art. 341

Law of Georgia of 20 December 2011 No. 5568 - website, 28.12.2011

Article 1140. Grounds for the invalidity of a marriage🔗

1. A marriage may be declared invalid if the conditions established by Articles 1107, 1108 and 1120 are violated and if the registration of the marriage did not aim at creating a family (fictitious marriage).

2. A marriage may be declared invalid only by a court.

Article 1141. Presumption of the validity of a marriage🔗

If, at the time of the marriage, the spouses were unaware of the circumstance impeding the marriage which constitutes a ground for the invalidity of their marriage, the marriage is dissolved from the moment the court establishes that circumstance, but until that time the marriage produces all the legal consequences that a valid marriage produces.

Article 1142. Invalidity of a marriage with a person who has not reached the marriageable age🔗

1. A marriage with a person who has not reached the marriageable age and whose marriageable age has not been reduced may be declared invalid if this is required by the interests of the spouse who married before reaching the marriageable age.

2. The right to demand the declaration of invalidity of a marriage on this ground shall be held by the minor spouse, his/her parents or guardian (curator), as well as by the guardianship and curatorship authority.

3. If, at the time of the consideration of the case, the minor spouse has reached the marriageable age or is pregnant, the marriage may be declared invalid only at his/her request.

Article 1143. Declaration of a marriage as invalid on the grounds of circumstances impeding marriage🔗

1. A marriage concluded in violation of the conditions provided for by Article 1120 may be declared invalid by a court.

2. If, at the time of the consideration of the case, the circumstances impeding the marriage no longer exist, the court may declare the marriage valid from the moment of the elimination of those circumstances. The right to demand the declaration of invalidity of a marriage on such a ground shall be held by the spouses and the persons whose rights have been violated by that marriage, as well as by the guardianship and curatorship authorities.

3. When considering a case concerning the invalidity of a marriage with a recipient of support, it is necessary to join to the case the supporter who is not his/her spouse, if such exists, and also, if necessary, to join the guardianship and curatorship authority.

Law of Georgia of 20 March 2015 No. 3339 - website, 31.03.2015.

Article 1144. Declaration of a forced marriage as invalid🔗

1. In the case of a marriage concluded as a result of coercion, the spouse (spouses) may bring an action for the declaration of invalidity of the marriage.

2. The fact of a forced marriage must be established by a court.

Article 1145. Declaration of a fictitious marriage as invalid🔗

1. A marriage concluded without the aim of creating a family may be declared invalid.

2. The right to bring an action for the declaration of a fictitious marriage as invalid shall be vested in the territorial service of the Agency, and if one of the spouses married without the aim of creating a family, the other spouse may also bring such an action.

3. A marriage may not be declared fictitious if, prior to the consideration of the case by the court, the registered persons have in fact already created a family.

Law of Georgia of 24 June 2004 No. 179 - LHG I, No. 19, 15.07.2004, Art. 79

Law of Georgia of 28 December 2005 No. 2626 - LHG I, No. 3, 16.01.2006, Art. 20

Article 1146. Moment of invalidity of a marriage🔗

1. A marriage declared invalid shall be considered invalid from the day of registration of the marriage and shall not give rise to the rights and duties of the spouses.

2. The property relations of persons whose marriage has been declared invalid shall be governed in accordance with the procedure established by this Code on common property.

3. When delivering a judgment on the declaration of a marriage as invalid, the court shall have the right to award to the spouse who did not know and could not have known of the existence of circumstances impeding the marriage (spouse acting in good faith) the right to receive maintenance from the other spouse in accordance with Articles 1182 and 1186, and, when dividing property acquired before the declaration of the marriage as invalid, to apply the rules provided for by Articles 1158 and 1171.

4. The declaration of a marriage as invalid shall not affect the rights of children born as a result of such a marriage.

Article 1147. Compensation for damage caused to a spouse acting in good faith🔗

A spouse acting in good faith who has suffered pecuniary damage as a result of a marriage that has been declared invalid shall have the right to claim compensation for such damage.

Article 1148. Declaration of a marriage as invalid only by a court🔗

No one may invoke the invalidity of a marriage unless the marriage has been declared invalid by a court.

Article 1149. Inadmissibility of the invalidity of a marriage after the death of the spouses🔗

Annulment of a marriage may not be demanded after the death of both spouses.

Article 1150. Remarriage in the case of an annulled marriage🔗

Persons whose marriage has been annulled may remarry under the general procedure, provided that the ground on which the marriage was annulled no longer exists.

Article 1151. Significance of the registration of a marriage🔗

The rights and duties of spouses shall arise only from a marriage registered in accordance with the procedure established by the legislation of Georgia.

Law of Georgia of 24 June 2004 No. 179 - LHG I, No. 19, 15.07.2004, Art. 79

Law of Georgia of 28 December 2005 No. 2626 - LHG I, No. 3, 16.01.2006, Art. 20

Law of Georgia of 1 October 2010 No. 3657 - LHG I, No. 53, 11.10.2010, Art. 341

Article 1152. Equality of spouses🔗

In family relations, spouses shall enjoy equal personal and property rights and shall bear equal duties.

Article 1153. Prohibition of discrimination🔗

When marrying and in family relations, direct or indirect restriction of rights, direct or indirect granting of advantage shall not be permitted on the grounds of origin, social and property status, racial and national belonging, sex, education, language, attitude towards religion, type and nature of activity, place of residence and other circumstances.

II. Personal rights

Article 1154. (Removed)🔗

Law of Georgia of 20 December 2011 No. 5568 - website, 28.12.2011.

Article 1155. Joint resolution of family matters🔗

Spouses resolve together the upbringing of children and other family matters.

Article 1156. Freedom to choose an activity🔗

Each spouse is free to choose an activity and profession.

Article 1157. Free choice of place of residence🔗

Each spouse may choose the place of residence at his/her own discretion, unless this contradicts the interests of the family.

III. Property rights and obligations established by law

Article 1158. Joint ownership of spouses🔗

1. Property acquired by the spouses during marriage constitutes their common property (joint ownership), unless otherwise provided by a marriage contract between them.

2. The right of the spouses to joint ownership of such property arises also if one of them was engaged in household activities, cared for children or, for another valid reason, had no independent income.

Article 1159. Management of property in joint ownership by mutual agreement🔗

Spouses have equal rights to property in joint ownership. The possession, use and disposal of this property shall be effected by mutual agreement of the spouses.

Article 1160. Disposal of property in joint ownership by mutual agreement🔗

1. The disposal of property that is in the joint ownership of the spouses shall be effected by agreement of the spouses, regardless of which spouse disposes of this property.

2. A transaction concluded by one of the spouses in connection with the disposal of property in the joint ownership of the spouses cannot be declared void at the request of the other on the ground that:

a) he/she did not know about the transaction;

b) he/she did not agree to the transaction.

3. A spouse, as a co-owner, has the right to demand the benefit received from the disposal of the property.

Law of Georgia of 29 June 2007 No. 5127 - LHG I, No. 27, 17.07.2007, Art. 260

Article 1161. Individual property of spouses🔗

The property of each spouse is:

a) property that belonged to each of them before marriage;

b) property received during marriage by inheritance or gift.

Article 1162. Items of individual use acquired during marriage🔗

Items of individual use, except valuables, even if acquired during marriage with the common funds of the spouses, shall be considered the property of the spouse who uses these items.

Article 1163. Conversion of a spouse's property into joint property of the spouses🔗

The property of each spouse may be considered joint property of the spouses if it is established that, as a result of expenses incurred during the marriage, the value of this property increased significantly (re-planning, completion of construction, reconstruction, etc.). This rule does not apply if otherwise provided by a marriage contract.

Article 1164. Division of the common property of the spouses🔗

The common property of the spouses may, at the request of each spouse, be divided both during the marriage and after its termination.

Article 1165. Fate of items necessary for professional activity upon division of joint property🔗

The division of the joint property of the spouses is effected by mutual agreement of the spouses, and, if such agreement is not reached, then by the court. The court determines which item should be assigned to which spouse. Items necessary for professional activity (musical instruments, medical equipment, library and a.y.), even if acquired during the marriage with the common funds of the spouses, shall be transferred to the spouse who needs these items for his/her activity.

Article 1166. Compensation of a share upon division of property🔗

If, upon division of the common property, one of the spouses receives items whose value exceeds the share due to him/her, then the other spouse shall be given appropriate monetary or other compensation.

Article 1167. Division of common property during marriage🔗

If the division of common property occurs during the marriage, then the part of the property that was not divided, as well as the property that they will acquire in the future, shall be considered joint property of the spouses, unless otherwise provided by a marriage contract.

Article 1168. Consideration of the interests of minor children upon division of joint property🔗

1. Upon division of the property constituting joint property of the spouses, the shares of the spouses are equal, unless otherwise provided by agreement between them.

2. The court may deviate from the principle of equality of the spouses' shares in consideration of the interests of minor children or the significant interests of one of the spouses; in particular, the share of one of the spouses may be increased in consideration of the fact that minor children live with him/her, that he/she is incapable of working, or if the other spouse spent the common property to the detriment of the interests of the family.

3. On the aforementioned ground, the court may recognize as the property of each spouse the property acquired by each of them during the actual termination of the marriage or their separate living.

Article 1169. Rule for the division of the common debts of the spouses🔗

The common debts of the spouses are divided between them in proportion to the share due to each in the common property.

Article 1170. Rule for the Repayment of a Debt of One of the Spouses🔗

1. For the repayment of a debt of one of the spouses, enforcement may be effected from his/her property and/or from his/her share in the joint ownership which he/she would receive in the event of division of the property.

2. On account of the said debts, enforcement from the common property of the spouses may be effected if the court establishes that what was received under the obligation has been used for the common interests of the whole family.

3. When compensating for damage caused by the crime of one of the spouses, enforcement from the joint ownership of the spouses may be effected only if it is established by a judgment that this property was acquired with funds received as a result of the commission of the crime.

Article 1171. Limitation Period for a Claim for the Division of Property Held in Joint Ownership🔗

A three-year limitation period is established for claims for the division of the joint property of divorced spouses.

IV. Contractual Property Relations of the Spouses

Article 1172. Marriage contract🔗

1. Spouses may conclude a marriage contract which determines their property rights and obligations both during the marriage and upon divorce.

2. The marriage contract shall be concluded before the registration of the marriage if at least one of the spouses is a recipient of support. In the process of concluding the marriage contract, the involvement of the guardianship and curatorship authority, as well as of the supporter, is necessary in the part determined by the relevant judgment of the court.

3. In the performance of a marriage contract concluded with a recipient of support, responsibility for supervising the exercise by the supporter of his/her duties shall be borne by the guardianship and curatorship authority.

4. A marriage contract concluded with a recipient of support shall not restrict his/her property rights to a greater extent than is determined by the relevant judgment of the court.

5. If a marriage contract is concluded between a supporter and a recipient of support, the guardianship and curatorship authority shall, in the process of its conclusion, appoint to the recipient of support as temporary supporter a person authorised by the guardianship and curatorship authority.

Law of Georgia of 20 March 2015 No. 3339 – website, 31.03.2015.

Article 1173. Conclusion of a marriage contract🔗

1. A marriage contract may be concluded both before the registration of the marriage and at any time after its registration.

2. A marriage contract concluded before the registration of the marriage shall enter into force upon the registration of the marriage.

Article 1174. Form of the contract🔗

A marriage contract shall be concluded in writing and certified by notarial procedure.

Article 1175. Conclusion of a marriage contract by a person with limited legal capacity🔗

A person with limited legal capacity may, before the registration of the marriage, conclude a marriage contract only with the consent of his/her legal representative.

Article 1176. Content of the marriage contract🔗

1. A marriage contract may be concluded in respect of both property already existing and property to be acquired in the future.

2. By a marriage contract the spouses may change the rule established by law for the common property of the spouses.

3. The spouses may unite all their property, which shall include the property acquired during the marriage (common property), or wholly or partially waive such unification and establish the share-based or separate ownership of each in the property.

Article 1177. Rule for bearing family expenses🔗

The spouses have the right to determine by a marriage contract the conditions of participation in income, the rule for bearing family expenses by each of them, and the property which is transferred to each spouse upon termination of the marriage.

Article 1178. Restriction of the rights and obligations provided for by a marriage contract🔗

The rights and obligations provided for by a marriage contract may be restricted for a definite term or by the occurrence of certain conditions.

Article 1179. Obligations which may not be changed by a marriage contract🔗

1. A marriage contract may not change the obligation of the spouses to maintain each other, the rights and obligations of parents in respect of children, maintenance obligations and — in case of a dispute — the right to apply to court.

2. A contract also may not provide for such conditions as place one of the spouses in a difficult situation.

Article 1180. Termination of the marriage contract🔗

1. A marriage contract may be changed or terminated at any time by mutual agreement of the spouses.

2. Unilateral withdrawal from a marriage contract is inadmissible.

3. A marriage contract terminates upon divorce.

Article 1181. Change of the terms of a marriage contract by the court🔗

On the basis of an application of the interested spouse, where there are valid reasons, the court may change those terms of the marriage contract which place one of the spouses in an extremely unfavourable situation.

Article 1182. Person entitled to receive maintenance🔗

The spouses are obliged to support each other materially. In case of refusal of such support and/or in the absence of an agreement between the spouses on the provision of maintenance, the right to receive maintenance by court procedure is held by:

a) a spouse unable to work who needs material support;

b) the wife during pregnancy and for three years from the birth of the child.

Article 1183. Right of a spouse unable to work to maintenance🔗

A spouse unable to work who needs support from the spouse retains the right to receive maintenance also after divorce, if he or she became unable to work before the divorce, or within one year from the day of divorce.

Article 1184. Release from the obligation of maintenance by the court🔗

The court may release a spouse from the obligation of maintenance or modify this obligation for a definite period, if the spouses were married for a short time, or if the spouse demanding material support committed unworthy conduct towards the maintenance payer, as well as if the incapacity for work of the spouse demanding material support is caused by the use of alcoholic beverages or narcotic substances or by his or her commission of an intentional crime.

Article 1185. Determination of the amount of maintenance🔗

1. The amount of maintenance payable in favour of a spouse shall be determined in the form of a monetary sum payable monthly, taking into account the material and family situation of the spouses.

2. Upon a change in the material or family situation of one of the spouses, each spouse has the right to apply to the court by claim for a change in the amount of maintenance.

Article 1186. Extinction of the right to receive maintenance🔗

The right to receive maintenance from a spouse shall be extinguished if the grounds provided for by Articles 1182 and 1183 no longer exist, as well as in the case where the spouse receiving maintenance has remarried.

Article 1187. Grounds for the origin of the rights and obligations of parents and children🔗

The mutual rights and obligations of parents and children are based on the origin of the children, which is confirmed in accordance with the procedure established by law.

Article 1188. Establishment of the origin of a child upon the death of the father🔗

In the event of the death of the father, a child shall be considered to be born of married parents if it is born not later than ten months after the death of the father.

Article 1189. Confirmation of the origin of a child from married parents🔗

The origin of a child from married parents shall be confirmed by a joint declaration of the spouses or of one of them, and by documents confirming the birth of the child and the marriage of the parents.

Law of Georgia of 20 December 2011 No. 5568 – website, 28.12.2011.

Article 1190. Establishment of the origin of a child from parents not married to each other🔗

1. The origin of a child from parents not married to each other shall be established by a joint application of the parents and a document confirming the birth of the child.

2. In the absence of a joint application of the parents or where it is impossible to submit it, the paternity of the child may be established by court procedure on the basis of an application of one of the parents, the guardian (curator) of the child, or the person on whose maintenance the child is, as well as by an application of the child itself after it has attained majority.

3. The court shall decide the issue of establishing the paternity of the child in accordance with the results (evidence) of a biological (genetic) or anthropological examination relating to the issue of determining the paternity of the child.

4. If it is impossible to establish the paternity of the child on the ground provided for by paragraph 3 of this Article, the court shall take into account the cohabitation and the conduct of a common household of the mother of the child and of the person applying for the establishment of paternity (the person indicated in the application) before the birth of the child and/or the facts of their raising and/or maintaining the child together, or other corroborating documents and/or circumstances which fully confirm the recognition of the paternity of the child by the person indicated in the application.

5. (Removed – 20.12.2011, No. 5568).

6. The origin of a child from parents not married to each other may also be established, in the manner determined by law, by the civil acts registration authority when establishing a fact of legal significance of a birth at a certain time and in certain circumstances.

7. A person who has a reasoned presumption that he himself is the father of the child may contest, within one year from the time when he learned or should have learned of the said record, the record made in the civil acts registration authority concerning the father of the child in accordance with this Article.

8. The court may refuse to establish the paternity of the child if its establishment is contrary to the interests of the child.

9. When the paternity of a child is established in the manner provided for by this Article, children shall have the same rights and obligations in relation to the parents and their relatives as children born from parents married to each other.

Law of Georgia of 24 June 2004 No. 179 - LHG I, No. 19, 15.07.2004, Art. 79

Law of Georgia of 28 December 2005 No. 2626 - LHG I, No. 3, 16.01.2006, Art. 20

Law of Georgia of 1 October 2010 No. 3657 - LHG I, No. 53, 11.10.2010, Art. 341

Law of Georgia of 9 December 2011 No. 5445 – website, 20.12.2011

Law of Georgia of 20 December 2011 No. 5568 - website, 28.12.2011

Article 1191. (Removed)🔗

Law of Georgia of 20 December 2011 No. 5568 - website, 28.12.2011

Article 1191¹. Single parent🔗

1. A single parent is a person having the status of a single mother or a single father provided for by this Article.

2. A single mother/single father is:

a) a person who has a child under 18 years of age, if the birth record of the child does not contain an entry about the child's second parent;

b) a person who has an adopted child under 18 years of age, if the birth record of the child does not contain an entry about the child's second parent;

c) a person whose minor child's second parent has died, has been declared dead or has been recognised as missing;

d) a person whose minor child's second parent has been deprived of all parental rights and duties.

3. The ground for revocation of the status of a single mother/single father is the elimination of the relevant circumstance(s) provided for by paragraph 2 of this Article.

4. The court shall, within 5 working days from the entry into legal force of the court act confirming the elimination of the circumstance provided for by subparagraph "c" or "d" of paragraph 2 of this Article, send it to the Legal Entity of Public Law operating in the field of governance of the Ministry of Justice of Georgia − the State Services Development Agency.

5. Guarantees of social and legal protection of a single parent are determined by the legislation of Georgia.

6. The procedure for establishing the status of a single mother/single father and for processing data on the relevant persons shall be determined by a joint order of the Minister of Justice of Georgia and the Minister of Internally Displaced Persons from the Occupied Territories, Labour, Health and Social Protection of Georgia.

Law of Georgia of 11 December 2014 No. 2892 – website, 23.12.2014.

Law of Georgia of 1 April 2015 No. 3422 – website, 07.04.2015.

Law of Georgia of 22 December 2017 No. 1819 – website, 11.01.2018.

Law of Georgia of 5 July 2018 No. 3076 – website, 11.07.2018.

Decision of the Constitutional Court of Georgia of 28 December 2021 No. 1/6/1320 – website, 30.12.2021.

Law of Georgia of 9 June 2022 No. 1651 – website, 23.06.2022.

Article 1191². Parent with many children🔗

1. A parent with many children is a person who has four or more children and/or adopted children.

2. The procedure and conditions for ensuring the social protection of a parent with many children who has four or more children and/or adopted children under 18 years of age shall be determined by the legislation of Georgia.

3. The procedure for establishing and revoking the status of a parent with many children and for processing data on the relevant persons shall be determined by a Resolution of the Government of Georgia.

Law of Georgia of 27 June 2018 No. 2606 – website, 06.07.2018.

Article 1192. (Repealed)🔗

Law of Georgia of 20 December 2011 No. 5568 – website, 28.12.2011.

Article 1193. (Repealed)🔗

Law of Georgia of 20 December 2011 No. 5568 – website, 28.12.2011.

Article 1193¹. Recognition of a child as abandoned🔗

The procedure for recognising a child as abandoned is determined by

the Law of Georgia “On Adoption and Foster Care”.

Law of Georgia of 18 December 2007 No. 5624 – LHG I, No. 48, 27.12.2007, Art. 414

Law of Georgia of 18 December 2009 No. 2382 – LHG I, No. 50, 31.12.2009, Art. 399

Law of Georgia of 19 June 2012 No. 6494 – website, 02.07.2012

Article 1194. Determination of a child's name🔗

1. Parents give a name to the child by mutual agreement.

2. (Removed – 19.06.2012, No. 6494)

Law of Georgia of 18 December 2007 No. 5624 – LHG I, No. 48, 27.12.2007, Art. 414

Law of Georgia of 19 June 2012 No. 6494 – website, 02.07.2012

Article 1195. Determination of a child's surname🔗

1. A child's surname is determined according to the parents' surname. If the parents do not have a common surname, the child is given the mother's or the father's surname, or a combined surname by agreement of the parents.

2. (Removed – 19.06.2012, No. 6494)

Law of Georgia of 18 December 2007 No. 5624 – LHG I, No. 48, 27.12.2007, Art. 414

Law of Georgia of 19 June 2012 No. 6494 – website, 02.07.2012

Article 1196. Change of a child's surname🔗

1. Termination of the marriage between the parents does not entail a change of the child's surname.

2. A parent with whom a minor child remained to live after the termination or invalidation of the marriage has the right, in accordance with the child's interests, to apply to the court for his/her surname to be given to the child. When changing the surname of a child under 10 years of age, his/her wish is taken into account, having regard to his/her degree of maturity. Changing the surname of a child of 10 years of age or older also requires his/her consent.

Law of Georgia of 20 September 2019 No. 5013 – website, 27.09.2019

Law of Georgia of 21 May 2020 No. 5913 – website, 25.05.2020

Article 1197. Equality of rights of parents in respect of their children🔗

In respect of their children, parents have equal rights and duties. A child has the right to live and be raised in a family.

Article 1198. Duties of parents towards children🔗

1. Parents are entitled and obliged to raise their children, to care for their physical, mental, spiritual and social development, to raise them as worthy members of society, with priority given to their interests.

1¹. When raising a minor child, the use by a parent/legal representative of such methods of upbringing as cause physical and/or mental suffering to the minor shall be inadmissible.

2. Parents have the obligation to maintain the child.

3. Parents have the right to determine with whom and where the child shall live.

4. Parents are obliged to protect the rights and interests of their minor children, which includes the management and use of the children's property.

5. Parents are granted the right and bear the obligation to have contact with their children, to determine the right of third persons to contact with their children.

6. Parents are the legal representatives of their minor children and act without special authorisation to protect their rights and interests in relations with third persons, including in court.

Law of Georgia of 18 December 2007 No. 5624 - LHG I, No. 48, 27.12.2007, Art. 414

Law of Georgia of 17 October 2014 No. 2703 - website, 31.10.2014

Article 1198¹. Right of a minor to protection🔗

1. A minor has the right to protection from abuse of rights by his/her parent/other legal representative. In the event of violation of the rights and legitimate interests of a minor, including failure to perform or improper performance of the duties related to the upbringing and education of the child by both or one of the parents, or abuse of parental rights, the minor has the right to apply independently to the guardianship and curatorship bodies, and in the cases provided for by the Hague Convention of 19 October 1996 on Jurisdiction, Applicable Law, Recognition, Enforcement and Co-operation in Respect of Parental Responsibility and Measures for the Protection of Children − to the central authority and the court.

2. Natural and legal persons who have become aware of cases of violation of the rights and legitimate interests of a minor are obliged to notify the guardianship and curatorship bodies thereof according to the actual location of the minor. The guardianship and curatorship bodies are obliged, upon receipt of such notification, to carry out the measures determined by the legislation of Georgia, and in the cases provided for by the Hague Convention of 19 October 1996 on Jurisdiction, Applicable Law, Recognition, Enforcement and Co-operation in Respect of Parental Responsibility and Measures for the Protection of Children − to apply to the central authority.

2¹. Failure by a subject involved in the child protection referral procedures provided for by the legislation of Georgia and by another subject working on children's issues to identify violence against a child and to provide information about violence against a child to the relevant state body entails liability in the manner established by the legislation of Georgia.

3. The central authority determined by the Hague Convention of 19 October 1996 on Jurisdiction, Applicable Law, Recognition, Enforcement and Co-operation in Respect of Parental Responsibility and Measures for the Protection of Children is a structural subdivision of the Ministry of Justice of Georgia.

Law of Georgia of 20 June 2003 No. 2446 – LHG I, No. 20, 11.07.2003, Art. 138

Law of Georgia of 19 March 2014 No. 2110 – website, 01.04.2014

Law of Georgia of 17 October 2014 No. 2703 – website, 31.10.2014

Law of Georgia of 20 September 2019 No. 5013 – website, 27.09.2019

Law of Georgia of 21 May 2020 No. 5913 – website, 25.05.2020

Article 1199. Protection of the child's interests🔗

Parental rights shall not be exercised in such a way as to harm the interests of the child.

Law of Georgia of 18 December 2007 No. 5624 – LHG I, No. 48, 27.12.2007, Art. 414

Article 1200. Upbringing of children by mutual agreement of the parents🔗

1. Parents decide all matters of the upbringing of children by mutual agreement.

2. In the event of disagreement between the parents, the disputed matter shall be decided by the court with the participation of the parents. In this case, the right of a parent to be the child's representative in relation to the court dispute is suspended. The guardianship and curatorship authority shall appoint a representative of the child, who represents the child's interests during the consideration of the case in court.

Law of Georgia No. 5624 of 18 December 2007 - LHG I, No. 48, 27.12.2007, Art. 414

Article 1201. Residence of a minor child upon divorce of the parents🔗

1. If, due to divorce or for another reason, the parents live separately, it depends on their agreement who shall have the right to decide with whom the minor child should live.

2. In the event of disagreement, the dispute as to with whom the minor child should live shall be decided by the court taking into account the interests of the child. In this case, the right of a parent to be the child's representative in relation to the court dispute is suspended. The guardianship and curatorship authority shall appoint a representative of the child, who represents the child's interests during the consideration of the case in court.

Law of Georgia No. 5624 of 18 December 2007 - LHG I, No. 48, 27.12.2007, Art. 414

Article 1202. Rights and obligations of divorced or separately living parents in respect of their children🔗

1. Parents have equally all rights and obligations in respect of their children, notwithstanding that they are divorced or live separately.

2. A parent with whom the child lives shall not have the right to restrict the rights and obligations of the other parent.

Law of Georgia No. 5624 of 18 December 2007 - LHG I, No. 48, 27.12.2007, Art. 414

Article 1203. Rights of the grandfather and grandmother in respect of minor grandchildren🔗

The grandfather and grandmother have the right to have contact with their minor grandchildren even when they do not directly participate in the upbringing of the grandchildren. If the parents or the guardian/curator refuse the grandfather and grandmother contact with the grandchildren, the court may oblige the parents or the guardian/curator to enable the grandfather and grandmother to have contact with the grandchildren in the manner established by the court, if the court determines that this will not hinder the normal upbringing of the children and will not have a bad influence on them.

Law of Georgia No. 5624 of 18 December 2007 - LHG I, No. 48, 27.12.2007, Art. 414

Article 1204. Right to demand the return of a minor child🔗

Parents have the right to demand the return of a minor child from a person who keeps the child with him or her without a lawful ground.

Law of Georgia No. 5624 of 18 December 2007 - LHG I, No. 48, 27.12.2007, Art. 414

Article 1205. Restriction of parental rights and obligations🔗

1. Parental rights and obligations may be restricted only by a court judgment, unless otherwise provided by this Code.

2. The court may restrict one or several rights and obligations of a parent independently of the parent's other rights and obligations.

3. Guardianship or curatorship is established with respect to a child both of whose parents have had a parental right or obligation restricted in accordance with this Code.

4. Insofar as possible, the parent retains the obligation to maintain the child when the parental right is restricted, in accordance with the alimony obligations provided for by this Code.

Law of Georgia of 18 December 2007 No. 5624 - LHG I, No. 48, 27.12.2007, Art. 414

Law of Georgia of 18 December 2009 No. 2382 - LHG I, No. 50, 31.12.2009, Art. 399

Article 1205¹. Suspension of parental rights and obligations🔗

1. The court may suspend the parents' right to be representatives of the child during court proceedings, until the dispute is resolved, in accordance with Articles 1200 and 1201 of this Code.

2. (Removed – 18.12.2009, No. 2382).

3. If a child is found whose identity, or the identity or whereabouts of whose parent (parents) is unknown, the rights and obligations of his/her parent (parents) shall be considered suspended without a court judgment until:

a) the identity of the child or of his/her parent (parents) is established and he/she is returned to his/her family;

b) the identity of the child's parent (parents) is established, who evades (evade) the performance of parental obligations and the exercise of rights, and the court restricts his/her (their) parental rights and obligations or recognises the child as abandoned. In this case, together with recognising the child as abandoned, the court shall deliver a judgment on deprivation of parental rights;

c) the child is recognised as abandoned.

4. (Removed – 18.12.2009, No. 2382).

5. Parental rights and obligations shall be considered suspended where a child is abandoned by the parent (parents) through his/her (their) own act or omission, when the child is placed in 24-hour state care. In this case, the suspension of parental rights and obligations shall be effective for the duration of the existence of the grounds for suspension.

6. In the case of domestic violence, when a restraining or protective order is in effect in respect of the parent, as well as immediately upon the adoption by a social worker of a decision on the separation of the child from the parent, the parent's representative right and/or the parent's right to determine with whom and where the child should live shall be considered suspended for the duration of the restraining or protective order or of the social worker's decision on the separation of the child from the parent. An appeal by the parent against the social worker's decision on the separation of the child from the parent shall not suspend the effect of that decision.

Law of Georgia of 18 December 2007 No. 5624 – LHG I, No. 48, 27.12.2007, Art. 414

Law of Georgia of 18 December 2009 No. 2382 – LHG I, No. 50, 31.12.2009, Art. 399

Law of Georgia of 19 June 2012 No. 6494 – website, 02.07.2012

Law of Georgia of 22 June 2016 No. 5449 – website, 12.07.2016

Article 1206. Deprivation of parental rights and obligations🔗

1. Deprivation of parental rights and obligations is a measure of last resort. A decision on deprivation of parental rights and obligations shall be rendered by a court upon the initiative of the guardianship and curatorship body or of the child, unless otherwise provided by this Article.

2. A parent who systematically evades the performance of parental obligations and improperly exercises parental rights – treats the child harshly, exerts a negative influence on the child through immoral conduct, or who is a chronic alcoholic or drug addict, or who has involved the child in anti-social acts (including begging, vagrancy), shall be deprived of all parental rights and obligations.

Law of Georgia of 18 December 2007 No. 5624 - LHG I, No. 48, 27.12.2007, Art. 414

Law of Georgia of 18 December 2009 No. 2382 - LHG I, No. 50, 31.12.2009, Art. 399

Law of Georgia of 4 May 2017 No. 748 - website, 24.05.2017

Law of Georgia of 20 September 2019 No. 5013 – website, 27.09.2019

Law of Georgia of 21 May 2020 No. 5913 – website, 25.05.2020

Article 1207. Rights of the child of a person deprived of parental rights and obligations🔗

A person deprived of parental rights and obligations loses all rights based on kinship in relations with the child in respect of whom he/she has been deprived of parental rights and obligations. A child whose parent has been deprived of parental rights and obligations retains property rights arising from kinship in respect of that parent, including the right to inherit.

Law of Georgia of 18 December 2007 No. 5624 - LHG I, No. 48, 27.12.2007, Art. 414

Article 1208. (Removed)🔗

Law of Georgia of 18 December 2007 No. 5624 - LHG I, No. 48, 27.12.2007, Art. 414

Article 1209. Restoration of parental rights and obligations🔗

1. Restoration of parental rights and obligations may be effected only by court procedure, upon the initiative of the child, one of the parents or the guardianship and curatorship body.

2. Restoration of parental rights and obligations may be effected only if it is established that the ground for restriction or deprivation of parental rights no longer exists.

3. When restoring parental rights and obligations to a person, the court shall also take into account the child's wish.

4. Restoration of parental rights and obligations shall not be permitted in respect of a child who has been adopted by another person, except where the adoption has been declared invalid.

5. Parental rights and obligations shall be restored automatically after the expiry of the period of suspension, unless otherwise provided by this Code.

Law of Georgia of 18 December 2007 No. 5624 - LHG I, No. 48, 27.12.2007, Art. 414

Law of Georgia of 20 September 2019 No. 5013 – website, 27.09.2019

Law of Georgia of 21 May 2020 No. 5913 – website, 25.05.2020

Article 1210. (Removed)🔗

Law of Georgia of 18 December 2007 No. 5624 - LHG I, No. 48, 27.12.2007, Art. 414

Law of Georgia of 18 December 2009 No. 2382 - LHG I, No. 50, 31.12.2009, Art. 399

Article 1211. Transfer of parental rights and obligations🔗

1. The right to manage the child's property in relation to specific property may be transferred to the property guardian on the basis of a document certified by a notary by the parents.

2. The right to manage the child's property in relation to specific property may be transferred to the property guardian on the basis of a will.

Law of Georgia of 18 December 2007 No. 5624 - LHG I, No. 48, 27.12.2007, Art. 414

Law of Georgia of 15 July 2020 No. 6989 – website, 28.07.2020

Article 1212. Obligation to maintain children🔗

Parents are obliged to maintain their minor children, as well as children incapable of work who need assistance.

Article 1213. Determination of the amount of alimony by parents🔗

The amount of alimony payable for minor or adult children incapable of work shall be determined by the parents by mutual agreement.

Article 1214. Determination of the amount of alimony by the court🔗

If the parents fail to agree on the amount of alimony, the court shall resolve the dispute. The court shall determine the amount of alimony on the basis of a reasonable, fair assessment within the limits of the requirements necessary for the normal maintenance and upbringing of the child. When determining the amount of alimony, the court shall take into account the actual material situation of both the parents and the child.

Article 1215. Obligation to participate in additional expenses🔗

A parent who pays alimony to minor children may be assigned participation in additional expenses caused by special circumstances (severe illness of the child, mutilation and others).

Article 1216. Expenses for the maintenance of children transferred to guardianship or curatorship🔗

Parents may be charged with bearing the expenses for the maintenance of a child transferred to their guardianship or curatorship in accordance with this Code or a court judgment.

Law of Georgia of 18 December 2007 No. 5624 - LHG I, No. 48, 27.12.2007, Art. 414

Article 1217. Court ruling on the recovery of funds for the maintenance of a child🔗

If the defendant is registered as the child's parent in the territorial service of the agency under Articles 1191 and 1192 of this Code, the court may, before considering the case on the merits, issue a ruling on the recovery of funds for the maintenance of the child.

Law of Georgia of 24 June 2004 No. 179 - LHG I, No. 19, 15.07.2004, Art. 79

Law of Georgia of 28 December 2005 No. 2626 - LHG I, No. 3, 16.01.2006, Art. 20

Article 1218. Obligations of children towards parents🔗

1. Children are obliged to care for their parents and to assist them.

2. Adult children capable of work are obliged to maintain parents incapable of work who need assistance.

3. Children may be released from the obligation to maintain their parents if the court establishes that the parents evaded the performance of parental duties.

4. A parent deprived of parental rights loses the right to claim alimony from the children.

Article 1219. Participation of children in the maintenance of incapacitated parents🔗

1. The participation of each child in the maintenance of an incapacitated parent who needs assistance shall be determined by the court in the form of a monthly payable sum, taking into account the material and family situation of the parents and children.

2. When determining this sum, the court shall take into account the obligation of all adult children of the parents, regardless of whether the claim is brought against all, several or one child.

Article 1220. Participation of children in additional expenses🔗

In the absence of other agreement, children who pay alimony to incapacitated parents may be assigned participation in additional expenses caused by special circumstances (severe illness of the parents, mutilation and others).

Article 1221. Claim for reduction of the amount of alimony🔗

1. A parent who pays alimony in favour of a minor child has the right to bring a claim for reduction of the amount of alimony established by the court.

2. In the event of a change in the material and family situation of the parents who pay alimony in the form of a fixed sum, the court has the right, at the request of an interested person, to reduce or increase the amount of alimony.

Article 1222. Change of the amount of alimony due to a change of material or family situation🔗

If the material or family situation of the parents or children has changed after the court determines the amount of the sum to be paid by the parents in favour of adult incapacitated children, or by the children in favour of incapacitated parents who need assistance, the court may, upon the claim of one of them, change the established amount of alimony.

Article 1223. Obligation of brothers and sisters to maintain each other🔗

Brothers and sisters who have sufficient means are obliged to maintain their minor brothers or/and sisters who need assistance and cannot receive maintenance from their parents. They bear the same obligation towards their incapacitated adult brothers or/and sisters who need assistance, if they cannot receive maintenance from their parents, spouse or children.

Article 1224. Alimony obligation of a grandchild towards an incapacitated grandfather and grandmother🔗

A grandchild who has sufficient means is obliged to maintain his incapacitated grandfather and grandmother who need assistance, if they cannot receive maintenance from their child or from each other.

Article 1225. Alimony obligations of a grandfather and grandmother towards grandchildren🔗

A grandfather and grandmother who have sufficient means are obliged to maintain their minor grandchild who needs assistance, if he cannot receive maintenance from his parents. They bear the same obligation towards their incapacitated adult grandchild who needs assistance, if he cannot receive maintenance from his parents, spouse or children.

Article 1226. Alimony obligation of stepfather and stepmother🔗

A stepfather and stepmother who have sufficient means are obliged to maintain their minor and/or unable-to-work stepchild who needs assistance, if he/she is with them for upbringing or maintenance and does not have parents or cannot receive his/her maintenance funds from them.

Article 1227. Alimony obligation of stepchild🔗

1. A stepchild who has sufficient means is obliged to maintain his/her unable-to-work stepfather and/or stepmother who need assistance, if they previously raised or maintained him/her.

2. The court may release the stepchild from the obligation to maintain the stepfather and/or stepmother, if they raised or maintained him/her for less than five years, and also if they did not properly perform the obligation to raise the stepchild.

Article 1228. (Repealed)🔗

Law of Georgia of 18 December 2007 No. 5624 - LHG I, No. 48, 27.12.2007, Art. 414

Article 1229. Alimony obligations toward the actual upbringer🔗

A person who was in permanent upbringing and maintenance is obliged to provide maintenance to his/her actual upbringer, if he/she is unable to work, needs assistance, but cannot receive it from his/her children or spouse.

Article 1230. Rule for determining the amount of alimony🔗

1. The amount of alimony payable to the persons mentioned in this Chapter shall be determined by the court in each individual case in the form of a monthly payable amount, taking into account the material and family situation of the alimony payer and recipient.

2. If the maintenance of the family is simultaneously the obligation of several persons, the court, taking into account their material and family situation, shall determine the amount of each person's share in the performance of this obligation; at the same time, the court shall take into account all persons who are alimony payers, regardless of whether all these persons, or only one or several of them, request alimony.

Article 1231. Change of the amount of alimony🔗

If the material or family situation of the alimony payer or alimony recipient has changed, after the amount of alimony payable to the persons mentioned in this Chapter has been determined by court procedure, the court has the right, on the basis of a claim by one of them, to change the established amount of alimony.

Article 1232. Voluntary payment of alimony🔗

1. The person who is obliged to pay alimony shall pay it voluntarily in person according to the place of receipt of income.

2. The procedure for voluntary payment of alimony does not exclude the right of the alimony recipient to apply to the court at any time by claim for the collection of alimony.

Article 1233. Obligation of the administration of the organization providing the work when paying alimony🔗

1. The administration of the organization providing the work shall, on the basis of a written application or a writ of execution, deduct alimony monthly from the wages (pension, allowance, etc.) of the alimony payer and shall pay or send it to the person named in the application or the writ of execution no later than three days from the day of issuance of the wages (allowance, pension, etc.).

2. The written application of the person who wishes to pay alimony voluntarily shall be submitted to the administration of the organization providing the work according to the applicant's place of work or the place where he/she receives the pension or allowance.

Article 1234. Claim for recovery of alimony🔗

1. A person who has the right to claim alimony may, in accordance with the procedure established by law, at any time before losing this right, demand through the court the recovery of alimony, regardless of the period that has elapsed since the time the right to claim alimony arose.

2. The imposition of alimony payment shall be made only for the future from the moment of filing a claim in court. Alimony for the past period may be recovered within three years if the court establishes that before filing the claim measures were taken to obtain maintenance, but alimony was not received because the obligated person was evading its payment.

Article 1235. Recovery of alimony arrears🔗

1. Recovery of alimony arrears under a writ of execution for the past period may be made for not more than three years before the submission of the writ of execution for payment.

2. In the case where, in connection with the search for the debtor, it was not possible to deduct alimony under the writ of execution submitted for payment, the alimony arrears shall be recovered for the entire elapsed period, notwithstanding the expiry of the limitation period and/or the attainment of majority by the alimony recipient.

Article 1236. Determination of alimony arrears🔗

1. Alimony arrears shall be determined from the actual wages (income) received by the debtor during the period in which no recovery was made.

2. If the debtor did not work during this period and did not submit documents confirming his/her wages (income), the arrears shall be determined according to the wages (income) that he/she was receiving at the time of recovery of the arrears.

Article 1237. Release from payment of alimony🔗

1. Release from the payment of alimony or reduction of alimony arrears may be made only by a court judgment.

2. The court has the right to release the alimony payer wholly or partially from the payment of alimony arrears if it establishes that the non-payment of alimony was caused by the illness of this person or another valid reason.

Article 1238. Termination of the alimony obligation🔗

An alimony obligation arising by agreement of the parties may be terminated by the death of one of the parties, by the expiry of the term of the agreement, or on other grounds provided for in this agreement.

Article 1239. Concept🔗

1. Adoption (adoption of a child) shall be permitted only for the welfare and interests of a minor child, if it is expected that between the adoptive parent and the adopted child a relationship shall arise such as exists between parents and children.

2. Adoption of an adult person is possible if between the adoptive parent and the person to be adopted there already existed an actual relationship of parent and child, it does not contradict the interests of the adoptive parent or of the person to be adopted, and the adoption is morally justified.

Article 1240. Confirmation of adoption upon the death of the foster parent🔗

Upon the death of the foster parent, the fact of adoption may be confirmed by court procedure only if the minor had been received into the family as an adopted child, and also if the adoptive parent during his/her lifetime filed an application with the court concerning the adoption.

Article 1241. Inadmissibility of adoption upon the death of the child🔗

In the event of the death of the child, adoption shall not be permitted.

Article 1242. Taking of a decision on adoption🔗

The decision on adoption shall be taken by the court upon the application of the adoptive parent, according to the place of residence of the adoptive parent or of the person to be adopted, after the conclusion of the guardianship and curatorship authority.

Article 1243. Inadmissibility of adoption through a representative🔗

1. Adoption may not be [effected] with any condition, indication of a term, or through a representative.

2. The restriction established by paragraph 1 of this Article shall not apply to the right of the adoptive parent to be represented by an attorney during court proceedings.

3. The restriction established by paragraph 1 of this Article shall not apply to the right of the adoptive parent to seek and obtain the assistance of accredited agencies during adoption procedures in accordance with the international treaties and agreements of Georgia.

Law of Georgia of 18 December 2007 No. 5624 - LHG I, No. 48, 27.12.2007, Art. 414

Article 1244. Registration of the decision on adoption🔗

1. Registration of the decision on adoption shall be carried out by any territorial service of the Agency, at the wish of the applicant.

1¹. Registration of the civil act provided for by paragraph 1 of this Article may be carried out abroad by a diplomatic representation or a consular institution of Georgia abroad.

2. The court shall be obliged, within 5 days from the entry into force of the decision, to notify the territorial service of the Agency of its decision.

3. Adoption is valid from the day of the entry into force of the court decision.

Law of Georgia of 24 June 2004 No. 179 - LHG I, No. 19, 15.07.2004, Art. 79

Law of Georgia of 28 December 2005 No. 2626 - LHG I, No. 3, 16.01.2006, Art. 20

Law of Georgia of 18 December 2009 No. 2382 - LHG I, No. 50, 31.12.2009, Art. 399

Law of Georgia of 1 October 2010 No. 3657 - LHG I, No. 53, 11.10.2010, Art. 341

Law of Georgia of 15 December 2010 No. 4055 - LHG I, No. 76, 29.12.2010, Art. 499

Article 1245. Adopter🔗

An adopter may be a person who meets the requirements established by the Law of Georgia "On Adoption and Foster Care" and is registered in the register of children available for adoption and adopters.

Law of Georgia of 18 December 2007 No. 5624 - LHG I, No. 48, 27.12.2007, Art. 414

Law of Georgia of 19 June 2012 No. 6494 – website, 02.07.2012

Law of Georgia of 20 March 2015 No. 3339 - website, 31.03.2015

Article 1246. Adoption by spouses🔗

1. Spouses may adopt a child together. One child may not be adopted by two persons, except by spouses.

2. One of the spouses may adopt his or her child born out of wedlock or the child of the spouse.

Article 1247. Consent of the spouse upon adoption of a child🔗

If a child is adopted by one of the spouses, the consent of the other spouse is required. Such consent is not required if the spouses have in fact terminated their marital relationship for more than 1 year or the place of residence of the other spouse is unknown.

Law of Georgia of 20 March 2015 No. 3339 - website, 31.03.2015

Article 1248. Filiation by one of the spouses🔗

If the spouses adopt a child together, or one of them adopts the child of the other spouse, the child acquires the legal status of a common child of the spouses' marriage.

Article 1249. (Removed)🔗

Law of Georgia of 4 May 2017 No. 748 - website, 24.05.2017

Article 1250. Age of the adopter🔗

1. The age difference between the adopter and the child available for adoption shall not be less than 16 years. Where there is a valid reason, the court may change this age difference.

2. The maximum age difference between the adopter and a child available for adoption under 10 years of age shall not exceed 49 years (upper age limit). In an exceptional case, the maximum age difference between the adopter and a child available for adoption aged from 7 to 10 years may exceed 49 years if this corresponds to the interests of the child. The upper age limit shall not apply to married adopters where one of them meets the requirements established by this paragraph.

3. The age restrictions imposed by paragraphs 1 and 2 of this Article shall not apply when a child is adopted by a person having a preferential right of adoption.

Law of Georgia of 4 May 2017 No. 748 - website, 24.05.2017

Article 1251. Consent of the parent to the adoption of a child🔗

The procedure for giving consent by a parent to the adoption of a child is determined by the Law of Georgia "On Adoption and Foster Care".

Law of Georgia of 26 August 2003 No. 3082 – LHG I, No. 29, 18.09.2003, Art. 224

Law of Georgia of 18 December 2007 No. 5624 - LHG I, No. 48, 27.12.2007, Art. 414

Law of Georgia of 18 December 2009 No. 2382 - LHG I, No. 50, 31.12.2009, Art. 399

Article 1252. (Removed)🔗

Law of Georgia of 9 June 1999 No. 2078 – LHG I, No. 24(31), 26.06.1999, Art. 112

Law of Georgia of 26 August 2003 No. 3082 – LHG I, No. 29, 18.09.2003, Art. 224

Law of Georgia of 18 December 2009 No. 2382 - LHG I, No. 50, 31.12.2009, Art. 399

Article 1253. (repealed)🔗

Law of Georgia No. 2078 of 9 June 1999 – LHG I, No. 24(31), 26.06.1999, Art. 112

Law of Georgia No. 5624 of 18 December 2007 – LHG I, No. 48, 27.12.2007, Art. 414

Law of Georgia No. 2382 of 18 December 2009 – LHG I, No. 50, 31.12.2009, Art. 399

Article 1254. Child Subject to Adoption🔗

A child shall be subject to adoption if:

a) his/her parent (parents) has (have) been recognised by a court as missing;

b) he/she has no parent;

c) he/she has been recognised as an abandoned child;

d) his/her parent (parents) has (have) been deprived of parental rights;

e) all his/her legal representatives have consented to his/her adoption in accordance with the established procedure.

Law of Georgia No. 5624 of 18 December 2007 – LHG I, No. 48, 27.12.2007, Art. 414

Law of Georgia No. 2382 of 18 December 2009 – LHG I, No. 50, 31.12.2009, Art. 399

Law of Georgia No. 6494 of 19 June 2012 – website, 02.07.2012

Law of Georgia No. 3339 of 20 March 2015 – website, 31.03.2015

Law of Georgia No. 748 of 4 May 2017 – website, 24.05.2017

Article 1255. Consent of the Child to Adoption🔗

1. When adopting a child under 10 years of age, his/her wish shall be taken into account, having regard to his/her degree of maturity.

2. The adoption of a child aged 10 or over 10 years shall be inadmissible without his/her consent.

3. The child's consent to adoption shall be ascertained as a result of hearing him/her at a court hearing held in the adoption case.

4. If, before the submission of an application for adoption, the child lived in the family of the adopter and considered the adopter as his/her parent, the adoption may, by way of exception, be effected without the consent of the person to be adopted to the adoption.

Law of Georgia No. 5624 of 18 December 2007 – LHG I, No. 48, 27.12.2007, Art. 414

Law of Georgia No. 2382 of 18 December 2009 – LHG I, No. 50, 31.12.2009, Art. 399

Law of Georgia No. 6494 of 19 June 2012 – website, 02.07.2012

Law of Georgia No. 5013 of 20 September 2019 – website, 27.09.2019

Law of Georgia No. 5913 of 21 May 2020 – website, 25.05.2020

Article 1256. Refusal of Adoption🔗

Before the court delivers a judgment, the parent (parents), the adopter and a person to be adopted who has reached 10 years of age shall have the right to withdraw their consent in accordance with the Law of Georgia "On Adoption and Foster Care".

Law of Georgia No. 5624 of 18 December 2007 – LHG I, No. 48, 27.12.2007, Art. 414

Law of Georgia No. 2382 of 18 December 2009 – LHG I, No. 50, 31.12.2009, Art. 399

Article 1257. (repealed)🔗

Law of Georgia No. 5568 of 20 December 2011 – website, 28.12.2011

Law of Georgia No. 748 of 4 May 2017 – website, 24.05.2017

Article 1258. (repealed)🔗

Law of Georgia No. 5568 of 20 December 2011 – website, 28.12.2011

Law of Georgia No. 748 of 4 May 2017 – website, 24.05.2017

Article 1259. Kinship Relations of the Adopted Child🔗

The adopted child and his/her descendants, in relation to the adopter and his/her relatives, and the adopter and his/her relatives, in relation to the adopted child and his/her descendants, shall be equated, in personal and property rights and obligations, to relatives by descent.

Article 1260. Relations of the Adopted Child with Biological Parents🔗

1. The adopted child loses personal and property rights and is released from obligations towards his/her biological parents and relatives by origin.

2. (Removed – 04.05.2017, No. 748).

Law of Georgia of 18 December 2007 No. 5624 – LHG I, No. 48, 27.12.2007, Art. 414

Law of Georgia of 4 May 2017 No. 748 – website, 24.05.2017

Article 1261. Consequences of Adoption🔗

1. Upon adoption, the adopter shall bear the same rights and obligations as biological parents under this Code.

2. The adopter's parental rights may be suspended, restricted or deprived if it is established that he/she systematically avoided the performance of the obligation to raise the child or improperly exercised parental rights, or in the case of another reason, in accordance with this Code.

Law of Georgia of 18 December 2007 No. 5624 – LHG I, No. 48, 27.12.2007, Art. 414

Article 1262. (Removed)🔗

Law of Georgia of 18 December 2007 No. 5624 – LHG I, No. 48, 27.12.2007, Art. 414

Article 1263. (Removed)🔗

Law of Georgia of 18 December 2007 No. 5624 – LHG I, No. 48, 27.12.2007, Art. 414

Law of Georgia of 4 May 2017 No. 748 – website, 24.05.2017

Article 1264. (Removed)🔗

Law of Georgia of 18 December 2007 No. 5624 – LHG I, No. 48, 27.12.2007, Art. 414

Law of Georgia of 4 May 2017 No. 748 – website, 24.05.2017

Article 1265. (Removed)🔗

Law of Georgia of 18 December 2007 No. 5624 – LHG I, No. 48, 27.12.2007, Art. 414

Law of Georgia of 4 May 2017 No. 748 – website, 24.05.2017

Article 1266. (Removed)🔗

Law of Georgia of 18 December 2007 No. 5624 – LHG I, No. 48, 27.12.2007, Art. 414

Article 1267. (Removed)🔗

Law of Georgia of 18 December 2007 No. 5624 – LHG I, No. 48, 27.12.2007, Art. 414

Article 1268. (Removed)🔗

Law of Georgia of 18 December 2007 No. 5624 – LHG I, No. 48, 27.12.2007, Art. 414

Article 1269. (Removed)🔗

Law of Georgia of 18 December 2007 No. 5624 – LHG I, No. 48, 27.12.2007, Art. 414

Article 1270. (Removed)🔗

Law of Georgia of 18 December 2007 No. 5624 – LHG I, No. 48, 27.12.2007, Art. 414

Article 1271. (Removed)🔗

Law of Georgia of 24 June 2004 No. 179 – LHG I, No. 19, 15.07.2004, Art. 79

Law of Georgia of 28 December 2005 No. 2626 – LHG I, No. 3, 16.01.2006, Art. 20

Law of Georgia of 18 December 2007 No. 5624 – LHG I, No. 48, 27.12.2007, Art. 414

Article 1272. (Removed)🔗

Law of Georgia of 18 December 2007 No. 5624 – LHG I, No. 48, 27.12.2007, Art. 414

Law of Georgia of 20 March 2015 No. 3339 – website, 31.03.2015

Law of Georgia of 4 May 2017 No. 748 – website, 24.05.2017

Article 1273. (removed)🔗

Law of Georgia No. 5624 of 18 December 2007 - LHG I, No. 48, 27.12.2007, Art. 414

Law of Georgia No. 748 of 4 May 2017 - website, 24.05.2017

Article 1274. (removed)🔗

Law of Georgia No. 5624 of 18 December 2007 - LHG I, No. 48, 27.12.2007, Art. 414

Law of Georgia No. 748 of 4 May 2017 - website, 24.05.2017

Article 1275. Concepts of Guardianship, Curatorship and Support🔗

1. A minor child who has been left without parental care due to the death of the parents, recognition of the parents as deceased, deprivation, suspension or restriction of the parental right of the parents, recognition of the parents as missing, or recognition of the child as abandoned, shall be placed under guardianship and curatorship for upbringing and for the protection of personal and property rights and interests.

2. Guardianship and curatorship shall also be established for the protection of the personal and property rights and interests of an adult who, due to his/her state of health, is unable to independently exercise his/her rights and perform his/her duties.

3. Support shall be established for a recipient of support.

Law of Georgia No. 5624 of 18 December 2007 - LHG I, No. 48, 27.12.2007, Art. 414

Law of Georgia No. 3339 of 20 March 2015 - website, 31.03.2015

Article 1276. Guardianship🔗

Guardianship shall be established for a child who has not reached the age of 7.

Law of Georgia No. 3339 of 20 March 2015 - website, 31.03.2015

Article 1277. Curatorship🔗

1. Curatorship shall be established for a minor from the age of seven to eighteen. Curatorship shall also be established for an adult capable person at his/her request, if he/she, due to his/her state of health, is unable to independently exercise his/her rights and perform his/her duties.

2. Article 16 shall apply accordingly.

Article 1277¹. Support🔗

A supporter shall be appointed for a recipient of support.

Law of Georgia No. 3339 of 20 March 2015 - website, 31.03.2015

Article 1278. Guardianship and curatorship bodies🔗

1. The central and local bodies of guardianship and curatorship are the Ministry of Internally Displaced Persons from the Occupied Territories, Labour, Health and Social Protection of Georgia and/or an authorized institution (organization) within its system, as well as their territorial bodies.

2. The rules of work of the central and local bodies of guardianship and curatorship are determined by this Code, the Law of Georgia on Social Work and other legislative and subordinate normative acts of Georgia.

3. The guardianship and curatorship body shall protect and strengthen support recipients and assist supporters in the performance of their duties, so that they help support recipients in making choices and decisions.

Law of Georgia of 18 December 2007 No. 5624 - LHG I, No. 48, 27.12.2007, Art. 414

Law of Georgia of 20 March 2015 No. 3339 - website, 31.03.2015

Law of Georgia of 13 June 2018 No. 2520 – website, 29.06.2018

Law of Georgia of 5 July 2018 No. 3076 – website, 11.07.2018

Law of Georgia of 26 June 2025 No. 837 - website, 03.07.2025

Article 1279. Establishment of guardianship and curatorship for a child🔗

Guardianship and curatorship for a child may be established where:

a) the court notifies the guardianship and curatorship body of the restriction or deprivation of parental rights and duties for both parents of the child;

b) the parental rights and duties are suspended;

c) both parents of the child have died;

d) the guardian appointed for the child has died or has been deprived of his/her functions;

e) the court recognizes the child as abandoned;

f) the parent is recognized as missing.

Law of Georgia of 18 December 2007 No. 5624 - LHG I, No. 48, 27.12.2007, Art. 414

Law of Georgia of 20 March 2015 No. 3339 - website, 31.03.2015

Article 1280. Appointment of a supporter (supporters)🔗

1. The court that rendered a judgment on recognizing a person as a support recipient shall be obliged, by the same judgment, to appoint a supporter (supporters), to determine the scope of support and the rights and obligations of the supporter (supporters). This judgment shall be sent, no later than 3 days from its entry into legal force, to the guardianship and curatorship authority at the place of residence of the support recipient.

2. A family member, relative, close person or specialist who meets the requirements established by this Code may be appointed as a supporter.

3. When selecting a supporter, the court shall take into account his/her personal qualities, the ability to perform the obligation imposed on him/her, the mutual dependence between the supporter and the support recipient, the interests and will of the support recipient, and in the case of the minority of the support recipient – also the instruction of his/her parent.

4. A person may be appointed as a supporter only with his/her consent.

5. If it was not possible to select a supporter from the persons referred to in paragraph 2 of this article, the court shall appoint as a supporter the authorized person of the guardianship and curatorship authority, and if the support recipient is placed in a specialized institution – the representative of that institution.

Law of Georgia of 20 March 2015 No. 3339 - website, 31.03.2015.

Article 1281. Appointment of a guardian or curator🔗

1. For the performance of the duties of a guardian or curator, the guardianship and curatorship authorities shall appoint a guardian or curator.

2. A guardian or curator may be appointed only with their consent.

3. The selection of a curator for a fully capable adult person who, due to his/her health condition, is unable to independently protect his/her rights and perform his/her duties, may be made only with the consent of the person under curatorship.

4. A guardian or curator may be appointed in accordance with the instruction of deceased parents on the basis of a notarized document (will).

Law of Georgia of 18 December 2007 No. 5624 - LHG I, No. 48, 27.12.2007, Art. 414

Law of Georgia of 15 July 2020 No. 6989 – website, 28.07.2020.

Article 1282. Procedure for the appointment of a guardian or curator🔗

1. A guardian or curator shall be appointed no later than one month from the time when the necessity of establishing guardianship or curatorship becomes known to the guardianship and curatorship authority.

2. When selecting a guardian or curator, account shall be taken of his/her personal qualities, the ability to perform the imposed obligation, the mutual dependence existing between him/her and the person under guardianship/curatorship, the interests of the person under guardianship/curatorship, as well as the instruction of the parent or testator.

3. Before the appointment of a guardian or curator, the guardianship and curatorship authority shall bear the appropriate legal obligations of the guardian or curator towards the person under guardianship/curatorship.

Law of Georgia of 18 December 2007 No. 5624 - LHG I, No. 48, 27.12.2007, Art. 414

Article 1283. Person who may not be appointed as guardian, curator or supporter🔗

A person may not be appointed as guardian, curator or supporter if:

a) he/she has not reached the age of 18;

b) the court has recognised him/her as a recipient of support;

c) he/she has been deprived of or restricted in parental rights for evading the performance of parental rights and duties;

d) he/she has been released from the duty of guardian, curator or supporter due to its improper performance.

Law of Georgia No. 5624 of 18 December 2007 – LHG I, No. 48, 27.12.2007, Art. 414

Law of Georgia No. 3339 of 20 March 2015 – website, 31.03.2015

Article 1284. (removed)🔗

Law of Georgia No. 3339 of 20 March 2015 – website, 31.03.2015

Article 1285. (removed)🔗

Law of Georgia No. 5624 of 18 December 2007 – LHG I, No. 48, 27.12.2007, Art. 414

Article 1286. Appointment of a property guardian🔗

1. In order to protect the property rights and interests of a child, a property guardian may, if necessary, be appointed, if this is required by:

a) the parents;

b) the testator who transfers property to the child and designates any person, other than the parents, who shall become the property guardian;

c) the guardian or curator.

2. If the property is located far from the place of residence of the guardian or curator, or if the appointment of a property guardian is necessary, the guardianship and curatorship authority may, in addition to the guardian/curator appointed for the person under guardianship/curatorship, appoint a property guardian/curator.

Law of Georgia No. 5624 of 18 December 2007 – LHG I, No. 48, 27.12.2007, Art. 414

Article 1287. Rights of the guardian and curator🔗

The guardian and curator have the right to demand, by court procedure, the return of the children under guardianship and curatorship from anyone who keeps them with himself/herself without legal grounds.

Article 1288. Performance of guardianship and curatorship free of charge🔗

The duties of the guardian and curator shall be performed free of charge.

Article 1289. Duties of the guardian, curator and supporter🔗

1. The guardian/curator shall be obliged to take care of the maintenance of the person under guardianship/person under curatorship, to create the necessary living conditions for him/her, to provide him/her with care and treatment, and to protect his/her rights and interests.

2. The supporter shall be obliged to monitor the continuous medical care of the recipient of support, to ascertain his/her wishes/choices and to assist him/her in making the relevant decision, which is expressed in the provision to the recipient of support, in a communication form understandable to him/her, of the information necessary for making the decision. The supporter shall also be obliged, within the time limit established by the guardianship and curatorship authority, which shall not exceed 6 months, to provide to the said authority information on the performance of the duties determined for him/her by a court judgment. In this information, the supporter shall indicate the peculiarities related to the provision of support by him/her.

Law of Georgia No. 5624 of 18 December 2007 - LHG I, No. 48, 27.12.2007, Art. 414

Law of Georgia No. 3339 of 20 March 2015 - website, 31.03.2015

Article 1290. Representative authority of the guardian and curator🔗

The guardian and curator determined by the guardianship and curatorship authority, who have been appointed as the legal representatives of the person under guardianship/person under curatorship, shall, without special authority, represent the rights and interests of the person under guardianship/person under curatorship in relations with third parties, including in court.

(the normative content of Article 1290 concerning the representation by the guardian of a person recognised by a court as incapable of the rights and interests of the person under guardianship in relations with third parties, including in court, was declared invalid) - judgment of the Constitutional Court of Georgia No. 2/4/532,533 of 8 October 2014 – website, 28.10.2014

Law of Georgia No. 5624 of 18 December 2007 - LHG I, No. 48, 27.12.2007, Art. 414

Judgment of the Constitutional Court of Georgia No. 2/4/532,533 of 8 October 2014 – website, 28.10.2014

Article 1291. Duty to live together with minor persons under guardianship🔗

1. The guardian and curator shall be obliged to live together with the minor person under guardianship (curatorship). In an individual case, with the permission of the guardianship and curatorship authority, the curator and the person under curatorship may live separately, if the said authority reaches the conclusion that their separate living will not have a negative impact on the upbringing of the person under curatorship, on the protection of his/her rights and interests.

2. The guardian and curator shall be obliged to notify the guardianship and curatorship authority of a change of place of residence.

3. The duty provided for by paragraph 1 of this Article shall not be imposed on the curator of a capable adult and on the supporter of an adult, unless otherwise determined by a court judgment.

Law of Georgia No. 3339 of 20 March 2015 - website, 31.03.2015

Article 1292. Obligation of the supporter in the absence or change of the ground for the appointment of support🔗

The supporter shall be obliged to apply immediately to the court with an application for a change of the scope of support/cancellation of support, if the ground on the basis of which support was imposed on the recipient of support no longer exists or has changed, except where the recipient of support or the guardianship and curatorship authority has already applied to the court.

Law of Georgia of 20 March 2015 No. 3339 - website, 31.03.2015.

Article 1293. Consent of the guardian and curator, participation of the supporter in the conclusion of a transaction🔗

1. The guardian is the legal representative of the person under guardianship and, on his/her behalf, proceeding from his/her interests, concludes necessary transactions.

2. A minor from 7 to 18 years of age concludes a transaction which he/she does not have the right to conclude independently under law, with the consent of the curator.

3. The supporter shall be obliged, when the recipient of support concludes a transaction, to assist him/her in fully perceiving the terms and legal consequences of the transaction, if this is determined by a court judgment.

4. In an exceptional case, if the court establishes that the expression of will by the recipient of support through the supporter is objectively impossible for a period of more than 1 month and the prohibition of taking a decision instead of him/her will cause significant damage to the recipient of support, the court grants the supporter the right, on behalf of the recipient of support, proceeding from his/her interests, to conclude necessary transactions.

Correction of an error - Parliament's Bulletin No. 37-38, 10.09.1997, p. 21

Judgment of the Constitutional Court of Georgia of 8 October 2014 No. 2/4/532,533 – website, 28.10.2014.

Law of Georgia of 20 March 2015 No. 3339 - website, 31.03.2015.

Article 1294. Restriction of the powers of the guardian and curator🔗

Without the prior consent of the guardianship and curatorship authority, the guardian has no right to conclude, on behalf of the person under guardianship, a transaction, and the curator – to consent, on behalf of the person under curatorship, to the conclusion of a transaction which concerns the alienation of property, mortgaging, leasing for a term of more than ten years, loan for use, or the issuance of other debt obligations, the drawing of a promissory note, waiver of rights belonging to the person under guardianship or curatorship, entering as a partner in an entrepreneurial company, taking a loan, division of property, or which may result in a reduction of property.

Article 1295. Rule for the alienation of perishable property🔗

Perishable property or property which by its nature is intended for sale may be sold without the permission of the guardianship and curatorship authority.

Article 1296. Inadmissibility of a gift on behalf of a person under guardianship🔗

A gift contract may not be concluded on behalf of a person under guardianship (curatorship).

Article 1297. Inadmissibility of representation by a guardian and curator🔗

A guardian and a curator, their spouses and close relatives shall not have the right to enter into a transaction with a person under guardianship (curatorship), and they also may not be representatives of this person when entering into a transaction or in court proceedings between the person under guardianship (curatorship) and the guardian or curator's spouse and their close relatives.

Article 1298. Appeal against actions of a guardian and curator🔗

The actions of a guardian and a curator may be appealed by an interested person, including the person under guardianship (curatorship), to the guardianship and curatorship authority at the place of residence of the person under guardianship (curatorship).

Article 1299. Release of a guardian and curator from their duties🔗

1. The guardianship and curatorship authority shall release a guardian and a curator from their duties in the event of full restoration of parental duties to the child's parents or adoption of the child.

2. A guardian and a curator may also be released from their duty on the basis of a personal request if the guardianship and curatorship authority finds that this request is caused by a valid reason (illness, change in financial situation, incompatibility with the person under guardianship or curatorship, etc.).

Law of Georgia of 18 December 2007 No. 5624 - LHG I, No. 48, 27.12.2007, Art. 414

Article 1300. Consequences of improper performance of duties🔗

1. In the event of improper performance by a guardian or curator of the duty imposed on them, the guardianship and curatorship authority shall remove or release the guardian or curator from the performance of their duty.

2. If a guardian (curator) uses guardianship (curatorship) for self-interest, or leaves the person under guardianship (curatorship) without supervision and necessary assistance, they shall be liable in accordance with the procedure established by law.

3. In the event of improper performance by a supporter of the duty imposed on them, the guardianship and curatorship authority shall respond in accordance with Article 1305⁵ of this Code.

Law of Georgia of 20 March 2015 No. 3339 - website, 31.03.2015

Article 1301. Release of a curator/supporter from duty at the request/demand of the person under curatorship/recipient of support🔗

1. A curator of an adult may be released from their duty at the request of the person under curatorship. In such a case, the guardianship and curatorship authority may, in agreement with the person under curatorship, appoint another person as curator for them.

2. If the recipient of support wishes the supporter to be released from their duty, they shall apply to the court with a corresponding demand. In such a case, before rendering a judgment, the court shall suspend the supporter's authority and assign the performance of their duties to a specially authorized person of the guardianship and curatorship authority (to whom the rights and duties established by law for a supporter shall extend).

Law of Georgia of 20 March 2015 No. 3339 - website, 31.03.2015

Article 1302. Grounds for termination of guardianship🔗

1. Guardianship shall be terminated:

a) if the person under guardianship died;

b) if the minor person under guardianship has reached the age of 7;

c) if the parental rights and duties of the parent of a minor person under guardianship who has not completed seven years have been restored;

d) (removed - 20.03.2015, No. 3339).

2. In the cases provided for by the first paragraph of this Article, guardianship shall be terminated by a decision of the guardianship and curatorship body.

Law of Georgia of 18 December 2007 No. 5624 - LHG I, No. 48, 27.12.2007, Art. 414

Law of Georgia of 20 March 2015 No. 3339 - website, 31.03.2015

Article 1303. Termination of guardianship due to reaching curatorship age🔗

If a minor person under guardianship has reached the age of seven, then guardianship shall be terminated and, without a special decision of the guardianship and curatorship body, the guardian shall become a curator.

Article 1304. Grounds for termination of curatorship🔗

1. Curatorship shall be terminated:

a) if the person under curatorship died;

b) if the minor person under curatorship has reached majority;

c) if the minor person under curatorship has married;

d) in respect of other persons under curatorship – if the reason that caused the appointment of the curator has ceased to exist.

2. In the cases provided for in the first paragraph of this Article, curatorship shall be terminated by a decision of the guardianship and curatorship body.

Article 1304¹. Grounds for termination of support🔗

1. Support shall be terminated if:

a) the recipient of support died;

b) the reason for which the support was established no longer exists.

2. In the case provided for by subparagraph „a“ of the first paragraph of this Article, support shall be terminated by a decision of the guardianship and curatorship body, and in the case provided for by subparagraph „b“ of the same paragraph – by a judgment of the court.

Law of Georgia of 20 March 2015 No. 3339 - website, 31.03.2015

Article 1305. Appealing guardianship and curatorship matters to the court🔗

A decision of the guardianship and curatorship body on the appointment, removal and dismissal of a guardian (curator), as well as all other matters of guardianship and curatorship, may be appealed to the court by an interested person.

Article 1305¹. Supervision of the activities of a guardian, curator and supporter🔗

1. Supervision of the activities of a guardian/curator shall be exercised by the guardianship and curatorship authority according to the place of residence of the person under guardianship/person under curatorship.

2. Supervision of the activities of a supporter shall be exercised by the guardianship and curatorship authority according to the place of residence of the recipient of support. The purpose of supervision is to control the performance by the supporter of the duties determined for them by a court judgment and by the legislation of Georgia, to assess the development of the abilities of the recipient of support and to respond accordingly.

3. The guardianship and curatorship authority shall be obliged to verify the compliance of the actions performed by the supporter with the scope established by the court judgment through a scheduled inspection, which is conducted with the periodicity provided for by subparagraphs „a“ and „b“ of Article 1305² of this Code, by verifying any information received in connection with the failure by the supporter to perform the duties assigned to them, and by actual supervision.

4. The guardianship and curatorship authority shall be obliged to supervise the exercise by the supporter of their duties in the performance of a marriage contract concluded with the recipient of support.

5. The procedure and conditions for exercising supervision over the activities of a guardian, curator and supporter shall be determined by this Code and the relevant subordinate acts.

Law of Georgia of 21 June 2011 No. 4870 – website, 06.07.2011.

Law of Georgia of 20 March 2015 No. 3339 – website, 31.03.2015.

Article 1305². Periodicity of exercising supervision over the performance by a guardian, curator and supporter of their duties🔗

The guardianship and curatorship authority shall exercise supervision over the performance by a guardian, curator and supporter of their duties:

a) once every 6 months;

b) with the periodicity determined by the court;

c) on its own initiative, proceeding from an encountered necessity, if there is information about the need for intervention by the guardianship and curatorship authority.

Law of Georgia of 21 June 2011 No. 4870 – website, 06.07.2011.

Law of Georgia of 20 March 2015 No. 3339 – website, 31.03.2015.

Article 1305³. Actual supervision of the activities of a supporter🔗

1. The guardianship and curatorship authority shall be obliged, on the basis of the information provided for by paragraph 2 of Article 1289 of this Code, where necessary, to exercise on its own initiative actual supervision of the activities of the supporter.

2. The form and scope of exercising actual supervision of the activities of a supporter shall be determined by the relevant subordinate acts.

Law of Georgia of 21 June 2011 No. 4870 – website, 06.07.2011.

Law of Georgia of 20 March 2015 No. 3339 – website, 31.03.2015.

Article 1305⁴. Conclusion on the results of supervision🔗

1. The results of supervision carried out by the guardianship and curatorship authority shall be reflected in the conclusion on the results of supervision.

2. The conclusion on the results of supervision may be positive or negative.

3. The conclusion on the results of supervision is positive if the guardianship and curatorship authority, as a result of carrying out any form of supervision, establishes that the guardian/curator/supporter performs in good faith the duties determined for him/her by a court judgment and/or by the legislation of Georgia.

4. The conclusion on the results of supervision is negative if the guardianship and curatorship authority, as a result of carrying out any form of supervision, establishes that the guardian/curator/supporter does not perform/is unable to perform in good faith the duties determined for him/her by a court judgment and/or by the legislation of Georgia, or that in providing support certain deficiencies are observed and it is necessary to respond in accordance with the procedure established by Article 1305⁵ of this Code.

5. Information on the conclusion on the results of supervision shall be entered into the database referred to in Article 1305⁶ of this Code.

Law of Georgia of 20 March 2015 No. 3339 – website, 31.03.2015.

Article 1305⁵. Response of the guardianship and curatorship authority to the failure to perform/improper performance by the guardian/curator/supporter of the duties determined for him/her by a court judgment and/or by the legislation of Georgia🔗

If the guardianship and curatorship authority establishes that the guardian/curator/supporter does not perform/improperly performs the duties determined for him/her by a court judgment and/or by the legislation of Georgia, violates the rights and lawful interests of the person under guardianship/person under curatorship/recipient of support, it issues a negative conclusion and acts as follows:

a) if the intensity of the actions of the guardian/curator/supporter is insufficient for imposing administrative or criminal liability:

a.a) through a social worker, assists the guardian/curator/supporter so that he/she better understands and performs his/her duties;

a.b) releases the guardian/curator from his/her duty;

a.c) applies to the court with a request to release the supporter from his/her duty. In such a case, before delivering a judgment, the court suspends the supporter's authority and assigns the performance of his/her duties to a specially authorized person of the guardianship and curatorship authority (to whom the rights and duties established by law for the supporter shall extend);

b) acts in accordance with the rules established by the Code of Administrative Offences of Georgia and by criminal legislation, in accordance with the intensity of the actions of the guardian/curator/supporter.

Law of Georgia of 20 March 2015 No. 3339 – website, 31.03.2015.

Article 1305⁶. Database of supervision of guardianship/curatorship/support🔗

1. For the purpose of reflecting the results of supervision of guardianship/curatorship/support, a corresponding database shall be created.

2. The following shall be entered into the database:

a) data on the establishment of guardianship/curatorship;

b) data on the court judgment on the establishment of support;

c) personal data of the person under guardianship/person under curatorship/recipient of support and of the guardian/curator/supporter;

d) data on the release of the guardian/curator/supporter from his/her duties and on the imposition of liability on him/her;

e) data on the termination of guardianship/curatorship/support;

f) data on the exercise of property rights by the recipient of support;

g) data on the breach of a marriage contract concluded with the recipient of support;

h) information on recipients of support placed in an inpatient facility;

i) brief description of the results of supervision;

j) other data relating to the person under guardianship/person under curatorship/recipient of support and which, by decision of the guardianship and curatorship authority, are important for exercising supervision over the activities of the guardian/curator/supporter.

Law of Georgia of 20 March 2015 No. 3339 – website, 31.03.2015.

Article 1305⁷. Definition of terms used in this Chapter🔗

The terms used in this Chapter, for the purposes of this same Chapter, have the following meaning:

a) Convention − the Hague Convention of 25 October 1980 "On the Civil Aspects of International Child Abduction";

b) Central Authority − a structural subdivision of the Ministry of Justice of Georgia;

c) child − a person under 16 years of age;

d) applicant − any person or body that applies to the Central Authority or a court with an application/claim on matters related to the return of a wrongfully removed or wrongfully retained child or to the exercise of the right of access to the child;

e) custody right − the right relating to the care of the child and the determination of the child's place of residence. For the purposes of this Chapter, a person or body shall be considered to exercise custody if the child habitually resided in Georgia or in a Contracting State of the Convention before his/her wrongful removal/retention and that person or body was actually exercising custody individually or they were exercising it jointly, in accordance with the legislation of Georgia or of the Contracting State of the Convention where the child habitually resided before the removal/retention;

f) right of access − the right implying any kind of communication with the child, including taking the child for a specified period to a place which is not his/her habitual place of residence;

g) wrongful removal of a child − violation of the custody right attributed to a person or body individually or jointly to them, which was ensured by the legislation of the State where the child habitually resided immediately before the wrongful removal, and which was actually exercised individually or jointly at the time of the child's removal and/or would have been so exercised but for his/her wrongful removal, and moreover, the child was removed from that State to a Contracting State of the Convention without the consent of the person or body having the custody right and, after his/her request, the child is not returned to the country;

h) wrongful retention of a child – violation of the custody right attributed to a person or body individually or jointly to them, which was ensured by the legislation of the State where the child habitually resided immediately before the wrongful retention, and which was actually exercised individually or jointly at the time of the child's retention and/or would have been so exercised but for his/her wrongful retention, and moreover, the child was removed from that State to a Contracting State of the Convention for a specified period, as a result of the consent of the person or body having the custody right, however, after the expiry of that period, despite the request of the person or body having the custody right, the child is not returned to the country of his/her habitual place of residence.

Law of Georgia of 20 March 2015 No. 3339 - website, 31.03.2015.

Law of Georgia of 10 June 2020 No. 6053 – website, 19.06.2020.

Article 1305⁸. Return of a wrongfully removed/retained child or exercise of the right of access to the child🔗

1. A person or body which, in accordance with the legislation of Georgia, proves that it has the right of guardianship in respect of a child who has been wrongfully removed from Georgia to any Contracting State of the Convention or has been wrongfully retained in the territory of one of the Contracting States of the Convention, is entitled to apply to the Central Authority and to request the transmission of an application for the return of the child to the Central Authority of the Contracting State of the Convention to which the child has been wrongfully removed/or in the territory of which the child has been wrongfully retained.

2. A person or body which proves that it has the right of access to a child who is in the territory of a Contracting State of the Convention is entitled to apply to the Central Authority and to request the transmission of an application for the exercise of the right of access to the child to the Central Authority of the Contracting State of the Convention in the territory of which the child is located.

Law of Georgia of 20 March 2015 No. 3339 - website, 31.03.2015.

Law of Georgia of 10 June 2020 No. 6053 – website, 19.06.2020.

Article 1305⁹. Return of a child located in the territory of Georgia or exercise of the right of access to the child🔗

1. A person or body which proves that it has the right of guardianship in respect of a child who has wrongfully entered the territory of Georgia from any Contracting State of the Convention or is wrongfully present in Georgia is entitled to apply, by an application/claim for the return of the child, to the Central Authority or the court.

2. A person or body which proves that it has the right of access to a child who is in the territory of Georgia is entitled to apply, by an application/claim for the exercise of the right of access to the child, to the Central Authority or the court.

3. The "Procedures for referral and enforcement in relation to the return of a wrongfully removed or wrongfully retained child or the exercise of the right of access to the child" shall be approved by the Government of Georgia.

Law of Georgia of 20 March 2015 No. 3339 - website, 31.03.2015.

Law of Georgia of 10 June 2020 No. 6053 – website, 19.06.2020.

Article 1306. Concept🔗

1. The transfer of the property of a deceased person (decedent) to other persons (heirs) is effected by law or by will, or on both grounds.

2. Succession by law – the transfer of the property of the deceased to the persons specified in the law – applies if the decedent has not left a will, or if the will covers part of the estate, or if the will is declared wholly or partially invalid.

Article 1307. Heirs🔗

Heirs may be:

a) in case of succession by law – persons who were alive at the moment of the testator's death, and also children of the testator who will be born alive after his death;

b) in case of testamentary succession – persons who were alive at the moment of the testator's death, as well as those who were conceived during his lifetime and were born after his death, regardless of whether they are his children or not, as well as legal entities.

Article 1308. Legal entity as heir🔗

In case of testamentary succession, a legal entity that was created by the moment of opening of the estate shall be invited to accept the estate.

Article 1309. Child born out of wedlock as heir of the father🔗

A child born out of wedlock shall be considered an heir of the father if paternity is acknowledged in accordance with the procedure established by law. If he dies before the father, his children may demand a share from the estate that belonged to their father.

Article 1310. Unworthy heir🔗

Neither by law nor by will may an heir be a person who intentionally prevented the testator from exercising his last will and thereby contributed to being invited as heir himself or his close persons or to increasing their share in the estate, or committed an intentional crime or other immoral act contrary to the last will and desire expressed by the testator in the will, if these circumstances are confirmed by the court (unworthy heir).

Article 1311. Parents who may not be heirs🔗

Parents who are deprived of parental rights and by the day of opening of the estate have not been restored in these rights may not be heirs by law of their children. Also, persons who maliciously evaded the obligation imposed on them to maintain the testator may not be heirs by law, if this circumstance is confirmed by court procedure.

Article 1312. Deprivation of the right of inheritance by the court🔗

The circumstance that constitutes the ground for depriving an unworthy heir of the right of inheritance must be established by the court upon the claim of the person for whom the deprivation of the right of inheritance for the unworthy heir entails the determined property consequences.

Article 1313. Pardon for the unworthy heir🔗

A person who is convicted of committing acts that entail loss of the right of inheritance shall nevertheless be admitted as heir if the testator pardons him and expresses this decision of his in clear form in the will. Revocation of the pardon shall not be permitted.

Article 1314. Inheritance by right of representation🔗

Loss of the right of inheritance does not prevent relatives from inheriting by right of representation.

Article 1315. Right of inheritance to the property of another testator🔗

Deprivation of the right of inheritance does not prevent the person deprived of this right from being an heir to the property of another testator.

Article 1316. Obligation of a person declared an unworthy heir🔗

If a person is declared an unworthy heir by a court after accepting the estate, that person shall be obliged to return everything received by inheritance, together with fruits and income.

Article 1317. Time limit for filing a claim for declaring a person an unworthy heir🔗

A claim for declaring a person an unworthy heir shall be filed by interested persons within five years from the moment when that person commenced possession of the estate.

Article 1318. Share in the estate of a person deprived of the right to inherit🔗

1. The share in the estate of a person deprived of the right to inherit passes to the remaining heirs called to inherit and is distributed equally among them.

2. The rule provided for by paragraph 1 of this Article shall not apply if the person deprived of the right to inherit had an appointed heir.

Article 1319. Opening of the estate🔗

The estate shall open as a result of the death of a person or of his/her declaration as deceased by a court.

Article 1320. Time of opening of the estate🔗

The day of the decedent's death or the day of entry into force of the court judgment declaring the person deceased shall be considered the time of opening of the estate.

Article 1321. Inheritance of persons who died on the same day🔗

In the event of the death on the same day of persons having the right to inherit from one another, the estate shall open after each of them independently.

Article 1322. Opening of the estate after a person is declared deceased🔗

The consequence provided for by Article 1321 shall also occur when the court declared persons deceased as a result of their disappearance without trace in the same circumstances; at the same time, the time of entry into force of the judgment declaring them deceased shall not matter.

Article 1323. (Repealed)🔗

Law of Georgia No. 4851 of 25 June 2019 – website, 02.07.2019.

Article 1324. Place of opening of the estate🔗

1. The place of residence of the decedent shall be considered the place of opening of the estate, and if it is not known, the location of the estate.

2. If the estate is located in different places, the location of the immovable property or its valuable part shall be considered the place of opening of the estate, and if there is no immovable property, then the location of the movable property or its main part.

Article 1325. Place of opening of the estate of persons residing abroad🔗

After the death of a citizen of Georgia who temporarily resided abroad and died there, the place of opening of the estate shall be his/her place of residence in Georgia before departure abroad, and if it is not known, then the location of the estate or its main part.

Article 1326. Opening of the estate of persons permanently residing abroad🔗

After the death of persons who permanently resided abroad, the country in which they resided shall be considered the place of opening of the estate.

Article 1327. Opening of the estate abroad🔗

A citizen of Georgia who resides in Georgia shall accept an estate in a foreign state in accordance with the legislation of that state.

Article 1328. Inherited Property🔗

1. The estate (inherited property) comprises the aggregate of both the property rights (estate assets) and the obligations (estate liabilities) that the decedent had at the moment of death.

2. The estate includes the share in common ownership that fell to the decedent, and, if the division of the property in kind is impossible, then the value of that property.

Article 1329. Future Property🔗

The decedent may take into account in a will such property as he did not yet possess at the time of drawing up the will, if at the moment of opening of the estate such property will be his property.

Article 1330. Inadmissibility of the Inherited Transfer of Rights and Obligations of a Personal Nature🔗

The estate does not include those property rights and obligations which are of a personal nature and may belong only to the decedent, as well as the rights and obligations provided by law or contract which operate only during the lifetime of the creditor and the debtor and terminate upon their death.

Article 1331. Protection of the Non-Property Rights of the Decedent🔗

The non-property rights of the decedent, which are not included in the estate, may be exercised and protected by the heirs in the manner provided by law.

Article 1332. Property Not Included in the Estate🔗

1. Family books (or records), the family chronicle, memorial items for the commemoration of the soul and other cult objects, and the grave are not included in the estate and are not divided among the heirs. These objects are transferred to the heir with the right of ownership according to established custom. The heir who has renounced acceptance of the estate may also receive these objects. The rights provided on a personal pension account defined by the Law of Georgia "On Voluntary Private Pension" are included in the estate only if the decedent did not designate a beneficiary or the beneficiary died.

2. Documents relating to the person of the decedent, his family or the entire estate remain common property.

Law of Georgia of 28 June 2023 No. 3353 – website, 19.07.2023.

Article 1333. Consequences of the Increase of Immovable Property Provided by Will🔗

If the testator, after drawing up the will, increased the immovable property provided by the will by acquiring such property which, although adjacent to the bequeathed immovable property, will not be included in the estate, unless there is a new disposition regarding the property acquired after drawing up the will.

Article 1334. Co-Heirs🔗

If there are several heirs, until the division of the estate it belongs to all co-heirs as a single property. From this property may be paid the necessary expenses for the care of the decedent and the treatment of the last illness, burial, protection and management of the estate, payment of wages, and execution of the will. These claims must be satisfied from the value of the estate in priority to all other claims, including those secured by mortgage and other security.

Article 1335. Right to demand a thing from the estate🔗

1. If the testator incorrectly left a thing to the heir, the owner of this thing has the right to demand it according to the general rule.

2. If the property of the deceased secretly contains the property of another person, it is necessary to identify this part of the property and transfer it to the appropriate person.

Article 1336. Heirs by law🔗

In inheritance by law, the following are considered heirs with equal rights:

I. In the first order – the children of the deceased, the child of the deceased who was born after his death, the spouse, the parents (adoptive parents).

Adopted children and their descendants, as heirs of the adoptive parent or his relatives, are equated with the children of the adoptive parent and their descendants. Adopted children are no longer considered heirs by law after the death of their parents and other biological relatives in the ascending line, as well as of sisters and brothers.

Grandchildren, the children of grandchildren and the children of the latter shall be considered heirs by law if, at the time of opening of the estate, their parent who should have been an heir of the decedent is no longer alive, and they receive in equal shares the share that would have fallen to their deceased parent in inheritance by law.

Grandchildren, the children of grandchildren and the children of the latter cannot become heirs if their parents refused to accept the estate. The adoptive parent and his relatives, as heirs of the adopted child and his descendants, are equated with the parents of the adopted child and other biological relatives. The parents of the adopted child, other biological relatives in the ascending line and sisters and brothers are no longer entitled to inheritance by law after the death of the adopted child or his descendants.

II. In the second order – the sisters and brothers of the deceased. The nephews and nieces of the decedent and their children are considered heirs by law if, at the time of opening of the estate, their parent who would have been an heir of the decedent was no longer alive. They receive in equal shares the share of the estate that would have fallen to their deceased parents in inheritance by law.

III. In the third order – the grandmother and grandfather, the parents of the grandmother and the parents of the grandfather, both on the mother's and on the father's side. The parents of the grandmother and the parents of the grandfather are considered heirs by law if, at the time of opening of the estate, the grandmother and grandfather are no longer alive.

IV. In the fourth order – uncles (the mother's brother and the father's brother), aunts (the mother's sister and the father's sister).

V. In the fifth order – cousins (children of uncles, aunts and paternal aunts), and if the latter are not present, then their children.

Law of Georgia of 18 December 2007 No. 5624 - LHG I, No. 48, 27.12.2007, Art. 414

Article 1337. Order of priority in inheritance by law🔗

The existence of even one heir of the preceding order excludes inheritance by the subsequent order.

Article 1338. Rights of persons incapable of working in inheritance🔗

Persons incapable of working who were dependent on the testator for maintenance and are unable to support themselves independently shall, unless provision is made for them in the will, have the right to claim maintenance (alimony) from the estate. The amount to be paid as maintenance may be reduced taking into account the volume of the estate's assets.

Article 1339. Right of the surviving spouse to a share in joint property🔗

The surviving spouse's right of inheritance does not extend to the part of the property that belongs to him or her from the spouses' joint property.

Article 1340. Status of divorced spouses in inheritance🔗

Divorced spouses cannot be heirs to each other after death.

Article 1341. Deprivation of the right of inheritance upon divorce🔗

By a court judgment, a spouse may be deprived of the right of inheritance by law if it is established that the marriage with the testator had in fact ceased not less than three years before the opening of the estate and the spouses lived separately.

Article 1342. Loss of the right of inheritance due to invalidity of marriage🔗

The surviving spouse shall lose the right of inheritance if there existed grounds for declaring the marriage invalid and an action had been filed by the testator.

Article 1343. Transfer of uninherited property to the State🔗

1. If there are neither heirs by law nor heirs by will, no heir has accepted the estate, or all heirs have been deprived of the right of inheritance, the uninherited property shall pass into the ownership of the State, and if the testator was dependent on a specialised institution for the elderly or persons with disabilities, another social protection institution, or a medical or educational institution − into the ownership of the respective institution.

(The words of paragraph 1 of Article 1343: "and if the testator was dependent on a specialised institution for the elderly or persons with disabilities, another social protection institution, or a medical or educational institution − into the ownership of the respective institution." were declared unconstitutional. The unconstitutional norm shall be declared invalid from 1 July 2026) - Decision of the Constitutional Court of Georgia No. 2/3/1395 of 19 September 2025 – website, 23.09.2025.

2. Uninherited property in the form of a share, stock or interest in an entrepreneurial company or cooperative shall pass into their hands, unless otherwise provided by law.

Law of Georgia No. 2239 of 9 December 2005 - LHG I, No. 54, 20.12.2005, Art. 360

Law of Georgia No. 837 of 26 June 2025 - website, 03.07.2025.

Decision of the Constitutional Court of Georgia No. 2/3/1395 of 19 September 2025 – website, 23.09.2025.

Article 1344. Concept🔗

A natural person may, in the event of death, leave his or her property or part thereof by will to one or several persons, both from among the circle of heirs and to outside persons.

Article 1345. Person who may be a testator🔗

A testator may be an adult, capable person who, at the moment of drawing up the will, is able to reasonably judge his own actions and clearly express his will.

Article 1346. Drawing up of a will in person🔗

A will shall be drawn up by the testator in person. Drawing up a will through a representative shall not be permitted.

Article 1347. Joint will🔗

A will shall contain the disposition of one devisor. Drawing up a will jointly by two or more persons shall not be permitted. Only spouses may draw up a joint will on mutual inheritance, which may be revoked at the request of one of the spouses, but – still during the lifetime of both spouses.

Article 1348. Determination of a share by the testator🔗

1. The testator may determine by will the share of the heirs appointed by will from the estate, or indicate which particular property shall pass to which heir. If the will contains no such indication, the estate shall be distributed equally among the heirs.

2. If several heirs are appointed by will, but only the share of one of them is determined therein, and that of the others is not, then the latter shall receive the remaining property equally.

Article 1349. Distribution of the estate among the heirs by will🔗

If several heirs are appointed by will and the property determined for one of the heirs covers the entire estate, then all heirs by will shall receive an equal share.

Article 1350. Inheritance of property remaining outside the will🔗

If the shares of the heirs appointed by will do not fully cover the entire estate, then the property remaining outside the will shall be subject to inheritance by law, which shall also apply to those heirs by law to whom a part of the property was bequeathed, unless otherwise provided by the will.

Article 1351. Proportional increase of shares among the heirs by will🔗

If there are only heirs appointed by will, then their shares shall be increased proportionally, if each heir has his or her own share determined by will, but the shares of all do not exhaust the estate in full.

Article 1352. Inadmissibility of the participation of a third person in determining a share🔗

The testator may not by will instruct another person to determine who shall receive a share from the estate and in what amount.

Article 1353. Impossibility of precisely establishing the heirs🔗

If the devisor determined the person of the heir by such characteristics as may apply to several persons, and it is impossible to establish which one the devisor had in mind, then all of them shall be considered heirs with the right to an equal share.

Article 1354. Deprivation of the right of inheritance by will🔗

1. The testator may by will deprive one, several or all heirs by law of inheritance, and he is not obliged to indicate the motive for this.

2. A person who has been deprived of inheritance by direct indication of the will cannot be an heir by law either in respect of that part of the property which was not included in the will, as well as – also when the heirs by will have refused to accept the estate.

Article 1355. Preservation of the Right of Inheritance🔗

Heirs by law who are not designated in the will retain the right of inheritance to the part of the estate not affected by the will; they shall also receive the property provided for by the will if, at the time of opening of the estate, the testamentary heirs are not alive, or each of them has renounced acceptance of the estate.

Article 1356. Inadmissibility of Inheritance by Law🔗

If the entire estate property was distributed by will among the testamentary heirs, but one of the heirs is no longer alive at the time of opening of the estate, inheritance by law shall not arise, and the other testamentary heirs shall receive the property constituting his share in equal parts.

Article 1357. Notarial Form🔗

1. A will shall be drawn up in written form. At the same time, a written will is permissible in notarial form or without it.

2. The notarial form requires that the will be drawn up and signed by the testator and certified by a notary.

Law of Georgia of 15 July 2020 No. 6989 – website, 28 July 2020.

Article 1358. Recording of a Will by a Notary🔗

1. It is permissible for the will to be recorded by a notary from the words of the testator in the presence of two witnesses. When recording the will, generally accepted technical means may be used.

2. A will recorded by a notary from the words of the testator shall be read by the testator and signed in the presence of the notary and the witness.

Article 1359. Persons Equated with a Notary🔗

When certifying a will, the following are equated with a notary:

a) the chief physician, head, their deputies in the medical unit and the doctor on duty of a hospital, inpatient facility, other medical institution or sanatorium, as well as the director or chief physician of a specialized institution for the elderly or persons with disabilities, if the testator is undergoing treatment or residing in any of these institutions;

b) the head of a prospecting, geographical or other similar expedition, if the testator is on such an expedition;

c) the captain of a ship or commander of an aircraft, if the testator is on board a ship or aircraft;

d) the commander (head) of a military unit, formation, institution or training establishment, if there is no notary at the point of deployment of the military units and if the testator is a serviceman or a civilian serving in a military unit or a member of their family;

e) the director of a penitentiary institution, if the testator is placed in a penitentiary institution.

Law of Georgia of 9 March 2010 No. 2719 - LHG I, No. 12, 24 March 2010, Art. 56

Law of Georgia of 1 May 2015 No. 3532 - website, 18 May 2015.

Law of Georgia of 26 June 2025 No. 837 - website, 3 July 2025.

Article 1360. Signing of a Will by Another Person🔗

If for any reason the testator cannot sign the will himself/herself, another person may sign it at his/her request. At the same time, the reason why the testator was unable to sign the will shall be noted.

Article 1361. Will of a deaf person, of a deaf person unable to read and write, of a blind person or of a person unable to read and write🔗

1. If the testator is deaf or is a deaf person unable to read and write, the testamentary disposition shall be drawn up before a notary in the presence of 2 witnesses and a person who is able to explain to him the essence of the matter and to confirm by his signature that the content of the will corresponds to the testator's will.

2. If the testator is blind or is a person unable to read and write, the testamentary disposition shall be drawn up before a notary in the presence of 3 witnesses and an appropriate record shall be made about this, and the relevant text shall be read to the testator.

3. The scribe and the reader may also be witnesses, but the scribe shall not be the reader.

4. The record shall indicate who made the record and who read it to the testator. The record shall be signed by the witnesses and certified by the notary.

Law of Georgia of 26 June 2025 No. 837 - website, 3 July 2025.

Article 1362. Witnesses to a will🔗

Witnesses to a will may not be: a minor, an heir under the will and his relatives in the descending and ascending lines, and a brother, spouse, recipient of a testamentary legacy (legatee).

Law of Georgia of 20 March 2015 No. 3339 - website, 31 March 2015.

Article 1363. Secrecy of a will🔗

A notary, another person who certified the will, a witness, as well as persons who signed the will instead of the testator, shall not have the right to disclose, before the opening of the inheritance, information relating to the content of the will, its drawing up, amendment or revocation.

Article 1364. Holographic will🔗

A testator may write a will in his own hand and sign it.

Article 1365. Deposit of a will with a notary🔗

1. The testator may hand over a will written and signed in his own hand to a notary (or another appropriate official) in a sealed envelope in the presence of three witnesses, which is confirmed by signing on the envelope.

2. The safekeeping of a will of the aforementioned type shall be ensured by its official deposit with a notary (or another appropriate official).

Article 1366. Drawing up of a will using technical means🔗

The text of a will may be reproduced by generally accepted technical means, provided that it is signed by the testator. In such case, the drawing up of the will and its signing by the testator shall take place in the presence of two witnesses, who shall confirm that the will was drawn up in their presence using technical means. The confirmation of the will by the witnesses shall take place immediately after the signing of the will by the testator, in the presence of the testator and both witnesses, by making an appropriate inscription on the will, indicating the witnesses' first name, surname and place of residence.

Article 1367. Closed will🔗

1. At the wish of the testator, the witnesses shall attest the will without becoming acquainted with its contents (closed will). In this case, the witnesses shall be present at the drawing up of the will.

2. When attesting a closed will, the witnesses shall indicate that the will was drawn up personally by the testator in their presence, but they are not acquainted with its contents.

Article 1368. Date of drawing up of the will🔗

The date of its drawing up shall be indicated in the will. The absence of a date causes the invalidity of the will only if doubt related to the testator's capacity cannot be dispelled at the drawing up, amendment or revocation of the will, as well as when several wills exist.

Article 1369. Acquainting interested persons with the contents of the will🔗

After the death of the testator, the notary shall appoint a day and shall acquaint the interested persons with the contents of the will, on which an appropriate record shall be drawn up. If the envelope in which the will is placed was sealed, the integrity of the seal shall be noted.

Article 1370. Substitute heir🔗

1. The testator has the right to name in the will another heir (substitute heir) for the case where the heir appointed by him dies before the opening of the estate, does not accept the estate, or is deprived of the right of inheritance.

2. A refusal by an heir under a will of the estate in favour of a person appointed as heir who is not an heir shall not be permitted.

3. Any person who may be an heir under Articles 1307–1309 may be a substitute heir.

Article 1371. Concept🔗

The children, parents and spouse of the decedent, regardless of the contents of the will, are entitled to a compulsory share, which shall be half of the share that each of them would have received in the case of inheritance by law (compulsory share).

Article 1372. Moment of origin of the right to claim a compulsory share🔗

The right to claim a compulsory share arises from the moment of opening of the estate. Such right of claim passes by inheritance.

Article 1373. Determination of the amount of the compulsory share🔗

The total amount of the compulsory share shall be determined from the entire estate, including the property provided for the performance of a testamentary burden or of any act for a public benefit purpose.

Article 1374. Determination of the compulsory share of each heir🔗

When determining the compulsory share of each heir, all heirs by law who would have been called to accept the estate if there had been no will shall be taken into account. Heirs under a will shall not be taken into account.

Article 1375. Inclusion of received property in the compulsory share🔗

A person who has the right to receive a compulsory share is obliged to include in the compulsory share everything received from the decedent during his lifetime – with the indication that what was received is to be counted towards the compulsory share.

Article 1376. Consequences of refusal of a testamentary legacy🔗

A person who has the right to receive a compulsory share and at the same time is also a recipient of a testamentary legacy (legacy) may demand the compulsory share if he refuses to accept the testamentary legacy; if he does not refuse the testamentary legacy, then he loses the right to the compulsory share within the limits of the value of the testamentary legacy.

Article 1377. Allocation of the compulsory share from property not provided for by the will🔗

If the will does not provide for the entire estate, then the compulsory share shall first be allocated from the property not provided for by the will, and, if this is not sufficient, it shall be supplemented from the property provided for by the will.

Article 1378. Increase of the compulsory share at the expense of a gifted thing🔗

If the testator gifted a thing to a third person, then a person having the right to a compulsory share may demand its supplementation by the amount by which his compulsory share would be increased if the gifted thing enters the estate. The gift shall not be counted in the account if ten years have passed since the transfer of the gift at the time of the opening of the estate.

Article 1379. Right to demand supplementation of the share🔗

If a person having the right to receive a compulsory share was bequeathed property that is less than half of the share that he would receive upon inheritance by law, then he may demand the share by which his share received by will is less than half of the share that he would receive upon inheritance by law.

Article 1380. Refusal to accept the compulsory share🔗

1. An heir having the right to receive a compulsory share may refuse to accept it, but this shall not cause an increase of the compulsory share of other co-heirs. His share passes to the heirs by will.

2. Acceptance of the compulsory share or refusal to accept it must occur within the time established for acceptance of the estate or refusal thereof.

Article 1381. Deprivation of the right to receive the compulsory share🔗

1. The right to receive a compulsory share may be deprived in the presence of the grounds that cause deprivation of the right of inheritance in general.

2. Deprivation of the right to receive a compulsory share may occur by the testator applying to the court while still alive.

3. A judgment rendered by the court on deprivation of the right to receive the compulsory share shall be effective from the moment of the opening of the estate. The same consequence shall ensue when the testator applied to the court while still alive, but the judgment was rendered after his death.

Article 1382. Transfer of the compulsory share to the heirs by will🔗

The share of the heir who was deprived of the right to receive the compulsory share passes to the heirs by will.

Article 1383. Concept🔗

The testator may impose on the heir the performance of some obligation in favour of one or several persons at the expense of the estate (testamentary legacy – legacy).

Article 1384. Subject of testamentary burden🔗

The subject of a testamentary burden may be the transfer to the recipient of the burden (legatee) of things from the property included in the estate into ownership, use or another right in rem, the acquisition and transfer to him of such property as is not included in the estate, the performance of specified work, the provision of services and a.y.

Article 1385. Use of residential premises on the basis of testamentary burden🔗

The testator has the right to impose on the heir to whom a residential house, apartment or other residential premises passes the obligation to transfer the right of lifelong use of the premises or a specified part thereof to the person who lived together with the decedent for not less than one year before the opening of the estate. Upon subsequent transfer of ownership of the residential premises, the lifelong use retains force.

Article 1386. Non-transferability of the right of lifelong use of residential premises🔗

1. The right of lifelong use of residential premises is non-transferable and does not pass to the heirs of the recipient of the testamentary burden.

2. The right of lifelong use of residential premises does not constitute the basis for the residence of family members of the recipient of the testamentary burden in that premises, unless otherwise provided by the will.

Article 1387. Scope of performance of testamentary burden🔗

The heir charged with the performance of a testamentary burden must perform it within the limits of the actual value of the estate bequeathed to him, less that part of the decedent's debts which he has satisfied.

Article 1388. Performance of testamentary burden by other heirs🔗

If the heir charged with the performance of a testamentary burden died before the opening of the estate, or refused the inheritance, then the obligation to perform the testamentary burden passes to the other heirs who accepted his share, unless otherwise follows from the will.

Article 1389. Termination of performance of testamentary burden🔗

In the event of the death of the heir who is charged with the performance of a testamentary burden, the obligation to perform the testamentary burden terminates if performance is impossible without his participation.

Article 1390. Performance of testamentary burden in proportion to inheritance share🔗

If the performance of a testamentary burden is charged to several heirs, each performs it in proportion to his share in the estate, unless otherwise provided by the will.

Article 1391. Time limit for performance of testamentary burden🔗

The recipient of a testamentary burden has the right to demand performance of the testamentary burden within a three-year limitation period, calculated from the day of the opening of the estate.

Article 1392. Testamentary burden upon acceptance of compulsory share🔗

If under the will the heir who is charged with the performance of a testamentary burden also has the right to accept a compulsory share, then he performs the testamentary burden only within the limits of that part of the estate bequeathed to him which he received in excess of the compulsory share.

Article 1393. Liability of the recipient of a testamentary charge🔗

The recipient of a testamentary charge shall not be liable for the debts of the testator.

Article 1394. Refusal to accept a testamentary charge🔗

The recipient of a testamentary charge shall be entitled to refuse to accept the charge. In such a case, the corresponding part of the estate shall remain with the heir who is charged with performing the charge.

Article 1395. Release from performance of a testamentary charge🔗

If the recipient of a testamentary charge refuses to accept the charge, the heir who was charged with performing the testamentary charge shall be released from the obligation to perform it.

Article 1396. Transfer of a testamentary charge to heirs🔗

If the recipient of a testamentary charge died after the opening of the estate but did not manage to express consent to accept the charge, the right to accept it shall pass to his/her heirs, who shall accept the charge in his/her place.

Article 1397. Testamentary charge for a purpose of common benefit🔗

1. The testator may charge the heir with the performance of any act for a purpose of common benefit, which may be of either a proprietary or a non-proprietary nature.

2. If the act charged concerns property, the norms regulating a testamentary charge shall apply.

3. In the event of the death of the heir who was charged by the will with performing an act for a purpose of common benefit, the performance of this obligation shall pass to the other heirs who have accepted the estate.

4. The executor of the will, and, if there is none, then each heir, as well as interested public and religious organisations, foundations, and state and municipal bodies, may demand through the court that the heir perform the act charged to him/her.

Law of Georgia of 15 July 2020 No. 6989 – website, 28.07.2020.

Article 1398. Means of amending a will🔗

The testator may at any time amend or revoke a will:

a) by drawing up a new will which directly revokes the previous will or that part thereof which contradicts the new will;

b) by filing an application with a notary body;

c) by destroying all copies of the will by the testator or by a notary upon the instruction of the testator.

Article 1399. Inadmissibility of restoring a revoked will🔗

A will which was revoked by a subsequently drawn up will may not be restored even if the will drawn up later is subsequently revoked by filing an application.

Article 1400. Several wills🔗

If the testator has drawn up several wills, but they supplement and do not entirely replace one another, all the wills shall retain force. The previous will shall retain force to the extent that its dispositions have not been amended by a subsequent will.

Article 1401. Priority of a notarial will🔗

1. If one person has drawn up several wills, one of which is drawn up in notarial form and the rest are not, priority shall be given to the will drawn up in notarial form.

2. A notarial will may not be revoked by a will in another form.

Article 1402. Grounds for declaring a will invalid🔗

A will loses force if:

a ) the person in whose favour this will was made died before the testator;

b ) the bequeathed property was lost during the testator's lifetime, or the testator alienated it;

c ) the sole heir refuses to accept the estate.

Article 1403. Invalidity of a will🔗

1. A will shall be considered invalid in the presence of conditions that cause invalidity of a transaction in general.

2. Testamentary dispositions that contradict law or public interests, as well as such dispositions that are incomprehensible or contradict each other, are invalid.

3. A will may be declared invalid by a court if it was drawn up in violation of the rules established by law, as well as in such a state when a person could not understand the significance of his action and direct it.

Article 1404. Invalidity of individual testamentary dispositions🔗

1. A testamentary disposition on the basis of which an heir is called to such a thing that is not part of the estate is invalid.

2. If a sum of money that is not part of the estate property was bequeathed to someone, then such a disposition of the will is invalid.

3. Invalid is a testamentary disposition to the effect that the heir acquires the estate for a definite time, or not from the day of the testator's death, but later, as well as a reference to the person to whom the estate must pass after the death of the heir.

Article 1405. Invalidity of a testamentary disposition due to impossibility of its performance🔗

A testamentary disposition whose performance the heir is unable to carry out due to health condition or other objective reasons may be declared invalid upon the heir's claim.

Article 1406. Consequences of invalidity of one of the testamentary dispositions🔗

If one of several testamentary dispositions is invalid or has lost force and the testator has not left another disposition, then the other testamentary dispositions remain in force.

Article 1407. Acceptance of the estate in case of invalidity of a will🔗

In the case of declaring a will invalid, an heir who was deprived of the right of inheritance by this will has the right to accept the estate on general grounds.

Article 1408. Contesting the validity of a will🔗

The validity of a will may be contested by the heirs under law and other interested persons on the grounds of circumstances that cause invalidity of a transaction.

Article 1409. Time limit for bringing a claim🔗

1. A claim for invalidity of a will must be brought within two years, calculated from the day of opening of the estate.

2. This limitation period does not apply to the owner's claim when the testator incorrectly bequeathed another's property as his own.

Article 1410. Subjects of execution of a will🔗

In the absence of an indication in the will, its execution shall be the duty of the heirs under the will. They may, by mutual agreement, entrust the execution of the will to one of the heirs or to another person.

Article 1411. Appointment of the executor of a will🔗

For the purpose of the precise execution of testamentary dispositions, the testator may appoint by will one or several executors of the will, both from among the heirs under the will and also another person who is not an heir. In the latter case, the consent of the executor of the will is required, which he must express by an inscription on the will itself or in a statement attached thereto.

Article 1412. Refusal to execute the will🔗

The executor of the will has the right at any time to refuse to perform the obligation imposed by the testator, of which he must give prior notice to the heirs under the will.

Article 1413. Appointment of the executor of a will by a third person🔗

The testator may entrust the appointment of the executor of the will to a third person, who, upon the opening of the estate, must immediately appoint the executor of the will and notify the heirs thereof. He may refuse to perform this task, of which he must also immediately notify the heirs.

Article 1414. Execution of the will in whole or in part🔗

The executor of the will may be charged with the execution of the will in whole or of its individual dispositions.

Article 1415. Protection and administration of the estate🔗

The executor of the will is obliged, from the moment of the opening of the estate, to commence the protection and administration of the estate; he is authorised to perform all actions necessary for the execution of the will. Within the scope of this authority, the heirs lose the right to administer the estate.

Article 1416. Protection and administration of the estate by several executors🔗

If there are several executors of the will, unilateral action is permitted only for the purpose of protecting the estate; in other cases, agreement among them is required.

Article 1417. Reimbursement of the expenses of executing the will🔗

1. The executor of the will performs his obligation free of charge, but he may also receive remuneration if this is provided for by the will.

2. The executor of the will has the right to reimbursement from the estate of the necessary expenses incurred by him for the protection and administration of the estate.

3. The executor of the will who is not an heir has no right to incur other expenses from the estate, except in the cases provided for by Article 1427.

Article 1418. Report of the executor🔗

After the execution of the will, the executor of the will is obliged, at the request of the heirs, to submit to them a report on the activities carried out. The executor of the will performs his functions until the estate is accepted by all the heirs.

Article 1419. Removal of the executor of the will🔗

In the event of non-performance by the executor of the will of his obligation, an interested person may apply to the court with a request for the removal of the executor of the will.

Article 1420. Liability of the executor of the will🔗

If the executor of the will, intentionally or through gross negligence, deviates from the performance of the obligations imposed by the will and thereby causes damage to the heirs, then he must be liable for this damage.

Article 1421. Acceptance of inheritance🔗

1. An heir accepts the inheritance, whether he is an heir by law or by will.

2. The inheritance shall be considered accepted by an heir when he files an application with a notary office for acceptance of the inheritance or actually commences possession or management of the inheritance, which indisputably proves that he has accepted the inheritance.

3. If an heir has actually commenced possession of part of the inheritance, it shall be considered that he has accepted the inheritance in full, in which it must be expressed and where it must be.

4. If one of the heirs refuses to accept a share from the inheritance in favour of another heir, such action shall be considered acceptance of the inheritance.

Law of Georgia of 4 December 2009 No. 2284 - LHG I, No. 45, 21.12.2009, Art. 329

Article 1422. Acceptance of inheritance by an incapacitated person, a person with limited legal capacity and a recipient of support🔗

1. Incapacitated persons and persons with limited legal capacity accept the inheritance through their legal representatives.

2. A recipient of support accepts the inheritance with the assistance of a supporter, if support has been imposed on him by a court judgment for the exercise of property rights.

Law of Georgia of 20 March 2015 No. 3339 - website, 31.03.2015.

Article 1423. Acceptance of inheritance through a representative🔗

An heir may accept the inheritance personally or through a representative.

Article 1424. Time limit for acceptance of inheritance🔗

The inheritance must be accepted within six months from the day of opening of the inheritance.

Article 1425. Special time limit for acceptance of inheritance🔗

If the right to accept the inheritance arises in the case where other heirs do not accept the inheritance, the inheritance must be accepted during the remaining time of the time limit established for acceptance of the inheritance, and if this time is less than three months, it shall be extended to three months.

Article 1426. Extension of the time limit for acceptance of inheritance🔗

1. The time limit established for acceptance of the inheritance may be extended by the court if the reasons for missing the time limit are considered valid. After expiry of the time limit, the inheritance may be accepted without applying to the court if all heirs accepting the inheritance agree.

2. In the case provided for in the first paragraph of this article, the heir who missed the time limit for acceptance of the inheritance shall be given in kind, from his share of the property that the other heirs received or that passed into state ownership, that which is preserved; he shall also be given the value of the remaining part of his share of the property.

Law of Georgia of 9 December 2005 No. 2239 - LHG I, No. 54, 20.12.2005, Art. 360

Article 1427. Inadmissibility of disposal of inheritance🔗

An heir who does not wait for other heirs to appear and commences possession or management of the inheritance shall not have the right to dispose of the inheritance until six months have passed from the day of opening of the inheritance or until receipt of a certificate of inheritance, except for expenses for the care and treatment of the testator during his illness and for burial, for the maintenance of persons dependent on the testator, for the payment of wages and for the protection and management of the inheritance.

Article 1428. Right to income received before filing a claim🔗

If a legal heir who did not know about the existence of a will began to possess the estate, and the testamentary heir did not know about the invalidity of the will, or if the heirs by law or by will did not know about the existence of other closer heirs by law or another will, then they shall retain the income they received from the estate before filing a claim; they also have the right to demand the entire capital they invested in the estate.

Article 1429. Consequences of the sale of individual items of the estate🔗

If the items included in the estate are sold before the filing of a dispute, the sale shall be considered valid and shall remain in force, and the money received from the sale of the items shall be transferred to the true heir.

Article 1430. Hereditary transmission🔗

If an heir died after the opening of the estate but before accepting the estate, then the right to receive his share from the estate passes to his heirs (hereditary transmission). The heirs of the deceased heir must accept the estate within the time remaining before the deadline for accepting the estate. If this time is less than three months, it must be extended to three months.

Article 1431. Consequences of non-acceptance of the estate by hereditary transmission🔗

1. Non-acceptance of the estate by hereditary transmission does not deprive the heir of the possibility to accept the estate that belonged directly to the deceased heir.

2. When refusing to accept property by hereditary transmission, the property passes to the persons who were called to accept the estate together with the deceased heir.

Article 1432. Inventory of the estate🔗

The heir has the right to demand an inventory of the estate, for which a period of two months is granted, which is included in the general period established for accepting the estate.

Article 1433. Origin of ownership of the estate🔗

The accepted estate is considered the property of the heir from the day of the opening of the inheritance.

Article 1434. Time limit for refusal to accept the estate🔗

The heir may refuse to accept the estate within three months from the day when he learned or should have learned of his call to accept the estate. For a valid reason, this period may be extended by the court, but not by more than two months. The refusal to accept the estate must be executed at a notary office.

Article 1435. Inadmissibility of partial acceptance of the estate🔗

1. Acceptance of the estate or refusal thereof in part, with any reservation or time limit, shall not be permitted.

2. If the heir refuses part of the estate or makes any condition, he is considered to refuse the estate.

Article 1436. Refusal of an heir to accept agricultural land🔗

An heir who does not pursue agriculture may refuse to accept agricultural land, equipment, tools and livestock, but this shall not be considered a refusal to accept the estate in general.

Article 1437. Acceptance of several shares from the estate🔗

If an heir is entitled to several shares from the estate on different grounds, he may accept one share and refuse another, or refuse all.

Article 1438. Refusal of a part of the estate🔗

An heir has the right to refuse that part of the estate which belongs to him by right of accretion, notwithstanding the remaining part of the estate.

Article 1439. Refusal in favour of other persons🔗

An heir may refuse to accept the estate in favour of other persons from among the heirs by law or by will. Refusal to accept the estate in favour of persons who are known as unworthy heirs or who have been deprived of the right of inheritance by direct instruction of the will shall not be permitted. Such refusal may be contested in court by other heirs.

Article 1440. Accretion of a share upon refusal of the estate🔗

If an heir has refused to accept the estate but has not declared in whose favour he refuses, then his share shall accrete to the share of the heirs by law called to inherit, and if the entire estate was distributed by will, then to the share of the heirs by will, and it shall be distributed among them in proportion to their shares, unless otherwise provided by the will.

Article 1441. Refusal of the estate by the sole heir🔗

If the heir who has refused to accept the estate is the sole one among the heirs of that order, then the estate shall pass to the heirs of the next order.

Article 1442. Refusal in favour of several heirs🔗

If an heir refuses to accept the estate in favour of several heirs, he may indicate the share of each. In the absence of such indication, his share shall be distributed equally among those heirs in whose favour the refusal to accept the estate was made.

Article 1443. Refusal of the estate in favour of a grandchild🔗

Refusal of the estate in favour of a grandchild shall be permissible if, as of the day of the opening of the estate, his parent who should have been an heir of the decedent is no longer alive, or if the grandchild is an heir by will.

Article 1444. Inadmissibility of refusal by the State to accept the estate🔗

The State has no right to refuse to accept the estate that has passed to it.

Law of Georgia of 9 December 2005 No. 2239 - LHG I, No. 54, 20.12.2005, Art. 360

Article 1445. Inadmissibility of refusal after submission of an application to a notary body🔗

Refusal to accept the estate shall not be permitted after the heir has submitted to a notary body an application for the acceptance of the estate or of a certificate of inheritance.

Law of Georgia of 4 December 2009 No. 2284 - LHG I, No. 45, 21.12.2009, Art. 329

Article 1446. Irrevocability of refusal of the estate🔗

1. An heir's declaration of refusal to accept the estate is irrevocable.

2. If the heir is incapable, of limited capacity, or a recipient of support, refusal to accept the estate shall be permissible with the permission of the court.

Law of Georgia of 20 March 2015 No. 3339 - website, 31.03.2015.

Article 1447. Refusal in the case of actual possession of the estate🔗

An heir who has actually commenced possession or management of the estate may, during the time established for accepting the estate, refuse to accept the estate, of which he must apply by application to a notary body.

Article 1448. Transfer of the right to renounce by inheritance🔗

1. The right to renounce an inheritance shall pass by inheritance.

2. If an heir dies before the expiry of the period established for renouncing acceptance of the inheritance, then this period shall not expire until the expiry of the time remaining after the heir.

3. Each of several heirs of a deceased heir may renounce only his share of the inheritance.

Article 1449. Renunciation of an inheritance through a representative🔗

Renunciation of an inheritance through a representative is possible if the mandate (power of attorney) specifically provides for the authority to renounce.

Article 1450. Period for contesting the acceptance of an inheritance🔗

Acceptance of an inheritance or renunciation of acceptance may be contested within two months from the day when the interested person learned that there are appropriate grounds for this.

Article 1451. Time of occurrence of the legal consequences of acceptance of an inheritance🔗

The legal consequences of acceptance of an inheritance or renunciation thereof shall occur from the moment of opening of the inheritance.

Article 1452. Concept🔗

Division of an inheritance shall be effected by agreement of the heirs accepting the inheritance in accordance with the share that each of them is entitled to by law or by will.

Article 1453. Determination of the rules for division of an inheritance by the testator🔗

The testator may determine by will the rules for division of the inheritance; in particular, he may entrust the division of the inheritance to a third person. The decision of the third person shall not be binding on the heirs if it is manifestly unfair. In such a case, the division shall be effected by a court judgment.

Article 1454. Allocation of a share from an inheritance in kind🔗

Each heir may demand the allocation of his share in kind from both movable and immovable property, if such allocation is possible or is not prohibited by law.

Article 1455. Inclusion of a gift in the heir's share🔗

During division of the inheritance, the value of the property that he received as a gift from the decedent within five years before the opening of the inheritance shall be included in each heir's share.

(The normative content of Article 1455 which, in the case of donation of property, without the clearly expressed will of the decedent regarding the inclusion of the value of the donated property in the inheritance share, provides for the inclusion of the value of the property transferred to the heir as a gift in this heir's inheritance share was declared invalid) - Judgment of the Constitutional Court of Georgia of 29 December 2020 No. 2/3/1337 – website, 30.12.2020.

Judgment of the Constitutional Court of Georgia of 29 December 2020 No. 2/3/1337 – website, 30.12.2020.

Article 1456. Sale of an inheritance by agreement of co-heirs🔗

By agreement of co-heirs, the sale of the entire inheritance and distribution of the money among the heirs in accordance with their shares shall be permissible.

Article 1457. Transfer of an inheritance to one co-heir🔗

By agreement of co-heirs, it is possible for the entire inheritance to pass to one co-heir, who, in turn, is obliged to give the other co-heirs appropriate compensation.

Article 1458. Suspension of the division of the estate🔗

Co-heirs may agree that the division of the estate be suspended for a definite time.

Article 1459. Fractional ownership of indivisible property🔗

If, by agreement of all heirs receiving the estate, nothing else is provided, such property whose division would cause the disruption or weakening of its economic purpose shall not be subject to division and becomes the common property of the heirs in proportion to their shares.

Article 1460. Division of agricultural land among heirs🔗

1. If the owner bequeathed a plot of agricultural land on which a family farm is arranged to several heirs, or if no will was left and there are several heirs by law, then the plot of agricultural land and the family farm arranged on it may be divided among the heirs, if as a result of such division the land plot allocated to each heir ensures the existence of a viable farm.

2. Division shall be permitted only if the heirs themselves intend to manage the farm. If none of the heirs wishes to manage the farm, then by their agreement the land and the farm arranged on it may be sold and the heirs shall receive their share in money.

Law of Georgia of 25 June 2019 No. 4851 - website, 2 July 2019.

Article 1461. Inadmissibility of the division of agricultural land🔗

If the division of agricultural land is impossible, then the land shall be allocated to the heir who lived together with the testator and managed the family farm. If there is no such heir, then the land shall be allocated to the one who has the ability and the desire to manage the farm.

Law of Georgia of 25 June 2019 No. 4851 - website, 2 July 2019.

Article 1462. Compensation of a share🔗

An heir who cannot receive the land plot shall receive the corresponding share from other property, and, if the other property is insufficient, then – appropriate compensation in accordance with the established procedure.

Article 1463. (Removed)🔗

Law of Georgia of 25 June 2019 No. 4851 - website, 2 July 2019.

Article 1464. Common ownership of a family farm🔗

By agreement of the co-heirs, the land and the family farm arranged on it may remain in their common ownership.

Law of Georgia of 25 June 2019 No. 4851 - website, 2 July 2019.

Article 1465. Right of a conceived heir upon division of the estate🔗

1. If an heir is conceived, then the division of the estate may take place only after the birth of this heir.

2. If the conceived heir is born alive, then the remaining heirs have the right to divide the estate only by allocating the share due to him. In order to protect the interests of the newborn, his representatives shall be invited to participate in the division.

Article 1466. Assignment of debt claims to one of the heirs🔗

By agreement of the co-heirs, it is permissible that debt claims be assigned in full to one of the heirs in exchange for giving him a correspondingly increased share from the estate.

Article 1467. Obligation to ensure receipt of a share🔗

Each co-heir is obliged to ensure the receipt of the corresponding share by the other co-heirs. When a co-heir acquires the right to claim as a result of the division of the estate, the other co-heirs are obliged to contribute to the debtor's solvency at the moment of division in accordance with their respective inheritance shares, and if the time for the performance of such obligation has not arrived, then – at the moment of performance of the obligation.

Article 1468. Proportional reduction of a share🔗

If it turns out that the sum of the shares determined by will exceeds the entire estate, then the share of each heir shall be reduced proportionally.

Article 1469. Consideration of a dispute upon division of property🔗

In the event of disagreement among co-heirs concerning the division of the estate, the dispute shall be considered by the court, which, upon division of the property, shall take into account the nature of the property to be divided, the activity of each co-heir and other specific circumstances.

Article 1470. Right to dispose of a share🔗

1. Each co-heir may dispose of his share in the estate. A contract by which one of the co-heirs disposes of his share shall be certified by a notary.

2. A co-heir may not dispose of individual items from his share.

3. (Removed - 11.05.2007, No. 4744).

Law of Georgia of 11 May 2007 No. 4744 - LHG I, No. 18, 22.05.2007, Art. 158

Article 1471. (Removed)🔗

Law of Georgia of 11 May 2007 No. 4744 - LHG I, No. 18, 22.05.2007, Art. 158

Article 1472. Satisfaction of creditors upon alienation of a share🔗

In the case of alienation of a share, the obligation to satisfy the claims of the testator's creditors passes to the acquirer in proportion to the amount of the acquired share.

Article 1473. Equalisation of shares🔗

Heirs who are called to accept the estate are obliged, for the equalisation of shares, before the division, to account to the estate for everything they received from the testator during his lifetime in the form of a separation from the parents' property, unless the testator has provided otherwise.

Article 1474. Consequences of the exclusion of a descendant🔗

If, before the opening of the estate or after its opening, a descendant is excluded who, as an heir, would have been obliged to equalise his share, then the obligation to equalise the share shall be imposed on the heir who is to receive his share.

Article 1475. Consideration of a special contribution in equalisation🔗

A descendant (a relative in the descending line) who, through labour performed in the family household, participation in the professional and commercial activity of the testator, in turn by incurring significant expenses or in another manner, has made a special contribution to the preservation and increase of the testator's property, shall, upon division of the estate, have the right to demand equalisation with those relatives who, together with him, are considered heirs by law and claim the estate.

Article 1476. Inadmissibility of a claim for equalisation🔗

A claim for equalisation may not be made if the relative received remuneration for the services, or the remuneration was agreed in advance, or if the relative, on the basis of the services rendered, can present some claim on another legal ground.

Article 1477. Claim for equitable distribution🔗

1. Equalisation according to the services rendered and the extent of the estate shall be effected equitably.

2. When the estate is divided, the equalisation amount shall be deducted from the total amount of the estate and added to the share of the co-heir who is entitled to claim equalisation.

Article 1478. Obligation to establish the place of residence of an heir🔗

If among the heirs there are persons whose place of residence is unknown, the remaining heirs shall be obliged to take reasonable measures to establish their place of residence and to invite the heirs to accept the estate.

Article 1479. Consequences of an heir's failure to appear🔗

1. If an heir invited to accept the estate who is not present at the place, but whose place of residence has been established, does not renounce the estate within three months, the remaining heirs shall be obliged to notify him of their intention to divide the estate.

2. If such an heir does not, within three months of the notification, inform the remaining heirs of his wish to participate in the agreement on the division of the property, the remaining heirs shall be entitled, by mutual agreement, to divide the property and to set aside the share of the heir who is not present at the place.

3. If within six months of the opening of the estate it has not been possible to establish the place of residence of the heir who is not present at the place, and there is no information from him concerning renunciation of the estate, the remaining heirs may divide the property in accordance with the procedure established by the second paragraph of this Article.

Article 1480. Right of preferential inheritance🔗

Heirs who, together with the testator, hold the right of common ownership over property shall have a preferential right to inherit the property that forms part of the common ownership.

Article 1481. Preferential right to receive a dwelling house🔗

When the property is divided, an heir who lived together with the testator for not less than one year before the opening of the estate shall have a preferential right to receive from the estate a dwelling house, an apartment or other dwelling, as well as items of household use.

Article 1482. Consideration of the property interests of the heirs🔗

When exercising the preferential right, the property interests of the other heirs who participate in the division of the estate shall be taken into account. If the property is insufficient for them to receive their due share, the heirs exercising the preferential right shall give them appropriate monetary or property compensation.

Article 1483. Instalment payment of compensation🔗

At the request of the heirs exercising the preferential right, the court shall be entitled to defer the compensation, taking into account its amount, but for not more than ten years.

Article 1484. Liability of heirs toward creditors🔗

1. Heirs are obliged to satisfy in full the interests of the devisor's creditors, but within the limits of the received assets in proportion to each one's share.

2. If the devisor was a joint and several debtor with respect to the debts transferred to the heirs, then the heirs shall be liable jointly and severally.

3. Heirs receiving a compulsory share shall also be liable for the devisor's debts.

Article 1485. Burden of proof🔗

The heir must prove that the devisor's debts exceed the estate, except where the estate was inventoried by a notary.

Article 1486. Imposition of payment of the debt on the heir🔗

The testator may impose payment of the whole debt or of a part thereof on one or several heirs.

Article 1487. Obligation to notify creditors of the opening of the estate🔗

Heirs are obliged to notify the devisor's creditors of the opening of the estate if they are aware of the deceased's debts.

Article 1488. Time limit for submission of creditors' claims🔗

1. The devisor's creditors must, within six months from the day on which they became aware of the opening of the estate, submit a claim to the heirs who accepted the estate, notwithstanding the maturity of the claim.

2. If the heirs' creditors were not aware of the opening of the estate, they must submit a claim to the heirs within one year from the maturity of the claim.

3. Failure to comply with these rules shall result in the creditors losing the right to claim.

Article 1489. Application of the general limitation period🔗

1. The time limit for submission of a claim by creditors shall not apply to claims for expenses incurred in connection with care and treatment during the devisor's last illness, payment of wages, funeral, protection and administration of the estate, as well as to claims of third parties – concerning recognition of the right of ownership over property and recovery of the property belonging to them.

2. The general limitation periods shall apply to the claims referred to in paragraph 1 of this Article.

Article 1490. Deferral of the time for performance🔗

If a claim was submitted by a creditor before the time for performance of the claim, the heir has the right to defer performance until the time falls due. From the time it falls due, the creditor has the right to demand performance within the general limitation period for an action.

Article 1491. Priority of the devisor's creditors🔗

In satisfying claims, the devisor's creditors have priority over the heir's creditors.

Article 1492. Liability of the State toward creditors🔗

Upon transfer of escheated property to the State, the State shall be liable for the devisor's debts with the corresponding part of the escheated property in the same way as an heir.

Law of Georgia of 9 December 2005 No. 2239 - LHG I, No. 54, 20.12.2005, Art. 360

Article 1493. Consequences of acceptance of the estate by a creditor🔗

If the devisor bequeathed property to his creditor, this cannot be considered as extinguishing the creditor's right to claim.

Article 1494. Procedure for the Satisfaction of Creditors🔗

The heirs shall satisfy the creditors' claims by way of a lump-sum payment, unless otherwise provided by an agreement between them.

Article 1495. Concept🔗

For the protection of absent heirs, recipients of a testamentary legacy and public interests, the notary, on the initiative of interested persons, of the executor of the will or on his own initiative, takes the measures necessary for the protection of the estate, which shall continue until the estate is accepted by all heirs or until the expiry of the time limit established for accepting the estate.

Law of Georgia No. 2284 of 4 December 2009 – LHG I, No. 45, 21.12.2009, Art. 329

Article 1496. Duty of the Notarial Body to Protect Property🔗

If the estate or part thereof is not located at the place of opening of the estate, the notarial body instructs the notarial body of the place where the property is located to take measures to protect this property.

Article 1497. Inventory of Property🔗

For the purpose of protecting the property, the notarial body inventories the estate and transfers it for safekeeping to an heir or another person, and also takes measures to locate those heirs who are not at the place of opening of the estate.

Article 1498. Appointment of an Administrator of the Estate🔗

If the estate requires administration, and also when a claim has been filed by the creditors of the testator, the notarial body appoints an administrator of the estate. An administrator shall not be appointed if even one of the heirs has accepted the estate, or if an executor of the will has been appointed.

Article 1499. Concept🔗

1. Persons invited to be heirs may demand a certificate of inheritance from the notarial body.

2. In cases provided by law, obtaining a certificate of inheritance is mandatory.

Law of Georgia No. 2284 of 4 December 2009 – LHG I, No. 45, 21.12.2009, Art. 329

Article 1500. Time Limit for the Issuance of a Certificate of Inheritance🔗

A certificate of inheritance shall be issued to the heirs at any time after the expiry of six months from the day of opening of the estate. Earlier than six months, a certificate of inheritance shall be issued in cases where the notarial body has information that, apart from the persons requesting the certificate, there are no other heirs.

Article 1501. Consent to Inclusion in the Certificate of Inheritance🔗

Heirs who have not accepted the estate within the time limit established by law may be included in the certificate of inheritance with the consent of all those heirs who have accepted the estate. The consent must be declared in writing before the issuance of the certificate of inheritance.

Article 1502. Issuance of a Certificate of Inheritance to the Heirs of an Heir🔗

If an heir who was invited to accept the estate died after the opening of the estate but did not manage to accept it within the established time limit, then his heirs may obtain a certificate of inheritance in respect of the property remaining after the death of the original testator.

Article 1503. Issuance of a Certificate of Inheritance to Co-Heirs🔗

A certificate of inheritance may be issued both for the entire estate and for part thereof. The certificate shall be issued to all heirs jointly or to each of them separately, at their discretion. The issuance of a certificate of inheritance to one heir for part of the estate does not deprive the other heirs of the right to receive a certificate for the remaining part of the estate.

Transitional and Final Provisions of the Civil Code

Article 1504. Entry into Force of the Civil Code of Georgia🔗

The Civil Code of Georgia shall enter into force from 25 November 1997.

Article 1505. List of Laws Declared Invalid🔗

From 25 November 1997, the following shall be considered invalid:

1. Law of the Georgian SSR of 26 December 1964 “On approval of the Civil Code of the Georgian SSR” (Bulletin of the Supreme Council of the Georgian SSR, 1964, No. 36, Art. 662);

2. Law of the Georgian SSR of 18 June 1970 “On approval of the Marriage and Family Code of the Georgian SSR” (Bulletin of the Supreme Council of the Georgian SSR, 1970, No. 6, Art. 96);

3. Law of the Georgian SSR of 4 June 1983 “On approval of the Housing Code of the Georgian SSR” (Bulletin of the Supreme Council of the Georgian SSR, 1983, No. 6, Art. 199);

4. Law of the Republic of Georgia of 15 July 1993 “On the Right of Ownership” (Bulletin of the Parliament of Georgia, 1993, No. 9-12, Art. 169);

5. Resolution of the Parliament of Georgia of 15 July 1993 “On the Right of Ownership” on the Law of the Republic of Georgia (Bulletin of the Parliament of Georgia, 1993, No. 9-12, Art. 170);

6. Law of the Republic of Georgia of 24 May 1994 “On Lease” (Bulletin of the Parliament of Georgia, 1994, No. 18, Art. 382);

7. Resolution of the Parliament of Georgia of 24 May 1994 “On the Law of the Republic of Georgia ‘On Lease’” (Bulletin of the Parliament of Georgia, 1994, No. 18, Art. 383);

8. Law of the Republic of Georgia of 19 June 1994 “On Public Associations of Citizens” (Bulletin of the Parliament of Georgia, 1994, No. 19, Art. 401);

9. Resolution of the Parliament of Georgia of 14 June 1994 “On the Law of the Republic of Georgia ‘On Public Associations of Citizens’” (Bulletin of the Parliament of Georgia, 1994, No. 19, Art. 402);

10. Law of the Republic of Georgia of 30 June 1994 “On Pledge” (Bulletin of the Parliament of Georgia, 1994, No. 19, Art. 423);

11. Resolution of the Parliament of Georgia of 30 June 1994 “On the Law of the Republic of Georgia ‘On Pledge’” (Bulletin of the Parliament of Georgia, 1994, No. 19, Art. 424);

12. Law of Georgia of 28 June 1996 “On Lease of Agricultural Land” (Parliamentary Bulletin, 1996, No. 19-20);

13. Articles 32-54 of the Law of Georgia of 2 May 1997 “On Insurance” (Parliamentary Bulletin, Legislative Supplement, 1997, No. 21-22);

14. Law of Georgia of 22 March 1996 “On Ownership of Agricultural Land” (Parliamentary Bulletin, 1996, No. 007).

Article 1506. Invalid subordinate normative acts🔗

1. All subordinate normative acts that do not comply with the Civil Code of Georgia shall be considered invalid.

2. Normative acts issued before the entry into force of the Civil Code by the President of Georgia, the Government of Georgia or bodies authorized in accordance with the Law of Georgia on Normative Acts shall be considered invalid if they regulate differently the relations regulated by the Civil Code.

Article 1507. Effect of the Civil Code in time🔗

1. The Civil Code applies only to those relations that arise after the entry into force of this Code.

2. With respect to those relations that arose before the entry into force of the Civil Code, the norms of this Code apply to rights and obligations arising from 25 November 1997.

3. With respect to relations arising on the basis of normative acts that were declared invalid due to the entry into force of the Civil Code, those normative acts shall apply, except in cases where the participants of the relation wish to regulate the relation between them by this Code, or if the Civil Code provides new rules concerning immovable things.

4. The period for acquisition of ownership by prescription provided for by Articles 165-168 of the Civil Code shall be counted from 23 July 1993 – from the entry into force of the Law of the Republic of Georgia on the Right of Ownership.

Article 1507¹. Body exercising guardianship and curatorship in the transitional period🔗

1. The functions of the guardianship and curatorship body provided for by paragraph 1 of Article 1278 of this Code shall, until 1 January 2009, instead of the Ministry of Labour, Health and Social Protection of Georgia and/or an authorized institution (organization) within its system, as well as their territorial bodies, be exercised by the Ministry of Education and Science of Georgia, and the functions of the local guardianship and curatorship body – by the territorial body of the Ministry of Education and Science of Georgia – the educational resource centre, as well as the territorial bodies of the respective ministries of education of the Autonomous Republics of Abkhazia and Adjara.

2. The rule provided for by paragraph 2 of Article 1278 of this Code shall, until 1 January 2009, be established by the Ministry of Education and Science of Georgia. Its approval shall be ensured by the Ministry of Education and Science of Georgia no later than 15 June 2008.

Law of Georgia of 18 December 2007 No. 5624 - LHG I, No. 48, 27.12.2007, Art. 414

Article 1507². Extension of the right to obtain the status of single parent to relations arising before the entry into force of Article 1191¹ of this Code🔗

The right to obtain the status of single parent provided for by Article 1191¹ of this Code shall also extend to relations arising from 18 April 1996 to 1 January 2011, in particular, to such cases where the surname of the mother was indicated as the surname of the father of a child born to a mother in an unregistered marriage, while the father's name was written as indicated by the mother.

Law of Georgia of 11 December 2014 No. 2892 - website, 23.12.2014.

Law of Georgia of 1 April 2015 No. 3422 - website, 07.04.2015.

Article 1507³. (was declared invalid)🔗

Law of Georgia of 16 December 2015 No. 4649 - website, 28.12.2015.

Article 1508. (removed)🔗

Law of Georgia of 22 June 1999 No. 2114 – LHG I, No. 26(33), 05.07.1999, Art. 134

Article 1508¹. Status of a person declared incapable🔗

1. A guardian of a person declared incapable by a court before 1 April 2015 shall be obliged, from 1 April 2015, within 4 years, to apply to the court for recognition of the person under guardianship as a recipient of support and for his/her individual assessment. Until then, he/she shall continue to perform his/her duties without hindrance.

2. If a person declared incapable by a court before 1 April 2015 is placed in an inpatient psychiatric institution, this institution shall be obliged, from 1 April 2015, within 2 years, to apply to the court for recognition of the person under guardianship as a recipient of support and for his/her individual assessment.

3. If a person declared incapable by a court before 1 April 2015 is placed in a specialised institution, this institution shall be obliged, from 1 April 2015, within 4 years, to apply to the court for recognition of the person under guardianship as a recipient of support and for his/her individual assessment.

Law of Georgia of 20 March 2015 No. 3339 - website, 31.03.2015.

Article 1508². Legal regulation relating to persons declared incapable by a court before 1 April 2015 and their guardians during the transitional period🔗

1. A person declared incapable by a court before 1 April 2015 shall be considered an incapable person until his/her individual assessment, taking into account the content of the norms in force before 1 April 2015.

2. Before the individual assessment of a person declared incapable by a court before 1 April 2015, the expression of will by this person is void.

3. If a claim arises from a person declared incapable by a court before 1 April 2015 who has no legal representative, or the claim is directed against the said person, the running of the limitation period shall be considered suspended until his/her individual assessment is carried out.

4. If a person declared incapable by a court before 1 April 2015 causes damage to another person by an unlawful act, he/she shall not bear the obligation to compensate the damage until the individual assessment of the incapable person is carried out. If a person is charged with supervision of the incapable person causing the damage, he/she shall be obliged to compensate the damage, except where it was impossible to avoid this damage.

5. If a child is adopted by one of the spouses, the consent of the other spouse is required. Such consent is not required if the other spouse is a person declared incapable by a court before 1 April 2015, until his/her individual assessment is carried out.

6. The guardian of a person declared incapable by a court before 1 April 2015 shall, in the event of the ward's recovery, immediately apply to the court with an application for declaring the ward a recipient of support.

7. In the event of improper performance by the guardian of a person declared incapable by a court before 1 April 2015 of the duties assigned to him/her, the guardianship and curatorship authority shall release the guardian from his/her duties and apply to the court for declaring the ward a recipient of support.

8. If the guardian of a person declared incapable by a court before 1 April 2015, in the exercise of guardianship, acts for gain or leaves the ward without supervision and necessary assistance, he/she shall be liable in accordance with the procedure established by law.

9. Guardianship established for a person declared incapable by a court before 1 April 2015 shall terminate if:

a) the ward died;

b) the court has rendered a judgment declaring the ward a recipient of support.

10. A person declared incapable by a court before 1 April 2015 may not be a witness to a will until his/her individual assessment is carried out.

11. A person declared incapable by a court before 1 April 2015 accepts the inheritance through his/her legal representative until the individual assessment of the incapable person is carried out.

12. If the heir is a person declared incapable by a court before 1 April 2015, renunciation of the inheritance is permissible with the court's permission until his/her individual assessment is carried out.

Law of Georgia of 20 March 2015 No. 3339 – website, 31.03.2015.

Article 1508³. Obligations of the guardianship and curatorship authority in the transitional period🔗

The guardianship and curatorship authority shall be obliged to:

a) from 1 April 2015, for 1 year, ensure the updating of the database of persons declared incapable and its compliance with this Code;

b) within 6 months from the updating of the database of persons declared incapable, ensure the provision of information to guardians and psychiatric institutions on the obligations established by Article 1508¹ of this Code and their warning about the possibility of imposing administrative liability for the failure to perform this obligation;

c) from 1 April 2017, for 2 years, apply to the court for the recognition of a person declared incapable placed in an inpatient facility as a recipient of support and for his/her individual assessment, as well as from 1 April 2019, for 1 year, apply to the court for the recognition of a person declared incapable who is not placed in an inpatient facility as a recipient of support and for his/her individual assessment, if the guardian, the person declared incapable himself/herself or the relevant institution does not apply to the court for the said purpose.

Law of Georgia of 20 March 2015 No. 3339 – website, 31.03.2015.

Article 1509. Private and public law legal entities🔗

1. The following shall be considered legal entities of public law provided for by the Civil Code:

a) the State;

b) municipality;

c) legal entities created by the State on the basis of legislation or an administrative act, which are not established in an organisational-legal form defined by the Civil Code or the Law on Entrepreneurs;

d) state institutions and state funds which are not created in accordance with the Civil Code or the Law on Entrepreneurs;

e) non-state organisations created on the basis of legislation for the achievement of public goals (political parties and others);

f) the legal entity of public law recognised by the Constitutional Agreement of Georgia − the Apostolic Autocephalous Orthodox Church of Georgia;

g) religious associations provided for by Article 1509¹ of this Code.

2. Legal entities of private law include:

a) non-entrepreneurial (non-commercial) legal entity;

b) (removed - 14.12.2006, No. 3967);

c) general partnership;

d) limited partnership;

e) limited liability company;

f) joint-stock company;

g) cooperative.

Law of Georgia of 19 February 1999 No. 1807 – LHG I, No. 6(13), 04.03.1999, Art. 24

Law of Georgia of 6 April 2005 No. 1233 – LHG I, No. 18, 27.04.2005, Art. 110

Law of Georgia of 14 December 2006 No. 3967 – LHG I, No. 48, 22.12.2006, Art. 336

Law of Georgia of 5 July 2011 No. 5034 – website, 06.07.2011

Law of Georgia of 15 July 2020 No. 6989 – website, 28.07.2020

Article 1509¹. Rule for Registration of Religious Associations🔗

1. Religious associations may be registered as Legal Entities of Public Law.

2. Paragraph 1 of this Article does not restrict the right of religious associations to register as non-entrepreneurial (non-commercial) legal entities provided for by this Code, as well as to carry on activities as an unregistered union provided for by this Code.

3. The registration of religious associations shall be carried out by the Legal Entity of Public Law operating in the area of governance of the Ministry of Justice of Georgia − the National Agency of Public Registry.

4. The Legal Entity of Public Law operating in the area of governance of the Ministry of Justice of Georgia − the National Agency of Public Registry is authorized to register as a Legal Entity of Public Law a religious denomination having a historical connection with Georgia or a religious denomination that is recognized as a religion under the legislation of the member states of the Council of Europe.

5. The Law of Georgia on Legal Entities of Public Law shall not apply to a religious association registered as a Legal Entity of Public Law.

6. With respect to the registration of religious associations provided for by paragraph 1 of this Article, the procedure established for the registration of non-entrepreneurial (non-commercial) legal entities shall apply, and their authority shall be determined by Chapter Two of Title One of this Code.

Law of Georgia No. 5034 of 5 July 2011 - website, 06.07.2011

Article 1509². Rule for registration of an operating blood institution (blood transfusion institution/blood bank) as a non-entrepreneurial (non-commercial) legal entity🔗

1. A blood institution (blood transfusion institution/blood bank) operating before this Article entered into force, which, in accordance with the Law of Georgia of 21 March 1995 "On Donation of Blood and Its Components" and the relevant legal acts, operates in the form of an entrepreneurial legal entity of private law, may be registered as a non-entrepreneurial (non-commercial) legal entity. After the transformation, the subject continues to exist in a new legal form.

2. The National Agency of Public Registry, in the case of an application to it on the ground provided for by paragraph 1 of this Article, shall register any person as a non-entrepreneurial (non-commercial) legal entity, if they satisfy the registration conditions, notwithstanding the restriction on the number of blood institutions provided for by paragraph 3 of Article 11 of the Law of Georgia "On Quality and Safety of Human Blood and Its Components".

3. In the case of an application on the ground provided for by paragraph 2 of this Article, information on the person's operation in accordance with paragraph 1 of this Article (its holding of a licence for production transfusion activity) shall be provided to the National Agency of Public Registry by the competent service of the Ministry of Internally Displaced Persons from the Occupied Territories, Labour, Health and Social Protection of Georgia.

4. The institution provided for by paragraph 1 of this Article shall be registered as a non-entrepreneurial (non-commercial) legal entity by 1 September 2025. For the purposes of its registration as a non-entrepreneurial (non-commercial) legal entity, and of the regulation of the obligations of the transformed subject and the relevant property matters, the rules established by this Code and the Law of Georgia "On Entrepreneurs" for the reorganisation of an enterprise shall apply, taking into account the peculiarities necessary for the purposes of registration of a non-entrepreneurial (non-commercial) legal entity.

5. A blood institution (blood transfusion institution/blood bank) operating as at 31 August 2025, which, in accordance with the Law of Georgia of 21 March 1995 "On Donation of Blood and Its Components" and the relevant legal acts, operated in the form of an entrepreneurial legal entity of private law, shall be entitled to be registered as a non-entrepreneurial (non-commercial) legal entity by 1 June 2026. In the case of an application by the blood institution (blood transfusion institution/blood bank) to the National Agency of Public Registry on the said ground, the provisions of paragraphs 3 and 4 of this Article shall apply for the purposes of registration of this institution as a non-entrepreneurial (non-commercial) legal entity, as well as of the regulation of its obligations and the relevant property matters.

Law of Georgia of 15 December 2022 No. 2399 – website, 27.12.2022.

Law of Georgia of 27 June 2024 No. 4339 – website, 28.06.2024.

Law of Georgia of 13 December 2024 No. 136 - website, 29.12.2024.

Law of Georgia of 1 April 2026 No. 1474 – website, 01.04.2026.

Article 1510. (removed)🔗

Law of Georgia of 14 December 2006 No. 3967 - LHG I, No. 48, 22.12.2006, Art. 336

Article 1511. (removed)🔗

Law of Georgia of 19 March 1999 No. 1860 – LHG I, No. 10(17), 01.04.1999, Art. 32

Law of Georgia of 14 December 2006 No. 3967 - LHG I, No. 48, 22.12.2006, Art. 336

Article 1511¹. (removed)🔗

Law of Georgia of 25 February 2005 No. 1051 - LHG I, No. 9, 17.03.2005, Art. 59

Law of Georgia of 14 December 2006 No. 3967 - LHG I, No. 48, 22.12.2006, Art. 336

Article 1512. Associations of apartment owners🔗

Housing-construction cooperatives, as legal entities, shall be considered abolished from 25 November 1997. Associations of apartment owners shall be considered their successors in accordance with Articles 208-232 of this Code. At the same time, the obligations of the State towards previously created housing-construction cooperatives shall remain in force.

Article 1513. Ownership of homestead land plots🔗

Land plots in the lawful use of natural persons, on which individual houses are located, shall be considered the property of these persons from the entry into force of the Civil Code, and the rules provided by the Civil Code for immovable things shall apply to them.

Article 1513¹. Opening of inheritance in respect of the common property of a household🔗

1. If the right of ownership over the property of a household is not registered in the public registry, inheritance in respect of the common property of the household shall be opened from the day of death of the last member of the household, if all members of the household indicated in the archival records of the household book, as of 1 August 2019, are deceased.

2. If the right of ownership over the property of a household is not registered in the public registry, in the event of the death after 1 August 2019 of a member of the household indicated in the archival records of the household book, inheritance in respect of his/her share of the property shall be opened, regardless of whether or not he/she was the last member of the household.

3. After registration of the right of ownership over the property of a household in the public registry, this property shall be the joint property of the members of the household and the general rules established for joint ownership shall apply to it.

Law of Georgia of 25 June 2019 No. 4851 - website, 02.07.2019.

Article 1514. Registration of immovable things in the transitional period🔗

Before the establishment of the Public Registry Service, the alienation of land plots shall be carried out on the basis of land plot attachment acts existing in technical inventory bureaus or local self-government bodies. At the same time, the registration of every new acquisition of land plots from 25 November 1997 shall be carried out in the land registry (public registry) service existing in the system of the land registration service. The State Department of Land Management of Georgia shall ensure the establishment of an appropriate service, the preparation of public registry forms and the resolution of all organisational issues related to the registration of owners of immovable things arising from the entry into force of the Civil Code.

Article 1515. Ensuring publicity of registration data🔗

Before the establishment of the Unified Service of the Public Registry, the functions assigned to that service by the Civil Code shall be performed by the technical inventory bureaus. The Ministry of Urbanisation and Construction of Georgia and the State Department of Land Management shall ensure the publicity of and accessibility to the Public Registry data for interested persons.

Article 1516. Teaching of the Civil Code🔗

The Ministry of Justice of Georgia shall ensure, by 25 November 1997:

a) the resolution in the Ministry of Justice of all organisational issues necessary for the registration of funds;

b) the publication through the mass media of the registration data of legal entities provided for by the Civil Code;

c) the teaching of the Civil Code to employees of law enforcement bodies and other bodies of the executive authority, as well as of judicial bodies.

Article 1517. Ensuring the introduction of bank service contracts🔗

The National Bank of Georgia shall:

a) carry out appropriate measures for the introduction of the bank service contracts provided for by this Code, so that commercial banks ensure the opening of bank accounts and uninterrupted settlements for those organisational formations that are not legal entities, namely, apartment owners' association, unregistered union, association;

b) ensure the abolition of restrictions related to the opening of settlement or other accounts by natural persons, with the aim that all natural or legal persons may without hindrance open the accounts desired by them and without hindrance conclude the bank service contracts provided for by this Code.

Article 1518. Conclusion of utility service contracts🔗

The relevant governmental and state sub-agency institutions of the executive authority shall ensure, by 25 November 1997, the conclusion of contracts with apartment owners and other consumers on the supply of gas, water, electricity and telephone services.

Article 1519. Ensuring unity of concepts🔗

The concepts and terms used in the Civil Code shall be applied adequately in all other legal acts.

Article 1520. Organisational issues of the introduction of the Civil Code🔗

The President of Georgia shall ensure, by 25 November 1997: a) the resolution by the Council of Justice of the organisational issues necessary for the registration of unions in court; b) the introduction of the Civil Code as a compulsory academic discipline in all types of higher legal educational institutions. President of Georgia                   Eduard Shevardnadze

Tbilisi,

26 June 1997.

No. 786-IIs