Contract of Sale

The contract of sale is one of the most common legal agreements, actively used in everyday life.

At first glance, a sale appears to be the simplest and most understandable transaction. Specifically:

• The seller is obliged to transfer to the buyer an item that is materially and legally flawless, and accordingly has the right to demand payment;

• The buyer receives the item and is obliged to pay its price.

Practical Challenges

In reality, however, this process is not so simple. Numerous cases show that when the parties do not clearly define the essential terms, problems begin to arise.

Therefore, the contract of sale requires the detailed specification of all essential terms.
Nevertheless, in practice, disputes frequently occur due to:

• incomplete formulation of terms;

• or a material breach of the contract by one of the parties.

Obligations of the Parties

By virtue of a contract of sale, the parties acquire certain obligations.

According to Article 477, Parts 1 and 2 of the Civil Code:

• The seller is obliged to transfer ownership rights over the property to the buyer and deliver the item.

• The buyer is obliged to pay the agreed price and accept the purchased property.

 In the event that one of the parties breaches its obligations, the creditor (the injured party) acquires certain rights of action, as defined in the chapter on sale in the Civil Code.

Importance of the Contract of Sale

The contract of sale is not merely a simple formality for the purchase and sale of movable items. It applies to:

• both tangible and intangible property;

• both movable and immovable property.

 This is why it is important to clearly define its legal structure and detail all essential terms in the contract.

How to Prevent Problems Arising from Contracts of Sale?

1. Legal Consultation
Before concluding any type of contract of sale, it is advisable to consult a lawyer, who will explain the circumstances of the agreement more clearly and provide adequate advice.

2. Specifics of Real Estate
When it comes to a contract of sale concerning real estate, it is necessary to take into account that the procedures are more complex than for movable property.

According to Article 183, Part 1 of the Civil Code of Georgia:
 To acquire ownership rights over immovable property, it is necessary to have:

• a written form of the contract;

• and registration of ownership in the public registry.

3. Definition of Essential Terms
In any contract of sale, it is essential to specify:

• Item – what the seller is selling and what the buyer is purchasing;

• Time – when the transfer or registration will take place;

• Price – the amount the buyer must pay;

• Place – in certain cases, the place of delivery or dispatch must also be determined.

4. Verification of Restrictions
When purchasing property, it is essential to check whether there are any restrictions on it (mortgage, debt, etc.). Otherwise, misunderstandings may arise, potentially leading to court disputes.