GROUNDS AND LEGAL CONSEQUENCES OF RECOGNITION OF THE CONSUMER CONTRACT INVALID

Abstract

The article examines the grounds and legal consequences of the invalidity of the consumer contract. Consumer contracts that contain unfair terms and contracts entered into using unfair entrepreneurial activity are invalid. Unfair conditions have been identified, which create a significant imbalance of rights and obligations to the detriment of consumers. Attention is drawn to the fact that changing the terms of the consumer contract or declaring them invalid causes a change in other terms of the contract. In this case, such conditions are also subject to change or the contract may be declared invalid as a whole. Unfair entrepreneurial practice is any entrepreneurial activity or inaction that is contrary to rules, trade and other fair practices and affects or may affect the economic behaviour of consumers in relation to products. It contains actions that are qualified by law as a manifestation of unfair competition and are any activity (action or inaction) that misleads the consumer or is aggressive. It is established that the requirement to apply the consequences of the invalidity of the consumer contract may be stated simultaneously with the requirement to declare it invalid or be an independent requirement in case of invalidity of such agreement and the presence of a court decision to invalidate the consumer contract. It has been proved that if a consumer contract is not concluded, it is superfluous to declare it invalid, because the legal relationship has not arisen, and the recognition of a consumer contract invalid will not protect violated consumer rights without such means as compensation for damage and compensation for non-pecuniary damage. Restitution is a common property consequence of an invalid consumer contract, which is applied not only in cases established by law, but also in the absence of direct instructions. Some provisions of the draft Law of Ukraine “On Consumer Protection” on the grounds for declaring the analysed contract invalid are examined.