Recognizing of transactions as invalid due to misunderstanding during its making

The court may declare a transaction invalid if the transaction was made because of substantial errors made by a person during its signing. The legislation establishes that these substantial errors are of: The nature of the transaction (when one believes that one has entered into a different agreement than it was actually made. For example, signing the gift contract, one may believe that one enters into a contract of perpetual maintenance); Rights and obligations of the parties (the person, signing a contract, has a very different idea of the measure of his or her rights and obligations that actually ensue from the agreement); Properties and qualities of property that greatly reduce its value or the ability to use it for intended purposes (the person, signing a contract, has a misconception about the properties and qualities of the purchase). It is also necessary to remember that the error on the calculation of benefit from the purchase (when a person intends to get a much higher income from the purchase, but due to market conditions or for other reasons, it did not happen), has no legal value and cannot cause a recognition of the contract invalid. A person, who requests to declare the transaction invalid, is obliged to prove in court that he or she had a misconception or made an error about the circumstances of the contract and this error is important, that is, having the correct knowledge about the circumstances of the contract, a person would not have concluded the contract. One should be aware that the error due to ignorance of the law or its misunderstanding, and due to own negligence, cannot be a ground for invalidation of the transaction. If a transaction (contract) is recognized as invalid, the person who made an error due to his or her own negligence shall pay the damages to the other party. In order to avoid cases of paying damages due to recognition of your contract invalid, the lawyers of COLARES are always ready to assist you in the development of contractual documentation, analysis of draft agreements for compliance with applicable laws, and to support transactions turnkey.