Short answer
A contractual penalty must be agreed in writing. Identify the obligation, breach and calculation period. Contractual freedom does not remove special caps or judicial reduction of disproportionate amounts.
Practical example
A 10% penalty is unclear without its base and whether it is one-off or recurring: the entire price or only the overdue portion.
What to do
Specify base, start, frequency, cap and end. Distinguish delay from final nonperformance. Check Article 625 for loans and test the formula with an example.
Legal basis
Georgian Civil Code — Articles 417, 418, 419, 420, 625. Checked on 28 October 2026. The outcome depends on the contract, facts and evidence.
YURFIRMA can review your documents and help prepare the appropriate demand or agreement. Contact us.
This is general information and does not replace a legal assessment of your specific case. The current law and the relevant facts are checked again when you seek advice.