In this case, the owner does not wish to transfer actual property into the possession of another person, instead the owner pursues an illegal goal in order to avoid liability and responsibility.
A sham transaction is a transaction made in order to conceal another transaction.
With regard to the latter, they are subject to the same rules that are used in the nullity of transactions concluded by mentally or physically incompetent persons.
This may later be declared invalid at the suit of his guardian, if it is proven that at the time of the transaction the citizen was not able to understand the significance of his/her actions and/or control them.
Note also, that under the terms of this type of transactions, rebuttable legal consequences may occur in the future, and an unsatisfied party may apply to the court for recognition of the transaction null and void, with the aim of barring such rights and obligations of such a transaction occurring in the future.
In the Republic of Armenia, transactions that are in conflict with the law or other legal acts are invalid, however in some cases the law provides for these transactions to be declared insignificant.
Transactions concluded under the influence of delusions, which are essential in nature are rebuttable transactions and may be invalidated in court.
However, not every misconception and/or delusion is sufficient for recognition of the transaction invalid.