Reasons for invalidating
Currently in the courts of the RA, there are numerous cases pending that demand recognition of transactions null and void, therefore one should be familiar with the legal bases of invalidation of transactions, in order to be able to correctly understand the essence of the invalidity of transactions and properly formulate one’s demands in the courts.
Failure to comply with the simple written form of foreign economic transactions, as well as, certain other transactions specified by law, or by agreement of the parties, leads to the transaction being declared invalid.
These transactions are also not valid because of their insignificance, but depending on their nature, they are subject to the rules of the previous transaction, which the parties actually had in mind when entering into a sham transaction.
For example; another contract covering actual sale of the property in order to obtain preferential sales tax treatment, or actual lease of premises covered by the contract for the surrender of premises for free use, to avoid payment of tax on rental income.
Any deal, contract or transaction concluded with a mentally impaired person is null and void.
In order to declare this type of transaction invalid, it is necessary to have a court decision recognizing the person incapacitated due to mental disorder(s).