Recognition of transactions invalid
If the terms of the transaction do not comply with the law applicable at the time of its conclusion, such a transaction is called invalid. Recognition of transactions invalid can be established either as a result of a court (a disputed transaction) or on the fact of a established violation of the law in its conclusion (a negligible transaction).
Our lawyers have extensive experience in various areas of real estate law and transactions;
appealing to professionals will allow you to protect your interests as much as possible from the very beginning of the process.
Specialists of the law firm AGTL have extensive experience in the field of invalidation of transactions and are ready to offer you qualified assistance in this matter.
Our services include:
- Analysis of client documents, assessment of prospects for invalidation of the transaction;
- Pre-trial settlement of the dispute;
- Collecting and submitting documents to the court;
- Representing the client in court;
- Making complaints, motions, claims and other court documents;
- Advice from the client on the recognition of ownership registration and other legal assistance.
Disputes over real estate rights hold a significant share in disputes related to invalid transactions. They can be participants in both individuals and legal entities. Most of these disputes involve real estate inheritance, sales or gift contracts. Recognition of ownership may be established through a court (a disputed transaction) or by establishing the circumstances that make the transaction insignificant.
For large transactions, non-compliance with the statutory order to commit them also leads to the invalidation of them. For example, for public companies, any large transactions must be approved by the board of directors or by a meeting of shareholders with documentary evidence of this. In the absence of such confirmation, such a transaction may be declared invalid in court.
What can be the basis for acknowledging the invalidity of the transaction?
The age of one of the participants in the transaction at the time of the transaction did not exceed 14 years (18 years, if the parents or guardians did not give their consent to the conclusion of the transaction) or the transaction was concluded in violation of the rights of minors (often found in disputes about the rights to real estate);
One of the parties to the transaction was a incapacitated or limited able-bodied citizen or was unable to be aware of his actions at the time of the transaction;
The legal person or individual who made the transaction did not have the necessary rights to commit it (for example, there was no necessary license or the person signing the documents went beyond his authority);
The deal was made under the influence of deception, violence or threats;
The deal was struck for the species with the appearance of legal consequences.
When can I file a claim about the invalidity of the transaction?
If we are talking about a negligible transaction, the law defines the statute of limitations in three years from the beginning of the transaction. Recognition of the transaction is insignificant does not require confirmation in court.
The Supreme Court of Ukraine has concluded that if the invalidity of the transaction is not directly established by law, but one of the parties or the other interested person denies its validity on the grounds established by the law, then such a transaction can be declared invalid by the court (contested transaction).
This is discussed in the Ruling of the Judicial Chamber for Civil Affairs of the Supreme Court of January 18, 2017 No.6-2552z16.
For the disputed transactions, claims to invalidate such a transaction may be brought within one year of the end of the violence or the threat that led to it, or from the day the circumstances that invalidate the transaction became known to the plaintiff.