Frequently asked questions about voidable transaction

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voidable transaction
Understanding the intricacies of the law and finances is key to protecting your rights.

What does the term "sham transaction" mean?
It is an agreement or contract that has no real content or purpose, but is created solely to fulfill formal requirements or to deceive. It can be used for various purposes, such as tax evasion, asset concealment, or circumvention of legal restrictions.

Examples of such transactions may be fictitious contracts of sale, lease or other forms of agreements where there is no actual intention to perform obligations or implement conditions. The purpose may be to create the illusion of activity or to circumvent legal requirements.

What are the main differences algeria email list between the consequences of invalidity of a transaction and termination/modification of a contract?
It is necessary to clearly distinguish between these concepts. A contract may be amended or terminated not only due to its invalidity, but also by agreement of the parties, as well as by a court decision.

If an agreement is declared invalid, this means that it is considered as such from the moment of its conclusion and does not produce legal consequences, except those related to this quality.

The parties are not obliged to return to each other what was received as a result of the execution of such an agreement. The court decision on recognizing the agreement as invalid or its modification/termination and the consequences of the invalid transaction shall enter into force from the moment it enters into legal force or the signing of the relevant document.

For clarity, consider the example of a standard marriage contract. If the spouses decide to voluntarily cancel it, its effect will cease only from the moment of its termination. They are not obliged to return to each other the property received during the term of the contract. However, the terms of the terminated agreement cease to apply to the property that they will acquire in the future.

To determine whether to file a lawsuit to invalidate a transaction or to terminate/modify a contract, it is necessary to take into account the legal consequences of each option and rely on the specific circumstances of the case.