Pursuant to Clause 1, Article 407 of the 2015 Civil Code, the provisions on invalid civil transactions from Articles 123 to 133 of this Code are also applied to invalid contracts. Accordingly, the contract will be invalid if it falls into one of the following cases:
(1) The contract is considered absolutely invalid
- Due to violating the prohibition of the law, against social ethics.
- Due to making up.
- Due to failure to comply with regulations on form.
(2) The contract is considered relatively invalid
- Due to minors, people with civil act capacity loss, people with difficulty in perception, mastering behavior, people with limited civil act capacity to establish and perform.
- Due to a mistake.
- Due to being deceived, threatened, or forced.
- Because the founder was not aware and could not control their behavior.
However, not every of the above -mentioned cases, the contract is declared invalid. For example, in accordance with Clause 2, Article 129 of the 2015 Civil Code, civil transactions have been established in writing but violates the compulsory regulations of notarization and authentication that one party or parties have implemented at least two -thirds of the obligations in the transaction, at the request of one party or the parties, the Court issued a decision to recognize the validity of that transaction. In this case, the parties do not have to perform notarization and authentication.
Thus, if the real estate sale and purchase contract is subject to notarization and certification but the parties do not comply with the regulations, the contract may be invalidated due to non-compliance with the form of document violating the mandatory regulations on notarization and certification.
However, if one party or the parties have fulfilled at least 2/3 of their obligations in the contract, at their request, after fully reviewing the conditions of the contract, the Court will issue a decision to recognize the validity of that contract.
