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When the gift contract can be declared invalid

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Khyzhavska Olesia Yaroslavivna
Lawyer
Ukraine / Khmelnytskyi Oblast
Khyzhavska Olesia Yaroslavivna

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Publication date: 28.05.2024

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                                        Recognizing the donation contract as invalid

   A gift, or donation contract, is a legal document by which one party (the donor) transfers or undertakes to transfer certain property or rights to another party (the donee) free of charge. 

  The donation contract can be declared invalid in the following cases:

1. Non-observance of the contract form.

    In accordance with Article 719 of the Civil Code of Ukraine, the contract of donation of immovable property must be concluded in writing and notarized. If these requirements are not met, the contract may be declared invalid.

2. Incapacity of the donor.

   If at the time of concluding the contract, the donor was recognized by the court as incapable or limited in capacity, the donation contract may be appealed.

3. Absence of voluntary consent.

   The donation contract must be concluded voluntarily. If it is proven that the donor signed the contract under pressure, coercion, deception or violence, the contract can be declared invalid.  This is regulated by Articles 230-233 of the Civil Code of Ukraine.

4. Error.

   If the donor concluded the gift contract due to a significant mistake regarding the essence of the contract or the consequences of its conclusion, the contract may be challenged. According to Article 229 of the Civil Code of Ukraine, the contract may be declared invalid if one of the parties concluded it under the influence of a significant mistake regarding circumstances that are of significant importance.

5. Deceptive actions on the part of the recipient.

   If the donee has committed actions that mislead the donor about the intentions or terms of the gift, the contract may be declared invalid.

6.Ineligibility of co-owners.

   If the apartment is jointly owned, and one of the co-owners concluded a gift agreement without the consent of the other co-owners, the agreement may be declared invalid.

7. Invalidity due to violation of other legal requirements.

   For example, if the gift contract conflicts with other laws or regulations, it may be declared invalid.

  In order to declare the donation contract invalid, it is necessary to apply to the court with a lawsuit, which must clearly state the grounds for contesting the contract. The court will consider all the evidence and circumstances of the case and make a decision.

                               The procedure for declaring the donation contract invalid

   1. Appeal to the court: in order to declare the donation contract invalid, it is necessary to appeal to the court with the appropriate claim.

   2. Preparation of documents: it is necessary to add evidence to the statement of claim confirming the grounds for invalidating the contract (for example, medical certificates, witness statements, documents confirming fraud, etc.).

   3. Consideration of the case by the court: the court considers the submitted evidence and the circumstances of the case and renders a decision to recognize the donation contract as invalid or to reject the claim.

   4. Consequences of annulment of the contract: annulment of the contract has the effect of returning the parties to their original state, that is, all property transferred under such an agreement must be returned to the donor or his heirs.

   Therefore, a gift can be annulled or declared invalid under certain conditions discussed earlier, for example, due to the incapacity of the donor, coercion, fraud or violation of the requirements regarding the form of the contract.

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