1. The concept of a contract

A contract is an agreement between parties to establish, modify, or terminate civil rights and obligations (Article 385 of the Civil Code 2015).

2. Types of contracts

- Asset exchange contract;

- Sales contract;

- Lease contract;

- Business cooperation contract;

And some contracts in the fields of commerce, labor...

3. The concept of Invalid Contracts

According to Article 407 of the Civil Code 2015, which regulates invalid contracts as follows:

"1. The provisions on invalid civil transactions from Article 123 to Article 133 of this Code also apply to invalid contracts.

2. The invalidity of the main contract terminates the subordinate contract, unless the parties agree that the subordinate contract replaces the main contract.

3. The invalidity of the subordinate contracts does not terminate the main contract, unless the parties agree that the subordinate contract is an inseparable part of the contract.".

Thus, invalid civil contracts are treated similarly to invalid civil transactions, and the essence of the main contract is a civil transaction in writing. That is, when violating the provisions of the Civil Code 2015, the civil contract will be invalid, meaning it no longer has effect.

4. Cases of invalid contracts

Civil contracts are void due to violations of prohibitory provisions of the law, contrary to social ethics as per

Article 123 of the Civil Code 2015.

Contracts are void due to being simulated as per

Article 124 of the Civil Code 2015

Civil contracts are void if established or executed by minors, individuals lacking civil capacity, individuals with cognitive difficulties, or individuals with restricted civil capacity as per

Article 125 of the Civil Code 2015.

Civil contracts are void due to confusion as per

Article 126 of the Civil Code 2015.

Civil contracts are void due to deception, threats, or coercion as per

Article 127 of the Civil Code 2015.

Civil contracts are void if established by individuals who do not recognize or control their actions as per

Article 128 of the Civil Code 2015

Contracts are void due to non-compliance with formal requirements as per

Article 129 of the Civil Code 2015.

Contracts are void due to having an object that cannot be performed as per

 Article 408 of the Civil Code 2015.

5. Legal consequences

According to Article 131 of the Civil Code 2015, the legal consequences when a civil contract is invalid are as follows:

“1. An invalid civil transaction does not create, change, or terminate the civil rights and obligations of the parties at the time the transaction is established.

2. When a civil transaction is invalid, the parties must restore the original state and return to each other what they have received. If it is not possible to return in kind, then the monetary value must be returned.

3. The party acting in good faith in receiving benefits or income is not required to return those benefits or income.

4. The party at fault causing damage must compensate.

5. The resolution of the consequences of an invalid civil transaction related to personal rights is governed by this Code and other laws.”

This article is for reference only and is not intended as advice. If you need advice, please contact us via email: info@barrso.com