Subjects of lease, Form of lease, Term of lease - Commercial law

Lease subjects

The lessor in the lease is the owner of the property, e. Any natural or legal person holding the title of owner. The lessors may also be persons authorized by law or the owner to lease property. Such a special regime of lease relations relates mainly to state federal and municipal property. There are two categories of this property. The first category includes property in respect of which the state (municipal entity) retained its ownership right in full and authorized state property bodies to dispose of this property. Another category includes property, fixed by the state or municipal entity for legal entities on the right of economic management or operational management.

State or municipal unitary enterprise, to which the property belongs on the right of economic management, is not entitled to lease real estate without the consent of the owner. The rest of the property is managed independently (with the exception of cases established by law or other legal acts), including it can independently lease it. The state enterprise, for which the property is assigned to the right of operational management, has the right to dispose of it only with the consent of the owner of this property. The institution does not have the right to dispose of the property and property secured by it, acquired at the expense of the funds allocated to it under the estimate, but has the right to dispose of property acquired at the expense of income from the economic activity permitted to it.

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The transfer of ownership rights (economic management, operational management, lifelong inheritable possession) to the leased property to another person is not grounds for changing or terminating the lease.

Tenant in the lease can be any legal or natural person.

Form of the lease agreement

The lease agreement for a period of more than one year, and if at least one of the parties to the contract is a legal entity - regardless of the term, must be concluded in writing. If the parties to the lease, with the exception of renting real estate, are individuals, a written form is required when concluding a contract for a period of more than one year. The lease of real estate, like any real estate transaction, is subject to state registration.

The lease of property, providing for the transfer in the subsequent ownership of this property to the lessee, is in the form provided for the contract of sale of such property. This means that with such a lease of real estate, the lease must be entered into in the form of a contract of sale of real estate (by drawing up a single document signed by the parties); when leasing an enterprise - according to the form of the contract of sale of the enterprise (the act of inventory, the balance sheet, the conclusion of the independent auditor on the composition and value of the enterprise, as well as a list of all debts included in the enterprise, with the indication of creditors, character, size and timing of their requirements).

Lease Term

The lease agreement is concluded for a period determined by the contract. The US Civil Code provides the following rules for determining the duration of the contract in various situations (Table 7.3).

Table 7.3

Situation

Rule

The lease term in the contract is not defined

A lease is considered to be concluded for an indefinite period. Each of the parties has the right to cancel the contract at any time, warning the other party about it in one month, and when renting real estate - for three months. A law or an agreement may establish a different period for warning of termination of the contract

The law sets the deadline for the lease (for certain types of rent, rent of certain types of property)

If the lease term is not specified in the contract and neither of the parties renounced the contract before the deadline, the contract expires after the deadline

A lease agreement concluded for a period exceeding the statutory deadline

The contract is concluded for a period equal to the limit

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