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Any deal, contract or transaction concluded with a mentally impaired person is null and void.

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False transaction are insignificant and are applicable to the consequences of invalidity of transactions as per above.

An example of false transaction is the sale, or donation of property by the owner, in order to avoid its seizure in lieu of debts, or forfeiture in favor of the State.

Note also, that under the terms of this type of transactions, rebuttable legal consequences may occur in the future, and an unsatisfied party may apply to the court for recognition of the transaction null and void, with the aim of barring such rights and obligations of such a transaction occurring in the future.

In the Republic of Armenia, transactions that are in conflict with the law or other legal acts are invalid, however in some cases the law provides for these transactions to be declared insignificant.

Transactions concluded under the influence of delusions, which are essential in nature are rebuttable transactions and may be invalidated in court.

However, not every misconception and/or delusion is sufficient for recognition of the transaction invalid.In addition, the party at whose request the transaction is invalidated, has the right to demand compensation from the other party of the real damage if he/she proves that the delusion arose through the fault of the other party.If it is not proved, the party at whose request the transaction is invalidated, is obliged to compensate the other party the real damage, even if confusion has arisen due to circumstances beyond the control of the deluded party.It is essential that there exists misleading items at the time of the transaction, or misleading features of the transaction, which significantly reduces the possibility of using it for its intended purpose, to declare the transaction invalid.Misunderstanding about the motives and the reasons why the transaction was concluded are not significant.The deal is invalid from the date of contract, as such, each party shall reimburse the other side whatever was received from this transaction.