Recognition of Contracts as Invalid or Concluded
The “First Legal” Law Firm has successfully represented the interests of legal entities in commercial disputes since 2008.
One of the areas in which the “First Legal” Law Firm resolves disputes in practice is the representation of legal entities and individual entrepreneurs in disputes concerning the recognition of contracts as invalid or concluded. This category of cases is becoming increasingly popular today.
Even agreements that one party places high hopes on can be declared invalid. There are quite a few grounds for declaring an agreement invalid, and they are provided not only in the Civil and Commercial Codes of Ukraine, but such consequences may also apply when violating the requirements of other laws of Ukraine and/or subordinate legal acts.
Invalid legal transactions are divided into void transactions, whose invalidity is established by law, and voidable transactions, which may be declared invalid only in court at the request of one of the parties or another interested person. In particular, voidable transactions may include those concluded under the influence of error, fraud, violence, threat, malicious collusion of the representative of one party with the other party, severe circumstances and the presence of their direct connection with the will of the other party, or a transaction by a legal entity performed without the appropriate permit (license) or with exceeding (lacking) authority in its representative, etc.
Transactions that do not comply with legal requirements are deemed void by the court in cases where this is expressly provided for by the relevant law, and they do not produce any of the outcomes the parties intended to achieve, regardless of their will or fault in making such an illegal transaction.
Even in resolving a typical commercial dispute, the court, on its own initiative, has the right to establish that the content of the agreement, whose performance is in dispute, contradicts the legislation in force at the time the agreement was concluded, and on its own initiative may declare such an agreement invalid in whole or in part, which can lead to unexpected negative consequences for one or both parties.
To avoid such situations, it is advisable to seek professional legal assistance in advance, even before concluding the contract or after concluding it, in order to promptly eliminate any potential violations that could result in the contract being declared invalid.
Not all contracts signed by the parties can be considered concluded, and not all actual legal relations without signed contracts are considered invalid (unconcluded). Therefore, when preparing the corresponding claim, it is necessary to determine whether the contested transaction is concluded and from what point in time. For example, agreements in which no agreement has been reached on all the essential terms for that type of agreement, or for which no required state registration or notarization has been carried out, will not be considered concluded.
Contracts can also be recognized as valid (concluded) by the court, even if one of the parties to the contract does not believe so or does not wish to believe so. The grounds for such recognition are limited and clearly specified by law; therefore, the demands of an interested party for the recognition of contracts (transactions or other legal acts) as valid on other grounds are not subject to satisfaction.
The service provided by the “First Legal” Law Firm in representing the interests of legal entities in disputes arising from contracts includes:
- Legal analysis of the documents provided by the client;
- Preparation of a legal position and its coordination with the client;
- Collection of evidence (including by submitting attorney requests);
- Preparation and filing of the statement of claim in court, assistance with paying the court fee;
- Representation of the client’s interests during court hearings, including the preparation and submission of motions on procedural matters;
- Support during the enforcement of the court’s decision.
By agreement with the client, the “First Legal” Law Firm can represent the client’s interests during appellate and cassation proceedings.
Our friendly team of specialists at the “First Legal” Law Firm will be happy to help you understand all the nuances of these complex issues.