Civil Code of Georgia (No. 786-IIS of 1997)

The Civil Code of Georgia was enacted on 26 June 1997. The Code is the main act in the civil legislation of Georgia and regulates property, family and personal relations of private nature. Civil laws ensure the freedom of civil circulation in the territory of Georgia, unless the exercise of such freedom prejudices the rights of third parties. The latest amendments to the Code were made on 15 July 2020.
The Code consists of six Books: Book One - General Provisions of the Civil Code, Book Two - Law of Things, Book Three - Law of Obligations, Book Four - Intellectual Property Law, Book Five - Family Law, and Book Six - Law of Succession.
PROPERTY AND REAL RIGHTS. The Book Two of the Code regulates property (Section One – arts. 147-154), possession (Section Two – arts. 155-168); ownership (Section Three – arts. 170-310); and Public Registry (Section Four – arts. 311-312). Property, according to this Code, is all things and intangible property, which may be possessed, used and administered by natural and legal persons, and which may be acquired without restriction, unless this is prohibited by law or contravenes moral standards (art. 147). A thing may be either movable or immovable (art. 148). Immovable things shall include a plot of land with its subsoil minerals, the plants growing on the land, and buildings and other structures firmly attached to the land (art. 149). The Code further provides for acquisition of immovable things by prescription stating that if a person is recorded in the Public Registry as the owner of a plot of land or of any other immovable property, while he/she did not in fact acquire title to it, he/she shall obtain title, provided the registration has existed for fifteen years and during that period the person possessed the property as his/her own (art. 167). Common (joint and shared) property shall arise by operation of law or on the grounds of a transaction. Each co-owner may assert a claim against third persons over the property under common ownership. Each co-owner may recover the thing only in favour of all co-owners (art. 173, para 1). The Code further provides for law of neighbouring tenements, including right of the owner of a neighbouring plot of land to the fruit; right of way of necessity; duty to mark boundaries; and right to use boundary installations (arts. 174-182). The Book Two also regulates superficies, usufruct, easements, mortgage and the public registry of immovable property (arts. 233-312). The Public Registry is a collection of the records of the origin, modification and termination of rights to, attachment and lien/mortgage in things and intangible property. It is also a collection of the records of the origin and modification of the abandonment of the ownership of immovable things (art. 311). Among others, the Code also provides for pledging auxiliary equipment of agricultural machines (including art. 254; art. 258; art. 274; art. 275; art. 281-1; art. 580-7; art. 580-8; art. 624-1). Relations regarding agricultural land are also governed by the Organic Law of Georgia on Agricultural Land Ownership in addition to this Code.
OBLIGATIONS AND CONTRACTS. The Book Three of the Code regulates contracts and other forms of obligations. It provides that, for an obligation to arise, there shall be a contract between the parties except when the obligation arises from tort (delictus), unjust enrichment or other grounds prescribed by law (art. 317, para 1). Subjects of private law shall be free to enter into contracts and determine their contents within the scope of the law. They may also conclude contracts that are not prescribed by law but do not contravene it. If, for the protection of the essential interests of society or a person, the validity of a contract depends upon the permission of the state, then a separate law shall govern the matter (art. 319, para 1). Among others, the Book provides that under a contract of sale, the seller shall transfer to the buyer the title to the property and the documents relating to it and deliver the goods (art. 477, para 1). The seller of a plot of land shall pay the expenses for the development of the plot and for similar activities performed on the plot incurred before the execution of the contract, regardless of the moment when the obligation to pay arises (art. 481). The Code also provides for lease (arts. 581-591) and farm lease (arts. 592-606) contracts. Under a farm lease contract, a plot of land is transferred for agricultural use, with or without residential or utility buildings (enterprise) intended for economic use. The rules governing lease contracts shall apply to a farm lease unless otherwise prescribed by the farm lease (art. 592). If more than half of the annual harvest of the leased land perishes due to a natural disaster or any other Force-Majeure, then the lessee may demand a pro rata reduction of the lease payment. The lessee may demand reduction of the lease payment only based on an act drawn up before the harvest specifying the amount and causes of loss (art. 597).
INHERITANCE. The Code also regulates succession and inheritance (Book Six). Among others, the Book Six regulates inheritance of real property, including agricultural land (among others, please also see art. 1436 on renunciation of agricultural land by an heir, and arts. 1460 and 1461 on partitioning of agricultural land among heirs).
TRADE, PRODUCT LIABILITY AND CONSUMER PROTECTION. The Code also concerns product liability (Book Three, Section Three, Chapter Two, arts. 1009-1016). Specifically, it pertains, among others, to liability of the manufacturer of defective products (art. 1009); concept of a defective product (art. 1010); concept of a product (art. 1011); joint and several liabilities of the manufacturers of defective products (art. 1013); liability for damages caused by injury to health (art. 1014), and no prior release from liability (art. 1016). A product means all movable things and services relating to the thing even if the thing is a part of another movable or immovable thing. For the purposes of this Code, a ‘thing’ shall not include primary food products or products obtained by hunting. A ‘product’ also includes any goods put on the market, whether or not intended directly for the end-user, which have been supplied or otherwise made available for commercial or non-commercial purposes (art. 1011, para 1). The definition of “primary food products” is provided for under the Food Products/Animal Feed Safety, Veterinary and Plant Protection Code of Georgia (No. 6155-IS of 2012). In another part, the Code also provides that the seller shall transfer to the buyer a thing free of material and legal defects (art. 487). Further, it notes that the right to indicate a geographical indication and designation of origin of goods (services) shall be regulated under the relevant law (art. 1103).
WATER. The Code states that if a plot of land is endangered by the collapse of a building from a neighbouring plot, the owner may demand that the neighbour take the precautions necessary to avert the danger. It shall not be allowed to change the direction of or manipulate watercourses and groundwater running through several plots of land in such a manner that may reduce the amount of the water and/or deteriorate its quality. It shall not be allowed to interfere with the natural flow of rivers (art. 177). Additionally, if a plot of land lacks a connection to public roads, electricity, oil, gas and water supply lines that are necessary for its proper use, the owner may require that a neighbour tolerate the use of his/her plot to create the necessary connection. The neighbours on whose plots of land the right of way of necessity or transmission line passes shall be given monetary compensation which, by agreement of the parties, may be made as a lump-sum payment (art. 180, para 1). The Code further provides that the liability for damages specified in paragraphs 1 and 2 of article 1000 of this Code (liability for the risk of injury posed by structures) shall be excluded if the damage is caused by force majeure, except when the damage is caused by the breakdown of power transmission lines or by malfunction of the facilities supplying oil, gas, water, or oil product (art. 1000, para 3).
ENVIRONMENT. The Code, among others, provides that the owner of a plot of land or any other immovable property may not prohibit the introduction of gases, steam, smells, smoke, soot, warmth, noise, vibrations and similar influences emanating from another plot of land to the extent that they do not interfere with the use of his/her plot of land, or interfere with it only to an insignificant extent (art. 175, para 1). On the other hand, if a structure presents an increased danger because of the power or flammable, explosive, noxious or toxic substances produced, stored in or supplied to the structure, the owner of the structure shall be liable for the damages caused to the victim if the realisation of this danger causes death, bodily injury or disability to an individual or damage to a thing. The same liability shall apply to the owners of inflammable, explosive, noxious or toxic substances when such substances present an increased danger (art. 1000, para 1). The damage caused by the use of radioactive substances shall be compensated by the user (art. 1000, para 4).
ANIMALS. The Code provides that an exclusive right in a plant or animal species (achievement in selection) shall be protected by issuing a certificate according to the relevant law (art. 1101). The Code also provides for the liability for damages caused by animals stating that the owner of an animal shall compensate for damages caused to another person by his/her animal. At the same time, it shall not matter whether or not the animal escaped, was supervised or lost. The liability for damages shall not apply if the owner of the animal took the necessary measures to protect third parties (art. 1003).
PLANT PRODUCTION. The Code provides that an exclusive right in a plant or animal species (achievement in selection) shall be protected by issuing a certificate according to the relevant law (art. 1101).
INTELLECTUAL PROPERTY. The Code contains general provisions on industrial property (Book Four). Specifically, it provides that rights in inventions, utility models and industrial designs shall be protected by issuing a patent according to the Patent Law of Georgia (art. 1100). It further provides that an exclusive right in a plant or animal species (achievement in selection) shall be protected by issuing a certificate according to the relevant law (art. 1101). Further, it notes that the right to indicate a geographical indication and designation of origin of goods (services) shall be regulated under the relevant law (art. 1103). The Code also provides for protection of exclusive rights in a trademark, protection of company names, and protection of trade secrets (arts. 1102, 1104, and 1105).
SOCIAL PROTECTION. The Code defines the concept of a single parent and provides that the guarantees for social and legal protection of a single parent shall be determined under the legislation of Georgia (art. 1191-1). The Code further defines the concept of a multi-child parent and also provides that the procedure for the provision of social protection to a multi-child parent having four or more children and/or adopted children under 18 years of age shall be defined by the legislation of Georgia (art. 1191-2).
GENDER. The Code provides that in domestic relations the spouses shall have equal personal and property rights and shall bear equal responsibilities (art. 1152). When entering into a marriage and in domestic relations, rights may not be restricted directly or indirectly; no direct or indirect preference may be given on the grounds of origin, social and property status, racial and ethnic background, sex, education, language, attitude to religion, type and nature of activities, place of residence and other circumstances (art. 1153).