Mutual effects of invalidity – effects of the obligating transaction’s invalidity, with special regards to assigning claims

Abstract

In this paper we examine the correlations between the invalidities of the transaction that establishes obligation and those which factually results in the legal effect and how such transactions’ invalidity affects the process of assigning the ownership rights and claims. Over the course of our examination, we demonstrate (i) what role the legal institution of invalidity plays in the market economy’s well-functioning, (ii) the existing systems of assigning the ownership right and the specifics of the model that is applied in Hungarian civil law (especially how the Hungarian legislator introduced those types of transactions that result in changes in real property-related relationships), (iii) the way how claims could be assigned and (iv) compared to the invalidity of assigning real properties, what kinds of possible special situations could emerge if the invalidity affects a claim instead of a real property.