On 10 December 2013 the Presidium of the Supreme Commercial Court (the “Presidium”) issued Information Letter No. 162 with an overview of court practice on the application of Articles 178 and 179 of the Russian Civil Code (the “Overview”).
According to the Russian Civil Code, the court may declare a transaction invalid, in particular, if it has been made under the influence of (i) a substantive delusion – Article 178 of the Civil Code or (ii) deceit, violence, threat or adverse circumstances – Article 179 of the Civil Code1. The SCC Presidium has summed up the legal views of the courts in this regard.
In this alert we refer to the more significant conclusions of the SCC Presidium covering (i) competitiveness of claims; (ii) the nature of a one-sided transaction; (iii) delusion regarding the legal effects of a transaction; (iv) threat to perform lawful actions; (v) the importance of due prudence in the making of a transaction; and (vi) conclusion on the relevance of the clarifications established in the Overview in terms of the Civil Code reform. We also examine issues included in the draft overview but dismissed by the Presidium.
Please see full alert below for more information.
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