Purchase and Sale of Assets
The legal form used in purchase of enterprise assets
is a purchase-sale agreement Chapter 20 of the Civil Code of Ukraine.. According to the purchase-sale agreement the seller transfers the property into ownership of the buyer, and the buyer accepts the property and pay specific amount for its purchase”. Article 224 of the Civil Code of Ukraine.
As a rule, the purchase-sale agreement is concluded in a simple written form. Key provisions of the purchase-sale agreement include description of the property proposed for sale, its price and the order of payment for the sold property.
In case of effective sale of property, the seller can use proceeds from such sale to repay debts owed to creditors or allocate the proceeds to purchase new production resources.
Rent and Lease of Assets
Transfer of the right to use and own a property object by the owner of the property (or entity authorized by the owner) and assumption of liability on part of the receiver of the property object to allocate certain compensation (usually in pecuniary form) to the owner of the property object (or its authorized entity) comprise the legal content of rental and leasing procedures. This monetary form of compensation payment is common both for leasing and rent. Differences between the two concepts will be described below in the analysis of each type of agreements.