Rental contract in Ukraine


Rental contract in Ukraine. Rental legal relationships in Ukraine are regulated mostly by the Civil Code of Ukraine, namely by clauses 759 to 805 of the same.

Provisions of clauses 759 to 786 of the Civil Code of Ukraine provide the common regulation of rental relations in Ukraine and the other part of the above clauses are the special regulations covering hiring relations (clauses 787 to 791 of the Civil Code of Ukraine), rental of a land plot (clause 792 of the Civil Code of Ukraine), rental of a building or other capital facility (clauses 793 to 797 of the Civil Code of Ukraine) and rental of a transport vehicle (clauses 798 to 805 of the Civil Code of Ukraine).

Clause 759 of the Civil Code of Ukraine provides that on the grounds of the rental contract one of the parties (the renter) transfers or undertakes to transfer certain property for enjoyment of the tenant for the specified period against payment. The law can provide special requirements for making and fulfilling the rental contract as well.

Scope of rental contract in accordance with clause 760 of the Civil Code of Ukraine includes things with identifying characteristics, which retain its initial appearance through repeating use (inconsumable thing). The law can restrict list of rentable goods. Scope of rental contract can also include property rights.

In accordance with clause 761 of the Civil Code of Ukraine the right to provide rent of a thing belongs to the owner of the same or to a person, which owns the property rights for the thing. Renter also can be an entity, which is duly powered to make the rental contract.

Clause 762 of the Civil Code of Ukraine provides that the tenant has to pay for using the thing in amount, which is stipulated in the rental contract. If amount of the rental payment(s) is not stipulated in the rental contract, it is to be defined considering the consumer properties of the thing and other circumstances of essential importance. At discretion of the parties the rental payments can be established in money form or in kind.

Clause 763 of the Civil Code of Ukraine provides that the rental contract is valid within the effective period of time stipulated in the rental contract, otherwise considered to have the unlimited validity.

However the same legal relations are also covered by provisions of the Commercial Code of Ukraine. Thus Clause 283 of the Commercial Code of Ukraine provides that on the grounds of the rental contract one of the parties (the renter) transfers certain property for enjoyment of the tenant for the specified period of time against payment for using the same in the business activities of the tenant (hereinafter referred to as the commercial rental). Accordingly, if we are talking about rental in order to use such property in the business activities (but not for the personal non-commercial needs) together with provisions of the Civil Code of Ukraine should be considered also appropriate provisions of the Commercial Code of Ukraine.

The commercial rental has rather different legal regulation than the private rental, which is governed by appropriate provisions of the Civil Code of Ukraine only. Thus, clause 284 of the Commercial Code of Ukraine provides the legal essentials, without which the commercial rental contract considered to be null and void. Such legal essentials are:

- the rented property (list and value of the property with consideration of indexation of the same);
- duration of the rental contract;
- rental payments including procedures for indexation of the same;
- the order of using the amortization deductions;
- terms of using the rented property;
- terms of returning or redemption of the rented property.

The rented property is to be evaluated considering the replacement value of the property.

Duration of the rental contract is to be established after mutual consent of the parties. However if none of the parties has contacted the other party with request to terminate the commercial rental contract within one calendar month after expire of the same, the commercial rental contract considered to be extended on the same terms for the next similar period of time.

Clause 289 of the Commercial Code of Ukraine also provides that the tenant of commercial rental contract has the right to redeem the rented property if this right is directly stipulated in the commercial rental contract.

The laws provide other special terms and requirements for making and fulfilling the rental contract and commercial rental contract as well.

The above information is provided herein in educational and informative purposes only. It is provided that you have to get appropriate legal advice as regarding the legal and other issues of your interest in Ukraine in order to have the exact, extensive and up-to-date legal and other related information.

Do not hesitate to contact us if you have any questions or issues of legal nature, our Law Firm is working for you and our experienced legal specialists are always ready to help providing the client with appropriate legal consultations, legal reports and summaries, reasonable legal advices and all the other required legal support, assistance, coverage and protection.

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