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Civil law. Part II. Elements of a lease agreement (most important)

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35. ELEMENTS OF A LEASE

The subject of the contract lease is an individually defined thing, both movable and immovable, that does not lose its properties in the process of its use. The leasing of certain items may be restricted by law (for example, weapons may only be leased with special permission from the parties). The lease of natural objects should be carried out taking into account not only the norms of the Civil Code, but also special laws. So, for example, Art. 53 of the Land Code requires the tenant to comply with the designated purpose of the land plot received by him. Natural objects, as a rule, can be leased if future tenants have special licenses. The condition on the subject of the contract is essential.

Form of contract lease depends on its term and the composition of the parties to the contract. So, if the contract is concluded for a period of more than one year, and also in the case when one of the parties is a legal entity, its form must be written (paragraph 1 of article 609 of the Civil Code). If the subject of the lease agreement is real estate, the agreement must be registered by the relevant state body.

The procedure for concluding a contract lease has two features. The first feature is that this contract can be concluded at auctions where the right to conclude a contract is sold as a result of a competition between persons claiming the right to be tenants (the contract is concluded with the person who won the auction). The second feature is that the tenant has the pre-emptive right to conclude an agreement for a new term after the expiration of the initial term of the agreement (Article 621 of the Civil Code).

Price contract is determined by agreement of the parties. If it is not determined at the conclusion of the contract, the usual rent for this type of property is applied. The rent can be set in the following way:

▪ in a certain amount of money, deposited at a time or periodically;

▪ in the share of products, fruits or income received as a result of the use of leased property;

▪ in the form of certain services;

▪ in transferring ownership or lease of a certain thing to the lessor;

▪ imposing costs on the tenant in order to improve the property leased by him.

Period contracts can be either definite or indefinite. If the term is not specified in the contract, it is considered concluded for an indefinite period. A feature of the contract with an indefinite period is that each of its parties may withdraw from the contract at any time by warning its counterparty one month in advance if the subject of the contract is movable property, or three months in advance if the subject of the contract is real estate . However, these terms can be changed by the parties to the agreement or by law. If the contract is concluded for a period exceeding the limits of the period established by law, the contract is considered concluded for a deadline.

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