Recognition of transactions as invalid: order and legal consequences

According to the Civil Code (Article 168), the recognition of transactions as invalid is carried out in the event of a non-compliance with their norms. The requirements that must be observed when concluding contracts can be defined in a law or other legal act. At the same time, the industry belonging to norms, in contradiction with which the transaction enters, does not matter.

Key condition

Legislation defines a group of contracts, the terms of which contradict the normative bases. Recognition of transactions as invalid is permissible in the presence of intent. It can be present at any one party or at all participants simultaneously. The intention involves the understanding by the subject of the illegality of the actions being carried out. Its presence must be proved. Therefore, for example, recognition by the tax authorities of a transaction as invalid must be documented. This provision, in particular, relates to controlled contracts.

Legal consequences of recognizing invalidity of transactions

They depend on several factors. As a general rule (in determining the intent of both participants), all property received by them at the conclusion of the contract, is collected in favor of the state. If the conditions were met only by one party, then everything obtained is withdrawn from the other entity. In this case, property is also transferred to the state. If only one participant had intentions, everything received in the transaction is returned to the other party, who did not know about the violation of legislative requirements.

Classification

The procedure and consequences of recognizing transactions as invalid depend on their nature. So, for example, the law allocates such category, as imaginary contracts. Their conclusion is not aimed at creating appropriate legal consequences. Imaginary treaties are considered regardless of the form of their conclusion, as well as the actual fulfillment of the established conditions. There is a category of feigned deals. They are also not focused on achieving relevant results. At the same time, such agreements are concluded to conceal the other will of the parties. It is the evidence of this fact that causes the recognition of transactions as invalid. In this case, the rules established for contracts that are actually meant are applied. For example, an agreement was signed for the sale and purchase, but in fact the parties made a donation. In this case, the rules of purchase and sale are applied.

Nullity

This property is acquired by all transactions entered into by an incompetent subject. This means that at the time of signing the contract the citizen could not understand the meaning of his behavior and manage it. Insolvency is established by the courts. Recognition of transactions as invalid in such cases involves the absence of the results that they provided. If the conditions were met, then rules apply to bilateral restitution of property in kind. If the return of material values is not possible, their monetary compensation is realized. Legislation also establishes additional rules. In particular, the recognition of transactions as invalid implies compensation for damage to the injured party. This provision extends to cases when a capable subject knew or could have known about the incapacity of another participant. Along with this, an exception is specified. A transaction in which incapable participates may be recognized as valid if it is concluded with the benefit to it.

A special case

In some cases, the invalidity of transactions occurs in situations where they were committed by capable persons, but were at the time of their conclusion in a state in which they could not realize their actions and provide control over them. In this case, there will be no legal significance for the reasons that led to this inability. It can either be conditioned by external circumstances (illness, physical trauma, loss of a loved one, etc.), and depends on the subject himself (for example, the state of intoxication). In such situations, the fact of registration of a transaction in circumstances in which a person could not understand his actions and control them must be proved. Witness testimony is not enough for this. Legislation provides for expertise in cases of invalidation of a transaction committed incapacitated. To check the condition of the subject, the procedure is performed by qualified physicians.

Invalidity of transactions with minors

Citizens who are under 18 years of age are not yet considered fully capable. Therefore, transactions that are committed by persons aged 6-14 years are void. Exceptions are cases provided for by Art. 28 Civil Code (points 2 and 3). Claims for recognizing transactions as invalid in such situations are sent by parents, adoptive parents / guardians or another participant. In such situations, the rules of bilateral restitution are also applied and damages are levied in favor of the minor. Together with this, the perfect action can be beneficial for a minor. In such cases, upon the application of the guardians, parents, adoptive parents, the transactions can be recognized as valid.

Additionally

Claims for invalidating transactions can be sent by legal representatives of persons aged 14-18. These citizens are also considered to be minors and, accordingly, limitedly capable. In this regard, the transactions that they conclude can be considered void. This is allowed if they are committed without the consent of legal representatives, when necessary. This rule does not apply to minors who have become active (married, for example). As in the previous case, the consequences of invalidity will be bilateral restitution and compensation for damage to the minor.

Misconception

In some cases, the subject may have a distorted view of the transaction. Misconception should be present at the time of the conclusion of the contract and be substantial. A distorted view may concern the nature of the transaction or the characteristics of the item, which significantly reduces its use. There will be no significant misconception about the motivation for concluding a contract. If the transaction is declared invalid because it was committed in a state of delusion, the rules on mutual restitution apply. In addition, the injured party has the right to demand compensation for the damage caused. At the same time, the injured participant must prove that the error was caused by the defendant's fault. If this is not done, then the subject, whose claim is invalidated, will compensate the defendant for real damage. This rule also applies in the event that the error occurred due to circumstances beyond the plaintiff's control.

Bonded agreement

The transaction can be made under different circumstances. They are not always favorable. For example, the conclusion of a transaction can take place under the influence of threat, violence, deception, due to difficult life circumstances. In such cases, they speak of enslaving treaties. Respondent in such situations uses the plaintiff's position and, it can be said, forces him to conclude a deal on unfavorable terms. Deception is the deliberate introduction of another participant into delusion, the provision of false, false information, silence about important circumstances. Violence can be expressed in causing the injured party or her relatives moral or physical suffering. Threat - mental pressure on the subject. It is expressed in a statement about causing the injured person later, if he does not agree to the transaction.

Severe circumstances

It does not in itself act as a basis for invalidating. In this case, it is necessary to observe additional conditions. In particular, the conclusion of the transaction must take place in the presence of severe circumstances on conditions that are extremely unprofitable for the victim. It is also important that the respondent in such a situation should take advantage of the difficult situation of the subject. That is, he should be aware of the plaintiff's plight, and he uses it for profit.

Results of bonded contracts

When recognizing invalidity for any of the above reasons, the defendant returns all received to the victim in kind. If this is not possible, the affected party is reimbursed for the value of the property in money. The received material values, as well as the compensation due to the victim, are collected in favor of the state. In case of impossibility to transfer property in kind, its value is reimbursed by money and transferred to the budget. The victim may also claim compensation for actual damage.

Statute of limitations

A statement of claim can be filed within 3 years from the moment the execution of a void transaction began. This period is applied to contracts, the period for submission of claims for which did not expire until July 26, 2005 (before the entry into force of Federal Law No. 109, which amended Article 181 part 1 of the Civil Code). For disputable transactions, a period of 1 year is set. The calculation of the period begins with the day when threats or violence were violated, under the influence of which the contract was signed, or when the applicant had to learn or learn about the circumstances that served as the basis for making claims.

Conclusion

The defect of one or several components of the transaction - a discrepancy with their norms - leads to invalidity. Judicial procedures are designed to eliminate the results that arose when concluding such contracts. In the absence of intent on both sides, they must return all that was received on the transaction, or pay the appropriate amount of money. It should be said that a similar procedure is envisaged in the legislation of different countries. For example, there is article 215 "Invalidity of a transaction" in the State Property Committee. It defines the grounds on which the contract between persons can be canceled.