Under Article 27, fourth alternative, of the Bulgarian Obligations and Contracts Act, contracts concluded as a result of fraud are voidable.<\/p>\n
Fraud as a ground for setting aside a transaction under Article 29 of the Act requires all the following elements:<\/p>\n
1) A transaction was concluded;<\/p>\n
2) One party was mistaken about the nature of the transaction, its consequences, or both;<\/p>\n
3) The other party deliberately induced that mistake;<\/p>\n
4) The transaction was concluded because of the mistake: there must be a causal link between misleading the other party and the conclusion of the transaction.<\/p>\n
Deception consists in intentionally creating or maintaining a false impression about particular circumstances. The facts deliberately misrepresented by the other party may themselves be elements of the transaction. The deception can therefore concern its terms, type or nature. A person with legal capacity who understands the nature and significance of their actions and can control them is usually aware of the type, nature and terms of the transaction, but may have been misled about its legal effects or led to believe that different consequences would follow. In essence, fraud occurs when one party\u2019s intention is influenced in such a way that they misunderstand the transaction\u2019s actual consequences and would not have entered into it had they known them.<\/p>\n
This article is not a legal opinion of attorney Elitsa Markova, attorney Mihail Tomov or a lawyer at Markova, Tomov and Partners or advice concerning a particular situation or person. For assistance with a similar case, consult a civil lawyer experienced in contract law and the law of obligations.<\/em>
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