- Supreme Court
DISPUTE BETWEEN A GEORGIAN WATER DISTRIBUTION COMPANY AND A GEORGIAN SUBSCRIBER - REFERENCE TO UNIDROIT PRINCIPLES IN SUPPORT OF APPLICABLE DOMESTIC LAW (GEORGIAN LAW)
PRINCIPLE OF GOOD FAITH – ACCORDING TO ART. 8 OF THE CIVIL CODE OF GEORGIA PARTIES TO A LEGAL RELATIONSHIP MUST EXERCISE THEIR RIGHTS AND DUTIES IN GOOD FAITH – REFERENCE TO ART. 7(1) CISG AND ART. 1.7 OF UNIDROIT PRINCIPLES TO CONFIRM THAT SOLUTION ADOPTED BY APPLICABLE DOMESTIC LAW IS IN CONFORMITY WITH INTERNATIONAL STANDARDS
In a dispute between a Georgian water distribution company and a Georgian subscriber over the registration of water consumption, the Supreme Court referred to the principle of good faith which is expressly stated in the Article 8 of the Civil Code of Georgia. The Court affirmed that such principle imposes on all the economic actors, be they individuals or companies, a duty to act with proper responsibility and respect of each other’s rights. 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.