Consequences of Invalidity of Part of a Transaction

• Invalidity of part of a transaction shall not entail the invalidity of its other parts, provided it is possible to presume that the transaction was entered into without inclusion of its invalid part.

Period of Limitation with regard to Invalid Transactions

• The statute of limitations with regard to disputes associated with the invalidity of a transaction on the grounds of threat and malicious agreement, shall constitute 1 year from the date of the cessation of the violence or the threat, or from the date when the plaintiff learned or should have to learned about any other circumstances which are the basis for the recognition of the transaction as invalid.

• Other grounds – 3 years

Who can claim invalidity of transactions?

• The list of the persons who can claim invalidity and specific grounds for invalidity of transactions shall be established by legislative acts.

• Some were mentioned above.

What happens when transaction is recognized invalid?

• Each party shall be obliged to return to another party everything that was received in the transaction, and where it is not possible to return it in kind (bilateral restitution).

• When a transaction is aimed at the achievement of a criminal purpose, then, where the intention exists on the part of both parties, everything received by them in the transaction or intended to be received, upon the decision or sentence of the court shall be subject to confiscation.

Any legal consequences stemming directly from invalid transaction?

• An invalid transaction shall not entail any legal consequences, except for those which are associated with its invalidity, and it shall be invalid from the moment of its commitment.