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NEWSLETTER 2013
270
Pursuant to Article 363 of the TCO, the lessee may request a reduction
of the rent in extraordinary circumstances. According to the said article,
the lessee may require the lessor to reduce the rent proportionately where
the usual proceeds of an agricultural land decreases due to an extraordinary
disaster or natural events. Initial waiver of such right shall be valid only
if the possibility of occurrence of such circumstances have been taken
into account in determining the rental amount or if the damage arising is
covered by insurance.
Along with the obligation to pay the rent, the lessee has an obligation
to use, operate and maintain the leased object. The lessee is obliged to use
the leased object in accordance with its intended use and operate it with
due care and in particular must ensure that its long-term productivity is
sustained. The lessee must not change the operational procedure of the
leased object in a manner that may be observed after the expiry of the lease
period without the consent of the lessor. Moreover, the lessee must carry
out the normal maintenance of the leased object. In accordance with local
custom, he must carry out minor repairs and replace inexpensive equipment
and tools which have become useless as a result of age or wear and tear.
Article 366 of the TCO regulates the prohibition to sub-lease and
transfer the right of use. In accordance with this article, the lessee may
not sub-let all or part of the leased object or transfer the right of use or
operation without the lessor’s consent. However, the lessee may lease
some parts of the leased object provided that it does not require any change
that may cause damage to the lessor. The rules regulating sub-lease shall
be applicable by analogy to the lease contracts concluded between the
lessee and the third party.
The circumstances that could bring an end to the usufruct lease
contract are; the (i) expiry of time, (ii) notice of termination and (iii)
extraordinary termination.
In principle, the lease contract automatically comes to an end upon
expiry of the period where there is a usufruct lease contract for a limited
duration. However, if the lease is tacitly continued, the lease contract shall
be deemed renewed for an additional year unless otherwise agreed. The
renewed lease contract may be terminated at the end of each lease year in
compliance with the legal notification period.