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Publication date: 12.04.2024
I am studying in the third year of the State University of Economics and Technology.I specialize in contractual, economic and corporate law, in particular, I provide consultations and write articles.
According to Art. 827 of the Civil Code of Ukraine under a loan agreement, one party, who will act as a lender, transfers or undertakes to transfer a certain thing to the other party (user) free of charge within a certain period. The transfer of property for free use is usually carried out from a written agreement between the parties. The agreement may contain conditions about the object of use, the duration of the transaction, the rights and obligations of the parties, as well as other conditions. Property that is transferred for free use must be individually defined, including both real estate (for example, premises, land) and movable property (such as cars, machinery, equipment).
Features of concluding a loan agreement:
The transfer of property for free use in Ukraine may have some features in accordance with local legislation and practice. Here are some of them:
Form of loan agreement: The law does not prohibit concluding this agreement orally. At the same time, it should be taken into account that if the parties to the agreement are legal entities or if the agreement is concluded between an individual and a legal entity, then written form is mandatory. This means that the transaction must be formalized in writing in order to have legal force, and the same applies to cases where the subject of the agreement is a building or other capital structures, and the term of the agreement does not exceed three years. If the contract is concluded for more than three years, then notarization is also necessary.
Determination of the object of use: The contract must clearly define the property that is transferred for free use. This helps to avoid misunderstandings and conflicts between the parties.
Conditions for the use and safety of property: The contract must contain conditions for the rules for the use of property, its safety and maintenance. This may include provisions for property insurance or maintenance.
Responsibility: The agreement must determine the responsibility of the parties for the property transferred for free use. This may include the user's obligation to keep the property in good condition and compensate for any damage or loss.
Duration of the agreement: The agreement must establish a clear period for which the property is transferred for free use. It can be concluded for a certain period, and if the parties have not determined it, then it is determined in accordance with the purposes of using the property.
These features vary depending on the specific terms of the transaction and the type of property transferred. It is recommended that you obtain advice from a lawyer or legal advisor to ensure that the agreement complies with legal requirements and protects the interests of the parties.
The procedure for concluding an agreement on the transfer of property for free use may include the following steps:
Negotiation of conditions: The parties must discuss and agree on all conditions for the free use of property. This may include determining the property, the duration of the transaction, the rights and obligations of the parties, liability for the property and other terms.
Development of a contract: Based on the agreed terms, one of the parties (usually a lawyer or representative of the party) prepares the text of the contract and development of documents. It is important to include all terms agreed upon between the parties.
Signing the contract: After preparing the contract, the parties must sign it. Each party receives its own copy of the signed agreement for further use and storage.
Notarization: Some contracts may require notarization, because in the absence of it, the concluded agreement will not enter into legal force.
Compliance with the terms of the agreement: After concluding the agreement, the parties must comply with all the conditions specified in the agreement. This includes using the property for its intended purpose, keeping it in good condition and returning it within the specified time frame.
This is a general overview of the procedure for concluding an agreement on the transfer of property for free use. It is important to note that the specific steps and requirements may vary depending on local laws and the type of property being transferred. It is recommended that you consult a professional lawyer or legal advisor for specific advice on entering into such an agreement.
Development of a contract by a lawyer:
The services of a lawyer can be useful at any stage of concluding a contract. The lawyer will not only check the counterparty, but will also draw up a draft agreement and ensure that the procedure for its conclusion and notarization (if required) complies with the requirements of the law. So, drafting contracts by a lawyer will help in building successful legal relationships.
