Head of real estate and commercial law practice
Specialist in the field of commercial law and process. Real estate, construction support; land law and protection of property ownership.
RECOGNITION OF BUSINESS AGREEMENTS VOID
The recognition of economic contracts as invalid is an urgent issue in the current conditions of the country’s development. Business contracts are necessary for the growth of business and the economy as a whole, but at the same time they must meet all the requirements of the law and other regulatory legal acts. If a business agreement does not meet these requirements, it may be declared invalid. In this article, we will consider the features of the recognition of business transactions as invalid under Ukrainian law.
Typically, economic contracts are concluded in accordance with the requirements of the Civil Code of Ukraine, but the provisions of the Commercial Code and other regulatory legal acts regarding the selected type of contract are also taken into account. In order to conclude a business contract, it is necessary to come to an agreement on all its essential conditions in the manner and form specified by law for such an agreement.
However, in some cases, when an agreement is concluded in violation of the law or other regulations governing the activities of participants in economic relations, it may be declared invalid. For example, an agreement may be invalidated if it is entered into without the free consent of the parties, that is, with the use of coercion, deceit or violence.
Also, an agreement may be declared invalid if it contradicts the law, in particular, if it concerns objects of law limited by law, for example, the alienation of property that is restricted or which is the subject of inheritance; or an employment contract that contains conditions contrary to the principles of equality and discrimination may also be declared null and void. Such situations can have negative consequences for the parties to the transaction, therefore, before concluding a business contract, you should carefully study all the requirements that must be met.
What are the requirements for business agreements?
According to the Civil Code of Ukraine, an agreement may be declared invalid if, at the time of its conclusion, the parties (or one of the parties) did not comply with the requirements provided for in Article 203 of this Code. This article establishes general rules regarding transactions, namely:
- it is important that the content of any transactions does not contradict the laws, interests and moral principles of the state and society;
- it is obligatory that the person carrying out the transaction has an appropriate level of civil capacity;
- the will of the party to the contract must be genuine, voluntary and reflect true intentions;
- the transaction must be carried out in the form prescribed by law;
- the transaction must have real consequences determined by its content;
- it is necessary to ensure that the interests and rights of minors, minors or incapacitated children are not violated if their parents or adoptive parents make a transaction.
When is a contract declared invalid?
As for transactions in the field of management, the situation when the contract is recognized as invalid may arise in the following cases:
- if the terms of the contract do not comply with legal provisions and legislative acts;
- the person who entered into the agreement does not have sufficient authority to complete it;
- if the will of one party was obtained by coercion or deceit;
- the obligation is not concluded for the purpose of obtaining legal consequences, but rather to imitate or mask other legal relationships.
There may also be cases when a transaction is not concluded in accordance with the mandatory form (written or registration of the transaction). In such cases, the transaction may be invalidated.
The recognition of economic agreements as invalid may result in the termination of the transaction and the return to the parties of the assets invested in the agreement. In addition, a party affected by an invalid agreement may claim compensation for the damage caused to it as a result of the conclusion of such an agreement.
Consequently, the conclusion of economic agreements requires compliance with the law and other regulations governing the activities of participants in economic relations.
If you need legal assistance or advice regarding the recognition of business agreements as invalid, then contact the Law Company “Prikhodko and Partners”. Our qualified lawyers are ready to provide you with professional support in various areas of law, such as civil, corporate, commercial, tax and more.
We provide a wide range of services, including the preparation of legal documents, representation in court, business advice and others. Our goal is to protect your interests and achieve the best possible outcome for you. Contact us, we will be happy to help you!
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