On the possibility of termination of the lease contract of municipal property in the case of privatization of the lease object

Abstract

Problem setting. Quite often in the practice of law enforcement there are disagreements as to whether privatization of the leased object may be the reason for the termination of the lease contract of municipal property. Analysis of recent researches and publications. The issue of termination of lease contract of municipal property was studied by legal scholars in different ways. Research in this area was conducted by I. R. Kalaur, Ye. Kozarenko, O. Moroz, I. Spasibo-Fatieieva, V. Steshenko and other scientists. Target of research is determining whether the lease contract of municipal property can be terminated by privatization of the leased object. Article’s main body. A conflict between Part 2 of Art. 770 of the Civil Code of Ukraine and Part 8 of Art. 20 of the current Law of Ukraine “On Lease of State and Municipal Property”, which stipulate that the provision that the lease contract remains in force for the new owner in case of alienation of leased property may be changed by the parties to the contract and the said alienation may be grounds for the termination of the lease, if the parties have agreed on this, on the one hand and Part 4 of Article 18 of the Law of Ukraine “On Privatization of State and Municipal Property”, which establishes the mandatory provision according to which in case of privatization the lease contract remains in force for a new owner, on the other. The author notes that the mentioned rule of the Law of Ukraine “On Privatization of Public and Municipal Property” is special in relation to the rules of the Civil Code of Ukraine and the Law of Ukraine “On Lease of Public and Mubicipal Property”, which are general in relation to the first. Conclusions and prospects for the development. Upon alienation of the subject of the contract in the manner of privatization, the contract of lease of municipal property remains in force for the new owner of the privatized property. At the same time, if the parties have established in the lease of municipal property that the alienation of the leased object is the basis for its termination, such a provision applies in the case of alienation of the object by the owner on grounds other than privatization and in such circumstances, alienation of property by the owner otherwise than privatization is the reason for its termination.