18 Aug Theories On The Effect of Defective Intention To Validity of Contract
Theory of Invalidity: according to some authors in the doctrine and the Swiss Federal Court (Picasso decision of 1988), the contract is invalid for both parties in case of will disability. The right to assert this invalidity belongs only to the party whose Will is injured. If the party whose Will is disabled does not assert this invalidity within 1 year or gives consent to the contract, the contract is considered invalid from the moment it is first made.
Cancellation Theory: accordingly, the contract is valid from the beginning in case of Will injuries. But his will
if the injured party exercises its right to cancel, the contract is considered invalid from the moment it was first entered into. A party whose Will is injured will not be able to use this right again if it does not use the right to cancel it within 1 year.
Partial Invalidity: according to this view, in the case of will disabilities, the contract will does not bind the disabled person. The other party is contractually bound. Here, again, the right to cancel the contract must be exercised within 1 year. Otherwise, his will at the end of 1 year will not bind the injured side.
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