When it is not possible to challenge a transaction

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sadiksojib35
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Joined: Thu Jan 02, 2025 7:09 am

When it is not possible to challenge a transaction

Post by sadiksojib35 »

If the person who declared it invalid, for example, paid money for the transaction or performed work, then his statement has no legal significance and cannot be challenged.

Another name for this is "estoppel" - when certain circumstances deprive one of the right to substantiate one's claims.

When does this principle apply? Let's look at some examples :

if a person tries to invalidate a contract, but the work has already been paid for;
the customer tries to declare the contract mexico whatsapp phone number for delivery invalid after delivery;
when they try to recognize a lease agreement as a sham transaction, although payments have already been made;
Now let's look at those cases where the principle of estoppel does not apply. Strictly speaking, there are two of them :

If the outcome of the transaction violated the public interest, the court rejects arguments that it cannot be declared invalid.
Not applied by courts when challenging transactions during bankruptcy.
It is important to note that, knowing about the defects and proceeding to execute a transaction that contains a defect, the party deprives itself of the right to challenge its validity.



Consequences of invalidity of transactions
The consequences of recognizing a transaction as invalid can be general and special. General (bilateral restitution) - return to the parties of everything received under the transaction and return them to their original position before the transaction. An example is the return under a sales contract recognized as invalid. Let's say the buyer gets his money, and the seller gets his goods.

Special consequences are also divided into two categories :

Unilateral restitution, or when only one party can get what was performed back and return to their original position. The other party is punished by confiscating the property received for the benefit of the state.
No restitution - everything received by the parties from the transaction is transferred to the state.
Another possible consequence of invalidity of transactions may be compensation for losses due to their execution and performance.
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