If as a result of the concluded contract there is a violation of the norms of the current legislation, then such an agreement can be regarded as invalid. To protect their rights and interests, the two parties to the agreement have the right to appeal to the court. And in such situations, the best option is to go to court.
On the issue of invalidation of transactions, there is an extensive judicial amendment, and the features are spelled out in the second paragraph 9 of the chapter of the Civil Code.
Grounds
According to the requirements of Article 166 of the Civil Code, transactions can be recognized as invalid and are divided into:
- Challenged. For example, committed without the consent of an authorized body or concluded by a person with limited legal capacity.
- Insignificant. For example, prisoners by a person who has not reached the age of 14, or committed with intent.
A transaction shall be recognized as insignificant by the direction of the law, and not by a court decision. A person whose rights have been violated as a result of such an agreement has the right to appeal to court, but with only one requirement, namely, to establish its consequences. If it is a contested transaction, then the consequences can be applied only after a court decision on its invalidity.
In judicial practice, there are many claims to declare an imaginary transaction invalid. This means that property rights are transferred to the other party under the transaction, but in fact the previous owner (seller) continues to use it and receives income from its use. Distinctive features and general concepts of an imaginary transaction are covered in article 170 of the Civil Code, which states that such a transaction is only for the sake of appearance, without the intention to give rise to the corresponding legal consequences. Such transactions are void.
Who has the right to appeal to court
An application to declare a transaction invalid may be filed in court by a participant in such an agreement or by a person who believes that his interests are affected and his rights are violated, therefore, they must be protected in the manner prescribed by law. However, such persons can only file a claim by establishing the consequences.
The main condition for the applicant is his integrity. If at the time of conclusion of the transaction the person knew about the presence of vice, then he is deprived of the right to file a claim.
The timing
A statement of claim for invalidation of the transaction may be filed with the court within 3 years from the date of its full execution. For other interested parties, the date of the three-year period starts from the moment when they were informed about the execution of the transaction. However, you should know that the statute of limitations cannot be more than 10 years.
For disputed transactions, a shorter period of 1 year is provided. Its course begins from the moment the party finds out about the presence of vice in it. Consideration of such disputes is carried out on a general basis, that is, in compliance with the timelines provided for by the agro-industrial complex and the civil procedure Code.
Rules for filing an application to the court
When drafting an application to the court to declare the transaction invalid, it is always necessary to remember that the plaintiff will have to prove that in fact his rights have been violated and there is a direct connection between this agreement and the violation of his rights. Only in this case, the court will be able to restore rights after considering the application.
From the text of the claim should clearly follow what are the legal grounds for invalidating the transaction, that is, to prove that the plaintiff was mistaken and at the time of the conclusion of the contract did not suspect fraud. If the plaintiff does not have evidence in his hands, then he will have to demand it from the defendant, by filing an appropriate petition with the court.
Document structure
The statement of claim for invalidation of the transaction should be made in accordance with the general rules provided for such documents. When applying to a civil court, one should rely on Article 131 of the Code of Civil Procedure, and when applying to an arbitration court, on Art. 125 agribusiness.
The following information should be in the document:
- name of the judicial authority where the application is submitted;
- data of the plaintiff;
- respondent data;
- grounds for making demands, for example, a transaction was made by a legally incompetent or minor person;
- substantiation of position and evidence;
- information on compliance with the pre-trial procedure for resolving the conflict, if provided for by the contract;
- claim price, with calculation of value;
- requirements that the plaintiff makes;
- list of attached documents.
At the very end of the document, the date of preparation is affixed, a signature is put and F. I. O. It is allowed to enter any information into the application, which will allow an adequate assessment of the situation and prove the correctness of the plaintiff's claims.
Regarding compliance with the appeal to the other party with a claim before filing a claim for declaring the transaction invalid, there are still many disputes. Some judges require this action, others accept claims without first sending a claim to the defendant, since they believe that it is impossible to resolve the issue of invalidity of a transaction in a complaints procedure.
If necessary, an application can be filed for interim measures in relation to property interests.
Sample claim for invalidation of a transaction
IN…. city Court
…the edges
Plaintiff and Respondent ... f. I.O., registration address, contact details
Document's name…..
..... Date .... I have concluded an agreement .... (description of the essence of the transaction).
Later I became aware that the contract is invalid .... indicate the grounds ...
Based on the requirements of Article 167 of the Civil Code of the Russian Federation, I regard the transaction as invalid, which does not entail legal consequences, therefore I consider that the defendant is obliged to return to me the property that he received as a result of signing the agreement ... from ... date ...
Guided by Article Art. ... Code of Civil Procedure of the Russian Federation,
Ask:
- Recognize the transaction from ... date ... short description ... between ... details of the parties ... invalid.
- Apply the consequences by returning ... a description of the property ...
Appendices ... list of attached documents.
Date of application ... signature ... F. I. O.
Arbitration process
The application for recognition of the transaction invalid (sample below) in the arbitration process is drawn up in the same structure as in civil proceedings, and may look like this:
In ... arbitration court
Plaintiff and Respondent ... company registration data, contact details
Data of an authorized person, if an application is submitted from him
Document's name…..
... date ... I concluded a contract ... (description of the essence of the transaction).
... date ... between LLC ... (hereinafter - the plaintiff) and LLC ... (hereinafter referred to as the defendant) an agreement was concluded ... No. ... on the alienation of real estate. The area of the property is ... sq. m, which is located at: .... The price of the contract was ... rubles. However, the value of the transferred property is more than 25% of the value of the plaintiff’s property as of ..., and according to the provisions of Article ... of the Federal Law "On Limited Companies ..." is a major transaction. Also, according to the requirements of the Claimant's Charter, such transactions require the consent of all LLC participants. According to the minutes of the general meeting, one of the plaintiff’s participants did not participate in the meeting and vote. Thus, the requirements of the defendant’s charter and law No. 14-FZ were violated.
Guided by the foregoing and articles ...,
Ask:
- Recognize the contract .... dated ... date ... No. ... concluded between ... LLC ... and LLC ..., void.
- Return the acquired property by the defendant .... and recover ... rubles.
Applications ...
Date of application ... signature of the representative, director ... F. I. O., seal of the enterprise, if any.
Legal implications
After the claim for declaring the transaction invalid is filed with the court, meetings will be held and the judge will make a decision, for the parties there are certain legal consequences.
Most often, bilateral restitution occurs. This term means that the parties must return to the original conditions that were before the impugned agreement came into force. In life, it looks like this:
- one party returns property, goods, objects that were transferred as a result of signing the contract;
- the other party returns the funds that were transferred to the other party as a result of the acquisition of property and the signing of the contract.
If one of the parties avoids fulfilling the requirements of the court decision, then sanctions are applicable to such a participant in the legal relationship, for example, in the form of confiscation.
If violent or other unlawful measures on the part of the defendant are applied to the party that filed a claim declaring the major transaction invalid or for other reasons, the latter may be held administratively or criminally liable, depending on the gravity of the offense.