A surety agreement is an agreement under which one person (the surety) takes responsibility for the debtor to another person (the creditor) in the event that the latter fails to fulfill its obligations under the agreement. Recognition of this agreement as invalid annuls all relations between its parties.
Instructions
Step 1
A transaction can be declared invalid on two grounds - it can be recognized as such by a court (voidable transaction), or without the need for such recognition (void transaction). The parties submit a claim to invalidate the transaction in court.
Step 2
A surety agreement is one of the ways to ensure the fulfillment of obligations, along with a bank guarantee, a deposit and a forfeit. Invalidation of an agreement secured by a surety entails the invalidity of the surety itself. However, challenging the surety is possible, regardless of the main contract, in court.
Step 3
The Civil Code of the Russian Federation names the following grounds for the invalidity of transactions:
- if the transaction was made in violation of the law;
- if the transaction contradicts the foundations of law and order and morality;
- if the transaction is imaginary or sham;
- if it was committed by an incapacitated person, or a person with limited legal capacity;
- if the transaction was made under the influence of delusion, deception, violence or malicious agreement of the parties.
Step 4
To be declared invalid, you must apply to the court with a statement of claim, in which you refer to one of the above grounds. After the court recognizes your arguments as legal, a decision will be made to annul this agreement. A transaction declared invalid does not entail any legal consequences. Everything executed under the transaction must be returned to the parties, if possible. If it is not possible to return what was received under the transaction in kind, then cash equivalent to the benefit received must be returned.
