ACADEMIC RESEARCH IN MODERN SCIENCE
International scientific-online conference
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THE RENT CONTRACT AND ITS IMPORTANCE COMPARED IN THE
CONTEXT OF FOREIGN LEGISLATION
Qurbonova Sevara
Termiz State University, Faculty of Law 2nd-year student:
https://doi.org/10.5281/zenodo.16402628
Abstract
The rent contract is one of the civil law contracts that is rarely used in
practice. This article explores the current relevance, application, and role of the
rent contract in civil relations in comparison with the legislation of foreign
countries and provides proposals for improving our legislation.
Keywords
: rent contract, types of rent contracts, German experience,
experience of Scandinavian countries, British experience, proposals to the
legislation.
A
rent contract
is a civil-law agreement whereby one person (the rent
payer) undertakes to provide lifelong or periodic material support to another
person (the rent recipient). This institution plays a particularly important role in
ensuring the social and economic protection of elderly or disabled individuals.
At the same time, the content, form, and legal consequences of rent contracts
vary from country to country.
In the
German legal system
, the rent contract is legally regulated and
covered under Chapter 18, Articles 759–761 of the Civil Code (BGB). According
to this code, unless otherwise agreed by the parties, a lifelong rent payer shall
make rent payments to the recipient for the duration of their life. If the parties
have not specified a definite amount, the rent is determined on an annual basis.
Lifelong rent is typically paid in advance. Monetary rent is paid in advance for
every three months; in the case of other types of rent, the advance payment
period is determined based on their nature and purpose. If the recipient is alive
at the beginning of the payment period, they are entitled to receive the full
amount for that period. Unless another form is required by law, contracts
involving lifelong rent must be concluded in writing. However, in cases where
this obligation is assumed for the purpose of providing support under family
law, the contract may not be concluded in electronic form
1
.
In the
United Kingdom
, although such contracts are defined in
Common
Law
, they are almost never used in practice. Moreover, the contract is not
referred to as a "rent contract" but rather as a "private life annuity agreement,"
1
The Civil Code of the Republic of Germaniy - https://www.gesetze-im-
internet.de/englisch_bgb/englisch_bgb.html#p4032
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because in English the word "rent" generally means "lease." In the Anglo-Saxon
legal system, lease agreements are considered the most common type of
contract and exist in many forms
2
.
In the legislation of
Scandinavian countries
,
rent contracts are not
applied at all
. Instead, different types of lease agreements are used.
In Russian
civil law, the rent contract is also defined from a theoretical
perspective. According to the Civil Code of the Russian Federation, rent is
divided into types of permanent and lifelong rent. The established rules and
procedures are very close and similar to those provided in the Civil Code of the
Republic of Uzbekistan
3
.
Based on the above information, we can conclude that this type of contract
is rarely applied in many countries, including our own. One of the reasons for
this may be that it is a very complex and often incomprehensible type of
contract. Although the rent contract resembles lease, gift, and sales contracts in
form, it is distinguishable from each of them by certain elements.
In a
lease contract
, the subject of the contract is transferred for a specific
period in return for payment, and at the end of the contract the lessee must
return the leased item to the lessor. In a rent contract, however, the subject for
which payment is made remains with the rent payer at the end of the contract.
Additionally, while lease contracts have a clearly defined term, rent contracts
may not specify any exact period. Their similarity lies in the fact that in both,
payments are made gradually over time rather than in a single lump sum.
In a
gift contract
, a person voluntarily transfers any property they own to
another person free of charge. In contrast, under a rent contract, this transfer
occurs in return for payment, and the subject of the contract is usually not just
any object but rather automobiles or immovable property.
According to a
sales contract
, the seller transfers ownership of a product
to another person in return for payment. The buyer is then obligated to pay the
price of the product. In a rent contract, the full price of the property is not paid
at once, and the precise value of the property—unlike in a sales contract—may
be unknown. A rent contract is based more on risk.
In the
Civil Code
, the rent contract is divided into very complex types.
These include permanent rent, lifelong rent, and lifelong maintenance with the
provision of a house, apartment, or part of it. In a
lifelong rent contract
, the
rent payer makes payments for as long as the rent recipient or a person
2
Legislation.gov.uk
3
Civil Code of Federation of Russion - https://minjust.gov.ru
ACADEMIC RESEARCH IN MODERN SCIENCE
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designated by them is alive. In
permanent rent
, there is no fixed end date for
the rent payments, and payments continue not only during the lifetime of the
rent recipient but also potentially for their descendants. The term is usually
limited to the lifetime of the rent payer. In
contracts involving lifelong
maintenance with the transfer of a house or part of it
, the rent recipient
must be a person who is incapable of working, and in addition to payments
during their lifetime, the rent payer must also provide care and support.
In reality, the rent contract may be quite convenient for individuals who do
not have sufficient funds to purchase real estate but who want to benefit from
their property over a period of time rather than all at once. However, today,
people find
mortgage loans
or
leasing contracts
more convenient than
permanent or lifelong rent. Under such circumstances, it might be reasonable to
consider
removing this type of contract from the Civil Code
altogether. What
is the point of regulating a contract that is not applied in practice? Instead of
permanent and lifelong rent,
the type of contract involving the transfer of a
house, apartment, or part of it in exchange for lifelong maintenance
should
be further strengthened, because this contract is truly beneficial. In society, we
sometimes see cases where children avoid caring for their parents and even
leave them homeless or send them to nursing homes. If parents had been aware
of this type of contract, perhaps such situations could have been prevented to
some extent. In other words, not only people who are incapable of working, but
also parents of any age, could use this contract to transfer their property to their
children, adopted children, or relatives with the requirement that they provide
material support
if incapable, or
lifelong care
if capable.
Another issue is the
name of the contract
. The term
"renta" (rent)
is
misleading, as it actually means "lease" in English. Many of our citizens also
associate the term "renta" with lease agreements. Replacing it with a more
appropriate and accurate term would be far more useful.
References:
1.
Civil Code of the Republic of Uzbekistan
2.
Civil Code of the Federal Republic of Germany
3.
Civil Law, Textbook – TSUL Publishing, 2019, page 684
4.
www.lex.uz
5.
www.wikipedia.uz
6.
legislation.gov.uk
7.
Wikimedia
