Annotation

The theory of transaction transformation (conversion) is not recognized in the Civil Сode of the Russian Federation; however, it is reflected in judicial practice, particularly when considering disputes related to the invalidity of a customer's reasoned refusal to perform a contract and its transformation into an unmotivated refusal. This theory is based on the following: an invalid transaction may be transformed into another, valid transaction if this corresponds to the presumed intent of the person or persons entering into the transaction. Invalid and valid transactions must have similar legal effects. Due to the lack of a supporting provision in the Civil Code of the Russian Federation on the transformation of transactions, as well as insufficient theoretical study of the topic, courts, when transforming a customer's reasoned refusal into an unmotivated one, do not always ascertain the customer's intent to terminate the contract on other grounds, which ultimately leads to unfair results. This article discusses key aspects of the theory of transaction conversion and outlines its advantages in the context of the topic under study.