Analysis of the Application of the Institute of the Conversion of the Transactions in Russia for Compliance with the Principles of Civil Law

Transaction conversion is an institution aimed at transforming invalid transactions into valid ones. There is no legal regulation of the conversion of transactions in Russian civil legislation, however, there are cases of its application in judicial practice. When referring to this institution in law enforcement, the courts do not provide a proper justification for the chosen approach, which causes difficulties in understanding the functioning of the conversion mechanism. In addition, the lack of a legal basis for the conversion makes it difficult to assess this phenomenon legally, taking into account the requirements of the current legislation. The objective of this research is to assess the judicial approaches to the conversion of transactions for compliance with the basic principle of civil law: the principle of freedom of contract, good faith. A legal assessment was made for the case of the conversion of the customer's unlawful unilateral refusal from the work contract into an unmotivated cancellation of the contract and the conversion of the transaction on the illegal alienation of property in common share ownership into a transaction for the alienation of a share in the right to property. In order to achieve the objective, the author set the tasks to analyze foreign experience in converting transactions, establish possible goals for applying conversion, analyze court decisions in which the conversion of transactions was carried out and try to determine the procedure for its application, taking into account the actual circumstances of the dispute. As a result of the study, the author comes to the conclusion that the existing judicial approaches to the conversion of transactions do not comply with the principles of freedom of contract and good faith in full. Based on the analysis of the identified shortcomings, the author proposed ways to improve the rules for applying the conversion of transactions.