Lease of Property

Lease of Property

 

in civil law, a contract giving the use of property for a period of time in return for payment. Only durable property may be the object of such a contract; consumable things (for example, money or grain) are turned over for use in accordance with a loan contract.

The contract for the lease of property may be used to lease nonresidential buildings, transport vehicles, construction machinery, and the like; the rental contract, for example, of certain consumer goods, is a type of contract for the lease of property. The parties to a contract for a lease of property may be citizens or organizations. A contract between organizations must be concluded in written form, and citizens must conclude the contract in writing if its term exceeds one year. The term of a contract for the lease of property must not exceed ten years. If the object of a contract between organizations is a structure or nonresidential building, the maximum term is five years; equipment may be leased for up to one year. Under a contract for the lease of property, the lessor must give the lessee property suitable for use, make capital repairs, and accept the property back upon the expiration of the term of contract. The lessee must use the property in accordance with the function of the property and with the contract, make lease payments, perform routine maintenance, and return the property to the lessor upon expiration of the contract period. With the consent of the lessor, the lessee may sublease the leased property.

References in periodicals archive ?
Contract awarded for lease of property for use by the departmental delegation of san marcos, during the period 1 january to december 2016
Under the transaction, an initial lease of property is undertaken for a certain term.