VRAHIMI v. TURKEY

In a recent case handled by our firm, Phoebus, Christos Clerides & Associates LLC, we successfully defended a claim involving an alleged personal loan between two individuals who shared a close familial bond. While the transfer of funds was not disputed, the core legal question was whether the money constituted a repayable loan — or a non-repayable gift.

In a unanimous judgment given on the 12th of June 2025, the Supreme Court of Cyprus reaffirmed that a mortgage creates an autonomous primary obligation, independent of the lender’s ability to prove a debt against the mortgagor personally.

In contractual disputes, there is often a misconception that the mere breach of a contract automatically gives rise to a right for compensation. This is not the case under Cypriot law. A party alleging breach must do more than prove the other side failed to fulfil their obligations. They must also clearly prove the damages suffered and properly plead these damages in their court filings. Failing to do so can render an otherwise valid claim legally ineffective.