When there is a deliberate discrepancy between intent and the declaration of will, we speak of a simulated contract. Such a contract is concluded merely in appearance, without the parties actually intending to be bound by it, thereby creating the illusion for third parties that a valid agreement has been made. This type of contract is often used to conceal the true nature of the parties’ rights and obligations. A simulated legal transaction has no legal effect. However, if the parties entered into a simulated contract to conceal a different contract with a different actual content (e.g., for tax evasion), the concealed contract is considered valid and takes effect with the content the parties actually intended, provided all conditions for its validity are met.