Simulation of contracts with special reference to the concept of effects on third parties

Abstract

The notion and the problem of the concept Simulation of Contracts were and are ever present in today's legal system more than ever. Unfortunately, this problem recurs again and again. A brief look at the amount of cases concerning the notion of simulation evidences the frequency of its occurrence. In a progressing world, where day by day, new problems arise in every field, it is of the utmost importance that the legal system moves hand in hand with the changing ambient surrounding it. In my thesis, I have tried to expose the concept of simulation, in its definition and theoretical significance, as related to the practical intentions of the parties involved, the effects on those extraneous to such concept. I have also tried to demonstrate how inadequate the law is as it stands today and the impellent need for reforms. My humble suggestions for the reforms to our law, are motivated by a study of the Italian Legal and Jurisprudential system and the consequent realization of the various lacunae under our system. My thesis is divided into three main parts, as shall be seen. In the first part I have tried to define the concept of simulation, its constituent elements and also in its various forms. In the second part of my thesis, I have dealt with the effects of simulation on third parties, also entering into the regime of third party purchasers and third party creditors. Finally, inspired by the relevant Articles of the Italian Civil Code, I have tried to propose a series of amendments to our presently deficient system on the matter.