Article 130. Types of Securities
amended by (11) Law of 11th July 1997 of the Republic of Kazakhstan. Concerning the Introduction of Amendments and Additions to Certain Legislative Acts of the Republic of Kazakhstan Concerning Issues of Banking Activity; and
(15) Law No. 282 of 10th July 1998 of the Republic of Kazakhstan. Concerning the Introduction of Amendments and Additions to Certain Legislative Acts of the Republic of Kazakhstan Concerning Issues of Joint-Stock Companies.
1. The following shall be recognised as securities: debentures, consignments, shares and other documents which are recognised as securities by legislative acts or in accordance with the procedure established by legislative acts.
2. Securities may be bearer's securities, order securities and registered name securities.
The rights which are certified by registered name securities shall belong to the person inscribed in them.
The rights which are certified by bearer's securities shall belong to the bearer of the securities.
The rights which are certified in order securities shall belong to the person indicated in it, and in the cases of a transfer by him of those rights in accordance with the procedure stipulated in paragraph 3 of Article 132 of this Code, - to any other authorised person.
3. This Code and legislative acts may exclude the possibility of issuing securities of a certain type as registered name securities, order securities or as bearer's securities.
Also, legislative acts may envisage the possibility of issuing securities which combine the features of various types of securities.
Article 131. The Requirements to Securities
1. The types of rights which are certified by securities, the obligatory details of securities, and the requirements with regard to the pro-forma of a security and any other necessary requirements, shall be determined by legislative acts, or in accordance with the procedure established thereby.
2. The absence of obligatory details concerning a security or the non-compliance of a security with the pro-forma established therefor, shall entail its invalidity.
Article 132. The Conveyance of Rights Associated with Securities
as amended by (12) Law of No. 211 of 2nd March 1998 of the Republic of Kazakhstan. Concerning the Introduction of Amendments and Additions to the Civil Code of the Republic of Kazakhstan (General Part), and to the Decree of the Supreme Soviet of the Republic of Kazakhstan "Concerning the Implementation of the Civil Code of the Republic of Kazakhstan (General Part)".
1. In order to convey to any person the rights certified by a bearer's security, it shall be sufficient to hand the security to that person.
2. The rights certified by a registered name security shall be conveyed in accordance with the procedure which is established for the transfer of claims (cession). In accordance with Article 347 of this Code, a person who cedes the rights associated with a security shall be liable for invalidity of relevant claims, but not for its implementation. In a transfer of the rights associated with a registered name security to another person, the security in the transfer shall be annulled, and another security shall be issued to the new holder.
Legislative acts may stipulate re-assignment of rights under registered shares.
3. The right associated with order securities shall be conveyed by means of making on that security a conveyance inscription, the endorsement. The person who transfers the rights associated with an order security (endorser) shall be liable not only for the existence of the right but also for its exercise.
An endorsement executed on a security shall transfer all the rights certified by the security to the person to whom or by whose order the rights associated with the security (of the endorsee) are transferred. The endorsement may be blank (without any indication of the person to whom the consideration must be addressed).
The endorsement may be restricted only by the order to exercise the rights certified by the security, without any conveyance of those rights to endorser (pre-nomination endorsement). In this case the endorser shall act as a representative.
Article 133. Execution with Regard to Securities
1. The person that issued a security and all the persons who endorsed it shall be jointly liable to its legitimate owner. In the case of satisfying the claims of the legitimate owner of a security, related to the execution of the obligation certified by it, by one or several persons from amongst those liable in relation to the security, they shall acquire the right to revert claim (regress) to the other persons who had become liable in relation to the security prior to them.
2. The refusal to execute the obligations certified by a security with the reference to the lack of basis for the obligations or to its invalidity shall not be allowed.
3. The owner of a security who detected fraud or forgery of the security shall have the right to present the person that conveyed the security to him with the claim to properly execute the obligation certified by the security and to compensate losses.
4. The rights associated with securities held by any illegitimate holder shall not be exercised.
Article 134. The Restoration of Securities
The restoration of the rights associated with the lost bearers' securities and order securities, shall be carried out by the court in accordance with the procedure stipulated in the procedural legislation.
Article 135. Non-Documentary Securities
[as amended by (7) Law of the Republic of Kazakhstan. Concerning the Introduction of An Addition and Amendments to the Civil Code of the Republic of Kazakhstan (General Part). March 5, 1997].
1. In the cases which are determined by legislative acts or in accordance with the procedure stipulated therein, organisations which obtained special-purpose licences may carry out the registration of rights affixed in registered-name or order securities, including in a non-documentary form (with the use of electronic and computer equipment etc.). The rules established by this Code and other legislative acts concerning securities, shall apply to such a form of fixation of rights, unless otherwise ensues from the specific features of the fixation.
The fixation which is carried out upon the petition of the issuer or a person who is registered as the holder of the relevant rights, shall be equated to the security, and it shall be sufficient for the exercise and transfer of the right associated with the security. Upon the request of the holder of the rights, the depository shall be obliged the organisation which obtained the special-purpose licence shall be obliged to issue to him a document which certifies the affixed rights.
2. The rights which are certified by way of fixation with the depository, the procedure for the activities of securities depositories and for issuing to them of licences to carry out transactions involving securities, the procedure for the official fixation of rights and title holders by depositories, the procedure for the documentary confirmation of depositories' notes, and the procedure for the commission of transactions in non-documentary securities, shall be determined by legislative acts or in accordance with the procedure established thereby.
3. The exercise, transfer, assignment, and restriction of the rights must be documented in accordance with the legislation of the Republic of Kazakhstan. The professional participants of the securities market which received the special-purpose licence for registration of the rights fixed by registered or bearers securities, including those in the non-documentary form shall be liable for the safety of official entries, ensuring their confidentiality, disclosure of accurate information on such entries, and for the making official entries concerning the transactions performed.
Article 136. A Debenture
amended by (11) Law of 11th July 1997 of the Republic of Kazakhstan. Concerning the Introduction of Amendments and Additions to Certain Legislative Acts of the Republic of Kazakhstan Concerning Issues of Banking Activity; and
replaced by (15) Law No. 282 of 10th July 1998 of the Republic of Kazakhstan. Concerning the Introduction of Amendments and Additions to Certain Legislative Acts of the Republic of Kazakhstan Concerning Issues of Joint-Stock Companies.
Article 136. Debentures
A security which certifies the right of its holder to receive its nominal value or its other equivalent assets, from the entity which issued that security within the period established by the terms of that security's issue shall be recognised as debenture.
A debenture shall also grant to its holder the right to receive remuneration (interest) on it in accordance with the terms of the debenutres' issue.
Article 137. A Cheque
deleted by (11) Law of 11th July 1997 of the Republic of Kazakhstan. Concerning the Introduction of Amendments and Additions to Certain Legislative Acts of the Republic of Kazakhstan Concerning Issues of Banking Activity.
Article 138. A Bill of Exchange
deleted by (11) Law of 11th July 1997 of the Republic of Kazakhstan. Concerning the Introduction of Amendments and Additions to Certain Legislative Acts of the Republic of Kazakhstan Concerning Issues of Banking Activity.
Article 139. A Share
amended by (11) Law of 11th July 1997 of the Republic of Kazakhstan. Concerning the Introduction of Amendments and Additions to Certain Legislative Acts of the Republic of Kazakhstan Concerning Issues of Banking Activity;
(12) Law of No. 211 of 2nd March 1998 of the Republic of Kazakhstan. Concerning the Introduction of Amendments and Additions to the Civil Code of the Republic of Kazakhstan (General Part), and to the Decree of the Supreme Soviet of the Republic of Kazakhstan "Concerning the Implementation of the Civil Code of the Republic of Kazakhstan (General Part)"; and
(15) Law No. 282 of 10th July 1998 of the Republic of Kazakhstan. Concerning the Introduction of Amendments and Additions to Certain Legislative Acts of the Republic of Kazakhstan Concerning Issues of Joint-Stock Companies.
1. A share shall be recognised to be a security which certifies the right of its holder (shareholder) to receive part of net income of a joint stock company in the form of a dividend, to participate in managing the business of the joint stock company, and to part of the property of the joint stock company, which remains after its liquidation.
2. A joint-stock company shall have the right to issue ordinary and preference shares. The procedure for issuing shares shall be defined in legislation.
3. The foundation parties of joint stock company may introduce a "golden share" which does not participate in the formation of the charter capital and the receipt of dividends. The holder of the golden share shall only have the right to veto the decisions of the general meeting, of the board and of the supervisory council with regard to the issues stipulated in the charter.
Article 140. Bank Certificate
deleted by (11) Law of 11th July 1997 of the Republic of Kazakhstan. Concerning the Introduction of Amendments and Additions to Certain Legislative Acts of the Republic of Kazakhstan Concerning Issues of Banking Activity.
§ 3. Personal Non-Property Rights
Article 141. Protection of Personal Non-Property Rights
as amended by (12) Law of No. 211 of 2nd March 1998 of the Republic of Kazakhstan. Concerning the Introduction of Amendments and Additions to the Civil Code of the Republic of Kazakhstan (General Part), and to the Decree of the Supreme Soviet of the Republic of Kazakhstan "Concerning the Implementation of the Civil Code of the Republic of Kazakhstan (General Part)".
1. A person whose personal non-property rights are violated, apart from the measures stipulated in Article 9 of this code, shall have the right to compensation of moral damage by the rules of this Code.
2. Protection of personal property rights shall be carried out by the court in accordance with the procedure stipulated in civil procedural legislation.
3. Personal non-property rights shall be subject to protection irrespective of the guilt of the person that violated the right, unless it is otherwise stipulated in the present Code. The person who presented a claim of defence must prove the fact of the violation of his personal non-property right.
4. The person whose non-property right is violated may at his discretion, claim from the violator the elimination of the consequences of the violation or at the expense of the violator to independently undertake the necessary actions, or to delegate their execution to a third party.
Article 142. Personal Non-Property Rights Which are Associated
With the Property Rights
In the event that personal non-property and property rights are simultaneously violated, the amount of compensation for property damage shall be increased by considering the compensation which is due to the victim because of the violation of his personal non-property rights.
Article 143. Protection of Honour, Dignity and Business Reputation
1. Through the court a citizen or a legal entity shall have the right to refutation of information which damages his honour, dignity or business reputation, unless the one who spreads such information proves that the information is true.
2. Where the information that damages the honour, dignity or business reputation of a citizen or a legal entity is spread through the mass media, that information must be free of any charge refuted by the same mass media.
In the case where said information is contained in a document issued by an organisation, such a document shall be subject to replacement or annulment with the obligatory communication to the addressees of the inconsistency of the information contained in that document.
The procedure for refutation in other cases shall be established by the court.
3. A citizen or a legal entity with regard to which the mass media published information which restricts his rights or legitimate interests, shall have the right to publish their response in the same mass media free of any charge.
4. The claim by a citizen or a legal entity to publish a refutation or response in the mass media shall be considered by the court in a case where the mass media refused such publication, or did not carry out the publication within one month, and also in the case of its liquidation.
5. Where a court decision is not executed, the court shall have the right to impose a fine upon the violator, which shall be taken for the revenue of the budget. The fine shall be imposed in accordance with the procedure and in the amounts which are established by the civil procedural legislation. The payment of the fine shall not exempt the violator from the obligation to execute the action stipulated in the court decision.
6. A citizen or a legal entity with regard to whom information was spread that damages his honour, dignity or business reputation, shall have the right, apart from the refutation of such information, to demand compensation for the damage and the moral harm inflicted by their promulgation.
7. Where it is impossible to identify the person that spreads the information which damages the honour, dignity or business reputation of a citizen or a legal entity, the person with regard to whom such information is spread, shall have the right to appeal to the court with an application to recognise that the promulgated information as not true.
Article 144. The Right to Protect Secrets of Private Life
amended by (11) Law of 11th July 1997 of the Republic of Kazakhstan. Concerning the Introduction of Amendments and Additions to Certain Legislative Acts of the Republic of Kazakhstan Concerning Issues of Banking Activity.
1. A citizen shall have the right to protect the secrecy of his private life, including the secrecy of letter exchange, telephone conversations, diaries, notes, comments, sexual life, adoption, birth, medical secrets, legal secrets, and secrecy of bank investments.
The disclosure of the secrets of private life shall only be possible in the cases which are stipulated by legislative acts.
2. The publication of diaries, notes, comments and any other documents shall be permissible only with the permission of their author, and as regards letters, - with the consent of both their author and the addressee. In the case of demise of one of them, said documents may be published with the consent of the surviving spouse and the children of the deceased.
Article 145. One's Right to the One's Own Picture
1. Nobody shall have the right to use the image of a person's face without his consent, and in the case of his demise, - without the consent of his inheritors.
2. The publication, reproduction and distribution of a graphic piece (picture, photograph, film etc.), in which another person is depicted, shall only be permissible with the consent of the depicted, and after his death, - with the consent of his children and surviving spouse. Such consent shall not be required where it is established by legislative acts or the person depicted was posing for a fee.
Article 146. The Right to Inviolability of Housing
A citizen shall have the right to inviolability of his house, that is, to prevent any attempts of intrusion into his house against his will, except for the cases stipulated in legislative acts.
Chapter 4. Transactions
Article 147. The Definition of a Transaction
The actions of citizens and legal entities which are aimed at establishing, changing or terminating civil rights and obligations, shall be recognised as transactions.
Article 148. Unilateral Transactions and Agreements
1. The transactions may be unilateral and bilateral or multilateral (agreements).
2. A transaction, the performance whereof, in accordance with legislation or the agreement of the parties, requires the expression of the will of one party and this is sufficient, shall be recognised as a unilateral transaction.
3. In order to enter into an agreement, it shall be necessary to have an expression of the agreed will of two parties (a bilateral transaction) or of three or more parties (multilateral transaction).
Article 149. The Legal Regulation of Unilateral Transactions
1. A unilateral transaction shall create obligations for the entity that enters into the transaction. It may create obligations for other persons only in the cases which are stipulated in legislative acts or by agreement with those persons.
2. Appropriately, the general provisions concerning obligations and agreements shall apply to unilateral transactions, inasmuch as it does not contradict legislation, or the nature and the essence of the transaction.
Article 150. Transactions Entered into Under Condition
1. A transaction shall be considered to be entered into under a delaying condition, where the parties conditioned the emergence of their rights and obligations upon a circumstance, with regard to which it is not known whether it will occur or not.
2. A transaction shall be deemed to be entered into under an invalidating provision, when the parties conditioned the invalidation of the rights and obligations by a circumstance, with regard to which it is not known whether it will occur or not.
3. When the emergence of a condition is unfairly impeded by a party to which the emergence of the condition is non-beneficial, then the condition shall be recognised as having taken place.
When the emergence of a condition is unfairly assisted by a party, for whom the emergence of the condition is favourable, then the condition shall be recognised as not having taken place.
Article 151. The Form of Transactions
1. Transactions can be entered into orally or in written form (simple or notary).
2. A transaction for which legislation or the agreement of the parties does not establish a written form (simple or notary), or any other definite form, may be entered into orally, in particular, any transactions which are executed by their commitment. Such a transaction shall be deemed to be entered into also in the case where the will of the person to enter into the transaction is clear from the behaviour of the person.
3. A transaction which is confirmed by issuing a ticket, label or any other sign which is generally acceptable for confirmation, shall be deemed to be concluded in oral form, unless otherwise is stipulated in legislation.
4. Silence shall be recognised as the expression of will to enter into a transaction in cases which are stipulated by legislation or the agreement of the parties.
5. Transactions to execute an agreement which is concluded in writing may, by agreement of the parties, be entered into orally, provided that does not contradict legislation.
Article 152. The Written Form of Transactions
as amended (12) Law of No. 211 of 2nd March 1998 of the Republic of Kazakhstan. Concerning the Introduction of Amendments and Additions to the Civil Code of the Republic of Kazakhstan (General Part), and to the Decree of the Supreme Soviet of the Republic of Kazakhstan "Concerning the Implementation of the Civil Code of the Republic of Kazakhstan (General Part)".
1. The following transaction must be entered into in writing:
1) those which are carried out in the course of entrepreneurial activities, except for transactions which are fulfilled by their execution itself, unless it is otherwise stipulated in legislation for individual types of transactions, nor does it ensue from the customs of the business practice;
2) for the amount of more than one hundred assessment indices, except for the transactions which are executed by their commitment itself;
3) in any other cases which are stipulated in legislation or the agreement of the parties.
2. A transaction which is executed in writing, must be signed by the parties or their representatives, unless otherwise ensues from the usual business practice.
It shall be allowed, when entering into transactions, to use facsimile copying of signatures, unless this contradicts legislation or the requirements of one of the participants.
3. Bilateral transactions may be entered into by way of exchanging documents, each one of them shall be signed by the sending party.
The exchange of letters, telegrams, telephonograms, teletypograms, facsimiles or any other documents which identify the entities and the contents as expression of their will, shall be equated to the execution of transactions in writing, unless it is otherwise stipulated in legislation or in the agreement of the parties.
Legislation and the agreements of parties may establish additional requirements to which the form of the transaction must correspond, in particular, the execution in accordance with a certain type of pro-forma, affixing the seal and stipulation of the consequences of the failure to comply with those requirements.
4. Where a citizen as a result of a physical shortage, disease or illiteracy is not able to personally sign, then upon his request a transaction may be signed by any other citizen. The signature of the latter, unless it is otherwise stipulated in legislation, must be witnessed by a notary or any other official who has the right to enter into such notary action with an indication of the reasons for which the person who entered into the transaction failed to sign it personally.
5. The party that fulfilled a transaction which was executed in writing, shall have the right to claim from the other party a document which confirms that fulfilment. The same right shall belong to the party which fulfilled an oral entrepreneurial transaction, except for the transactions which are fulfilled by their commitment itself.
Article 153. The Consequences of a Failure to Comply With the
Written Form of a Transaction
1. A failure to comply with the simple written form of a transaction shall not entail its invalidity, but it shall deprive the parties of the right to confirm its conclusion, contents or its execution by witness evidence in the case of a dispute. The parties, however, shall have the right to confirm the execution, contents or the implementation of a transaction by written or any other proofs except for the use of witness's evidence.
2. In the cases which are specifically stipulated in legislative acts or in the agreement of the parties, a failure to comply with the simple written form of a transaction shall entail its invalidity.
3. A failure to comply with the simple written form of a foreign economic transaction, shall entail the invalidity of the transaction.
Article 154. Notarisation of Transactions
1. In the cases which are stipulated in legislative acts or by the agreement of the parties, written transactions shall be deemed to be entered into only upon their notarisation. The failure to comply with these requirements shall entail the invalidity of the transaction with the consequences stipulated in paragraph 3 of Article 157 of this Code.
2. Where a transaction which requires notarisation is actually fulfilled by the parties or by one of the parties, and by its contents does not contradict legislation and does not violate the rights of third parties, the court upon the application of the interested party shall have the right to recognise the transaction as valid. In that case the subsequent notarisation of the transaction shall not be required.
Article 155. Registration of Transactions
as amended by (12) Law of No. 211 of 2nd March 1998 of the Republic of Kazakhstan. Concerning the Introduction of Amendments and Additions to the Civil Code of the Republic of Kazakhstan (General Part), and to the Decree of the Supreme Soviet of the Republic of Kazakhstan "Concerning the Implementation of the Civil Code of the Republic of Kazakhstan (General Part)".
1.Transactions which are subject, in accordance with legislative acts, to state registration or other registration, including transactions which create, change, or terminate the rights enumerated in the first part of paragraph 2 of Article 118 of the present Code, shall be considered as concluded after their registration, unless it is otherwise stipulated in legislative acts.
A denial of registration must be formulated in writing, and it may be possible only with a reference to violation of the requirements of legislation.
2. Where a transaction which requires state registration is executed in a proper form, but one of the parties evades its registration, the court shall have the right upon the claim of the counter party to pass the decision to register the transaction. In this case the transaction shall be registered in accordance with the decision of the court.
Article 156. Bourse Transactions
as amended by (12) Law of No. 211 of 2nd March 1998 of the Republic of Kazakhstan. Concerning the Introduction of Amendments and Additions to the Civil Code of the Republic of Kazakhstan (General Part), and to the Decree of the Supreme Soviet of the Republic of Kazakhstan "Concerning the Implementation of the Civil Code of the Republic of Kazakhstan (General Part)".
1. Agreements concerning mutual conveyance of rights and obligations with regard to goods, securities and other assets which are permitted to be circulated at the bourse (bourse transactions), shall be concluded by the participants of the bourse in accordance with the procedure which is established by legislation concerning commodity, stock and other bourses and in the charters of bourses.
2. Bourse transactions may be documented by broker records, and they shall be subject to registration by the bourse.
3. Unless otherwise ensues from legislation, from the agreement of the parties or from the essence of the transaction, the rules for the relevant agreements (purchase and sale agreements, commission agreements, and other) shall apply to bourse transactions in relation to the contents.
4. Legislation or the bourse charter may stipulate the conditions of bourse transactions which constitute commercial secrets of the parties and which are not to be subject to disclosure without their consent.
5. Disputes which are associated with the entering into bourse transactions shall be settled by the arbitration attached to the relevant bourse, the decision of which may be challenged in a court.
Article 157. Invalid Transactions and the Consequences of Their
Invalidity
1. When the requirements are violated which are applicable to the form, or contents of a transaction and to the participants of a transaction, and also to the freedom of their will expression, the transaction may be recognised as invalid in accordance with an action of the interested parties, a duly authorised state body or the procurator.
2. The bases of invalidity of a transaction and also the list of persons who have the right to demand the recognition thereof as invalid, shall be established by this Code or any other legislative acts.
3. When a transaction is recognised as invalid, each party shall be obliged to return to the to the other party everything that was received in the transaction, and where it is not possible to return it in kind, to return its value in money.
4. When a transaction is aimed at the achievement of a criminal purpose, then, where the intention exists on the part of both parties, everything received by them in the transaction or intended to be received, upon the decision or sentence of the court shall be subject to confiscation. In the case of the execution of such a transaction by one party, everything which is received by it and everything which is due from it in the transaction to the first party shall be subject to confiscation. Where none of the parties proceeded to the implementation, everything which is envisaged by the transaction for its implementation shall be subject to confiscation.
5. Where the intention to achieve a criminal purpose exists only with one of the parties, everything that is received by it in the transaction shall be subject to return to the other party, and what is received by the latter or due to it in accordance with the transaction, shall be subject to confiscation.
6. Subject to specific circumstances, the court shall have the right not to apply partially or in full the consequences which are stipulated in paragraph 4 and 5 of this Article, as concerning the confiscation of the assets received or subject to receipt through invalid transactions. In that regard the consequences shall arise which are stipulated in paragraph 3 of this Article.
7. Aside from the consequences stipulated in paragraphs 3 - 6 of this Article, the court may exact for the benefit of the other party the losses incurred by the latter, which are associated with the recognition of a transaction as invalid from the party which is guilty of commission of the acts which cause the invalidity of the transaction.
8. An invalid transaction shall not entail any legal consequences, except for those which are associated with its invalidity, and it shall be invalid from the moment of its commitment.
9. In recognising a transaction as invalid, the court shall have the right to take into account the specific circumstances, and restrict itself at the prohibition of its further execution.
Article 158. Invalidity of a Transaction the Contents Whereof Do
Not Comply with the Requirements of Legislation
1. A transaction, the contents of which do not comply with the requirements of legislation, and which is entered into for a purpose which is deliberately opposite to the fundamentals of the law and order or morals, shall be invalid.
2. A person who deliberately concluded a transaction which violates the requirements of legislation, the charter of a legal entity or the authority of its bodies, shall not have the right to claim the recognition of the transaction as invalid, provided such a claim is caused by financial interest or the intention to evade responsibility.
3. In the event that one of the participants of a transaction entered into it with an intent to evade from the execution of the obligation or from the duty to a third person or the state, and the other participant of the transaction new or should have known of that intention, an interested party (the state) shall have the right to claim to recognise the transaction as invalid.
Article 159. The Bases for the Invalidity of Transactions
as amended by (12) Law of No. 211 of 2nd March 1998 of the Republic of Kazakhstan. Concerning the Introduction of Amendments and Additions to the Civil Code of the Republic of Kazakhstan (General Part), and to the Decree of the Supreme Soviet of the Republic of Kazakhstan "Concerning the Implementation of the Civil Code of the Republic of Kazakhstan (General Part)".
1. A transaction entered into without obtaining the required licence or after the expiry of the term of a licence shall be invalid.
2. A transaction which pursues the purposes of unfair competition or which violates the requirements of business ethics shall be invalid.
3. A transaction which is entered into by the person who did not reach fourteen years of age, except for the transactions stipulated in the Article 23 of this Code, shall be invalid.
4. A transaction which is entered into by a junior which reached fourteen years, without consent of his parents (adopters) or sponsors, except for the transactions which he in accordance with the law has the right to enter into independently, may be recognised by the court as invalid upon the action by the parents (adopters) or the guardian.
5. A transaction shall be invalid which is entered into by a person who is recognised as incapable as a result of a mental disease or mental weakness. A transaction which is entered into by a citizen, who afterwards is recognised as incapable (Article 26 of this Code), may be recognised by the court as invalid upon the action by his guardian, provided it is proved that at the moment of the commitment of the transaction that citizen was in the condition of a psychic disorder.
6. Upon the requirement of the guardian the court may recognise as invalid transaction which is entered into by the person whose deed capacity is restricted by the court.
7. A transaction which is entered into by a citizen who, although capable, but at the moment of its commitment was in a state that he could not realise the meaning of his actions or guide them, may be recognised by the court as invalid in accordance with the action of that citizen, but if when alive the citizen did not have an opportunity to file the action, - after the death of the citizen upon the action of any other interested persons.
8. A transaction which is entered into as a result of a significant error may be recognised by the court as invalid upon an action by the party which acted under the influence of misguidance. The misguidance is material where it relates to the nature of a transaction, the identity, or to any other qualities of its subject which significantly reduce the possibility of its intended use. Misguidance in the motives may serve as a basis of invalidity of a transaction only when such motive is included in its contents as a delaying or annulling condition (Article 150 of this Code).
