Contract for “thue khoan” of property is an exceptional type of property lease contract, with the purpose of renting the property to exploit its utility, and to enjoy the yield and income from such property. In order to constrain disputes and ensure the contract performance in accordance with the provisions of the law, each individual and organization needs to understand the regulations of the law as well as how to draft this contract.
I. What is a contract for “thue khoan” of property?
Pursuant to Article 483 of the Civil Code 2015, the contract for “thue khoan” of property means an agreement between parties whereby a “thue khoan” lessor delivers the property to a “thue khoan” lessee for the exploitation of its utility and for the enjoyment of the yield and income derived from such property and the lessee shall pay rent to the lessor.
Therefore, the contract for “thue khoan” of property is a specific form of the lease contract. Such contracts aim to produce and do business so the lessee can enjoy the yield and income from such property. In business, the lessee may get or not get the yield or income. Nevertheless, regardless of the production and business results, even if the use of the contracted property is not exploited, the lessee still shall pay rent to the lessor.
II. Features of the contract
The contract for “thue khoan” of the property has the characteristics of the property lease contract. Besides, this contract also has distinctive features as follows:
Firstly, according to Article 484 of the Civil Code 2015, the subject matter of this contract is the means of production that can be exploited for utility, yield and income such as land, forests, water surfaces that have not been exploited, livestock, production and business facilities, and other production materials with the necessary equipment unless otherwise provided for by law. It means that properties not listed aforementioned cannot be “thue khoan”. Thus, the parties need to consider selecting the type of contract appropriate for the subject matter.
Secondly, according to Article 485 of the Civil Code 2015, the duration of a “thue khoan” shall be determined by the agreement of the parties. In case the parties do not reach an agreement and reach an unclear agreement on the term of “thue khoan”, such period shall be determined under the production or business cycle appropriate to the nature of the subject matter of “thue khoan” to ensure that the lessee obtains the yield or income from the use of the property.
Thirdly, according to Article 486 of the Civil Code 2015, the rent in respect of a “thue khoan” shall be as agreed by the parties. In case the subject matter of the contract is a property of the State with a fixed price bracket, the parties may agree on that price bracket. If a “thue khoan” is awarded by tender, the rent in respect of such “thue khoan” shall be determined in the bidding process. Ordinarily, contract bidding is applied to the property of great value such as land, production, and business facilities or other means of production in order to determine the exact rental price and ensure fair and effective competition.
III. The form of this contract
The form of the contract for “thue khoan” of property is a manner of expressing the agreement of the parties. For other leases, the formality of the contract can be expressed verbally, in writing, or through specific acts. However, as the subject matter of this contract is the means of production, the parties need to consider relevant legal documents when making the contract. Accordingly, depending on each specific object, the contract shall be notarized, certified, or registered by an authority competent.
IV. The contents of the contract for “thue khoan” of property
The fundamental contents needed in the contract for “thue khoan” of the property include:
● Subject matter of the contract;
● Rent in respect of “thue khoan”;
● Duration of “thue khoan”;
● The method of delivering “thue khoan” property and the method of payment “thue khoan” rent;
● Rights and obligations of the parties: Rights and obligations of the “thue khoan” lessor and of the “thue khoan” lessee;
● Termination of the contract.
Above is the content of the article “Contracts for “thue khoan” of property – The fundamental contents” that TNTP would like to send readers. We hope the above sharing is useful for those who are interested in this content.