IMPACT OF A FORGED DOCUMENT ON CONTRACTUAL RELATIONSHIPS
Bolivia’s highest court has ruled that a forged document—such as a fake or non-existent notarized power of attorney—cannot produce valid legal effects. Even if a third party enters into a contract relying on the document’s authenticity and acting in good faith, the resulting legal act is also invalid. In other words, the defect at the origin contaminates the resulting contract.
This interpretation is rooted in the protection of the legitimate owner’s rights and in the principle of legal certainty, a cornerstone of Bolivia’s legal system.
CASE STUDY: FORGED POWER OF ATTORNEY AND SALE WITHOUT CONSENT
Supreme Court Ruling No. 77/2019 reviewed a case where a notarized power of attorney was forged, allegedly granted by a property owner to her son, who later sold the property without her legitimate authorization. Although the buyer claimed to have acted in good faith—presenting architectural plans, cadastral certificates, and payment receipts—the court declared the transaction null and void.
GOOD FAITH AND ITS LIMITS UNDER BOLIVIAN CIVIL LAW
Bolivian civil doctrine, aligned with general legal principles, recognizes good faith as essential in contractual matters. However, when a legal act stems from falsehood, good faith loses its legal power. According to the court, a good faith buyer may claim compensation for payments made or initiate criminal actions against the forger, but the contract itself remains invalid.
APPLICATION OF THE CIVIL CODE IN FORGERY CASES
The ruling falls within the scope of Bolivia’s Civil Code, particularly the provisions governing annulment due to simulation and lack of consent. Any contract based on a forged power of attorney is subject to annulment and may be declared null at any time, as it involves public policy considerations.
Need clarity on the validity of a contract you’ve signed or received? Our legal firm in Bolivia is ready to provide specialized legal advice and protect your rights with diligence and expertise. Contact us today for a personalized consultation.
Frequently Asked Questions (FAQs)
Can a contract be declared null due to a forged power of attorney, even if it was signed over 20 years ago?
Yes. The nullity of a contract based on document forgery does not expire as long as its legal effects persist.
What rights does a good faith buyer have in these situations?
They may request a refund of payments made or take legal action against the forger, but the contract itself remains invalid.
Does good faith validate the contract if the forgery was not detected?
No. Good faith does not legitimize an act based on non-existent representation.
Can criminal charges be filed for using a forged document in a civil contract?
Yes. Document forgery also carries criminal consequences under Bolivian law.
What evidence is required to prove document forgery?
A technical expert report or documentary evidence demonstrating the non-existence or falsification of the act is essential.
- Supreme Court of Justice of Bolivia. (2019). Supreme Ruling No. 77/2019, February 6, 2019. Sucre, Bolivia.
- Civil Code of the Plurinational State of Bolivia.
- Political Constitution of the State (2009). Plurinational State of Bolivia.
The content of this article does not reflect the technical opinion of Rigoberto Paredes & Associates and should not be considered a substitute for legal advice. The information presented herein corresponds to the date of publication and may be outdated at the time of reading. Rigoberto Paredes & Associates assumes no responsibility for keeping the information in this article up to date, as legal regulations may change over time.
