Baku State University

master

Parties conclude a contract for creation and termination of contractual rights and obligations as the existence of a contract ensures parties to face unexpected situations. A valid contract means it is legally binding and enforceable and the formation of a legally binding contract must entail some essential and basic elements. But in some cases, even though the contract meets all basic elements for its validation it can be invalid. If a contract is invalid, it will be annulled from the very beginning, therefore the invalidity has a retroactive effect. Some defects render a contract void, while others make it voidable. This article clarifies types of invalid contracts on the basis of the element of dispute, main characteristic features of void and voidable contracts, dispute period in invalid transactions and grounds that lead to voiding a contract.