The invalidity of asset management contracts

Abstract

The paper addresses the issue of validity and invalidity of the asset management contract of national property. The definition of ‘national property’ covers both state property and municipal property, therefore the asset management contract is regulated by Act CXCVI of 2011 on the national property, Act CVI of 2007 on state property, and Act CLXXXIX of 2011 on Hungary’s local governments. Those must be taken also other legal acts into consideration such as Act V of 2013 on the Civil Code because the above-mentioned legal acts use certain legal terms regulated by the Civil Code. The contract shall be considered asa contract on the borderline of private law and public law; one must pay attention to every aspect of this contract. One aspect of it is the validity and invalidity of the contract.I will outline the issue of validity primarily along the grounds for invalidity regulated by the Civil Code. However, certain grounds cannot be taken into account. They are, in principle, related to the performance of a public task as the purpose of the asset management contract, or to the subjects of this contract, or the contract is valid due to other special features.