Invalidity of transaction and consequences of invalidity

Abstract

According to Article 11 of the Constitution of the Republic of Armenia the basis of economic order in the Republic of Armenia shall be the social market economy, which is based on private ownership, freedom of economic activities and free economic competition…. Among the conditions of guaranteeing free economic competition – one of the basic rights of a person (applicable both to individuals and legal entities) – is the right of concluding transactions. Armenian legislation does not define exhaustingly what transactions a person may conclude, but defines the borders, within which (s)he shall act, thereby giving to the individual the maximum opportunity for freedom. Recognizing the transaction as invalid and the application of the consequences of its invalidity are effective ways of protection of civil rights.