Invalid transaction - an agreement that does not comply with the rules of the law and state regulations of the country. To address this issue, a special institution of invalidity of agreements has been created in the Russian Federation, the purpose of which is to protect the interests of a number of subjects of civil legal relations. After considering all the circumstances of the case, the court draws a conclusion that entails certain consequences for the violator. But there are situations when the invalidity of a part of a transaction is recognized.
What is an invalid contract?
The invalidity of the entire agreement may arise if its content does not comply with the law, the form of submission does not meet the standards, there is a vice in its subjective composition or a vice of will. Such transactions may be disputable and void.
What is the invalidity of part of the transaction under the Civil Code of the Russian Federation? The agreement expires from the moment of its completion. It should be remembered that it can become invalid, not completely, but only partially. For example, a will, in which the right to an obligatory share is not respected, will be classified as invalid only in its specific part.
The invalidity of a separate paragraph does not affect the remaining clauses of the agreement, if it can be assumed that the contract was executed without taking into account an invalid section. If the latter affects other parts of the contract, then the invalidity of a part of the transaction shall entail the invalidity of the entire transaction.
An agreement of this type does not lead to any legal consequences, excluding those associated with the loss of power.
Violation of conditions
In the theory of civil law, the definition of the composition of the contract is described in detail. Types of invalid transactions and invalidity of a part of a transaction:
- Essential conditions. These are the provisions in which the essence of the agreement is concluded. The universal element in this case is the subject. For example, when a product is delivered, the provision must indicate its name and total quantity.
- Minor conditions. Such additions to the transaction are characterized, as a rule, by the actions taken within the framework of certain relations between the two parties. If we consider the delivery, then we will talk about payment methods, or the procedure for resolving disputes. The main distinguishing feature of non-essential conditions from significant ones is the order of transaction execution. If in the absence of the main conditions the agreement is canceled in full and it is not possible to execute it, then in case of violation of the non-essential provisions of the contract the basis of the transaction is not affected.
- Random conditions. Also in practice, some random points may play a role. They appear in the framework of the execution of derivatives of the main transaction and are not characteristic of cooperation within a certain agreement.
Given the particular composition, the invalidity of part of the transaction may ultimately not affect the legal relationship. If the court recognizes the court as at least one point of the transaction to be invalid, then recognition of its invalidity and occurrence of the corresponding consequences may go on.
Is it possible to challenge part of the agreement?
What does the invalidity of a part of a transaction mean? Many citizens directly involved in such relationships often wonder about the nature of the loss of part of the power transaction. Does it belong to insignificant or disputable?
Most often, the rejected part of the transaction is recognized by the court as null and void. The most common examples are conditions that detract from consumer rights.In this case, the invalidity of such a transaction shall be established in that part which is contrary to the law. Moreover, the consequences of such recognition may adversely affect other terms of the agreement. If the contract includes a ban on repair under warranty, then only this condition is canceled, and not all other provisions: the transfer of goods or the provision of relevant services.
Challenging the agreement
It is possible to challenge a transaction if, during the review, legal grounds have been identified. This includes actions committed without the need for approval.
A transaction becomes completely invalid only in one case when it is said that there is no legal capacity to complete the contract. If it was lost, then this leads to a complete loss of force of all the terms of the agreement. The legal capacity in the transaction is considered an important factor by which the parties can independently realize their obligations.
Currency violation
According to the established rules, the main means of payment in the Russian Federation is the ruble. But there are situations in which the parties to the transaction make all payments using foreign currencies, while indicating the corresponding condition in the contract being drawn up.
The consequences of invalidating this provision of the contract lead to more serious measures that provide for liability for violation of currency legislation. But if it follows from the essence of the legal relations of the parties that all other actions of the transaction can be carried out without the part containing payment in foreign currency, then only the conditions relating to settlements are recognized as invalid.
Counterparties have the right to demand clear fulfillment of the obligations stipulated in the agreement. Responsibility for violation of currency rules leads to administrative fines, which in no way relate to other parts of the contract. A deal of this type can succeed.
Dependence of the valid and non-effective parts of the agreement
It so happens that one provision of the transaction leads to the recognition of its complete invalidity. In this case, everything will depend on the decision of the judicial officer. Since each party bears a share of certain obligations under the contract, the court representative will have to try to justify the correctness and materiality of the void or contested parts in order to resolve the legal relationship between counterparties.
If we keep in mind the currency law, the location of the plaintiff may become a very important factor if he is considered a foreign resident. For this reason, the number of material terms of the transaction additionally includes provisions regarding information about each party.
Contracts and family law
A transaction may be invalidated not only in the civil law sphere. Another common example is the regulation of marriage.
The Civil Code governs the marriage contract, which governs all the features of relations between spouses when questions arise regarding property status. If such a transaction is declared invalid, one of the parties wishing to receive a share of its property loses the opportunity to apply to the judicial authority.
What are the consequences?
What are the consequences of the invalidity of part of the transaction? There are property consequences, which in turn are divided into basic and additional.
The main ones are bilateral, unilateral restitution, seizure of property from several parties in state revenue. Bilateral restitution (the return of one of the parties to the state that was maintained until the contract) leads to the fact that each counterparty of the rejected transaction transfers to the other all the property purchased according to the contract.
If it is impossible to make a return (when the subject of the transaction is the provided service, work performed or the use of property), then the cost is reimbursed. Unilateral restitution assumes that only one of the parties to the transaction, recognized as invalid, is restored in its early state. The second one pays certain fines: all the property it received in accordance with the transaction or what was supposed to be transferred becomes the country's income. For example, often one-sided restitution is applied in agreements with a vice of will, excluding those that were concluded when a person was misled.
Bilateral Restitution
For transactions committed in violation of the rule of law or moral principles (when one of the parties to the transaction commits it for selfish purposes), bilateral restitution is applied. Unilateral return is significantly limited when one of the counterparties has violated the law, as a result of which he is held accountable, and the second returns to his original position. The seizure of property from two parties in favor of the country is applicable if the transaction was concluded in violation of morality and the rule of law by both counterparties at once.
Other property consequences of an invalid contract
Additional consequences are taken into account only in cases expressly provided by law, and oblige one or both parties to indemnify all losses incurred as a result of the transaction. For example, according to paragraph 1 of Article 171 of the Civil Code, when implementing a contract with a citizen of the country, the second counterparty is obligated to compensate the first for all damage if he knew about his legal incapacity.
The same additional consequences are established in paragraph 6 of Art. 178, paragraph 4 of article 179 and some others. The judicial representative may not impose sanctions if their application violates the established procedures and norms.
A claim on demand to repay the consequences of an invalidated transaction is considered valid for 3 years. The changes do not take effect on the day the contract is executed, but when one of the parties filed a lawsuit or found out about the incorrect execution of the agreement.
The statute of limitations for invalidating the disputed transaction and the imposition of appropriate sanctions reaches one year.