Bilateral means a transaction in which 2 parties participate. Each of them has both rights and obligations. These and other points are taken into account in the contract concluded between the parties. The arrangement may be oral or written. The fact that the unilateral and bilateral transaction is, the Civil Code defines in Article 154.
Transactions and Contracts
Before talking about a bilateral transaction, you need to understand the differences between the transaction and the contract. Firstly, the transaction may have 1, 2 or more participants, and in the contract - at least two. Secondly, an action refers to a transaction that is aimed at approving, amending and terminating the rights and obligations of a citizen. While the contract is understood as an agreement on future actions that are consistent with the objectives of the transaction. Not every contract leads to real action. Thirdly, if the transaction is a single action, short in time, then the contract can be concluded for both short and long term, or is unlimited.
A deal is a much broader concept than a contract, despite the fact that they are often used in speech, implying the same thing. The deal is primary. In support of this thesis, we can cite the wording of the legislator that the contract is a type of transaction. Thus, any contract is a transaction, but not any transaction can be a contract. Having dealt with these points, we can proceed to the question of what a multilateral, unilateral and bilateral transaction is.
Types of transactions
We have already found out that transactions are unilateral, bilateral and multilateral. Their difference lies not only in the number of parties, but also in conditions. For example, if a transaction is made for the purchase / sale of currency and securities on the exchange, the result does not depend on the brokerage company, but on the trader. Therefore, a brokerage company does not participate in the transaction, but provides the necessary tools and access to the market. In this case, they are talking about a one-way deal.
If there are more than three participants, then this is a multilateral transaction. In this case, all parties are liable or each of them in turn upon the occurrence of certain conditions. So, if one participant cannot pay, then another participant does it for him.
Deal Classification
Unilateral and bilateral are the following transactions:
- Gratuitous and reimbursable.
- Abstract and casual.
- Consensual and real.
- Fiduciary and non-fiduciary.
- Other types.
All these transactions may be unlimited and urgent. In the latter case, a specific period is provided during which the contract is valid. At the same time, it is understood that during this period the party undertakes to fulfill the conditions provided for in the contract. If there is no mention of the terms, the transaction is considered to be unlimited, that is, it does not have a limitation of the period of validity.
Compensated and gratuitous
A reimbursable bilateral transaction is a transaction in which one party pays money to the other party for the provision of services or in exchange for certain things. Responsibility lies with both participants. One side is responsible for the required quality of goods or services, and the second - for payment on time.
A gratuitous bilateral transaction is a transaction in which one party provides services to the other party or transfers things to it without receiving anything in return. In this case, the first party is responsible for the quality of services or property.For example, when transferring medications, the party is responsible for the consequences that arise as a result of their use.
Casual and Abstract
Casual bilateral is a transaction concluded for some purpose. Its subject matter and use affect the validity of the contract. An example is the acquisition of firearms. For this purpose, it is necessary to provide a certain package of documents confirming permission to store and use weapons. Falsified documents or improper storage may result in the transaction being deemed illegal.
An abstract two-way is a transaction in which one of the parties assures the benefit, but in fact the result is unknown. For example, when a payment order or bill of exchange is issued, a transaction will be considered completed only if certain circumstances exist. If not, the contract will be canceled.
Real and Consensual
A consensual bilateral transaction is a transaction in which certain things are transferred or exchanged in accordance with the agreement of the parties. The contract comes into force immediately after signing, regardless of the period of receipt of its subject. For example, a consensual transaction is a contract for the delivery of products to the store. Trade relations between participants arose regardless of the time of delivery of goods.
A real bilateral transaction is a transaction in which the parties become responsible not from the moment of signing the contract, but immediately after the transfer of the thing or provision of the service and payment. Obligations of one and the other side arise automatically. Therefore, they are not affected by the presence or absence of a contract. For example, after acquiring equipment with a guarantee, the latter takes effect after purchase.
Fiduciary
A fiduciary bilateral transaction is a contract of trust between the parties. Its advantage lies in the possibility of termination of the agreement at any time without any negative consequences for the participants. Such a deal can be called, for example, a power of attorney for the right to drive a car. The agreement may be canceled on the basis of loss of trust or lack of purpose, for which it was concluded. As a rule, relatives or friends are participants in such transactions.
Conditional transactions
In this transaction, the consequences depend on certain circumstances or actions of 3 persons that may or may not happen in the future. A conditional transaction is not recognized if, at its conclusion, a circumstance has already occurred or it is known that it will definitely happen.
Thus, the condition should be characterized by uncertainty. Participants should not know for sure whether this or that circumstance will occur or not. The condition must not contradict the provisions of the law or moral principles of society. An example of conditions can be moving, improving housing conditions, changing the location of the service, and so on.
Conditional or suspensive
The suspensive condition of the transaction means that the participants made the emergence of rights and obligations dependent on whether certain events would occur in the future or not. Therefore, they do not come from the moment of signing the contract, but from the moment the conditions arise. An example is a citizen’s obligation to sell a car to a specific person if he manages to buy another suitable car.
This raises the logical question of what are the relations between the parties to the transaction from the moment of signing the contract. It should be said that the legal relationship between them already exists, and they are as follows. It is not allowed to arbitrarily derogate from the provisions of the agreement, which entail the impossibility of occurrence of the circumstances specified in the contract.
When it comes to good conditions, it must be understood that the rights and obligations of the parties appear from the moment of signing the contract and cease after the circumstances described in it occur. For example, the owner provides the cottage to the citizen for use for six months, provided that during this period his son does not return from the trip.
When abnormal conditions occur, the contract is terminated regardless of whether the participants knew about this fact or not. If it is impossible for the offensive condition to occur, the transaction becomes unconditional. If the circumstances specified in the contract occurred prior to its signing, the document shall be deemed invalid.
In the case of causing obstacles regarding the onset of conditions, or, conversely, contributing to this in bad faith, the law prescribes the onset of unfavorable consequences. If these actions were performed by a subject for whom it is not beneficial, then the conditions are considered to have come. And if for the party that committed the action, the condition is beneficial, then it is considered not to have occurred.
From the conditions it is necessary to distinguish the term-circumstance, which is known for sure that it will happen. In this case, the period is considered suspensive if it is associated with the appearance of the rights and obligations of the parties, or ineligible in the event of termination thereof upon condition.
Between private individuals
Individuals may not conclude agreements in writing between themselves. However, it is better to fix the agreement. Thus, it is possible to reflect the most significant moments of the agreement, as well as secure the transaction.
Individuals can make transactions through the conclusion of a contract, for example, for the supply of materials for production. But the amount cannot be higher than 10 minimum wages. Larger transactions will be deemed valid after notarization.
Between legal entities and individual entrepreneurs
This type of transaction must be fixed in writing. A feature of such a multilateral and bilateral transaction is that money is transferred from one current account to another, and not in cash. Contracts are conducted in accordance with strict reporting.
If incorrectly drafted, the agreement may be invalidated. Therefore, typical forms are mainly used.
Bank agreements
A transaction between banks is subject to the general terms and conditions of legal entities' contracts, even in the case of credit organizations of different levels. They differ from transactions between the bank and customers. In this case, transactions of an unequal nature are made. The reason often lies in the meager knowledge of the management of the capital of citizens applying to banks. Operations also have size restrictions.
Inheritance
A two-way deal is inheritance. It is carried out by law or by will. If the testator during his life disposed of his inheritance, the will is a bilateral transaction on the basis of which property is distributed. This is a document in which a citizen expresses his will in relation to property belonging to him by right of ownership. A will may contain information:
- About the list of heirs with the size of the share of inheritance to everyone.
- About persons deprived of the right to inherit.
- On the terms of disposal of property.
For a will to be valid, it must be executed in proper form and must be certified by a notary. Under certain circumstances, other persons may act as a notary public (for example, the head doctor of a medical institution where the testator is located). In emergency situations, drafting in the presence of ordinary witnesses is possible. However, such a document is valid only for a month after the end of the emergency. In the future, the document must be reissued in the manner prescribed by law. In the absence of a will, inheritance is carried out by law.
Inheritance is a transaction in view of the fact that when an heir enters into his rights, property is transferred from one person to another. Thus, a bilateral transaction is the acceptance of an inheritance left by the deceased. It may include values, personal items, real estate, cash, vehicles.
Before entering into the inheritance, its discovery occurs (immediately after the death of the testator). The heirs are given six months to declare their rights by contacting a notary. This process is called a two-way transaction (is the adoption of the inheritance). After this period, the notary draws up a certificate, and the heir enters into his rights.
Legal regulation
Registration, recognition of transactions, termination, as well as a description of the circumstances in which they may be recognized as null and void, are specified in the Civil Code, in particular, in Art. 153, 162, 170-172.
Legal consequences do not occur if the transaction is declared invalid. Such transactions are:
- Controversial.
- Insignificant. This species, in turn, is divided into valid and invalid.
A void void bilateral transaction is an arrangement that does not comply with the provisions of the law established in the country. Therefore, it is allowed to terminate in pre-trial order. The parties have the right not to fulfill its conditions, and this will not lead to liability.
Examples of void transactions that can be canceled are the following:
- The content and form do not comply with Russian law.
- There is a risk of harm to morality and the rule of law as a result of the conclusion of the contract.
- A feigned (the purpose of which is to conceal another transaction and gain profit) or an imaginary (made for the type) transaction is concluded.
- One of the parties is recognized as a minor or incapacitated person.
There are times when a void transaction becomes valid. An example is the incapacity of one of the parties, in which legal representatives demanded that it be recognized, provided that the wards benefit.
The consequences of invalidation
As a result of the recognition of the transaction as invalid, the contract is terminated, and the injured party is compensated for the lost damage, which can be in cash or in property.
If the parties entered into an illegal transaction, then the damage (if any) is compensated to the state. An example is a transaction whose purpose was to avoid taxes. In addition to the lost profit, the culprit must pay the penalty stipulated by the contract.
Conclusion
Of the presented transactions, a bilateral transaction is concluded between private individuals, between an individual entrepreneur and a legal entity, between legal entities and so on. Transactions play a huge diverse role in society. Therefore, the law provides for the principle of admissibility. It means that everything that is not prohibited by law is subject to the freedom of transaction.