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What is a deal? Legal and fiduciary types of transactions

Rights and obligations regarding clients and partners arise, are modified and terminated through the conclusion of transactions. What is a deal? In civil law, a transaction is defined as "the act of a citizen or legal entity aimed at establishing, terminating or changing civil obligations and rights" (Article 153 of the Civil Code). A transaction is the action of a certain person. Such natural phenomena as flood, hurricane, fire, strikes and military actions, although they lead to legal consequences, but are not transactions. What is a deal, from the point of view of the law? This is an exclusively legitimate action carried out within its framework. Causing harm to life, health or property of another person is not recognized as a transaction, as such behavior goes beyond the limits permitted by law. We decided on what this transaction is, now we will consider two of its types: fiduciary and legal transactions.

Fiduciary transaction

By the nature of the relationship between the parties, the transaction can be fiduciary and non-fiduciary. A fiduciary transaction is a transaction based on the trusting relationship of both participants. The main feature that fiduciary transactions differ from others is that if the nature of the relationship between the parties changes, the loss of confidence can be the reason for the termination of relations. The principal and the attorney in the contract of commission are entitled to cancel the contract at any time. An example of such a transaction may be a contract of commissioning the sale of a car. The trustee (instructing to sell the car) and the attorney (the one to whom charged) can at any time terminate the transaction with reimbursement of costs to the other party, if, of course, such took place.

Legal transaction

Roman lawyers did not develop the notion of a legal transaction. The terms they use (gestum, negotium, actum, actus) do not have a specific technical value. The formulation of this concept is a merit of modern taxonomy. Usually, a legal transaction is understood as a private will to establish, terminate or change rights. Mutual relations between people and their relation to the objects of the surrounding world are partially regulated by law and customs, in part the settlement of these relations (especially private ones) is provided to the interested parties themselves. Legal transactions are just a means of voluntary settlement of relations. A legal transaction does not exist until its will has been transformed from an objective form into a subjective one, that is, while its content is not perceived by the interested persons to whom this will was addressed. Therefore, a simple intention, for example, to bequeath someone's property, has no legal force. On the other hand, in order for the will to have legal consequences, it is necessary that the contents of this will correspond to the content of the objective law.

So, we found out what a deal is, and also considered its two types. In fact, the types of transactions are much greater, and for their detailed disclosure you will need not even one but a whole series of articles.

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