Error of contractual will and system of grounds for invalidity

Abstract

Articles 6:90–6:93 of Act V of 2013 on the Civil Code (hereinafter, referred to as CC) settle invalidity due to the mistake of will on the part of the parties. In my study, I would like to analyse these grounds of invalidity, highlighting the meaning of ‘error of will’. As part of this, I also make relevant delimitations, including the legal institution of pseudo-representation. My aim is not only to present certain grounds for invalidity, i.e. error, deception, secrecy, sham (simulated) contract, but to summarise the most important conclusions that can be drawn upon the case law. In doing so, the issue of proof and the applicable means of proof must be examined separately, as in the case of these grounds of invalidity the principle of will as an aspect of interpretation has fundamental significance.In the second half of my paper, during the analysis of the sham (simulated) contract, a brief overview of the foreclosure contract and the demarcation of the two legal issues are inevitable, taking into account the provisions of Art. 6:120 CC and the Civil Department Opinion no. PK 1/2011. (VI. 15.) of the Curia of Hungary on certain application issues of the margin agreement. In my work, in connection with the individual grounds for invalidity, I also deal separately with the special rules for gratuitous contracts (Art. 6:93 CC).