6. Repudiation of the bargain.

By general rule, a person that executed a legal transaction has a right to repudiate it (an art. 214 of Civil Code of Ukraine).

Terms, procedure and consequences of such refuse, depend on that, whether this legal transaction is unilateral or it is a contract. Thus, as a legal transaction is one of main grounds of origin of civil rights and duties, the conditions fixed in art. 214 of the Code follows to regard in a complex with rules, which are contained in chapters, devoted to obligations in general and to contractual obligations, in particular art. art. 615, 651, 653, 1149, 1153 and others of the Code ). The consequences of repudiation of a legal transaction depend on that, whether there is an unilateral bargain or a contract.

Thus, a person which executed an unilateral bargain has a right to refuse it, if other is not set by a law.

To repudiate an unilateral bargain is simply enough. The explanation is that a person, who’s executing a legal transaction, keeps bargain freedom, including, freedom (a right) to give up an unilateral bargain, but under the stipulation that, such refuse does not breach other persons’ rights (art. 13 of the Code). It not – breached rights are defended on general grounds, set art. art 16 - 23 of the Code.

Persons who execute a contract (bilateral or multilateral legal transaction) have a right after a mutual stipulation, and also in cases, set by law, to refuse it, even and in that case, if its terms are already fully executed by them (part 2 art. 214 of the Code).

In addition, according to art. 651 repudiation of an agreement (cancelling a contract) is possible on other grounds. In particular, a contract in itself can consist of reasons by which an agreement can be terminated on one-sided request on party’s initiative. For example, there can be set a right to refuse an agreement, if it’s not executed in accordance to its terms, a debtor does not execute the separate conditions of agreement etc.

Law provides procedural (judicial) and material guarantees for all participants of relations, related to refuse a legal transaction.

The procedural guarantee of interests of participants of legal relations is a requirement of accomplishment of repudiation of a bargain in the same form it was concluded.

The material guarantees of interests of participants of civil legal relations in the case of repudiation of a bargain are set in part 4 art. 214 of the Code, which provides that legal consequences of such refuse, are set by law or parties’ agreement.

Thus, at first, parties can define the consequences of repudiation of a bargain (it takes place, usually, in the cases of bargain’s terminating after a mutual consent).

Secondly, the consequences of repudiation of a bargain can be determined directly in law. It, foremost, takes place in the case of refuse of an unilateral bargain, and also in cases, if there is no pointing on the consequences of its terminating in contract itself (art. 653 of the Code).