Breach of Contract – What Are Your Rights?

Breach of Contract – What Are Your Rights?

One of the Most Common Issues in Civil Law

In everyday life, we constantly enter into contracts — when renting an apartment, purchasing goods, or receiving services. But what happens when the other party fails to fulfil their obligations?

What Is a Breach of Contract?

Under the Civil Code of Georgia, a breach of contract occurs when one of the parties fails to properly fulfil an assumed obligation — whether by not making payment, not delivering goods, or providing a service of unsatisfactory quality.

Your Rights in the Event of a Breach

1. Demand for Performance First and foremost, the creditor has the right to demand specific performance of the obligation — that is, exactly what was agreed upon in the contract.

2. Claim for Damages If the breach caused material harm, the law entitles you to claim full compensation, including lost profits.

3. Termination of Contract In the case of a fundamental breach, the injured party may rescind the contract and demand the return of any amounts already paid.

4. Penalty Clause If the contract includes a penalty clause (liquidated damages), it applies automatically upon confirmation of the breach.

Practical Advice

Before resorting to court, a written notice is required — call upon the other party to fulfil their obligation within a reasonable timeframe. This step is not only a legal requirement, but it also frequently resolves the issue without the need for litigation.

Conclusion

A breach of contract can carry serious legal consequences. It is essential that every transaction is properly documented and that, in the event of a breach, you seek qualified legal assistance without delay.

Have a question about breach of contract? Our team is ready to help.