A Study On System Of Lease Contract Prior To Purchase Contract Principle

The so-called lease contract prior to purchase contract principle refers to that inthe process of existence of the leasehold relationship, for the leased items that aretransferred or their real right is set, the lessee can claim his lessee right, which is theso-called resistance, to those who get the ownership of the leased items. It also refersto that the lessor or the owner of other property has the obligation of maintaining theoriginal lease without setting other contracts. There are two main reasons in theestablishment of the lease contract prior to purchase contract principle: one reason isto protect the vulnerable lessees. As one party of the leasing contract, the lessee maylose his lessee right if the possessions change arbitrarily, which means there will beno protection of the lessee right. The second reason is to economize the contract cost.If the sign of the business contract can lead to the invalidity of the lease contract, theleased items will suffer the influence. Furthermore, it will cause the increase of thewhole cost of the economic activity, which is the deep reason why the legislationinstitutions of various countries acknowledge lease contract prior to purchase contractprinciple. Lease contract prior to purchase contract principle has lots of applicationsin our civil law, and many legal provisions are formulated according to the leasecontract prior to purchase contract principle to confirm the legally binding in thepractice. Since lease contract prior to purchase contract principle is acknowledged bylaw in our country, then what is its legal basis? Where is lease contract prior topurchase contract principle from and how is it spread and defined? This paper tries toelaborate on lease contract prior to purchase contract principle, which is special but inconformity with the legal system. The origin of lease contract prior to purchasecontract principle began with house lease. The house lease relationship is an oldcreditor’s relation, and it has the general properties of creditor’s rights, such ascompensation and double obligations. But along with the continuous development ofthe modern civil law theory, the house lease relationship has turned on new changes. The original meaning of lease contract prior to purchase contract principle referred tothe situation that the owner of the house rented the house to the lessee, and then soldthe house to others. At this point, for the same house, the seller of the house set alessee right and then transferred the ownership of the house to a third person besidesthe lessee. Nowadays, with the continuous development of civil law, new contents areadded in the connotation of lease contract prior to purchase contract principle. Theleased items in lease contract prior to purchase contract principle include all themovable property and real property besides houses. Now, the objects of lease contractprior to purchase contract principle have been expanded into a very wide range by thecivil law. According to the general situation of the real right, the person who gets theownership of the item shall enjoy a complete right towards the item, that is to saynobody has the right to affect his implement of his ownership. And here, it means thatthe person who gets the ownership of the house due to the transformation of theownership of the house shall not ask the lessee to remove its original lease contractbecause of the transformation of the ownership of the house, and shall also not ask thelessee to return the right of use of the house to the owner before the lease expires. Inthis situation, the lease relationship breaks through the principles of the originalcreditor’s rights and becomes more powerful. So how does the house leaserelationship become what it is now which even overlooks the ownership? Let’s firsthave a look at the applications of lease contract prior to purchase contract principle indifferent countries. The legal system Lease contract prior to purchase contractprinciple is the product of the monopoly stage under the development of capitalisteconomy and the requirement of the development of the market economy. Althoughour country has made the Contract Law of the People’s Republic of China in1999,the provisions of the lease contract prior to purchase contract principle are not perfect.In this condition, on June22,2009the Supreme People’s Court passed TheExplanation of Some Concrete Application of Legal Issues of the Trial of the DisputeCases in Town House Leasing Contract by the Supreme People’s Court, and madefurther explanation of the lease contract prior to purchase contract principle. But thereare still many problems in practice. Combining with The Explanation of SomeConcrete Application of Legal Issues of the Trial of the Dispute Cases in Town House Leasing Contract by the Supreme People’s Court, this book made a macrounderstanding and grasp from the theoretical foundation which the system is based on,social background and development tendency, and analyzed the difference of the legalrelationship, pure business relationship and lease relationship in the rights andobligations among every two of the three parties separately (the owner, the lessor andthe lessee) according to the penetrating views from scholars home and abroad and thetrail practical experience; and analyzed the problems existing in the trail practice ofthe system of the lease contract prior to purchase contract principle, and put forwardpersonal views and suggestions.Specifically, this paper will be divided into the following four parts:Ⅰ. An overview of lease contract prior to purchase contract principleThis part contains three sections, the first one is the overview of lease contractprior to purchase contract principle, the second section is about the comparison andinspection of foreign lease contract prior to purchase contract principle system, andthe third section is about the current analysis of lease contract prior to purchasecontract principle in our country.Ⅱ. The constitutive requirements of lease contract prior to purchase contractprincipleThis part analyzes the third existing opinions which are the theory of threeelements, four elements and five elements, and draws a final conclusion of theconstitutive requirements of lease contract prior to purchase contract principle in ourcountry.Ⅲ. The legal relation analysis of the lease contract prior to purchase contractprinciple in the Chinese contract lawThis part contains three sections: the legal relationship between an assignee anda lessee; the legal relationship between an assignee and a lessor; and the relationshipbetween a lessor and a lessee.Ⅳ. The difficulty in the practice of the judgeThis part contains three sections: the first is the principle of a mortgage withoutthe break of lease; the second is the processing of the one-time prepaid rent of theformer lessee from the leased house; the third is the processing of the rent problems between the new property owner and the lessee.