A simulated sale and the gift concealed behind it require different legal analysis. Non-payment alone does not prove simulation.
If both parties knowingly record a sale while actually intending a gift, Bulgarian law distinguishes the simulated contract from the concealed transaction. Article 17 of the Obligations and Contracts Act applies the concealed transaction's rules if its validity requirements are satisfied. Neither total invalidity nor a valid gift follows automatically.
Under a genuine sale, the buyer may simply have failed to pay. Simulation concerns a different shared intention at formation. A family relationship, low price or absent transfer may be relevant, but does not replace proof of that intention.
A counter-letter, other documents and correspondence may be important. The Civil Procedure Code restricts witness evidence and provides exceptions; a contracting party, outsider and heir should not automatically be treated alike. Never create a backdated document to repair the evidence.
Clarify why classification matters. Reserved inheritance shares, co-owner rights, creditors and later purchasers can require different claims. Article 17 protects certain rights acquired in good faith, with registration of the claim affecting the position. An admission between the original parties does not resolve every third-party relationship.
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This article is for general information only. It does not constitute or replace individual legal advice.