Causes of Annulment of contracts, with particular emphasis on sales contracts

On November 07, 2019, the Academy of Justice within the CTP and with the support of GIZ organized a training on: "Causes of annulment of contracts, with particular emphasis on sales contracts".

The purpose of this training was to advance the knowledge of judges on the causes of contract annulment, with particular emphasis on sales contracts.

The first part of the training covered null and void contracts. The second part dealt with the consequences of nullity and annulment of the contracts and conversion. The topic was treated in such a way as to provide answers to the questions regarding the conditions to be met in order to reach the annulment of the contracts, as well as the way of establishing and evaluating legal deadlines in such cases.

Further, during the training was emphasized that the contract represents one of the most important sources of obligations and at the same time the central institution of legal communication between the contracting parties. In order for the contract to be valid, the contracting parties must meet some of the conditions provided by law, and in cases where the contract is in breach of public order, ordering provisions, or morality of the company, the contract may be null and void. If the contract has been concluded by a party with a disability to act, or there was a defect in the will of the parties, then the contract should be terminated.

It was further emphasized that in practice there are many cases when the contracting parties do not respect the conditions foreseen for the validity of the contract, and there is a need to address and analyze the causes on the basis of which the annulment of the contract may occur. It was further stated that the relatively invalid contracts (termination contracts) are those contracts whereby the individual interests of the contracting parties are violated. These contracts contain such disadvantages or deficiencies that are not incurable, as it depends on the will of the contracting parties whether the contract will be annulled or will have the legal effect of a valid contract (invalidating contractual contracts). Also the risk of these contracts taking into account the infringement of the individual interest of the parties is less than the absolutely null contracts, in which the general social interest is always violated.

In dealing with the conversion it was emphasized that in order for the conversion of the contract to exist the parties must be unaware of the nullity of the concluded contract, otherwise there can no conversion.

This training used the methods of partial theoretical explanation, based on the case-law and accompanied by exercises, interactive discussions, material provided by the trainers, case study analysis as well as breaking down standards and requirements of legal provisions regulating this field.

Beneficiaries of this training were judges of Basic Courts, Court of Appeal and professional associates.