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Civil law. Part II. Contents of a permanent annuity agreement (the most important)

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31. CONTENT OF THE CONTRACT OF PERMANENT RENT

Responsibilities of the rent payer:

▪ pay rent continuously in full even in the event of the destruction of the property transferred to him free of charge;

▪ pay interest established by the agreement or in accordance with Art. 395 of the Civil Code for late payment of rent (clause 1 of Article 595 of the Civil Code);

▪ bear the risk of accidental loss of property or accidental damage to it, transferred to him free of charge (clause 1 of Article 595 of the Civil Code).

Rent payer rights:

▪ refuse the annuity agreement by purchasing the annuity; to do this, he is obliged to notify the recipient of the annuity three months in advance in writing and pay subsequent amounts of annuity until its redemption (clause 1 of Article 592 of the Civil Code); waiver of this right in the contract is invalid, however, the contract can provide for a ban on redemption for a certain period: it cannot be more than 30 years (clause 3 of Article 592 of the Civil Code). The repurchase is carried out at the price specified in the contract, and in its absence - at a price corresponding to the annual amount of rent to be paid, plus the value of the property transferred for the payment of rent (clause 3 of Article 594 of the Civil Code);

▪ demand a reduction in the amount of rent or termination of the contract in the event of the destruction of property received for payment (clause 2 of Article 595 of the Civil Code).

Rent recipient's rights:

▪ require the payer to pay rent (Article 593 of the Civil Code);

▪ transfer to another person your right to receive annuity during your lifetime by assigning a claim, and after the death of the annuity recipient, this right is inherited (clause 2 of Article 589 of the Civil Code);

▪ demand from the payer to buy back the rent in case of improper performance of the contract by him, as well as in a number of cases and in case of improper performance of the contract by him: when the property received by him under the rent was transferred to several persons for common use or divided between them, as well as in the case when the payer is recognized insolvent (Article 593 of the Civil Code).

Grounds for termination permanent rent:

▪ general grounds for all contracts (Chapter 26 of the Civil Code);

▪ special reasons:

a) the requirements of the recipient to redeem the rent (Article 593 of the Civil Code);

b) the payer's requirements to terminate the contract due to the accidental loss of property transferred against the payment of rent (paragraph 2 of article 595 of the Civil Code).

Responsibility of the parties under a permanent rent agreement is not specifically provided for in the Civil Code of the Russian Federation. This means that it occurs in accordance with the general grounds provided for in paragraph 2 of Art. 586 and Art. 588 CC. However, there are some forms of responsibility:

▪ payment of interest by the rent payer for late payment of rent in accordance with Art. 395 Civil Code (Article 588 Civil Code);

▪ termination of the contract by purchasing the annuity at the request of the recipient (clause 1 of Article 593 of the Civil Code);

▪ termination of the annuity contract at the request of the payer by purchasing it (Article 592 of the Civil Code).

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