CONTRACT NULLITY IN BOLIVIA: CAUSES, EFFECTS, AND PRACTICAL EXAMPLES

WHEN IS A CONTRACT CONSIDERED NULL?

A contract is void by operation of law when it fails to meet the fundamental requirements established by Bolivian legislation. In such cases, the contract is treated as if it never existed and cannot be rectified or confirmed by the parties.

MAIN CAUSES OF CONTRACT NULLITY IN BOLIVIA

ABSENCE OF OBJECT OR LEGAL FORM

To be valid, a contract must have a clear object and comply with formal requirements set by law. If any of these elements are missing, the contract is null.

Example: A real estate sale executed only verbally, without a notarized public deed, is null because Bolivian law mandates specific formalities for such transactions.

DEFICIENCIES IN THE CONTRACTUAL OBJECT

The object of the contract must be possible, lawful, and clearly defined. If it fails to meet these conditions, the contract lacks validity.

Example: A person sells a parcel of land that either does not exist or is owned by someone else. Since the object is nonexistent or unlawful, the contract is null.

ILLEGAL PURPOSE OR MOTIVE

If the contract is executed for a purpose prohibited by law or if the motive behind it is unlawful, the contract is null and void.

Example: A contract for the distribution of illegal substances is null due to its unlawful purpose, which violates public order and legal norms.

ESSENTIAL ERROR ABOUT THE NATURE OR OBJECT OF THE CONTRACT

If a party signs a contract without understanding its true nature or subject matter due to a fundamental error, the contract is null.

Example: A person signs a document thinking it is a lease agreement, but it is actually a purchase agreement. The essential error regarding the contract’s nature renders it null.

OTHER LEGAL GROUNDS FOR NULLITY

Bolivian law also declares contracts null when they violate public policy or good morals.

Example: A contract that includes abusive clauses infringing fundamental rights—such as prohibiting the right to rest or social security in an employment agreement—can be declared null.

WHAT IF ONLY ONE CLAUSE IS NULL?

If a clause in a contract is null, the rest of the agreement remains valid unless the null clause was essential to the contract’s formation.

Example: A clause waiving an employee’s right to vacation is null, but the overall employment contract remains in force.

WHO CAN REQUEST CONTRACT NULLITY?

Unlike voidable contracts, which can only be challenged by the affected party, any individual with a legitimate interest may request the nullity of a contract.

Example: An heir may file a claim to nullify the sale of a family-owned asset if the seller lacked legal authority to transfer ownership.

TIME LIMIT TO REQUEST CONTRACT NULLITY IN BOLIVIA

Nullity actions are imprescriptible, meaning they can be filed at any time regardless of how much time has passed since the contract was signed.

Example: A donation made to a person legally prohibited from receiving donations may be challenged by a family member of the donor, even decades later.

CAN A NULL CONTRACT BE VALIDATED OR RECTIFIED?

No. A null contract cannot be confirmed or corrected, as it lacks legal validity from the outset.

Example: If two parties sign a contract to sell an illegal item, they cannot later modify the agreement to make it lawful. The nullity is absolute and final.

CONCLUSION

In Bolivia, a contract is null when it fails to meet essential legal requirements or has an unlawful purpose. Unlike voidable contracts, which may be confirmed or corrected, null contracts have no legal effect from inception and can be challenged at any time.