Action for absolute nullity of a management services agreement

The High Court of Cassation and Justice decided that nullity occurs as a penalty in case of a violation of the law when concluding a legal act, so that the reasons for requesting such sanction must be prior or contemporaneous with the time of concluding the agreement and not subsequent to it. In this case, the High Court held that the manner in which the agreement was drafted by the parties, does not show a lack of cause or purpose, but, on the contrary, this has been provided clearly and unequivocally, just like the related obligation of the other contracting party.

It is, therefore, legal to reject the action requesting, based on Art. 966 of the Civil Code (Art. 1236 and 1238 NCC), the absolute nullity of the contract, considering that the applicant tried to prove the lack of the agreement`s cause by invoking the existence of legal documents and facts occurred after the time of its conclusion and which were correctly considered by the Court as manifestations of the contract execution. (Civil Decision no. 435 of 11 February 2015 rendered in the remedy of Civil Section II of the High Court of Cassation and Justice having as object the declaration of absolute nullity of management services agreement).

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Adina Elena Oprea
Junior Lawyer

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