Popular grounds for invalidating a voidable transaction
Posted: Tue Jan 07, 2025 6:05 am
Voidable transactions may be declared invalid when the consent of a third party, company or government agency is required to complete them, namely:
if the husband decided to sell the business he shares with his wife, but did not receive his wife’s consent to do so;
The LLC has carried out a major transaction without the consent of its competent governing body;
if an organization that is listed in documents as a charity enters into a commercial transaction;
an agreement for which the consent of the mexico whatsapp phone number antimonopoly authority is required.
Here, an example can be the acquisition of shares in the authorized capital of an LLC by a group of persons, if they have at least 1/3 of the shares and no more than 50% of the shares at their disposal, and after the transaction they can dispose of more than 50% of these shares. If the consent of the antimonopoly authority is not received, then the transaction is declared invalid by the court.
Voidable transactions may be declared invalid if one of the parties was misled. For example, due to a technical error during the conclusion of the contract. Another reason may be the concealment by one of the parties of circumstances that could have influenced the decision of the second party to conclude the contract or not. Needless to say, the transaction will be declared invalid if it is established that violence was used against one of the parties to persuade them to sign or threats were made.
There is also such a category as citizens with limited legal capacity: transactions with them can also be declared invalid. But what is this concept? Here we are talking about people with an addiction to gambling, alcohol and drugs, over whom guardianship is established. Such people can make small everyday transactions, but the consent of the guardian is required for the rest.
A conclusion about the popularity of certain grounds for recognizing a transaction as invalid can only be made based on law enforcement practice. We have conducted an analysis and can say: most often, courts are contacted to recognize as invalid gift and real estate purchase and sale agreements, and wills. The most common ground is a violation of the law.
Popular reasons are :
because one of the parties cannot understand the meaning of their actions;
misrepresentation;
deception of a party to a transaction, use of violence or threats against it.
The most difficult case in terms of proving invalidity is the recognition of a will or gift agreement as such after the death of the donor, since in this case it will be necessary to conduct a posthumous forensic psychiatric examination of the party to the transaction.
If we consider arbitration practice, a prominent place in it is occupied by cases on invalidation of transactions during bankruptcy. For example, challenging suspicious transactions of the debtor or challenging transactions of the debtor with preference.
if the husband decided to sell the business he shares with his wife, but did not receive his wife’s consent to do so;
The LLC has carried out a major transaction without the consent of its competent governing body;
if an organization that is listed in documents as a charity enters into a commercial transaction;
an agreement for which the consent of the mexico whatsapp phone number antimonopoly authority is required.
Here, an example can be the acquisition of shares in the authorized capital of an LLC by a group of persons, if they have at least 1/3 of the shares and no more than 50% of the shares at their disposal, and after the transaction they can dispose of more than 50% of these shares. If the consent of the antimonopoly authority is not received, then the transaction is declared invalid by the court.
Voidable transactions may be declared invalid if one of the parties was misled. For example, due to a technical error during the conclusion of the contract. Another reason may be the concealment by one of the parties of circumstances that could have influenced the decision of the second party to conclude the contract or not. Needless to say, the transaction will be declared invalid if it is established that violence was used against one of the parties to persuade them to sign or threats were made.
There is also such a category as citizens with limited legal capacity: transactions with them can also be declared invalid. But what is this concept? Here we are talking about people with an addiction to gambling, alcohol and drugs, over whom guardianship is established. Such people can make small everyday transactions, but the consent of the guardian is required for the rest.
A conclusion about the popularity of certain grounds for recognizing a transaction as invalid can only be made based on law enforcement practice. We have conducted an analysis and can say: most often, courts are contacted to recognize as invalid gift and real estate purchase and sale agreements, and wills. The most common ground is a violation of the law.
Popular reasons are :
because one of the parties cannot understand the meaning of their actions;
misrepresentation;
deception of a party to a transaction, use of violence or threats against it.
The most difficult case in terms of proving invalidity is the recognition of a will or gift agreement as such after the death of the donor, since in this case it will be necessary to conduct a posthumous forensic psychiatric examination of the party to the transaction.
If we consider arbitration practice, a prominent place in it is occupied by cases on invalidation of transactions during bankruptcy. For example, challenging suspicious transactions of the debtor or challenging transactions of the debtor with preference.