SHORT ESSAY ON THE LEGAL EFFECTS OF SIMULATED CONTRACTS IN REGARD TO THIRD PARTIES
Journal Title: Challenges of the knowledge society ( Provocari ale societatii cunoasterii ) - Year 2019, Vol 11, Issue 13
Abstract
The simulation is a lie born out of the will of the parties to evade showing successors or third parties the truth. The Romanian legislation has a tolerant approach towards simulation, and permits it, in general. The New Civil Code does not sanction the mechanism of simulation with nullity, but offering the rather milder sanction of inopposability. This short paper will strive to give a short analysis on the effects of this simulation upon the third parties – the objective successors and the creditors of the parties. The New Civil Code has numerous stipulations in order to regulate these complex effects as to avoid harming the interests of these third parties who usually act in good faith and gain rights from the parties of the simulation. These parties should and are protected by law, exactly because they acted in good faith. The objective successor of the apparent acquisitor will be protected against the true will of the parties, as, in general this true will harms his interests. Also, this paper will analyze the special situation of the creditors of the apparent seller and of the apparent aquisitor, as their situation can vary according to the person they come into conflict with.
Authors and Affiliations
Adrian-Gabriel DINESCU
Keywords
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- EP ID EP588249
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