Transactions made by a person unable to understand or control their actions

Under Article 31(1) of the Bulgarian Obligations and Contracts Act, a contract made by a person with legal capacity is voidable if, when entering into it, the person could not understand or control their actions.

For a claim under Article 31(1) to succeed, two conditions must be established together: the person who made the contract had legal capacity, and that person was unable to understand or control their actions when making it. The provision protects people whose condition prevents them from safeguarding their rights and interests when entering into transactions, whether or not that condition could justify placing them under partial or full interdiction. An otherwise legally capable person may experience a temporary condition due to external or medical causes, such as illness, stress, hypnosis or another pathological effect, or to causes such as intoxication or drug use. The condition may also be lasting, even though the person has not been placed under interdiction.

What matters is the person’s condition at the time of the transaction: could they act consciously and rationally and thus freely form and express their intentions without outside interference? This is for the court to assess. Counsel may offer various forms of evidence to support their client’s assertions. Since the person has legal capacity, the court must consider all relevant circumstances established for the time in question that might bear on the decision to enter into the disputed transaction: age, state of health, way of life and any dependencies, including dependence on other people. Under Article 235 et seq. of the Code of Civil Procedure, the court must therefore weigh all the evidence before it: documents, witness testimony, expert opinions and the parties’ explanations. This is the settled approach in the case law; see, for example, Supreme Court of Cassation judgments No. 69 of 09.07.2015 in civil case No. 1582/2014 and No. 698 of 12.01.2011 in civil case No. 14/2010.

This article does not provide a legal opinion or advice about any particular person or situation. For legal assistance in an individual case, consult a lawyer.