Gratuitous nature of securities
Secured lending, Banking and finance, Civil law • Publication • 8 January 2016
The insolvency act provides that under certain conditions the validity of gratuitous contracts can be challenged. Based on this rule, it is very common that, in order to escape from their obligations, insolvency administrators challenge the validity of security agreements (e.g. surety). István Gárdos's article analysis whether such agreements can qualify as gratuitous contrats, and if yes, whether these contracts can be invalid due to gratuitousness. The article, in Hungarian, is available on our website: http://gfmt.hu/cikkek/a-biztositeki-szerzodesek-visszterhessege.php?kid=1&did=272