How To Terminate A Gratuitous Use Agreement

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How To Terminate A Gratuitous Use Agreement
How To Terminate A Gratuitous Use Agreement

Video: How To Terminate A Gratuitous Use Agreement

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A gratuitous use agreement (loan agreement) secures the provision of one party for temporary or permanent use to the other party of any property (real estate, car, etc.). Typically, such contracts represent a favor or friendly service to the borrower. But sometimes such agreements are concluded between organizations and individuals for advertising purposes. How can you terminate a contract that has become irrelevant or burdensome?

How to terminate a gratuitous use agreement
How to terminate a gratuitous use agreement

Instructions

Step 1

Read carefully the agreement concluded between the lender and the borrower. Find out if the terms of the contract have been agreed upon, and what terms are necessary in order for the lender or borrower to be promptly notified of the actions to terminate the contract by the other party.

Step 2

If the terms of its validity are not specified in the contract, then the contract is considered to be indefinite (which may not be specifically mentioned) If the agreement does not specify the time frame in which the lender and the borrower are obliged to notify the other party about the termination of the agreement, then 1 month is considered to be such a period.

Step 3

The contract must indicate all the conditions on which the property was provided. In addition, all documents confirming the satisfactory condition of the property when inspected by both parties must be attached to the contract. If there are no such documents, then it will be difficult for the lender to prove that the borrower caused him material and other damage by handling the property in an inappropriate manner.

Step 4

The contract must necessarily indicate that the property is transferred for free use on the basis of an acceptance certificate drawn up in 2 copies and certified by both parties. The act of acceptance and transfer itself must be present in the package of accompanying documents.

Step 5

The contract is also terminated if the lender has not warned the borrower about the existence of third parties who have a legal right to this property. And the lender can terminate the contract if the borrower has transferred the rights to use this thing to a third party.

Step 6

The contract is terminated unilaterally by the lender only if it is provided for by the contract. The borrower can demand its termination in any case.

Step 7

The contract can also be terminated by agreement of the parties or by a court decision, if during its validity some circumstances have occurred that were not provided for by the parties.

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