How to invalidate a transaction?

Legal services for the recognition of the transaction as invalid in court

Litigation and Dispute resolution

Claims on the recognition of a transaction as invalid are one of the most common applications filed in court and at the same time one of the most complex. With the help of the implementation of this mechanism, it is possible to note the obligations assumed, which are unfavorable for any party to the contract, to return the transferred property, money, to restore the situation that took place before the conclusion of the controversial transaction.

In order to avoid future disputes regarding the invalidity of the transaction, a thorough legal examination is required when concluding a transaction for compliance with current legislation.

According to Art. 166 of the Civil Code of the Russian Federation, the transaction is invalid on the grounds established by law, by virtue of its recognition as such by the court (contentious transaction) or regardless of such recognition (void transaction). If a transaction is invalid, each of the parties is obliged to return to the other party everything received under the transaction, and if it is impossible to return what was received in kind, to reimburse its cost.

In the absence of the consent of the parties, the court may determine the procedure for implementing the consequences of the invalidity of the contract.

Of fundamental importance for disputes on the recognition of contracts as invalid is the formation of an evidence base indicating the invalidity of a transaction.

At the same time, it is unacceptable to apply to the court with a demand to recognize a transaction as invalid in order to deliberately evade the fulfillment of the obligations assumed.

The procedure for considering disputes on the recognition of contracts as invalid

Depending on the participants in the dispute, these disputes can be considered both in courts of general jurisdiction (for example, disputes involving individuals) and in arbitration courts (with the participation of legal entities and / or individual entrepreneurs in the dispute).

The Arbitration Tribunal must be filed under the following conditions:

  1. a transaction is related to entrepreneurial and other economic activities;
  2. parties to the case are legal entities or individual entrepreneurs;
  3. a transaction is disputed within the bankruptcy proceedings of the debtor;
  4. an applicant is a participant in a legal entity with a demand to invalidate a transaction of a legal entity and (or) establish the consequences of the invalidity of such a transaction.
  5. In other cases, including when the participants in the case are citizens, the claim is filed with a court of general jurisdiction (Article 22 of the Code of Civil Procedure of the Russian Federation).

    The limitation period for filing a lawsuit is 1 year for voidable transactions and 3 years for void transactions.

How do we work?

01.
You send us a request to
e-mail info@brace-lf.com 
or call on +7 (499) 755-56-50
02.
Preliminary analysis and
initial consultation
03.
Conclusion of legal services agreement
04.
Preparation of the claim
(if a claim procedure is
provided)
05.
Preparation of documents for the court and performing other procedural actions
06.
Representation in the court
07.
Enforcement

Clients and partners