For relations regarding rental, the rules of Sec. 34 Civil Code, unless otherwise provided by special rules. In accordance with the general procedure, entities enter into an agreement under which one party transfers and the other takes property for a specified period for use and possession. Moreover, the latter pays for this a certain amount. It is established by agreement of the parties. The rules for the termination of legal relations related to the paid use of things are defined in Art. 619.620 of the Civil Code of the Russian Federation.
Transaction Features
The lessee in the process of operating the object transferred to him, may receive income, fruits or create products. They are his property. The subject of the lease is an individually defined thing that does not lose its properties in the process of intended use. One of the mandatory requirements when concluding an agreement is an accurate description of the property being transferred.
Subject composition
The parties to the transaction are the owner or other legal owner (lessor) and user (tenant). Participants in the relationship can be individuals or legal entities, as well as the state that exercises its rights through authorized bodies. Landlord - owner / legal owner or person authorized by him / the law. An entity in whose possession a movable thing is in business may transfer it for use to other persons without the consent of the title holder. A tenant, as a general rule, can be any entity. However, in some cases, legislation may include restrictions. For example, in an organization’s lease or leasing agreement, both parties must be entrepreneurs (legal entities). If a thing is rented, one side must be an individual.
Art. 619 of the Civil Code of the Russian Federation: termination of the lease
The legislation provides for a number of cases in which relations between entities may be terminated early. Some of them are given in Art. 619 of the Civil Code of the Russian Federation. Termination of contracts is allowed at the request of the owner (legal owner), if the user:
- Exploits property with significant violations of the terms of the agreement or their repeated assumption.
- Significantly worsens the state of things.
- He admitted non-payment of the amount established for the operation of the facility more than two times in a row after the expiration of the period provided for by the agreement.
- Does not carry out overhaul of property in the period established by the contract. If the terms are not specified in the agreement, then this clause of norm 619 of the Civil Code of the Russian Federation is applicable in cases where the legislation, other regulatory act, and transaction conditions stipulate the need for repair work at reasonable time intervals.
The parties may provide other grounds for terminating the relationship ahead of schedule. The landlord may demand termination of the contract before the end of the period specified therein only after a written notification to the user about the need for the latter to fulfill the obligations assumed. The notice should set reasonable timelines.
Art. 619 of the Civil Code of the Russian Federation with comments
Termination of legal relations related to the use of property for a fee is allowed in cases established by law, other rules or agreement. Article 619 of the Civil Code of the Russian Federation provides for 4 grounds. The first is the operation of property with the violation. They may be repeated or significant. The latter are considered to be such violations that entail such damage to the other participant that, when it occurs, the subject is largely deprived of what he could count on when making the transaction. Art. 619 of the Civil Code of the Russian Federation is valid, for example, in the case when the user transferred the object in transfer without the consent of the owner.
Deteriorating things
In the sense of norm 619 of the Civil Code of the Russian Federation, such an action should be understood as a behavioral act, as a result of which the object becomes malfunctioning. In other words, his condition is worsened to a degree exceeding normal wear and tear. This, as a rule, is caused by the non-fulfillment by the user of the obligation to maintain things in good condition, to carry out ongoing repairs, and to bear the costs of its maintenance. By making claims in accordance with norm 619 of the Civil Code of the Russian Federation , the owner / legal owner must prove that the degree of usefulness of the properties of the object during its operation was so reduced that it caused damage, in which it loses what it expected when making the transaction.
Payment Evasion
Within the meaning of norm 619 of the Civil Code of the Russian Federation, a delay in repayment of a monetary obligation at least three times in a row will be a violation of the terms of the agreement. In such a situation, the owner may require early payment. Moreover, he himself sets the deadline for this, unless otherwise specified in the agreement. The owner cannot demand payment of more than 2 times in a row. If the user continues to evade the obligation, the lender has the right to terminate the contract.
Nuance
The owner may demand early termination of the agreement even if the payment arrears were paid by the tenant. Meanwhile, legislation restricts this right. If the owner does not present a request to terminate the agreement within a reasonable time after the tenant repays the arrears, he loses this opportunity. This provision is confirmed by the Resolution of the Plenum of the Supreme Arbitration Court No. 73 of 11/17/2011 (paragraph 23, paragraph 2).
Overhaul obligations
They can be provided directly in the lease or in the law. In addition, the parties have the right to establish the period by which the user must carry out a major overhaul. If it is not defined, then a reasonable period is taken into account . It is considered the period that is necessary to maintain things in a normal, usable condition.
Additionally
In accordance with paragraph 25 of the Review of the BAC Presidium No. 66, other cases may be included in the list of grounds. Moreover, the list may not be reduced by agreement of the parties. Legislation allows the inclusion in the agreement of grounds not related to breaches of obligations. For example, in judicial practice, there are cases of termination of the contract at the request of the owner in connection with the inclusion of the operated property in the list of reconstructed objects, the production need to use it by the rightful owner, and so on.
Important point
Termination of the contract may be carried out in a judicial proceeding on the grounds not specified in Art. 619 if the court finds them material. Thus, the Presidium of the Supreme Arbitration Court indicates that such circumstances may be a failure to pay a fee once or an incomplete payment of a specified amount. In this case, the court assesses the materiality of the violations.
Procedure
Termination of the contract includes 2 stages. At the first stage, the person concerned must observe the pre-trial procedure. Such a need is directly established in norm 619 of the Civil Code of the Russian Federation. Pre-trial procedure involves sending a notification to the user with a message about the need to fulfill the obligation within a reasonable time. If the tenant has not taken appropriate measures to satisfy the claims, the lessor will send a written notice of termination of the contract. The deadline for receiving a response as a general rule is 30 days.
Conclusion
It is important to remember that the period for the performance of the obligation by the user must be reasonable. Otherwise, the defendant has a chance to prove the impossibility of fulfilling the requirements. If at the first stage the owner’s claims are not satisfied, he sends a statement to the court. Proceedings are possible only if pre-trial order is observed, since the plaintiff needs reasons for terminating the contract and documentary evidence of the notification to the user.