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Messenger Consequences of recognizing a transaction as invalid in Kyiv.
The Civil Code distinguishes between the concepts of “transaction” and “contract”. A transaction is a broader concept that already includes a contract. A transaction is an act of will of a particular person aimed at creating, changing, or terminating certain legal relations. A transaction may also be concluded unilaterally, whereas a contract can only be concluded bilaterally or multilaterally.
As a result of these differences, declaring a transaction invalid is also carried out on somewhat different grounds than declaring a contract invalid. First, for a transaction to have legal force, it must be valid. In turn, a transaction will be valid if such an act of will meets the following requirements:
- the transaction is concluded in the proper form (for example, some transactions may be oral, but in most cases a written form must be observed);
- the transaction is concluded by legally capable parties (a person must adequately understand the significance of their actions);
- the person’s internal will and its external expression coincide (that is, a citizen cannot conclude a transaction as a result of being misled, under the influence of deception, threats, violence, and other factors);
- the content of the transaction complies with current legislation.
If at least one of these points was violated when concluding the transaction, this may lead to its invalidity. It is also important to distinguish between an invalid transaction and an unconsummated one, since invalidity can only be declared after the transaction has been fully performed.
Our lawyers will help you carry out the procedure for annulling a transaction. The result of such action will be that each of the parties will return to their original state without any consequences, and the transaction itself will be recognized as invalid.
The work of members of a joint-stock company must be performed in a coordinated and collegial manner. At the same time, cases in which a major transaction concluded by a joint-stock company is not agreed with its other participants occur quite often.
Article 70 of the Law “On Joint-Stock Companies” clarifies the concept of a major transaction. A major transaction is a type of agreement under which the market value of services or property (depending on the subject of the contract) amounts to 10 to 25% of the company’s assets, according to the latest annual financial report. The conclusion of such a transaction must be approved by the company’s supervisory board.
At first glance, there should be no difficulties, but in practice it is often quite different. It is unlikely that this problem can be resolved through negotiations. The only way out of such a situation is to have the transaction declared invalid through the court.
Let’s say right away: annulling such a transaction will not be easy. For example, if it concerns a lease agreement for premises, the failure to agree such a major transaction with the company’s members initially seems somewhat absurd. On the other hand, the premises will remain the property of the joint-stock company, which means that such a transaction will not cause any losses for the company.
To have a major transaction declared invalid, one must know many nuances of this procedure. This type of case is perhaps the most complex category of corporate disputes. The best way to solve this problem is to seek help from a highly qualified lawyer. The specialists of our company have extensive experience in such cases, which will allow you not to worry about the outcome of the court proceedings.
Our lawyers will help carry out the procedure for annulling the contract. The result of such action will be that each of the parties will return to their original state, and the transaction itself will be recognized as invalid.