Bonded deal: the main features

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Under civil law, bondage deal - this is extremely disadvantageous contract for one of the parties, infringing upon its rights and imposed on it under circumstances which exclude the free will.Article 179 of the Civil Code Russia notes that such a transaction usually takes place under the influence of violence, fraud, threats, malicious collusion representatives on the one hand, and other difficult circumstances.At the same time the claim of the victim, the court may admit enslaving transaction invalid.

Describing the concept of "bondage deal", his lawyers identify the following characteristics:

  • victim made a deal forced as a result of exceptional circumstances;
  • the other side of the transaction was well aware of the circumstances of the victim and tried to use them for their own benefit;
  • transaction terms highly disadvantageous to the victim.

Only if these symptoms casual transaction may be challenged in court.In fact, the victim to bring a claim in court to prove the existence of a certain transaction 3 above circumstances.The practice, in turn, suggests that a positive decision on the claims data - is a rarity.If it is extremely disadvantageous to an agreement for one of the parties is connected with its illiteracy, lack of awareness or even of generosity, such a transaction can not be challenged.The concept of "bondage deal" includes and fraudulent transactions.It should also be noted that the Russian legislation provides for criminal liability in the case of coercion to commit a particular transaction or to renounce it under the threat of violence or damage to another's property.This includes the dissemination of information prejudicial to the rights and interests of both the victim and his family.

But judicial practice has not yet worked out a common position on the application of Art.179, describes the onerous transaction.Before lawyers constantly raises the following questions:

- What circumstances can be regarded as serious in the context of that article (insolvency, serious illness, etc.)?

- What are the disadvantages of the individual criteria of the deal?

- What signs indicate bad faith on the other hand?

The most common example of enslaving transaction - a sale of land or a house for debt.In addition, quite often bondage transaction provides an extremely high rate of interest for use of funds.If the transaction was recognized as bondage, the other party returns a victim all she had received as a result of the transaction.In the case where the received can not be returned in kind, it shall be compensated in cash.Despite the fact that the onerous transactions are made quite often, art.179 relatively rarely used in practice.In most cases, victims restore their rights in criminal proceedings, which greatly simplifies the solution of the dispute.In other circumstances, not always easy to find a basis for recognition agreements null and void.