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Contractual Damages Claims

Can I claim damages if there is no written contract?

Yes, verbal contracts are valid in Georgia (with exceptions like real estate). However, proving the terms and the breach is significantly harder without a written document.

What counts as "force majeure"?

Events beyond control (e.g., war, natural disaster) that make performance impossible. Financial difficulty is NOT force majeure. The contract usually defines specific events.

Do I need to prove the exact amount of loss?

Yes, you must provide concrete evidence (invoices, expert valuation) for the amount claimed. Courts do not award speculative damages.

Can I recover my legal fees?

Typically, the losing party pays the court fees and may be ordered to pay the winner's lawyer fees, but this is up to the judge's discretion and usually capped.

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Contractual Damages Claims: Protection Against Breach of Obligations

In business and daily life, a contract acts as a guarantee of trust and performance of obligations between parties. However, cases are common where one party breaches conditions: delaying payment, delivering substandard products, or completely refusing to provide services. A Contractual Damages Claim is a legal mechanism that allows the injured party to demand compensation for the loss suffered due to the non-performance or improper performance of the contract. This is not just about recovering direct loss; it is the right to be restored to the position you would have been in had the contract been performed.

Georgian legislation strictly protects the good faith party, but determining and proving the amount of damages is a complex process. It is often difficult to draw the line between direct damage and lost profit. An incorrectly calculated claim can lead to failure in court. Legal.ge offers access to civil law specialists who will help you assess damages, gather evidence, and obtain compensation.

What Does Contractual Damages Service Cover?

Specialists on Legal.ge offer assistance at all stages of the dispute:

  • Contract Analysis: Examining the document to determine liability conditions, force majeure, and penalties.
  • Damages Calculation: Precise calculation of financial loss, including actual damage (asset reduction) and lost profit (the benefit you would have received if the obligation had been fulfilled).
  • Penalty Claims: Calculating and demanding contractual penalties in addition to the main damages.
  • Negotiation: Attempting to settle the dispute out of court, sending a claim letter, and communicating with the debtor.
  • Litigation: Preparing the lawsuit and representing you in court to recover damages.
  • Specific Performance: Demanding the actual performance of the obligation (e.g., completing construction) alongside damages.

Common Scenarios and Real-World Examples

Contractual disputes vary widely:

  • Construction Disputes: A developer delayed apartment delivery by 6 months. The buyer suffered damages (had to pay rent elsewhere). They can claim reimbursement for rent and penalties.
  • Supply Chain Failure: A restaurant ordered produce that the supplier failed to deliver on time. The restaurant could not serve a banquet and lost a client. This constitutes lost profit.
  • Substandard Service: A renovation crew performed poor work, causing material spoilage. The client can claim the cost of materials and expenses for hiring a new worker.
  • Loan Default: An individual borrowed money and failed to return it. The creditor can claim the principal, interest, and damages caused by inflation or currency devaluation (if proven).

Georgian Legal Framework

Damages compensation is regulated by the Law of Obligations part of the Civil Code of Georgia:

Article 394 establishes the general rule: upon a debtor's breach of obligation, the creditor can demand compensation for damages. This includes both non-performance and delay.

Article 407 clarifies that when compensating for damages, the debtor must compensate not only for actual loss but also for lost profit. However, lost profit must not be hypothetical; it must be expected and realistic.

It is crucial to establish a causal link: the damage must directly result from the breach of contract. Also, the creditor is obliged to take measures to mitigate damages (Article 415).

Step-by-Step Service Process

Working with a lawyer on Legal.ge involves:

  1. Identifying Breach: Exactly which clause was violated and when.
  2. Calculating Damages: Gathering documentary evidence (receipts, contracts) to prove the loss.
  3. Claim Letter: Sending an official letter to the debtor giving an additional deadline.
  4. Lawsuit: Filing with the court if negotiations fail.
  5. Enforcement: Executing the court decision and recovering funds.

Why Choose Legal.ge?

Breach of contract causes frustration and financial instability. Legal.ge gives you the tools to reclaim what is rightfully yours and restore justice. Our lawyers will help you move beyond "rights on paper" to actual compensation. Protect your business and interests with professionals.

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