Transactions Concluded Under Duress and Immoral Transactions: Comparative Analysis

Authors

  • Ana Kvantaliani

DOI:

https://doi.org/10.60131/jlaw.1.2024.7942

Keywords:

Immoral, Duress, Transactions, Undue Influence, Distinction Criteria, Defect of Declaration of Intent.

Abstract

The following article examines legal transactions concluded under the defect of declaration of intent, more precisely, the interrelation of transactions concluded under duress (Article 85 of the Civil Code) and immoral transactions (Article 85 of the Civil Code). Confusion between immoral agreements and duress in Georgian judicial practice is commonplace. Duress, as a socially unacceptable conduct, is often viewed as an immoral behaviour, regardless, immorality ground might not lead to the voidness of a transaction. The article explores German and English judicial practices and legal literature to provide an enhanced understanding of the interrelation between the said transactions. Considering that Georgian law stands closely with German law, drawing parallels with it is a logical approach. As for English law, it is one of the first countries in the world to adopt the concept of “undue influence” (immorality). In terms of immoral agreements, the article does not focus on the immoral transactions in their content (e.g. prostitution), but rather on the transactions, which, at a glance, are neutral, yet their motive or purpose is immoral.

 

Author Biography

Ana Kvantaliani

PhD student of Ivane Javakhishvili Tbilisi State University, Faculty of Law.

References

Civil Code of Georgia, 1997.

German Civil Code, 1990.

Giorgi Rusiashvili, Civil Code Commentary, Book One, Chanturia (Ed.), Tbilisi, 2017, Article 85, Field 1, 8,11,15, 29, 30 (in Georgian).

Davit Kereselidze, “The Most General Systemic Notions of Private Law,” European and Comparative Law Institute, Tbilisi, 2009 (in Georgian).

Kropholler., German Civil Code, Study Commentary, 13th rev. ed., translated by Zurab Chechelashvili and Tornike Darjania, Tbilisi, 2014, §123 (in Georgian).

Lado Chanturia, General Part of Civil Law, “Samartali” Publishing, Tbilisi, 2011 (in Georgian).

Nino Kavshbaia, Voidness of a Transaction on the Grounds of Immorality, analysis of the ruling on the case საქმე №ას-726-2019 of February 9, 2019, of the Supreme court of Georgia, “Georgian-German Journal of Comparative Law”, 1/2020, Tbilisi, 2020 (in Georgian).

Ketevan Kochashvili, “Intent and Declaration of Intent (Meta-legal and Civilist Analysis),” Law Journal №2/2016, Tbilisi State University, 2016 (in Georgian).

Ruling # ას-475-2020 of November 11, 2021, of the Supreme Court of Georgia (in Georgian).

The ruling №ას-726-2019 of July 5, 2019, of the Supreme Court of Georgia (in Georgian).

Ruling # ას-664-635-2016 of March 2, 2017, of the Supreme Court of Georgia (in Georgian).

Ruling №3/7/679 of December 29, 2017, of the Constitutional Court of Georgia on the case “Broadcasting Company Rustavi-2 LTD” and “TV-company Sakartvelo LTD” v Parliament of Georgia (in Georgian).

Decision #ას-15-15-2016 of March 1, 2016, of the Chamber on Civil Cases of the Supreme Court of Georgia) (in Georgian)

Ruling #ას-662-628-2015 of July 30, 2015, of the Supreme Court of Georgia (in Georgian).

Ruling №2ბ/6052-15 of June 12, 2016, Tbilisi Court of Appeals (in Georgian).

Ruling #ას-423-400-2014 of May 11, 2015, of the Supreme Court of Georgia (in Georgian).

Ruling #ას-715-684-2014 of May 7, 2015, of the Supreme Court of Georgia (in Georgian).

Ruling #ას-132-124-2015 of April 29, 2015, of the Supreme Court of Georgia (in Georgian).

Ruling #ას-865-823-2013 of April 14, 2015, of the Supreme Court of Georgia (in Georgian).

Ruling #ას-333-314-2014 of July 21, 2014, of the Supreme Court of Georgia (in Georgian).

Ruling #2ბ/4202-13 of April 23, 2014, Tbilisi Court of Appeals (in Georgian).

Decision №2ბ/4686-13 of April 15, 2014, of the Chamber on Civil Cases of the Tbilisi Court of Appeals

Ruling #ას-170-163-2013 of May 27, 2013, of the Supreme Court of Georgia (in Georgian).

Ruling #ას-1796-1773-2011 of January 23, 2012, of the Supreme Court of Georgia (in Georgian).

Armin Hadjiani, Duress and Undue Influence in English and German Contract Law: a comparative study on vitiating factors in common and civil law, Oxford U Comparative L Forum, 2002.

F.H. Lawson The Rational Strength of English law, Stevens & Sons Ltd, London 1951, 58.

John Cartwright, Unequal Bargaining: A Study of Vitiating Factors in the Formation of Contracts, Clarendon paperbacks, 1991.

Nathan Tetzlaff, What is Duress in Contract Law, Smith and Partners, 2021. [availabl at: https://smithpartners.co.nz/business-law/contract-law/contract-law-duress/]

Neil Andrews, Contract Law, 11- Duress, Undue Influence and Unconscionability, Cambridge University Press, Cambridge, 2011.

PS Atiyah An Introduction to the Law of Contract, 5th ed Clarendon Oxford, 1995.

Münchener Kommentar Allgemeiner Teil, 4th ed Beck München, § 138 BGB, 2001.

Whittle v Whittle, EWHC 925 (Ch), England and Wales High Court (Chancery Division) Decisions, 2022.

Edwards v Edwards, 481 P.2d 432, Court of Appeals of Colorado, Second Division, 2007.

Gusinskiy v. Russia, 2004, ECHR.

Royal Bank of Scotland v Etridge, UKHL 44, House of Lords, 2001.

CIBC Mortgages v Pitt, UKHL 7, House of Lords, 1994.

Williams v Roffey Bros Ltd, EWCA Civ 5, Court Of Appeal, kingston-upon-thames county court, 1991.

B&S Contractors v Victor Green Publications, ICR 419, Court of Appeal England and Wales, 1984.

Crocker v. Schneider, 683 S.W.2d 335, Court of Appeals of Tennessee, Western Section, at Jackson USA, 1984.

Universe Tankships Inc of Monrovia v International Transport Worker’s Federation, 2 All ER 67, House of Lords, 1982.

Tidwell v. Critz, 248 Ga. 201, Supreme Court of Georgia, 1981.

Pao On v Lau Yiu Long, UKPC 17, Court of Appeal of Hong Kong, 1980.

Sibeon v The Sibotre, 1 Lloyd’s Rep 293, England and Wales High Court, 1976.

Lloyds Bank v Bundy, EWCA Civ 8, Court Of Appeal, Salisbury County Court UK, 1974.

Barton v Armstrong, UKPC 27, The court of appeal of the supreme court of new south wales, judgment of the lords of the judicial committee of the privy council, 1973.

Scurry v. Cook, 59 S.E.2d 371, Supreme Court of Georgia,1950.

Burroughs v. Reed, RDB-20-2316, United States District Court, District of Maryland, 1920.

Maskell v Horner, 3 KB 106, Senior Courts of England and Wales, 1915.

Skeate v Beale, 11 Ad&El 983, Court of the Queen's Bench, England and Wales,1841.

BGH, IX ZR 204/12, 2013.

BGHZ 146, V ZR 437/99, 2001.

BGH NJW, IX ZR 227/93, 1994.

https://www.claims.co.uk/knowledge-base/contract-law/duress-undue-influence-in-contracts [20.01.2024].

Published

2024-06-30

How to Cite

Kvantaliani, A. (2024). Transactions Concluded Under Duress and Immoral Transactions: Comparative Analysis. Journal of Law, (1), 160–174 (Geo) 124. https://doi.org/10.60131/jlaw.1.2024.7942

Issue

Section

Articles