Publication date: 19.05.2024
Imperativeness of the date of conclusion of the land lease agreement: legal analysis and judicial practice
Introduction
Land lease in Ukraine is regulated by the Law of Ukraine "On Land Lease", which defines the date of conclusion of the contract as an essential condition of this transaction. This provision is mandatory, which means that the parties to the contract cannot change or ignore it at their discretion. Failure to comply with this rule leads to legal uncertainty and potential legal disputes. The Grand Chamber of the Supreme Court recently reaffirmed this position in its judgment of 6 March 2024 in Case No. 902/1207/22, demonstrating the importance of compliance with these imperatives.
The imperative of the date of conclusion of the contract
The Law of Ukraine "On Land Lease" clearly establishes that the date of conclusion of the land lease agreement is an essential condition. This means that it is from this date that the term of the contract begins. Accordingly, the parties do not have the right to change or determine another moment of the beginning of the term of the contract. Any other rules for determining this moment or the absence of a date of conclusion of the contract are contrary to the law and cannot be the basis for the emergence of rights and obligations under this deed.
Case law: case No. 902/1207/22
The circumstances of the case
The village council and the society concluded a land lease agreement on November 7, 2020, according to which the society received a plot of land for paid use for one year. The company registered the right to rent on May 24, 2021, but already on November 22, 2021, the village council decided to terminate the agreement due to the expiration of its validity period and the division of the land plot.The company considered these decisions to be illegal and appealed to the court, claiming that the contract comes into force only after its signing and state registration. The local commercial court supported the company's claim, but the appeals court overturned this decision, refusing to grant the claim. The company filed a cassation appeal, stating that the rights and obligations under the contract arise only after its registration.
Decision of the Grand Chamber of the Supreme Court
The Grand Chamber of the Supreme Court came to the conclusion that the date of conclusion of the contract is an essential condition of this transaction and it is from this date that the period of its validity begins. The parties cannot change this date or set other conditions for the beginning of the term of the contract. Terms of the contract that do not comply with these mandatory norms do not change the legally defined moment of the start of the term of the contract.
Analysis of legal consequences
Impact on tenancy
The decision of the Supreme Court has a significant impact on rental relations in Ukraine. It emphasizes the importance of compliance with the mandatory norms of the law and limits the parties' ability to change the essential terms of the contract at their discretion. This ensures legal certainty and stability of lease relationships, which is important for all participants in the land market. You may be interested in the following articles: lawyer's consultation, lawyer's consultation, document analysis, legal situation analysis, written consultation, document review by a lawyer, lawyers' documents, lawyer's help online, lawyer online, legal opinion, lawyer's legal opinion, lawyer online.Practical recommendations for landlords and tenants
Landlords and tenants should carefully follow the requirements of the law regarding the conclusion and registration of land lease agreements. In particular, it is necessary:
Always indicate the date of conclusion of the contract.
Ensure timely registration of the contract in the relevant authorities.
Avoid attempts to change the mandatory rules of the contract at your discretion.
This will help avoid legal disputes and ensure the stability of the rental relationship.
Conclusion
The imperative of the date of conclusion of the land lease agreement is an important condition that ensures legal certainty and stability of lease relations in Ukraine. The Grand Chamber of the Supreme Court, in its ruling of March 6, 2024, clearly emphasized the importance of compliance with these norms. The parties to the land lease agreement must pay close attention to these requirements to avoid legal disputes and to ensure the proper fulfillment of their obligations.
