How To Invalidate A Contract

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How To Invalidate A Contract
How To Invalidate A Contract

Video: How To Invalidate A Contract

Video: How to invalidate contract 2022, November

Recognition of the contract as invalid is one of the legal ways not to fulfill its conditions. For an agreement to be declared invalid, it is necessary to apply to a court of general jurisdiction to invalidate the agreement and apply the consequences of the invalidity of transactions. However, some contracts contain conditions that make it invalid even without recognition by the court.

How to invalidate a contract
How to invalidate a contract

It is necessary

Carefully read Articles 12 and 164-181 of the Civil Code of the Russian Federation


Step 1

Not only the party to this agreement, but also any interested person, as well as the court, can demand the recognition of the contract as invalid. It should be remembered that if the agreement is recognized as invalid, the parties are legally obliged to compensate each other for everything that has already been received by them under this agreement. This should be taken into account when choosing this method of non-fulfillment of unwanted obligations.

Step 2

The invalidity of any transaction, and, consequently, of the contract, can be of two types: voidability and nullity. The contested agreement is invalid due to its recognition as such by the court. Insignificant is invalid in principle. As a rule, cases of invalidity of a contract are directly indicated in the Civil Code of the Russian Federation.

Step 3

If the contract contains conditions that contradict the foundations of law and order and morality, if the transaction is made by a person incapacitated due to a mental disorder, a minor, then such an agreement is in principle null and void. The absence of such conditions in it must be checked even at the conclusion. If you received a copy of the contract signed on behalf of your counterparty by a person unknown to you, it is better to try to find out who this person is.

Step 4

The court may invalidate an agreement with a legal entity if, according to the terms of the agreement, this person has gone beyond his powers. The powers of a legal entity can be outlined in its constituent documents. Certain activities require a license by law. However, such an agreement will be recognized by the court as invalid only if the other party knew or should have known that its counterparty exceeded its powers.

Step 5

The invalidity of the contract does not necessarily apply to the entire contract as a whole. Only some of the conditions may be invalidated. If the exclusion of invalid parts does not affect the essence of the transaction (that is, if such a transaction can be made without these conditions), then the rest of the contract will remain valid.

Step 6

The law contains quite strict instructions on the form in which this or that agreement should be concluded. If, as a general rule, non-observance of the proper written form (simple or notarized) does not entail the invalidity of the contract, then in some cases this is not the case. For example, the transfer of a share of a participant in a limited liability company to another person must be notarized. In addition, the parties may provide for the need for notarization of the contract in order to recognize it as valid.

Step 7

If you think that the contract that the counterparty has entered into with you is null and void, then within three years from the date of commencement of the fulfillment of obligations under the contract, you can apply to the court with the requirement to apply the consequences of the null and void transaction. In other cases, the term for going to court is one year.

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