Is the invalid transaction a legal fact ?, What are the consequences...

Is the invalid transaction a legal fact?

The question of whether an invalid transaction relates to legal facts is one of the most controversial in the science of civil law. Supporters of the approach according to which the invalid transaction is not a legal fact, substantiate it by the fact that a legal fact is an event of objective reality that generates the appearance, change or termination of a civil legal relationship. In this case, an invalid transaction can not produce legal consequences. Adherents of another position argue that an invalid transaction is a legal fact, since it entails special consequences (in the form of restitution, etc.), even if they were not meant by the parties when concluding the transaction.

We believe that an invalid transaction is a legal fact due to the fact that it is capable of generating the consequences specified in cl. 167 of the US Civil Code. So, according to the specified norm, if the transaction is invalid, each of the parties must return the other received everything on the transaction, and in case of impossibility to return the received in kind (including when the received is expressed in using the property, the work performed or the service provided) if other consequences of the invalidity of the transaction are not provided by law.

The fact that an invalid transaction does not produce consequences for which the parties counted when it was committed does not take from the invalid transaction the signs of a legal fact, since any event with which the law binds legal consequences can be considered a legal fact, has it volitional nature or not. In addition, as long as there is a legally enforceable possibility of applying the consequences of the invalidity of a transaction, including restitution (paragraph 2 of Article 167 of the Civil Code of the United States), there must be a legal fact that triggers this mechanism. And nothing is suitable for his role, except for the fact of the invalidity of the transaction. Of course, one can recognize that this is a transfer of a thing, but in this case there would be a mixture of unjust enrichment with the application of the consequences of the invalidity of the transaction. In such circumstances, while in United States law there is a rule that determines the consequences of the invalidity of the transaction, the invalid transactions themselves should be considered legal facts.

The application value of our conclusion is seen in the need to include the courts in the subject of proof but cases involving the invalidity of the transaction of the existence of an invalid transaction as a legal fact, as well as execution on it.

What are the consequences of the invalidation of the transaction?

In accordance with paragraph 1 of Art. 167 of the US Civil Code, an invalid transaction does not entail legal consequences, except for those associated with its invalidity, and is invalid from the moment it was committed. Recognizing a transaction as invalid means that, firstly, it ceases to exist as a legal fact aimed at the occurrence of consequences, on which the parties counted upon its conclusion. In other words, a transaction that is declared invalid loses the transaction effect & quot ;. For example, if a lease is recognized as invalid, it means that the lessor has not transferred the tenant the right to use and own the leased property; if the contract of sale is recognized as invalid, then the right of ownership has not passed from the seller to the buyer. Secondly, the recognition of the transaction as invalid opens the way for the application of the consequences of its invalidity, specified in cl. 167 of the US Civil Code.

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