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Termination of the agreement concluded for a definite period of time


English

2013-09-24

Tenancy agreement may be concluded for a indefinite or definite period of time. In case of the latter, termination of the agreement is more difficult, as there are specific circumstances the terminating party has refer to in order to terminate the agreement earlier.

 

False assumptions

You may often find in agreements a provision stating that this agreement "is concluded for a definite period of time (i.e. 1 year) with one month termination notice". Both tenants and landlords tent to use this phrase. You should know that in accordance to polish law such a statement does not exist. Tenancy agreement may be concluded for an indefinite period of time and then both parties are entitled to terminate it.

 

Notice period is usually specified in the agreement. If it is not, the parties are obliged to follow regulations provided by in the Polish Civil Code. Parties may also conclude an agreement for the definite period of time, but its termination is more complicated – it is not enough to issue a termination notice.

 

Assurance

Assurance of tenancy is the essence of an agreement concluded for a definite period of time. In serves as a means to secure interests of both parties – it ensures landlord’s income (monthly rent payments) and tenant’s place of residence or work. This type of agreements is very common in commercial property rent.

 

One of the most common practice is to define the specific date of termination of the tenancy period (i.e. "this agreement is concluded for a definite period of time until…"), or to provide the length of agreement’s effectiveness (i.e. "this agreement is concluded for a definite period of time which ends 5 after years from the date of the delivery of the rented property").

 

This kind of agreement may be terminated by the landlord or the tenant, but only if such a possibility is described in the agreement. In other words, parties have to provide specific situations which allow for the termination.

 

Circumstances allowing for the termination of an agreement concluded for a definite period of time

The set of circumstances, which allow the effective termination of the agreement has to be carefully described in order to exclude multiple interpretations. Such circumstances may be related to:

 

• arrears in rent payments;

• lack of the security deposit payment;

• using the property in the manner which is inconsistent with its purpose, and the agreement;

• gross and persistent negligence in observing the house rules and regulations and in a manner which is bothersome for other inhabitants of the building;

• sub-renting of the property or leaving it for the non-chargeable use of the third party – without landlord’s consent.

 

Each circumstance has to be described in compliance with the provisions of Polish law, Polish Civil Code and Act on Tenant’s Rights in particular.

 

Jakub Jastrzębski

 


Source:

• Act on April 23, 1964 Civil Code (Journal of Laws on 1964, No. 16, item 93 as amended)

 

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