Convalidation of invalid transactions in Russian law

Introduction: the article presents some of the problematic issues in researching convalidation of invalid transactions in Russian law. Purpose: to develop an understanding of the legal nature, legal regulation and convalidation of invalid transactions by studying the law enforcement practice and juridical literature. Methods: empiric methods of comparison, description, interpretation; theoretical methods of formal and dialectical logic; specific scientific methods: juridical dogmatic method and the method of legal norms interpretation. Results: there has been made an attempt to gain an understanding of the invalid transaction convalidation concept as of an integral legal phenomenon and not an individual exception to the general rule about incurability of invalid transactions. Conclusions: as shows the analysis of the provisions of national legislation covering convalidation of invalid transactions, the systemic approach to regulating this legal phenomenon is missing; the norms that establish the possibility of convalidating invalid transactions have unclear wording, the regulation is characterized by a fragmentary nature, which complicates the application of norms, including by courts. The situation is worsened by the existence of the term ‘non-concluded agreement’ (‘failed transaction’) in our legislation, with its subject matter not being doctrinally elaborated and justified. In this connection, it is not a rare case when the court of primary jurisdiction declares a transaction invalid and enforces the consequences of its being invalid, while the court of appellate jurisdiction reverses this decision and qualifies the transaction as failed (non-concluded agreement) and hereupon applies the norms on unjust enrichment. These problems are caused by the absence of the scientific substantiation for the nature of convalidation. Until a certain moment, the widely spread classic theory of the transaction invalidity had viewed the phenomenon under discussion only with respect to the contentious transactions and had deemed it impossible to apply convalidation to void transactions. However, the subsequent development of transactions as well as the necessity to protect the special interests required extension of the convalidation rules to void transactions - in cases explicitly stated by law and through legal action only.