The legal effects of the simulation of a civil legal act

The simulation of a civil legal act represents a technique through which the parties create an apparent act to conceal a secret contract that reflects their true intent. Simulation is not automatically sanctioned with nullity, but rather with inefficiency between the parties and unenforceability against third parties. The simulated contract has no legal effect between the parties, while the secret contract produces effects only if it is valid. Third parties acting in good faith are protected, and creditors and successors are affected depending on the nature and timing of the acquisition of rights. Simulation can have positive effects (such as asset protection) or negative ones (such as fraud or legal uncertainty), requiring careful interpretation to maintain a balance between contractual freedom and legal order.