Transactions, Contracts, and the Limitation Period

Transaction: an action aimed at creating, changing, or terminating civil rights and obligations (Civil Code, Article 101).

Transactions

Type	Examples
Unilateral	will, power of attorney
Bilateral	sale and purchase, lease
Multilateral	three or more parties take part (Article 102)

• Unilateral: will, power of attorney.
• Bilateral: sale and purchase, lease.
• A will is not bilateral: it is a unilateral transaction, because the will of one person is enough.

Form and Validity of a Transaction

• Form: oral or written (simple or notarized), Article 105.
• Sale of housing: notarization and registration. A contract for the sale of a house, an apartment, or a part of them is notarized and undergoes state registration (Article 488).
• A contract for the sale of other immovable property is drawn up as a single written document signed by the parties (Article 480), and the transfer of ownership is registered with the state (Article 481).
• For a transaction to be valid, the person's capacity, voluntary will, and compliance with the law are required. Valid transaction: capacity, will, law.
• Otherwise, the transaction is declared invalid.

Limitation Period

• Limitation period: the time within which a violated right can be protected through the court.
• General period: 3 years (Article 150).
• The period runs from the day the person learned of the violation of the right (or from the day they should have learned of it) (Article 154).

1. A person's right is violated
2. They learn of the violation or should have learned of it
3. The 3-year limitation period begins from that day
4. A claim is brought to court within the period