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Suspending condition of the transaction, its features, specifics and requirements

A transaction is deemed to be completed under a suspensive condition if its participants made the emergence of duties and rights dependent on the specific circumstance. It is not known whether it will come or not. This provision is enshrined in article 157 of the Civil Code. Consider the features of contracts concluded under the condition of precedence. suspensive condition

Consequences of Violations

If a suspensive condition did not occur in connection with the unfair obstruction of the party to the agreement for which it is disadvantageous, that circumstance will be considered to have arisen. In some situations, a party to the contract may contribute to its appearance. With unfair behavior suspensive condition will be considered non-arisen.

Rules Features

Section 157 defines a transaction completed under a suspensive condition. The norm reproduces the traditional rules on such contracts. In domestic law, a deal under a suspensive condition has existed since the 19th century. It differs from ordinary contracts in that the emergence of obligations and legal opportunities is made dependent on a particular circumstance. However, it may or may not occur. The binding of consequences to this circumstance is not peculiar to agreements, at the conclusion of which suspensive condition not specified. If a circumstance, the probability of which is not determined, expresses the essence of the contract and without it the document would not have been signed at all, then the rules of article 157 of the code do not apply to it. In particular, this applies to an insurance agreement, announcement of a tender, organization of a lottery and so on. under the condition of precedence

Legal requirements

Suspension Transaction will be recognized as such subject to a number of rules. First of all, the circumstance should relate to the upcoming period. If the condition with which the parties to the transaction associate the occurrence of legal consequences has already occurred at the time of its completion, then it will be considered invalid or unconditional. It depends on the specific circumstances of the conclusion of the contract. At the same time, the participants themselves may not know that the agreed event has already occurred.

Besides, suspensive condition - this is a circumstance, the probability and time of which is unknown. Accordingly, the provisions relating to the provisions of article 157 of the Code do not include contracts linking legal consequences with an event that must inevitably occur. These, for example, include reaching a specific age, the onset of the summer season, etc. In these cases, there is no condition, but a specific period set by the parties to the transaction through an indication of the event. The circumstance within the framework of Article 157 is also characterized by the fact that its offensive is possible in principle. If in the future it turns out that the event could not have arisen, then, depending on the circumstances, the contract may be recognized as unconditional or invalid. A suspensive condition, inter alia, shall not contradict the provisions of the law. suspensive transaction

Nature of circumstances

In the legal literature, there are two approaches to the question of which particular events can be considered as a suspensive condition. Some authors believe that the circumstance should not depend on the will of the parties. Therefore, only an event can act as it. According to other authors, the condition may also be the action of both direct participants in the transaction and third parties.Many experts agree that the second approach will be more correct. In his favor is the fact that the legislation does not establish a ban on giving the actions of the parties to the contract, as well as third-party entities, the value of the condition. In addition, they confirm the correctness of the approach and the provisions of paragraph three of Article 157. It follows from them that it is quite possible to conscientiously promote the occurrence of an agreed condition. suspensive transaction

The specifics of legal relations

It is worth noting that article 157 provides, in addition to the suspensive, and derogatory condition. The law connects the emergence with the first, and the termination of duties and rights with the second. A suspensive condition, for example, takes place in a contract for the sale of a car if its participants make it dependent on its entry into force with the receipt of a driver’s license in the next 6 months. When binding the agreement to such circumstances, specific legal relations are established between the participants. The parties still do not have mutual obligations and rights that arise from the contract, however, they can no longer refuse it arbitrarily, as well as dishonestly contribute to the occurrence / non-occurrence of the relevant condition.

Features

The above-mentioned relatedness of the parties to the agreement brings the contingent transaction closer to the preliminary agreement. It is provided for in Article 429 of the Code. But a contract with a suspensive condition, in contrast to the preliminary one, gives rise to obligations and rights immediately upon the occurrence of an appropriate circumstance. There is no need to conclude any additional agreements. a transaction is deemed to be completed under a suspensive condition if

Features of breach of contract

The consequences of non-compliance with the rule of law when making transactions with suspensive conditions are enshrined in the third paragraph 157 of the rule. It states that if one of the participants acts in bad faith or, conversely, hinders the occurrence of a circumstance, it will be deemed non-arisen or arisen, respectively.

The rules of the third paragraph allow us to formulate a number of conclusions. First of all, not only an event, but also a volitional action can become a condition. The bona fide promotion of a circumstance agreed upon by the parties is not prohibited by law, even in situations where it is beneficial to the participant that contributed to its onset.

Also, the good faith of the party is provided for in Article 10 (clause 3). Unlawful actions should be considered illegal or not consistent with moral standards behavior that impedes or contributes to the occurrence of the relevant circumstances. In addition, within the meaning of the provisions of the law, the result stipulated by paragraph 3 of Article 157 of the Code should result from the actions of not only the immediate side of the transaction, but also of some other entities (for example, its friends, relatives). suspensive transaction

Circumstances and Duration: Difference

Inevitability acts as a key qualifying attribute by which time periods and conditions for the onset of legal consequences are distinguished. If a circumstance arises in any case, then we are talking about a deadline. If it is not possible to predict the occurrence of an event, then they speak of a condition. Considered in Art. 157 contracts may contain an indication of the period during which a circumstance should arise. This is done to establish when obligations and rights of participants arise.


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