Title 13 — Contracts

In a severable contract or one admitting of apportionment, a part performance may be a defense pro tanto. (Orig. Code 1863, § 2813; Code 1868, § 2821; Code 1873, § 2872; Code 1882, § 2872; Civil Code 1895, § 3726; Civil Code 1910, § 4320; Code 1933, § 20-1103.)

A person may plead his own incapacity to contract. (Orig. Code 1863, § 2698; Code 1868, § 2694; Code 1873, § 2736; Code 1882, § 2736; Civil Code 1895, § 3653; Civil Code 1910, § 4238; Code 1933, § 20-208.)

The exemption of a minor from contractual liability is a personal privilege. The party contracting with a minor may not plead it unless he was ignorant of the fact at the time of the contract nor may third persons avail themselves of it as a defense. (Orig. Code 1863, § 2694; Cod…

v. First Nat’l Bank, 280 Ga. 535, 630 S.E.2d 407 (2006). Agreements Involving Insurance Common-law rule that insurance contracts need not be written, not in force in Georgia. — Common-law rule that contracts of insurance need not be in writing in order to be valid prevails in mos…

The provisions of Code Section 13-5-30 do not extend to the following cases: (1) When the contract has been fully executed; (2) Where there has been performance on one side, accepted by the other in accordance with the contract; (3) Where there has been such part performance of t…

If the consideration upon which a contract is based was given as a result of a mutual mistake of fact or of law, the contract cannot be enforced. (Orig. Code 1863, § 2707; Code 1868, § 2701; Code 1873, § 2743; Code 1882, § 2743; Civil Code 1895, § 3660; Civil Code 1910, § 4245; C…

Fraud renders contracts voidable at the election of the injured party. (Orig. Code 1863, § 2715; Code 1868, § 2709; Code 1873, § 2751; Code 1882, § 2751; Civil Code 1895, § 3669; Civil Code 1910, § 4254; Code 1933, § 20-502.)

First Nat’l Bank, 239 Ga. App. 304, 521 S.E.2d 221 (1999). Contract voidable when undue or unjust advantage is taken of one’s economic necessity or distress to coerce one into making agreement. A-T-O, Inc. v. Stratton & Co., 486 F. Supp. 1323 (N.D. Ga. 1980). Detention of another…

A rescission of a contract by consent or a release by the other contracting party shall be a complete defense. (Orig. Code 1863, § 2800; Code 1868, § 2808; Code 1873, § 2859; Code 1882, § 2859; Civil Code 1895, § 3710; Civil Code 1910, § 4304; Code 1933, § 20-905.)

If the consideration for a promise, apparently good or valuable, fails either wholly or in part before the promise is executed, the failure of consideration may be pleaded in defense to the promise as provided for in subsection (c) of Code Section 9-11-8. If the failure of consid…

Damages are given as compensation for the injury sustained as a result of the breach of a contract. (Orig. Code 1863, § 2881; Code 1868, § 2889; Code 1873, § 2940; Code 1882, § 2940; Civil Code 1895, § 3794; Civil Code 1910, § 4390; Code 1933, § 20-1402.)

Unless otherwise provided by law, exemplary damages shall never be allowed in cases arising on contracts. (Orig. Code 1863, § 2884; Code 1868, § 2892; Code 1873, § 2943; Code 1882, § 2943; Civil Code 1895, § 3797; Civil Code 1910, § 4393; Code 1933, § 20-1405.)

Richard Bowers & Co., 280 Ga. App. 533, 634 S.E.2d 415 (2006). Trial court did not err in denying an employer’s summary judgment motion, determining that the employee had performed the services necessary to be entitled to the allegedly agreed-upon per diem compensation; hence, th…

v. Hicks, 236 Ga. App. 80, 511 S.E.2d 194 (1999). It was not necessary for an employee to have made a demand for the payment of the salary claimed and to have been denied payment for the employee to be entitled to recover pre-judgment interest. Surgijet, Inc. v. Hicks, 236 Ga. Ap…

If a contract is entire, only one action may be maintained for a breach thereof; but, if it is severable or if the breaches occur at successive periods in an entire contract, an action will lie for each breach; but all the breaches occurring up to the commencement of the action m…

(a) Notwithstanding any criminal sanctions which may apply, any person who makes, utters, draws, or delivers any check, draft, or order upon any bank, depository, person, firm, or corporation for the payment of money, which drawee refuses to honor the instrument for lack of funds…

Damages recoverable for a breach of contract are such as arise naturally and according to the usual course of things from such breach and such as the parties contemplated, when the contract was made, as the probable result of its breach. (Civil Code 1895, § 3799; Civil Code 1910,…

(a) Provisions in bonds stipulating the damages to be paid in the event of breach shall be deemed penalties and shall not be enforceable unless the amount stipulated is reasonably related to the amount of the loss resulting from the breach and the damages resulting from the breac…

The question of damages being one for the jury, a reviewing court should not interfere unless the damages are either so small or so excessive as to justify the inference of gross mistake or undue bias. (Orig. Code 1863, § 2888; Code 1868, § 2896; Code 1873, § 2947; Code 1882, § 2…

Where by a breach of contract a party is injured, he is bound to lessen the damages as far as is practicable by the use of ordinary care and diligence. (Civil Code 1895, § 3802; Civil Code 1910, § 4398; Code 1933, § 20-1410.) 396 History of Code section. — This Code section is de…

In every case of breach of contract the injured party has a right to damages, but if there has been no actual damage, the injured party may recover nominal damages sufficient to cover the costs of bringing the action. (Orig. Code 1863, § 2887; Code 1868, § 2895; Code 1873, § 2946…

If the parties agree in their contract what the damages for a breach shall be, they are said to be liquidated and, unless the agreement violates some principle of law, the parties are bound thereby. (Orig. Code 1863, § 2881; Code 1868, § 2889; Code 1873, § 2940; Code 1882, § 2940…

Measure of damages — Generally. Measure of damages — Breach of bond. Determination of damages generally. Duty of injured party to lessen damages resulting from breach. Damages and expenses recoverable — Nominal damages. Damages and expenses recoverable — Liquidated damages genera…

Setoff does not operate as a denial of the plaintiff’s claim; rather it allows the defendant to set off a debt owed him by the plaintiff against the claim of the plaintiff. (Orig. Code 1863, § 2840; Code 1868, § 2848; Code 1873, § 2899; Code 1882, § 2899; Civil Code 1895, § 3745;…

Recoupment lies for overpayments by the defendant or for payments by fraud, accident, or mistake. (Orig. Code 1863, § 2852; Code 1868, § 2860; Code 1873, § 2911; Code 1882, § 2911; Civil Code 1895, § 3758; Civil Code 1910, § 4352; Code 1933, § 20-1313.)

In the event of a conflict between this chapter and Chapter 11 of Title 9, the latter shall control to the extent of the conflict. 503 T.13, C.8 T.13, C.8 CONTRACTS CHAPTER 8 ILLEGAL AND VOID CONTRACTS GENERALLY Sec. 13-8-20. Article 1 General Provisions Sec. 13-8-1. 13-8-2. 13-8…

Recoupment is a right of the defendant to have a deduction from the amount of the plaintiff’s damages for the reason that the plaintiff has not complied with the cross-obligations or independent covenants arising under the contract upon which suit is brought. (Orig. Code 1863, § …

Recoupment differs from setoff in this respect: Any claim or demand the defendant may have against the plaintiff may be used as a setoff, while only a claim or demand arising out of the same transaction as that sued on by the plaintiff may be used as a recoupment. (Orig. Code 186…

Setoff must be between the same parties and in their own right. (Orig. Code 1863, § 2842; Code 1868, § 2850; Code 1873, § 2901; Code 1882, § 2901; Civil Code 1895, § 3747; Civil Code 1910, § 4341; Code 1933, § 20-1303.)

Between the parties themselves, any mutual demands existing at the time of the commencement of the suit may be set off. (Orig. Code 1863, §§ 2841, 3394; Code 1868, §§ 2849, 3413; Code 1873, §§ 2900, 3465; Code 1882, §§ 2900, 3465; Civil Code 1895, §§ 3746, 5084; Civil Code 1910, …

If the plaintiff sues for the benefit of another person, a setoff against the beneficiary shall be allowed. (Orig. Code 1863, § 2844; Code 1868, § 2852; Code 1873, § 2903; Code 1882, § 2903; Civil Code 1895, § 3749; Civil Code 1910, § 4343; Code 1933, § 20-1304.)

A contract to do an immoral or illegal thing is void. If the contract is severable, however, the part of the contract which is legal will not be invalidated by the part of the contract which is illegal. (Orig. Code 1863, § 2713; Code 1868, § 2707; Code 1873, § 2749; Code 1882, § …

The General Assembly finds that the distribution of equipment primarily designed for or used in agriculture in the State of Georgia vitally affects the general economy of the state and the public interest and public welfare and, in the exercise of its police power, it is necessar…

As used in this article, the term: (1) ‘‘Dealer’’ means any person who sells, maintains, solicits, or advertises the sale of new and used equipment to the consuming public. It shall not include (A) public officers while performing their duties as such officers; (B) persons making…

Any person who engages directly or indirectly in purposeful contacts within this state in connection with the offering or advertising for sale of new equipment and parts shall be subject to the provisions of this article and shall be subject to the jurisdiction of the courts of t…

Unfair methods of competition and unfair or deceptive acts or practices as defined in Code Section 13-8-15 are declared to be unlawful. (Code 1981, § 13-8-14, enacted by Ga. L. 1993, p. 1585, § 4; Ga. L. 2002, p. 1101, § 1.) 13-8-15. Unfair methods of competition and unfair or de…

Any manufacturer, distributor, or wholesaler which intends to establish a new dealership or to relocate a current dealership for a particular product line or make of equipment within the relevant market area of an existing dealership of the same product line or make of equipment …

(a) A manufacturer, distributor, or wholesaler may sell or lease new equipment for use within this state. If the equipment is prepared for 563 13-8-15.2 CONTRACTS 13-8-16 delivery or serviced by a dealer, the manufacturer, distributor, or wholesaler shall reasonably compensate th…

13-8-18. Agreements to which article applies. 13-8-19. Failure to renew, termination of, or restriction on transfer of franchise without due cause. 13-8-25. Damages recoverable for injuries sustained by violations; class actions; punitive damages. Contracts and agreements in viol…

The provisions of this article shall apply to all written or oral agreements between a manufacturer, wholesaler, or distributor with a dealer including, 566 13-8-21 but not limited to, the franchise offering, the franchise agreement, sales of goods, services and advertising, leas…

T.10 State purchasing, § 50-5-50 et seq. Powers and duties of Board of Industry and Trade relating to commerce and trade, § 50-7-7 et seq. 2 T.10, C.1 SELLING/OTHER TRADE PRACTICES T.10, C.1 CHAPTER 1 SELLING AND OTHER TRADE PRACTICES Sec. 10-1-21. 10-1-22. Article 1 Retail Insta…

— See Rakestraw v. Lanier, 104 Ga. 188, 30 S.E. 735, 69 Am. St. R. 154 (1898). 13-8-2 Distinction between restraints on practice of profession and restraints connected with sale of business. — A distinction exists between that class of contracts binding one to desist from practic…

Any contract or franchise agreement or part thereof or practice thereunder in violation of any provision of this article shall be deemed against 567 13-8-22 public policy and shall be void and unenforceable. (Code 1981, § 13-8-21, enacted by Ga. L. 1993, p. 1585, § 4; Ga. L. 2002…

(a) Gambling contracts are void; and all evidences of debt, except negotiable instruments in the hands of holders in due course or encumbrances or liens on property, executed upon a gambling consideration, are void in the hands of any person. (b) Money paid or property delivered …

The General Assembly finds that the distribution of farm equipment in the State of Georgia vitally affects the general economy of the state and the public interest and public welfare and, in the exercise of its police power, it is necessary to regulate farm equipment manufacturer…

As used in this article, the term: (1) ‘‘Distributor’’ or ‘‘wholesaler’’ means any person, company, or corporation who purchases farm equipment or implements or parts from a manufacturer and resells the same at wholesale to dealers. (2) ‘‘Distributor or wholesaler branch’’ means …

Any person who engages directly or indirectly in purposeful contacts within this state in connection with the offering or advertising for sale of farm machinery or implements and parts shall be subject to the provisions 572 13-8-35 of this article and shall be subject to the juri…

Unfair methods of competition and unfair or deceptive acts or practices as defined in Code Section 13-8-35 are declared to be unlawful. (Code 1981, § 13-8-34, enacted by Ga. L. 1993, p. 1585, § 4.) 13-8-35. Unfair methods of competition and unfair or deceptive acts or practices. …

The provisions of this article shall apply to all written or oral agreements between a manufacturer with a wholesaler including, but not limited to, the franchise offering, the franchise agreement, sales of goods, services and advertising, leases or mortgages of real or personal …

A stakeholder of money risked on a wager shall be obligated to repay the money to the party depositing it, upon demand, before it is actually paid to the winner; but if he pays the money to the winner bona fide, and without notice of the depositor’s intention to retract, he shall…