An imaginary transaction is considered by domestic law as void (invalid). Reality according to the theory of law is determined by 4 conditions. Recognition of a transaction as alleged takes place if the lawfulness of its content is violated and its form is not followed, there is no necessary legal capacity to enter into legal relations, and also if the expression of will does not meet the conditions for its conclusion. 
General concepts
According to Art. 170 Civil Code imaginary transaction is a relationship that is created "for the sake of." At the same time, the parties do not have any intentions to form the appropriate circumstances arising from it. The object in this case, therefore, is legal relations, which participants seek to avoid.
Imaginary deal: litigation
A classic example is a sales contract. In this case, the creditor cannot recover the property. Often, donation is used as such a "cover." The imaginary transaction in this case provides preferential taxation. Under certain conditions, buying and selling may even cover the terms of an employment contract. Quite popular transactions related to the purchase of vehicles by proxy. In them, the issue of this document actually covers the contract of sale.
The legislation does not explicitly clarify the question of whether, in the case of a pledge, part of the structure is subject to mandatory pledge and the right to lease a site or its share. This allows the parties to conclude a deal for a part of the building with its actual full collateral. In this case, not only the content, but also the subject of the contract is considered fictitious. So, between the seller of RAO Norilsk Nickel and 7 buyers, 7 share purchase and sale agreements were signed for a total of 83,950,701 rubles. The same number acquired 100% of the shares by the same persons. The total purchase amount amounted to 83,950,701 p. The FCSM filed a claim with the arbitration court to declare the transactions invalid, since they covered the exchange of shares for shares. An authorized instance concluded that exchange relations had actually arisen between the parties. This is due to the equivalence of transactions. In this regard, the court examined the case, based on the rules of the agreement of barter. 
Additional object
An imaginary transaction may relate to relations that are protected by criminal law. It's about committing crimes like deliberate bankruptcy or unlawful actions when declaring insolvency, false business and so on.
Objective side
It is found in external signs of illegal actions. On the objective side, an imaginary deal is different from a sham. In the first case, there is a "fake" relationship. At the same time, it is rather difficult to prove that at the conclusion of a particular contract an imaginary transaction is made. The difficulties are connected with the fact that the nature of such legal relations is confirmed only by indirect circumstances. To recognize the deal as alleged, a body of evidence is needed. 
Features of the formation of legal relations
An imaginary transaction can be concluded both in the form of inaction and action. Its fulfillment begins with an active action - giving it the necessary form. This can be a simple written or notarized contract. In this case, the conditions of the imaginary transaction usually meet all legal requirements.According to several authors, such a desire to give the transaction a written form serves as evidence of the indisputability of rights for the parties.
In addition, the contract is also a confirmation of the occurrence of a legal relationship in proceedings with third parties. Further, the parties begin to remain inactive. The conditions specified in the contract do not occur, respectively, the participants do not fulfill their duties and do not exercise their rights. The external signs of the feigned agreement are different. The objective side here is the concealment of one transaction by another. For qualification in this case, it is necessary that part of the conditions coincide. As a rule, both transactions have a related or identical focus. However, the remaining conditions do not match. This is what makes it possible to reveal that one transaction covers another. The circumstances indicating a discrepancy are the lack of fulfillment of obligations and rights corresponding to the covering (imaginary) transaction. The parties fulfill only those conditions that coincide with those for hidden legal relations. 
The presence of intent
The current civil law does not directly answer the question of whether there is intentionality on both sides when concluding a fictitious transaction. A summary of the cases indicates that the proceedings currently mainly relate to legal relations in which the intent of both participants is present. For example, if we talk about fictitious marriage - the family law category, which is closest to the civil law transaction - the judicial practice and legislation were guided by the fact that such a transaction can be caused by the will of only both parties. But subsequently cases began to appear in which only one participant had no intention of starting a family. And such transactions began to be considered as fictitious. In this regard, amendments were made to family law. 
Goals of the parties
An obligatory sign of the subjective side of the sham and imaginary transactions is the result that the parties want to achieve. The definition of goals is important for the proper qualification of fictitious legal relations. Task fake deal defined in Art. 170, paragraph 2 of the Civil Code. The goal is the "cover" of legal relations. When defining an imaginary transaction, the legislator does not specify the task of the participants. Nevertheless, the presence of purpose is present in legal publications. So, A. Erdelevsky says that when making an imaginary transaction, participants seek to create legal consequences for each or, most often, for one of them in relation to third parties. Speaks on this score and I.V. Matveev. He points out that the actors conclude an imaginary transaction in order to create the appearance of obligations and rights that do not exist in reality. 
A responsibility
The specific legal consequences of the alleged transaction are not specifically defined. Within the meaning of the rules, when considering such cases, one should be guided by the conditions prescribed in Art. 167 regarding invalid contracts. According to the provisions, the parties must return to each other everything that they received from the transaction. However, a number of authors note that this rule cannot be applied in these cases. This is explained by the fact that, in essence, the transactions under consideration, the entities are not going to transmit anything and do not transmit. In this case, the determination of such legal relations as invalid can be the only measure. Upon recognition of the transaction as feigned, the application of the rules that apply to hidden contracts is provided. Covering legal relations are considered void, but restitution is not used. A covert transaction may become invalid for various reasons. In this case, the relevant provisions of the law should apply.
