Corporate practice

A contract that is held invalid does not lead to legal consequences because of actions taken during the transaction. In other words, according to civil law, the parties to the contract do not acquire any rights and obligations to each other. Everything received by the parties after the conclusion of the contract returns to the parties of the transaction (mutual restitution).

A void contract has a narrower definition. It is a type of invalid transactions. An agreement may be void, for example, if the transaction was under the influence of a delusion. In other words, a deal is null and void if its goal is obviously contrary to the principles of public order and morality, and if it does not comply with existing laws. Such a contract will be invalid by virtue of the law from the moment of its conclusion.

Audit activities are regulated by Federal Law No. 307-FZ of December 30, 2008 “On Auditing”, which sets out the key principles for carrying out legal audit.

Through this procedure, we analyze the current state of the legal entity or the work of its individual divisions (accounting, taxation, managerial decision, etc.). With its help, it is possible to identify the imperfections of the system and prepare a number of recommendations for their elimination.

Due-diligence (English due diligence) in translation means “ensuring due honesty”. The aim of this procedure is to draw up an objective view of the object of investment and to assess investment risks. Due-diligence usually takes place before buying a business, signing a contract / agreement or cooperating with a new company.

To begin with, when you carry out a transaction with any person, then you should verify all their/his/her financial and economic activities. In practice, performing a legal audit, the company solves a huge number of tasks: removes the risk of sanctions and simplifies control over the activity, checks the proper execution of documentation, makes the transactions “transparent” in all respects, provides an opportunity to assess the level of responsibility and identify possible legal risks.