BlogContracts & TransactionsLegal ResourcesInvalidity of Contracts and Legal Actions

September 7, 20220

There are two types of invalidity, which are absolute invalidity and relative invalidity of legal actions. Invalidity strikes the legal consequence of legal acts.


When are the cases of absolute invalidity of contracts? 


The cases of absolute invalidity of legal acts are when they:

  • come into conflict with a commanding provision of the law;
  • committed to defraud the law;
  • committed by minors under the age of 14;
  • are carried out in agreement of the parties without intending to bring legal consequences.

The legal cause is illegal when it is:

  1. contrary to law,
  2. public order,
  3. or when the contract becomes a means to avoid the application of a norm.


What are the possible cases when the contract is contrary to the law?


For a contract to be contrary to the law it means that the parties by their conduct have violated or are in conflict with:

  • a mandatory provision of law,
  • or an important legal or constitutional principle or rule relating to the sphere of human rights, the proper functioning of market rules, professional honesty, etc., or
  • legal order. The legal order is formed by those norms which in themselves are binding, and which, however, are not clearly formulated by law, but derive from the legislative system, civil codes and other common laws and above all from the Constitution. Consequently, contracts and legal actions that have an illegal cause, because it is contrary to public order, will be absolutely invalid legal acts.


What are the cases of relative invalidity?


Cases of relative invalidity are legal acts that are declared invalid.

Annullable are legal acts which are valid while the court at the request of the interested party declares them invalid. Such are the legal acts performed by:

  • minors over fourteen years of age, when they have performed the legal action without the consent of the parent or guardian;
  • persons who, due to mental illness or mental retardation, have been deprived or restricted of their ability to act, when they committed the act without the consent of the guardian;
  • persons who at the time of the legal action were not aware of the importance of their actions, although at that time their capacity to act had not been taken away;
  • the person who has performed the legal action being deceived, threatened, mistaken or due to great need. Annulment of such acts may be requested even after the death of the person concerned, but only when before death the removal of his capacity to act has been requested.


What is an absolutely null legal act?


An absolutely invalid legal act, which is considered null and void from the moment it is committed, is considered to have never existed. An equal sign is given to the invalid legal act with the non-existent one due to the absence in both cases of legal consequences.

Absolutely invalid legal acts are incapable of bringing about the desired consequences by the parties, but may bring other consequences beyond the intentions of the parties, consequences that come due to the law. Absolute invalidity comes as a direct result of the law. The party is not required to expend any energy to set the court in motion.


Can the legal action be repaired in the future?


A null legal act can not be repaired in the future either by the will of the parties or by a decision of the competent court. So, absolute invalidity is a condition that can not be corrected and if the parties will try to correct such an action by repairing the defects that lead to invalidity, then we will be in front of a new legal action if the latter meets the conditions for it to be such.


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