General Commercial Agreements

What is the benefit of an NDA in Georgia?

An NDA (Non-Disclosure Agreement) allows you to legally protect trade secrets when discussing potential deals or hiring partners, providing a basis for damages if information is leaked.

Can I use foreign law for a commercial contract in Georgia?

Yes, parties can generally choose the governing law for their contract, though local mandatory norms (especially in tax or labor) will still apply.

What are Incoterms?

Incoterms are international rules for the interpretation of trade terms, defining who is responsible for costs and risks during the delivery of goods.

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General commercial agreements form the backbone of any business operation, regulating daily relationships between suppliers, partners, and clients. This field covers a wide spectrum of contracts, from the sale of goods to the provision of services, distribution, and agency agreements. As the business environment in Georgia has developed, oral agreements have been replaced by detailed written contracts. A professionally prepared commercial agreement is not only a means of legal protection but also a tool for optimizing business processes, clarifying expectations, and reducing uncertainties between parties.

What Does General Commercial Agreement Services Cover?

The service covers the preparation, analysis, and negotiation support for various types of commercial documentation:

  • Sales and Supply Agreements: Regulating terms of sale, delivery schedules, quality standards, and payment procedures for goods.
  • Service Level Agreements (SLAs): Legal formalization of receiving or providing services such as consulting, marketing, IT, etc.
  • Distribution and Agency Agreements: Managing distribution networks and regulating relationships with intermediaries.
  • Lease and Rental Agreements: Documenting conditions for the use of commercial spaces and equipment.
  • Confidentiality (NDA) and Non-Compete Agreements: Mechanisms for protecting business information and trade secrets.
  • Standard Terms and Conditions (T&Cs): Preparing boilerplate contract forms for mass-market business applications.

Common Scenarios for Commercial Agreements

1) Starting a new business partnership requiring a clear distribution of rights and duties; 2) Importing or exporting goods, needing a synthesis of international norms and Georgian law; 3) Outsourcing services where defining service levels (SLA) is critical; 4) Reviewing existing contracts to identify and mitigate legal risks; 5) Preventing commercial disputes by drafting detailed penalty clauses and force majeure conditions.

Georgian Legal Framework

The main regulator for commercial agreements is the Civil Code of Georgia, which contains general and specific parts of contract law (sale, service, mandate, etc.). When legal entities are involved, the Law of Georgia on Entrepreneurs is also applicable. The Tax Code of Georgia is vital because every commercial transaction creates tax obligations that must be correctly reflected in the contract. International trade often refers to Incoterms, which are widely recognized in Georgia. For dispute resolution, the Civil Procedure Code or the Law on Arbitration must be considered.

Service Steps

The process begins with identifying the client's business needs and agreeing on core transaction terms. In the second stage, a lawyer drafts the initial contract. The third stage involves negotiating "red lines" with the partner. In the fourth stage, the final version of the document is signed. The fifth stage marks the management of the agreement—monitoring deadlines, payments, and other obligations. If necessary, the contract is updated or amendments are prepared as the business relationship evolves.

Why Find a Specialist on Legal.ge?

In a commercial agreement, every word matters. Template contracts taken from the internet often fail to cover the specific risks of your business. On Legal.ge, you will find experienced lawyers who will help you prepare individually tailored contracts. Our specialists ensure the maximum protection of your interests, prevention of tax risks, and the overall legal soundness of your transactions. Trust the professionals on Legal.ge and grow your business safely.

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