Comment to the articles in Paragraph 8. Rental Chapter 29 Property lease agreement of the Civil Code of the Republic of Kazakhstan

8.1. The rental agreement is governed by § 6 of Chapter 29 of the Civil Code (Articles 595-600 of the Civil Code).  

Under a rental agreement, a landlord who rents out movable property as a permanent business activity undertakes to provide the property to the tenant for a fee for temporary possession and use. The property provided under the rental agreement is used for consumer purposes, unless otherwise provided by the agreement or follows from the nature of the obligation (Clause 1, Article 595 of the Civil Code).  

8.2. Features of the rental agreement. A special feature of this type of property lease agreement is that it alone is a public contract (Clause 3, Article 595 of the Civil Code), and is concluded for a period of up to one year (Clause 1, Article 596 of the Civil Code). The rules on the employer's pre-emptive right to renew a property lease agreement and on the renewal of a property lease agreement for an indefinite period (Articles 557, 558 of the Civil Code) do not apply to a rental agreement (paragraph 2 of Article 596 of the Civil Code).  

8.3. The fee for the use of the property under the rental agreement also has a number of special features. The fee is set in the form of fixed payments made periodically or at one time. In case of early return of the property by the employer, the landlord returns to him the corresponding part of the received payment for the use of the property, calculating it from the day following the day of the actual return of the property. The collection of arrears of payment for the use of property from the employer is carried out indisputably on the basis of a notary's executive inscription (art. 599 of the Civil Code).  

8.4. Use of rented property.  

598 of the Civil Code contains special rules on the procedure and conditions for eliminating deficiencies in leased property. Capital and current repairs of property leased under a rental agreement are the responsibility of the landlord (clause 1 of Article 600 of the Civil Code).  

The Code restricts the rights of an employer to dispose of property provided to the employer under a rental agreement. The leasing of property, the transfer by the employer of his rights and obligations under the rental agreement to another person, the provision of this property for free use, the pledge of the rights of the employer and their contribution as a property contribution to economic cooperatives are not allowed (paragraph 2 of art. 600 of the Civil Code).

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The commentary was prepared within the framework of the scientific and practical research program of the Scientific Research Center of Private Law of the Kazakh State Law University.  

Head of the working group on the preparation of the draft Civil Code of the Republic of Kazakhstan, Corresponding Member of the Academy of Sciences of the Republic of Kazakhstan, Professor Suleimenov M.K.

Deputy head Professor Basin Yu.G.