Foreign Currency Obligations

📄Foreign Currency Obligations

Author: Gocha Okreshidze

Format: PDF | Language: Georgian| Length: 55 pages | Completed: 29 June, 2021

Description

This incisive paper offers a vital re-examination of one of the most debated provisions in Georgian private law: Article 389 of the Civil Code of Georgia (CCG). For years, this article has been criticized in Georgian legal literature and judicial practice for supposedly contradicting the foundational principle of nominalism. The ambiguity has led to inconsistent court rulings, creating significant legal uncertainty in monetary obligations.

This paper challenges the prevailing interpretation head-on. The author argues that the widespread criticism stems from a fundamental misreading of the article's scope and purpose. Through a rigorous comparative and textual legal analysis, the paper puts forth a compelling thesis: Article 389 is not a departure from nominalism but is, in fact, a specific provision designed to regulate the execution of foreign currency obligations.

Drawing heavily on the German Civil Code (BGB)—the primary source for the CCG—the author demonstrates the striking parallels between Article 389 and Germany’s §§ 244-245. This comparative lens reveals that the Georgian legislator's intent was to provide clear rules for converting debts denominated in a foreign currency into the national currency (Lari) for payment, particularly addressing which exchange rate to apply. The paper meticulously analyzes Georgian Supreme Court jurisprudence and scholarly commentary to trace the origins of the misunderstanding and provide a coherent, textually-grounded solution.

Key Features

• Original comparative legal investigation into the Georgian CCG and its German BGB origins.

• First-of-its-kind comprehensive analysis that systematically defends Article 389 against long-standing critiques of its conflict with nominalism.

• Advanced-level content designed for legal scholars, judges, attorneys, and academics specializing in contract and obligations law.

• Offers a new interpretative framework that clarifies the rules for both domestic (Lari) and foreign currency-denominated debts.

• Situates the debate within the broader context of monetary law principles, including nominalism, valorism, and the treatment of currency fluctuations.

Who Should Read This Paper

This paper is essential reading for legal professionals and academics in the fields of Georgian and comparative private law. It will be particularly valuable to judges, litigators, and scholars researching contract law, monetary obligations, and the intellectual history of the Georgian Civil Code. Anyone seeking clarity on this contentious point of law will find this paper indispensable.

Format & Delivery

• Digital download (PDF format)

• Distributed via email upon request/purchase