IT Service Agreements in Georgia

IT Service Agreements

Is a contract type unnamed in the law still valid for IT services?

Yes — Article 319 of the Civil Code allows parties to conclude even contracts not provided for by law, provided they do not contradict it, and to freely determine their content within the limits of the law.

How is the price set if the parties did not agree one?

Under Article 630 remuneration is deemed agreed implicitly if the work is expected only for remuneration; where the amount is not agreed, the tariff rate applies, and absent tariffs — the customary remuneration.

What right does the provider have when the customer delays?

Article 633 entitles the contractor to claim damages if the customer does not accept the work or fails to perform a necessary action; the amount follows the delay's duration, the remuneration and the contractor's alternative use of its workforce.

May the provider retain equipment for unpaid work?

Under Article 634 the contractor may invoke a right of pledge over the movable item it manufactured or repaired while the item remains in its possession for that purpose — a statutory security for its claims.

6 min·9 Jan 2026

The Legal Nature of IT Service Agreements

An IT service agreement — software development, system integration, technical support or infrastructure management — is in legal terms an obligation governed by Article 316 of the Civil Code of Georgia: by force of obligation the creditor (here, the customer) is entitled to demand that the debtor (the service provider) perform a certain action, and performance may also consist in refraining from an action, for example a contractual undertaking not to build a similar system for a competitor. The same article sets a general standard of conduct: by virtue of its content and character, an obligation may require each party to exercise special consideration towards the other party's rights and property. For IT contracts this means the provider must handle both the data entrusted to it and the customer's business processes with care — a requirement that flows directly from the law.

IT Service Agreements

Is a contract type unnamed in the law still valid for IT services?

How is the price set if the parties did not agree one?

What right does the provider have when the customer delays?

May the provider retain equipment for unpaid work?

6 min·9 Jan 2026

The Legal Nature of IT Service Agreements