According to a subjective impression, in the dispute between the spirit of the law and the letter of the law, the spirit of the law is increasingly winning. An example of this is the widespread application by the courts of the legal doctrine of the prohibition of contradictory conduct, which is based on the principle of good faith.
Thus, in judicial practice, this doctrine is most often used when resolving cases in which one of the parties claims that the contracts were not concluded due to the failure of the parties to agree on all essential conditions, untimely registration of contracts, signing of contracts by an unauthorized person, or in general, the invalidity of contracts in connection due to their not being signed by the parties, etc.
For a clear understanding, consider the following example. The parties concluded an agreement, which they did not sign, but took certain actions regarding its implementation, in particular, one party, acting in good faith, provided goods/works/services and issued an invoice for payment, while the other party refused to voluntarily pay the cost of the accepted goods/works/ services, referring to the invalidity of the contract, which in turn contradicts her previous behavior and is in bad faith.
In such a case, the other party has indicated by its behavior that it will not exercise its right to appeal, in particular because it accepted the specified goods/works/services and did not express any objections (for example, regarding their quality or quantity) and, as a result, she is bound by her decision and has no right to change it later.
And further attempts to challenge the specified contract, in particular by applying to the court with a claim to declare the specified contract invalid, will be futile and will not lead to the desired result, since non-compliance with the principle of good faith led to a violation of the rights and interests of the other party to the transaction.
Thus, the doctrine of prohibition of inconsistent conduct is primarily that no one may act contrary to his previous conduct.
If you have questions about whether your situation falls within the scope of this doctrine, contact the Dynasty Law & Investment team and our specialists will provide you with professional advice and qualified assistance
Violetta Fedorko, lawyer at Dynasty Law & Investment