ПРАВНЕ ПОСЛЕДИЦЕ НИШТАВНОСТИ УГОВОРА
LEGAL CONSEQUENCES OF NULLITY OF CONTACT

Summary/Abstract: 1. Invalid xontracts are result of disregarding some of the claims forseen by law, the ones which are condition of the contract formation and existence. Code of obligations puts into invalid contracts void and voidable contracts.2. Void contracts are those contracts that law desapproves of and which exist only illusorily. Such contracts do not have legal effect from their very beginning. Consequences of invalidity are the followeng: contract nullity, restitution and compensation for damage. Contract nullity apppears when obligations which are not valid for contracting parties are concerned. Contracting parties need not fulfil what have been bound to because the contract is invalid. Restitution is one of the consequences of contract invalidity as well. If contracting parties already fulfilled their obligaations, each one is bound to give back the other one ali it got by virtue of the void contract.3. There is possibility of derogation from the rule conccrning restitution into previous state as consequenca of the contract invalidity. When contract is void because it is by its xontent and against law or moral, there is a possibility the court to dismiss the action of the bad faith parly is a possibility the court to dismiss the action of the bad faith party for taking back what it gave the other one, partially or totally. To apply the rule of taking backk for the benefit of the third person, so called prohibited restitution, there chould be dealt with such invalid contracts that are obviously opposite to legal and moral norms of society. Besides, ppublic goods should be perturbed in a greater measure by putting them into force, while conracting parties are supposed to act in a wilful negligence.

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