Contract for “thue khoan” of property is a form of civil contract in general and a special form of the contract for the lease of property in particular. Therefore, this type of contract has both the general characteristics of a civil contract and the basic characteristics of the lease contract. Although it is a special type of lease contract, the contract for “thue khoan” of property differs from this one. In this article, TNTP will compare these two types of contracts, from which readers can consider choosing the type of contract that is suitable for your purposes.
1. Similarities
Firstly, both types of contracts are bilateral contracts. The bilateral contract is understood as a contract in which each party has obligations towards the other party. Accordingly, the lessor hands over the property and transfers the right to use and exploit such property to the lessee. Based on receiving the property from the lessor, the lessee is entitled to utilize the property upon agreement by the parties. The lessee should pay a fee and return the property to the lessor upon the expiration of the lease term.
Secondly, both types of contracts involve compensation. The lessee should pay the fee to the lessor agreed upon by the parties or by the methods of determining the price prescribed by law. The term of payment is determined by the agreement of the parties or the common leasing practices in the locality or as stipulated by the law.
Thirdly, both types of contracts only transfer the right to use the property. When the contract takes effect, the lessee is entitled to use the property for the agreed-upon purpose within a certain period. During this time, the lessee only has the right to exploit the benefits of the property, while the ownership rights still belong to the lessor. At the end of the lease term, the lessee is obliged to return the property to the lessor.
2. Differences
Firstly, regarding the subject matter of the contract.
The contract for the lease of the property has the subject matter as the property in general, comprising objects, money, valuable papers, and property rights. Meanwhile, the subject matter of the contract for “thue khoan” of the property has a narrower scope, including land, forests, water surfaces that have not been exploited, livestock, production and business facilities, and other production materials with the necessary equipment.
Secondly, regarding the purpose of the contract.
The purpose of executing the contract for the lease of property is broader compared to the contract for “thue khoan” of property. In the contract for the lease of property, the parties can aim for any purpose as long as it complies with the regulations of law and societal morality, including meeting living demands or business needs. On the other hand, in the contract for “thue khoan” of property, the parties aim to serve production and business needs. The lessee will enjoy the yield and income derived from such property.
Thirdly, regarding the term of the lease.
In the contract for the lease of property, the term of the lease shall be as agreed by the parties; If there is no agreement, the term of the lease shall be determined according to the purpose of the lease. In the contract for “thue khoan” of property, the term of a “thue khoan” shall be agreed upon by the parties. If the parties do not reach an agreement and reach an unclear agreement on the term of “thue khoan”, such period shall be determined according to the production or business cycle appropriate to the nature of the subject matter of the “thue khoan”. Thus, both types of contracts favour the parties’ agreement on the term of the lease. The difference in the term of the lease is only determined when the parties do not have an agreement or the agreement is unclear on the term of the lease.
Fourthly, regarding the rental price.
In the contract for the lease of property, rent for the lease of property shall be as agreed by the parties or determined by a third party at the request of the parties, unless otherwise prescribed by law. Where parties reach no agreement or reach an agreement with unclear terms about the rent, it shall be determined according to the market price at the time and place of entering into the contract. In the contract for “thue khoan” of property, rent in respect of a “thue khoan” shall be as agreed by the parties. If the “thue khoan” is awarded by tender, the rent in respect of such “thue khoan” shall be determined in the bidding process.
Fifthly, regarding the rent and payment methods:
In the contract for the lease of property, the Civil Code 2015 specifies the lessee’s obligation to pay rent without specific provisions regarding the forms of rent. In the contract for “thue khoan” of property, the Civil Code 2015 regulates that “Thue khoan” rent may be paid in kind or money, or by performance of acts. Where the “thue khoan” lessee must pay in kind according to the season or cycle in the exploitation of the utility of the “thue khoan” property, payment must be made at the end of such season or cycle, unless otherwise agreed. Where a “thue khoan” lessee is required to perform an act, the “thue khoan” lessee must perform that particular act. Although the Civil Code 2015 does not specifically regulate the forms of rent, the parties can agree that the rent may be paid in kind or money, or by performance of acts.
Regarding the term of payment, the Civil Code 2015 prioritizes the agreement of the parties in both types of contracts. However, in the case of no agreement on the term of payment, there are certain differences between these two types of contracts. In the lease of contract, if there is no agreement on the time for payment of rent, the time shall be determined in accordance with the customary practice at the place of payment. If it is not possible to determine the time of payment in accordance with such customary practice, the lessee must make payment. In the contract for “thue khoan” of property, if the parties have no agreement, the lessee has to pay on the last day of each month; in case the “thue khoan” follows the business cycle, the payment must be made at the end of the business cycle at the latest.
Thus, the characteristics of the contract for the lease of property always have a broader scope, covering the characteristics of the contract for “thue khoan” of property. However, such a contract also has specific features and is more concretized by the Civil Code 2015 than the contract for the lease of property.
Above is the content of the article “Compare contracts for the lease of property and contracts for “thue khoan” of property” that TNTP sent to readers. Hope the above sharing is useful for those who are interested in this issue.
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