Void and Voidable Contracts
When a Contract Can Be Invalidated
Not every contract is automatically binding — under certain conditions a contract can be legally void, or contestable.
An absolutely void contract
Under Article 54 of the Civil Code of Georgia, a transaction is void if it violates a rule established by law and its prohibitions, or contradicts public order or norms of morality. A transaction is also void if it was concluded with a person lacking legal capacity, or if performing it is factually impossible. Such a contract produces no legal effect even without any further action being taken.
A contestable (voidable) contract
Some contracts remain valid until the interested party challenges them in court — for example, if the contract was concluded under a mistake, fraud, duress, or threat. In such cases invalidation doesn't happen automatically — a corresponding claim needs to be filed.
Consequences of invalidation
Once a contract is declared void, the parties are generally obliged to return to each other whatever benefit they received — that is, to return to the position before the contract, where this is factually possible.
What to do if you have doubts
If you suspect that a contract you've already signed, or are about to sign, might be void or unfavorable to you, analyzing the specific clauses is only possible after reviewing the document's full text.