Lease Contract Research Articles

Islamic Solution on the Agricultural Land Leasing Problem: Case of Excessive Time Dispute

The practice of leasing farmland does not always run smoothly. One of the obstacles that are often faced is the excess of rental time by tenant farmers because the plants have not yet entered the harvest period when the rental period ends. On the other hand, the land owner does not want to lose the profit that can be obtained from the duration of the excess lease. This study aims to find alternative solutions to disputes over lease contracts (ijarah). This research is a field research that is used to answer questions related to the process of implementing the practice of leasing agricultural land, the impact of excess rent for owners and tenants, as well as a contract model that can be a solution to conflicts over time in the practice of leasing agricultural land. The data was collected through interviews, the results of which were analyzed using descriptive methods, then conclusions were obtained through an inductive mindset. The data resource comes from Kalikotes, Klaten Regency. This study concludes that the beginning of the lease agreement does not conflict with Islamic law because it has been mutually agreed between the two parties, but at the end of the lease process there is a contract discrepancy. The land owner immediately asks the tenant for compensation for the excess time. The non-compliance with the agreement made by the tenant was caused by things that were completely unpredictable, where the lease period had expired but the rice could not be harvested. Both parties can resolve this conflict in a win-win manner by making a contractnew ijarah or changing the form of the contract at the beginning by using the number of harvests, not the tempo of the year.

The Implementation of the International Financial Reporting Standard (IFRS 16 - “Leases”) by companies listed on the Bucharest Stock Exchange

Abstract In accordance with the provisions of the International Financial Reporting Standard IFRS 16 “Leases”, as of January 1, 2019, insurance and reinsurance companies, non-bank financial institutions, credit institutions, brokerage companies, but also companies listed on the Bucharest Stock Exchanges which have the quality of both tenants and lessors, must present in the annual reports relevant information regarding the transactions within the leasing contracts. The study pursued two objectives, the identification of information on the application of IFRS 16 published in the annual reports issued in the period 2020-2021, by 30 non-financial entities out of a total of 62 listed at the date of the study at BVB, and the evaluation of how leases were reported and their impact on the financial statements. Regarding the publication of information on the application of IFRS 16, it turned out that it was heterogeneous, in various forms. Thus, only three companies published information on leases both as lessor and lessees in both reporting years (10% of the total), 14 companies specified in both reporting years about the application of the standard only as tenants (47% of the total), nine specified about the application of the standard as tenants only in the 2019 annual report (30% of the total), and four did not specify any information on its application in none of the reporting years (13% of the total). In terms of reporting the impacting figures the expenses determined by the leasing contracts on the financial statements, seven companies presented with data and figures from the tenant position in both years (23%), 10 only for 2019 (33% ), only two for 2020 (7%), and 11 did not present any figures (37%).

Determining the Best Alternatives Between Buy or Lease Option of Hydraulic Pumping Unit (HPU) by Evaluating Cost Performance and Project Evaluation

The year 2020 was one of the darkest times for world oil and gas companies, because world oil prices had touched their lowest point in the last 15 years. In 2022, it is started to show a change. The recovery of the world economy and coupled with the Russian oil embargo is predicted to make world oil prices will be at a high position for at least the next 5 years. And this is a good momentum and opportunity for all the world's oil companies.Unfortunately, PT Pertamina EP JTB Field was having problems with not achieving its oil production target. It was found that one of the problems is HPU rental artificial lift showing a decreasing performance in recent years. Because the HPU lease contract will expire in July 2023. Two alternatives are proposed to improve the production performance. There is conduct another lease contract with tightened specification and the other is to buy SRP.The results of the buy vs lease analysis found that the HPU rental price was 7.96% more expensive when compared to the purchase of SRP. The fair value was IDR 3,099.394. If the company exercise the SRP buy option, it will result in an NPV of IDR 108,791,789,979 and an IRR of 217%. Based on the results of the risk analysis, the probability of failure of this purchase project was quite low. The probability of NPV < IDR 5 billion is only 0.93%, while the highest probability in the range of IDR 60-160 billion. Keywords: Buy vs Lease Analysis, Project Economic Analysis, Risk Analysis DOI: 10.7176/EJBM/14-16-06 Publication date: August 31 st 2022

Ijarah Collaborative Service Model in Sharia Banking

Ijarah is a contract for the transfer of usufructuary rights over goods or services, through payment of rental wages, without being followed by a transfer of ownership of the goods themselves. The context of ijarah in Islamic banking is a lease contract in which a bank or financial institution leases equipment to one of its customers based on a definite predetermined cost. The research method is qualitative with a comparative study approach. Data collection techniques include observation, documentation, and deep interviews. The object of this research was carried out in the Yogyakarta area. The findings of the ijarah case presented in this study indicate that the services created jointly by customers, service organizations (Islamic banks), and assisting parties divide their roles into sub-roles assigned to individuals. This research provides a basic understanding of the development of a sharia service model, which can complement the current IFM to holistically capture both economic transactions and service elements, which are currently prevailing in the Islamic banking market.

Special circumstances for change or termination of housing agreement (rental)

The article examines certain issues of housing law, in particular, the special grounds for changing and terminating the contract of employment (lease) of housing in today's conditions and in connection with the introduction of martial law in Ukraine. It is noted that along with the general grounds for terminating a housing (lease) contract, new special grounds for changing or terminating have appeared. In Ukraine, the legal framework for regulating housing relations is based on the following principles: freedom of contract, equality, fairness, etc. It is substantiated that the construction of housing (lease) contracts is different. Differences between contracts of hiring (lease) of housing are revealed. The features of the general grounds for terminating the contract of employment (lease) of housing have been studied. Modern judicial practice contradictoryly applies certain legislative provisions of the institution of terminating a rental agreement, which leads to the need to legislatively supplement the general grounds for terminating a housing (lease) agreement with special grounds in order to improve the quality of legal regulation of rental relations and the effectiveness of law enforcement. A necessary fact of proof is the establishment of the guilty person in creating the danger of liquidation of property.
 The recommendations on special grounds for changing and terminating the contract of hiring (renting) housing in connection with the introduction of martial law in Ukraine are analyzed. It has been established that the legislation of Ukraine provides for the right to unilaterally withdraw from the contract. At the same time, the need to provide for the following special conditions for changing or terminating the contract in the current conditions of martial law in Ukraine is substantiated: exemption from rent and/or utility bills; mutual release from the performance of obligations under the contract for the period of force majeure and force majeure, namely during the war; conclusion of additional agreements between the parties to resolve conflicts without applying to jurisdictional bodies, etc. Due to the fact that a notarial form and state registration are mandatory for contracts for real estate, and during martial law most open state registries are not available, the parties need to be more careful about agreeing on the terms of action and terminating a contract for rent (lease) of housing, remember and on the actual transfer / return of property, which must be confirmed by the act of acceptance and transfer. It is also proposed to establish legislatively that in the event of martial law in Ukraine, the legal consequence of changing the terms of the contract should be - the suspension of the fulfillment of obligations under the housing contract by mutual agreement of the parties - the landlord and the employer.

Ijarah dalam Sistem Perbankan Syariah

Lease transactions in conventional banking do not transfer property rights, which means that when the lease expires, the goods are returned to the owner of the leasing object, which generally does not require the services of a financial institution. Another case in practice is because of Islamic banking financing which is known under a lease agreement called ijarah. In Islamic banking, al-ijarah is divided into 2 types, namely mutlaqah ijarah or leasing, operating lease is a process that we usually encounter in daily economic activities. In the context of Islamic banking, ijarah is a lease contract in which a bank or financial institution rents out equipment, buildings or goods, to one of its customers by charging a fee that has been determined with certainty in advance. Meanwhile, al-Ijarah al-Muntahia bit-Tamlik is a kind of fusion between a sales and lease contract or a lease contract which ends with the ownership of the goods being in the hands of the lessee. The nature of the transfer of ownership also distinguishes it from ordinary leases, which exist in conventional financial institutions. The concept of al-Ijarah in Islamic banking as a lease in general, but what distinguishes it is that in Islamic banking there is a lease which at the end of the contract, the customer is given a choice/option to own the goods or not, generally called a lease purchase.

Perpetual Lease Contract from Olympia

In the sanctuary of Zeus at Olympia, a bronze plate was found in early March 1879, which must have been affixed to a wall of the sanctuary, as the preserved corner holes show. The inscription is written in Elean dialect and can be dated on palaeographic grounds to the last quarter of the 5th century BC. It is a perpetual lease contract for a plot of land in Salmone. The interpretation of the document is problematic: the display of the bronze plate in Olympia and the perpetual duration of the lease are in fact a unicum in a contract that, in light of the linguistic data, is believed to have been concluded between two private individuals.

Review of Sharia Economic Law on Termination of Agricultural Land Lease Contract in Alahan Panjang

This study aims to find out the economic fiqh review of the termination of agricultural land lease contracts in Alahan Panjang. Renting farmland is done during the growing season until the harvest season in Alahan Panjang. The formulation of the problem in this study is how the implementation of the termination of agricultural land lease contracts in Alahan Panjang and how the economic fiqh review of the termination of agricultural land lease contracts. This study uses field research with qualitative approach. The data was obtained through in-depth interviews. Based on the results of the study concluded the implementation of agricultural land lease contracts have not met the pillars and conditions, namely the unilateral termination of agricultural land lease contracts from Mu'ajir while the time agricultural land contract has not expired. Termination of this contract results in material losses for musta'jir. In this economic fiqh review is a bad habit or urf' fasid. There is no benefit of both parties in the termination of the land lease contract, because one of the parties feels harmed.

Land lease in Slovakia in the light of the new legal regulations

Agricultural land plays an important role in national food sovereignty where agricultural producers play a dominant role. Therefore the objective of Slovak lawmakers is to create conditions enabling agricultural land to remain in the hand of farmers. The Act on Land Lease is one of the most important legal regulations in the Slovak Republic where most of agricultural land is leased by agricultural producers. The paper identifies the main legal institutions of land lease in Slovakia and discusses the balanced relationships between a lessor as a landowner and a lessee as an agricultural producer and the relationship between them and their legal certainty in this relationship, mainly in situations when they rely on legal regulations that do not specify directly and explicitly their rights and obligations arising from land lease contracts. The most recent important amendments to land law are also discussed and some necessary modifications aimed at clarifying the relationship between parties to a lease contract are proposed.

(The Impact of Corona Virus on Contractual Imbalance and Ways to Treat it in Lease Contracts: A Legal Jurisprudence Study (Jordan as a Model

Objectives: The study aims to show the impact of Corona virus on contractual imbalance in lease contracts and ways to treat it. Methods: The researcher relied on a descriptive, analytical and deductive method in his study. He employed a descriptive approach to clarify the main terms in the study, which are: ijarah, Corona virus, and contractual balance. He also employed an analytical method in addressing the impact of Corona virus on contractual balance. As for the deductive approach, it came to devise ways to address the contractual imbalance due to Corona virus in lease contracts. Results: The study concluded a number of results. Corona virus affected the contractual balance in many contracts, including lease contracts, as it contributed to the breach of the obligations of the parties to the contract. Dealing with Corona pandemic must take into account the interests of the contracting parties, which are justice and balance. The measures taken by the Hashemite Kingdom of Jordan to confront the Corona virus had a direct impact on contracts, and on lease contracts in particular. There are legitimate and legal solutions to address contractual imbalance in lease contracts due to the Corona virus, such as termination, reduction of obligation, contract modification, or termination. Conclusions: The researcher recommends that official authorities add the phrase "taking into account the interests of both parties" to Defense Law, Article (11).

전월세 계약갱신청구권의 가치평가

The right to renew house lease contracts, introduced with the amendment of the Housing Lease Protection Act in July 2020, refers to the right to renew the lease contract only if the lessee wishes to do so upon expiration of the initial lease contract. This study presents Korea’s first model that can directly evaluate the appropriate value of this right to renew house lease contracts. Specifically, this study presents a pricing model using the Black-Scholes model focusing on the characteristics of the renewal right as a call option. Unlike general stock options, these renewal rights are not traded separately in the market, so a model in which the value of renewal contract is included in the chonsei price is also presented. Subsequently, this model is expanded and examined wherein the chonsei price can be increased at a certain rate when the contract is renewed. In addition, the numerical results are presented by applying the baseline parameter values, although they largely depend on the volatility of the chonsei price.

COVID-19 확산 예방을 위한 프로스포츠 경기장의 집합금지·제한명령으로 발생한 손실에 대한 국가의 배상책임

Purpose: This study aims to prove the national compensation responsibility of the Korean government on the national liability for damages caused by the government’s legal ban and restriction of assembly orders in professional sports stadiums to prevent the spread of COVID-19.BR Method: The literature review method was selected as the research method to achieve the purpose of this study. The research was conducted to analyze the structure of ownership of professional sports clubs as first, the applicable law was collected as second, and the results were applied to a case of the government’s legal ban and restriction orders of assembly in professional sports stadiums.BR Results: First, the ownership structure of professional sports stadiums in Korea is composed of a lease contract between the government or local governments and the companies that own a professional sports team on the premise of paying the usage fee. Second, the government’s legal ban and restriction orders of gatherings in professional sports stadiums to prevent the spread of COVID-19 have secured sufficient legitimacy. Third, the Korean government is responsible for compensating for the economic losses of professional sports teams caused by the order to prohibit or restrict gatherings in professional sports stadiums to prevent the spread of COVID-19.BR Conclusion: If a ban and restriction of gatherings in a facility are ordered by its owner, the Korean government, it is unreasonable that only the club takes responsibility for the damage caused by it. However, since there is no legal system related to this in Korea, the possibility of claiming compensation for damages of professional sports clubs is not high. Based on this study, it is expected to be helpful for the development of professional sports teams in Korea.

Hillah Hukmi dalam Pengembangan (Legal Reform) Fatwa DSN MUI Tentang Pelaksanaan PPR Inden Syariah

This article discusses Hillah Hukmi in the context of developing the Fatwa of DSN-MUI regarding the implementation of the Sharia Inden PPR. The focus of the study is on analyzing indications of the use of hillah hukmi in the way the DSN-MUI stipulates a law. Especially in fatwa 101/DSN-MUI/X/2016 regarding the al-Ijaarah al-Maushuufah Fii al-Dzimmah contract or commonly abbreviated as IMFD. The research method used is qualitative by conducting content analysis which is commonly used in library research models with a normative juridical approach. This article finds that in the development of the fatwa of DSN-MUI in order to support the development of Islamic financial institutions, it is indicated to use the concept of hillah hukmi. This can be seen when the implementation of the Indent PPR Sharia is allowed using the Ijaarah al-Maushuufah Fii Dzimmah (IMFD) contract. DSN-MUI issued the fatwa because it was considered an alternative that could solve the problem of Indent PPR which was often hampered, and also became a complementary contract to the Musyaraakah Mutanaaqishah (MMQ) and Ijaarah Muntahiyah Bi Tamliik (IMBT) contracts. IMFD is indicated to contain hillah because the terms and substance of the contract are different. Namely, making the lease contract as the basis for allowing home ownership even though the essence of the contract is the sale and purchase of greetings. Qualitatively, this article reveals how the legal development carried out by the DSN-MUI in this way, especially in order to respond to public demands for the issuance of a fatwa that is able to accommodate the need for ownership of indent houses based on sharia principles.

Development of a Disclosure Index for Lease Accounting Policies: Evidence from Romanian Banks

Leasing is an important financing solution used by banks to carry out their daily operations. From a lessee perspective, IFRS 16 changed completely the accounting landscape for lease contracts. A right of use assets and a corresponding lease liability must be recognized in the lessees’ balance sheets. Additionally, extensive disclosures are required. This paper aims to study the extent to which Romanian banks comply with IFRS 16 disclosure requirements. The population includes 23 Romanian banks. To carry out this research, we employed the content analysis technique and reviewed the IFRS 16 disclosures from the 2020 IFRS financial statements. To measure compliance, we developed a dichotomous and unweighted disclosure checklist, which includes 34 items grouped into six categories. The results of our study revealed that, in the first year following the IFRS 16 transition, Romanian banks recorded an average 62% level of compliance with IFRS 16 disclosure requirements. There is a lot of room for improvement in the following years, especially for top ten ranked banks.

THE IMPACT OF IJARAH/LEASE FINANCING ON MALAYSIAN ISLAMIC BANK PERFORMANCE

Ijarah (lease contract) is one of the essential financing contracts offered by Islamic banking institutions to meet the demand of the clients. This study investigates the impact of Ijarah financing on Islamic bank performance in Malaysia for the period from 2004-2018 using Fixed and Random Effect Models. Ijarah financing (IJFA) which becomes the focus variable of this study with other six independent variables; operating efficiency (EXTA), bank size (LTA), total financing (TFTA), base rate (BR), consumer price index (CPI) and gross domestic product (GDP) were regressed against return on asset (ROA) and net profit margin (NPM). The results show that Ijarah financing has a positive and significant impact on NPM. The findings suggest that Islamic banks should increase their portfolio of Ijarah financing and this is also support the concentration strategy used by banks in improving Islamic bank performances. An increase in demand for Ijarah financing will increase Islamic banks performance and this reflects that Ijarah financing as an asset creation tool that banks prefer particularly for generating income.

The history of formation of legal english language: the current problems of globalization of legal language

The article discusses the history of emergence and development of legal language in England, as well as the role of Latin and French in its formation. Latin is still an integral part of legal language since Latin dominated in almost all of medieval Europe, and legal documents were written in Latin for many centuries. The legal language has a complex terminology, and it is often used not only by people of the legal profession, but also by ordinary, unprepared people when entering into civil law relationships in the form of contracts of sale, lease, and loan. However, they do not always understand the legal terms. In order to understand the legal language, it is necessary to turn to the history and analyze whether it is possible to create a universal legal language in the realities of the modern world. Since the beginning of the 20th century, the term legalese has appeared in legal linguistics, which means the legal language used by lawyers, especially when drafting legal documents. Legal language is filled not only with legal jargons, but also with archaism, technical terms and even expressions used in ordinary language, which has a different meaning for a lawyer. The purpose of this study is to examine the history of the emergence of legal language in England, the terminology of law, as well as to discuss problems associated with legal terminology in the era of globalization. The analysis shows that legal dictionaries in the English language continue to be replenished with neologisms, but the international society is not ready to create a single universal language of legal terms. Key words: legal language, legal language in English, neologism, globalization.

Pandangan Hukum Islam Tentang Sewa-menyewa Tanah Dengan Sistem Pembayaran Panen

This journal discusses "Islamic legal views on land rent with a harvest payment system in Patte'ne village, Takalar district". Leasing is included in the law of engagement because in a lease there are at least two parties who enter into an agreement, one party states that he is able to give something and the other party binds himself in an agreement to help each other meet their respective needs. Likewise with the prevailing custom in Patte'ne Village, Takalar Regency, they often hold land lease transactions with a harvest payment system, so it is detrimental to the tenants because the payment system is not clear. This research was conducted by field research or empirical juridical research. With a sociological juridical approach and a statutory approach. The sources of data in this study, namely: Primary data, secondary data and searches of various literatures or references. Data collection methods used are observation, interviews, and documentation. Data processing and analysis techniques are carried out through three stages, namely: data identification, data reduction, and data editing. This type of research is a field research using a normative descriptive method. normative descriptive research is research that aims to accurately describe the characteristics of a particular thing, individual, symptom, situation or group. Based on the research used above, it can be concluded that in the implementation of the contract carried out verbally there is no written agreement between the two parties based on mutual trust with one another and they enter into a land lease transaction with a harvest payment system so it is detrimental to the tenant because the payment system is not clear, in the event of a disaster or loss then this is the responsibility of both parties. The implementation of the land lease in Patte'ne Village, Takalar Regency does not meet the requirements in the land lease contract.

Port capacity expansion under real options approach: a case study in Brazil

Investments in port container terminals are sensitive to uncertainties. Public investments in infrastructure have been significantly reduced in the last decade in developing countries. The Brazilian government infrastructure investment was only 1.85 % of GDP in 2019, representing the lowest level in the last fifty years. Nonetheless, the regulatory framework of the port sector in Brazil has undergone significant changes over time, increasing the number of private port container terminal leases. The expansion capacity of the private port facilities is strongly linked to the demand uncertainty, which impacts the financial return to the long run. In this scenario, the uncertainty of global cargo transportation can discourage infrastructure investments in this class of project in Brazil. To overcome these issues, the financial modelling applying real options approach is better suited than the traditional valuation methods based on Discounted Cash Flow (DCF) analysis. The present study aims to value flexibilities of anticipating, or postponing, or interrupting investments of an existing operational port terminal in Brazil with expansion capacity under the demand uncertainty. The financial decision to invest in a port expansion is modeled by an American option. The results demonstrate that the investor adds significant value to the project by having the possibility to postpone investments. The proposed model presents the contribution of optimizing the decision of sequential expansions of capacity in port terminals, at any time and according to scenarios' revelation. In addition, the model allows the government authorities to review lease contracts, considering the relevance of timing to invest in project expansion decisions. The proposed model can also be extended to other infrastructure projects in emerging economies.

The Fixed Assets Held Based on a Leasing Contract, between Accounting and Taxation. Applying the Prevalence of the Economic Realm on the Judiciary

By means of a particular approach, partially clarified at the level of accounting and tax rules, the article hereby presents the issues regulating the financial leasing operations. The issue of prioritizing the accounting – taxation relations is mainly addressed, pointing out the principle of the fiscal rule supremacy over the accounting one. With reference to the issue of freedom and compliance in the enterprise accounting and taxation, three practical solutions to the questions related to the connections between accounting, taxation and contentious administrative-tax matters are provided.

Analysis of differences in disputes before and after the establishment of the right to request renewal of housing lease contracts

2020년 7월 31일 주택임대차 계약갱신 요구권이 신설되었지만, 당사자 간 법익의 불균형 존재 및 분쟁 폭증 우려 속에 논란이 많은 상황이다. 이에 계약갱신 요구권의 안정적인 정착과 임차인의 주거안정 및 당사자 간 분쟁해소를 위하여 실제로 분쟁이 되어 조정위원회에 조정신청된 자료를 가지고 계약갱신 요구권 신설 전ㆍ후 분쟁 차이 의 분석을 실시하였다. 그 결과는 다음과 같다. 첫째, 계약갱신 요구권 신설 이후 임대료증감, 계약갱신, 임대기간, 손해배상, 주택반환, 기타 등 계약갱신 요 구권과 연관된 분쟁 사건이 크게 증가하고 분쟁사건 간의 비중이 변경되었다. 또한 임대차의 주 내용인 신청인의 지위에 차이가 있는 것으로 나타났고, 월세보다는 전세의 경우에 더욱 분쟁이 심화되는 것으로 확인되었다. 둘째, 계약갱신 요구권 신설 이후에는 계약갱신과 주택반환, 임대기간과 임대료 증감 간 유의수준 존재와 부의 상관관계가 있는 것으로 확인되었다. 계약갱신 요구권 신설 전에는 임대기간 만기에 근접해서 임대료 증액 분쟁이 해결이 안될 경우 주택반환 분쟁으로 이어지는 단순한 분쟁 형태가 나타났다면, 계약갱신 요구권 신설 이후에는 계약갱신과 손해배상의 분쟁이 추가되어 분쟁경로 단계가 더 늘어나는 결과로 분쟁이 다양하고 복잡해지는 등 분쟁 트렌드 변화의 차이를 확인하였다.