Why do you need a lease termination agreement

In recent years, small business in the country has been developing at an accelerated pace. The number of small firms and companies is growing. Unlike large corporations, they do not have the opportunity to acquire property and other expensive property. And sometimes there is simply no need for this. Often, a small organization is only enough for a small office space, or it may be possible to temporarily use some equipment. The real value of such objects, as a rule, is quite high. In this case, it will be more correct for a novice businessman to conclude a lease contract for the required object for a fee. The contract is concluded in accordance with the civil legislation and is valid until the end of the term or until one of the two parties decides to terminate it.

Methods and features of termination of the contract

According to generally accepted norms, the lease contract can be terminated, as a rule, in three main ways:

• Agreement (agreement) of both parties;
• Solution of the issue in court;
• The refusal of one of the parties to continue to fulfill contractual obligations.

A reciprocal agreement or an agreement to terminate a lease is considered an ideal option for both partners. In this case, it is not necessary that there should be any misunderstandings or negative assumptions between the parties. Both sides just at one point may agree that continuing the performance of contractual obligations is not appropriate for either the lessor or the lessee. In such a situation it is necessary to draw up a document that will be called "Agreement on termination of the lease". The result of the agreement must be fixed in writing and reflect the following essential points:

1. The reason for the termination of contractual relations. This can be voluntary consent of the parties or changing any conditions, without which the continuation of the relationship is almost impossible.

2. Identify the stage (the real moment) when such a need has come.

3. Determine the terms for the performance of mutual settlements and liquidation of other possible unfulfilled obligations in order to avoid unpleasant consequences of a legal nature.

4. Transfer the leased premises (equipment) from the lessee to the lessor. In this regard, it is necessary to draw up a separate document, in which there must be a record of the absence of claims.

Only if the agreement on the termination of the lease agreement contains all the above-mentioned points, it can be considered legally correctly drawn up. Otherwise, either side can find in it a "loophole" for going to court. In addition, one more important factor should be taken into account. If the original agreement was registered, the agreement on termination of the lease agreement must also be registered. Only after that, leased equipment or premises can be considered free.

Arrangement in an arbitrary form

If the parties decided to draw up an agreement on termination of the lease agreement, the sample should not be looked for. Such a document is drawn up arbitrarily. In form, it resembles a contract. First comes the name. Then clarify to which treaty the agreement is drawn up. Next is the date and place (city). After that, the main part goes. Everything starts with a preamble, which indicates the data of both parties that have "concluded this agreement as follows". After that, the points are methodically listed all the main points:

1. The number, date, and the name of the contract to be terminated.

2. Exact date of termination of contractual obligations.

3. A note on the performance of mutual settlements or an indication that the matter should be resolved without the imposition of penalties.

4. Information on the return of the leased property indicating the requisites of the relevant document.

5. Record of absence of mutual claims.

Such an agreement must be made in at least two copies and be kept by each of the parties.

Typical sample document

In the procedure for the termination of any lease agreement, there must be a document confirming the return of the leased property. It is made up as an act. The termination of the lease agreement is indicated by the transfer of ownership of the property to the lessor. It is formalized as an ordinary standard act. The form with the name, affiliation and the date of drawing up the document begins. Then, after the "cap" with the indication of the parties, the text of the act itself goes. It informs that the premise (or other property) is transferred by the lessee and is accepted by the lessor. Below are the main characteristics and technical condition of the object. After a note on the absence of claims, the requisites of the parties are indicated, signatures of authorized persons are put, which are then stamped. Each party must have its own copy of such an act, which is attached to the main contract.