Contract performance litigation is one of the most complex areas of civil law. It differs from simple debt collection in that the subject of the dispute is often not money, but the performance of a specific action. For example: a builder did not finish a house, a supplier did not deliver goods, or a partner did not fulfill a non-monetary obligation. The Civil Code of Georgia establishes the principle of *Pacta sunt servanda* (agreements must be kept), which means a party has the right to demand Specific Performance of the obligation, or damages if performance is impossible.
Such disputes require deep analysis of contract terms, as performance often depends on multiple factors, deadlines, and quality standards. The lawyer's task is to prove that the defendant breached the contract and compel the court to order them to perform the action (e.g., transfer documents, fix defects) or pay monetary compensation. Legal.ge gives you access to lawyers who will help you protect your contractual rights and enforce contract terms in real life.
What Does Contract Performance Litigation Cover?
This service covers all types of disputes related to improper performance of obligations:
- Specific Performance: Filing a lawsuit demanding the defendant perform a specific act (e.g., complete construction, transfer property title).
- Quality Disputes: Disputes where work was performed but poorly (defective performance). Demanding rectification of defects or price reduction.
- Deadline Violations: Claiming compensation and penalties for missed deadlines.
- Damages: Calculating and claiming direct and indirect damages (lost profit) caused by breach of contract.
- Termination of Contract: Terminating the contract and restoring the original state (restitution) if performance loses meaning.
Common Real-World Scenarios
Performance disputes are common in the following sectors:
The first scenario is a "Construction Dispute." A developer delayed handing over an apartment building by 2 years. The buyer demands the handover of the apartment and compensation for rent or penalties for the delayed period.
The second case is "Real Estate Registration." Parties signed a purchase agreement, the buyer paid the money, but the seller avoids going to the Public Registry to transfer the property. The court can recognize the buyer as the owner against the seller's will.
The third scenario is "Poor Quality Service." An IT company ordered software, the provider delivered a product that doesn't work properly. The client demands fixing the bugs without extra cost.
The fourth situation is "Supply Failure." A factory ordered raw materials that didn't arrive on time, causing production stoppage. The factory demands not only the materials but also compensation for the losses incurred from the stoppage.
Georgian Legal Framework and Regulations
This area is regulated by the Law of Obligations part of the Civil Code:
- Article 361: Establishes the principle of proper and good faith performance of obligations.
- Article 394: Defines the right to claim damages in case of breach of obligation.
- Article 405: Regulates the right to withdraw from (terminate) the contract after setting an additional deadline.
Process and Stages
The first step is giving an "additional deadline." The law requires the creditor to give the debtor a reasonable time to correct the defect. If no result is achieved within this time, the lawyer prepares a lawsuit. During the court process, expertise is often appointed (e.g., to determine construction quality or damage amount). After the decision, the enforcement agent compels the defendant to perform the action (e.g., sign a document) or pay monetary compensation.
Why Legal.ge?
Breach of contract often leads to significant financial loss. On Legal.ge, you will find lawyers who know how to turn a written promise into a real result. We will help you protect your investment and rights.
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