Investment Contracts — the Joint Activity Model
Structuring international investment projects in Georgia frequently relies on the joint activity (partnership) institute of the Civil Code. Under Article 930, by a joint activity contract, a number of persons undertake to act jointly to achieve common economic or other objectives by means defined in the contract, without creating a legal person. That last detail defines the model’s nature: the partners cooperate, but no new legal entity is born.
From an investment perspective this is a flexible form: a foreign investor and a Georgian partner build a common project — construction, production, a technology platform — while each retains its own legal form and the relationship is defined by the contract. Questions of international investment protection — investment treaties and arbitration — belong to a separate field of international law and require separate analysis.