FEATURES OF REGULATION OF INVALIDITY OF THE AGREEMENT IN THE CIVIL CODE OF UKRAINE

Abstract

This article is devoted to the peculiarities of regulating the invalidity of the agreement in Ukraine. The Central Committee of Ukraine embodies an approach in which the provisions on invalid transactions (§ 2 of Chapter 16) are general in nature, and they should apply to both unilateral transactions and contracts. Moreover, there is no doubt that most of these rules are designed to apply to an invalid contract [for example, paragraph 2 of Art.216(1)of the Civil Code of Ukraine, hereinafter CCU]. In turn, certain norms devoted to certain agreements (subsection 1 of section III of book 5 CCU) provide grounds for challenging the condition [Art.668(1) CCU], the invalidity of the contract [Art.661(2), Art.698(4) CCU, etc.], the grounds for contesting (Art. 998) or the invalidity of the contract [Art.719(3), Art.981(2), etc.], the legal consequences of the invalidity of the contract or condition [Art. 1057-1, Art. 1111(2), Art. 1119(4) CCU]. The Supreme Court of Ukraine noted the difference between the invalidity of the contract and the obligation, emphasizing the admissibility of the invalidity of the obligation. He pointed out that the invalidation of the contract and the invalidation of the obligation are not identical concepts, because,by the direct indication of the law, the contract declared invalid by the court is invalid from the moment of its conclusion, and invalidation of obligations under this agreement such an agreement. The decision of the Commercial Court of Cassationof the Supreme Court in case No 201/8412/18 (March 10, 2021) states that the existence of grounds for invalidation of the contract should be established by the court at the time of its conclusion, and not as a result of non-performance or improper performance. Failure to perform or improper performance of obligations arising under the disputed contract is not grounds for its invalidation.