All contracts to be considered legal and produce legal effects must meet certain conditions:
- the declaration of the intention must be given by a person who has the necessary legal capacity, serious – made to produce the legal effect, and not for any other purpose, free (that there is no defect of consent) – delusion, fraud and/or the threat, in the necessary form, that the desired legal actions are per law and morality
- that the basis of the contract exists
- that the condition is allowed and possible.
The sanction for non-fulfilment of these conditions is the invalidity of the contract, which can be different, depending on the type of defect.
For the most serious defects, the sanction is the nullity of the contract (absolute nullity), while for those who have a lower degree of violation, it is annulment – destruction (relative nullity). There is also a third sanction under contracts, recognized by legal science, which consists of non-existent contracts. Continue reading Invalidity of the Contracts