A fraudulent transaction, that is, a transaction entered into to cover up another transaction, is void. That transaction, given its nature, applies to the rules of the transaction that the parties actually meant when concluding the fraudulent transaction.
Counterfeit transactions are fictitious transactions, which are envisaged by the RA Civil Code as void transactions. According to the definition given by the RA Civil Code, a fake transaction is a substantial transaction, which is concluded without the intention to cause legal consequences arising from the given transaction, and the fake transaction is concluded for the purpose of concealing another transaction. The crucial difference between these two transactions is that if in the case of a fraudulent transaction the parties have no intention of having legal consequences in their relations with each other, in the case of a fraudulent transaction the intent of the parties is different. The latter aim to create certain legal relations with each other, which differ from the legal relations arising from the forged transaction between them.