- Supreme Court
PUBLIC PROCUREMENT CONTRACT - BETWEEN A GEORGIAN COMPANY AND THE MUNICIPALITY OF TBILISI - REFERENCE TO UNIDROIT PRINCIPLES IN SUPPORT OF APPLICABLE DOMESTIC LAW (GEORGIAN LAW)
PRINCIPLE OF GOOD FAITH – ABUSE OF RIGHTS - PARTY PREVENTED TO EXERCISE ITS RIGHT FOR THE SOLE PURPOSE OF CAUSING DAMAGE TO THE OTHER - REFERENCE TO ART. 1.7 OF UNIDROIT PRINCIPLES IN SUPPORT OF THE SOLUTION ADOPTED BY APPLICABLE DOMESTIC LAW (ART. 115 OF THE GEORGIAN CIVIL CODE)
In a dispute between a Georgian company and the municipality of Tbilisi on the proper performance of a public procurement contract, the Supreme Court referred to the principle of good faith, which is expressly stated in Article 8 of the Georgian Civil Code, and to Article 115 of the Georgian Civil Code, which prevents a party of a legal relationship, whether private or public, to exercise its right exclusively with the intention to inflict damage on another. In support of its findings the Court recalled that the principle of good faith is recognized in Art. 7(1) CISG and in Art. 1.7 UNIDROIT Principles.