How Does the Stability of Land Management Right (SLMR) Affect Family Farms’ Cultivated Land Protection and Quality Improvement Behavior (CLPQIB) in China?

Protecting and improving cultivated land quality is a key way to the realization of agricultural modernization. The Chinese government advocates agricultural producers to implement cultivated land protection and quality improvement behavior (CLPQIB). However, the cultivated land management rights of family farms are not so stable. In order to study how stability of land management rights (SLMR) affects family farms’ CLQPIB, promoting family farms in adopting technologies to protect cultivated land, this study investigated 117 family farms in Anhui and Hubei provinces by stratified sampling and analyzed data through the logistic regression model and marginal effects model. The results showed that transferred land ratio, contract types, and contract duration affected family farms’ CLPQIB significantly. The probability of family farms applying organic fertilizer decreased by 0.9% for every 1% increase of the transferred land ratio. Family farms’ rented land through formal contracts have a 21.4% higher probability of adopting planting–breeding technology than family farms’ rented land through informal contracts. For every additional year of the rental contract duration, the possibility for family farms to replace chemical fertilizer with organic fertilizer, pesticides reduction, and integrated planting-breeding increase by 2.1%, 2.2%, and 1.3%, respectively. The results of this study can guide policy makers with further regulating land transfer behavior, guide family farms with signing formal lease contracts, and extending the duration of lease contracts, improving the cultivated land protection behavior of family farms.

TERMINATION OF FINANCIAL LEASE CONTRACT DUE TO DEFECTS OF GOODS: FROM CLAUSULA DE REBUS SIC STANTIBUS TO DOCTRINE OF LINKED CONTRACTS

Translation includes judgements representing solutions adopted in practice of German and Spanish courts as to (typical financial lease contracts) regulation consisting in exemption of lessor from liability to provide compliant goods with the rights under the sales contract assigned to lessee when lessee exercises the right to early terminate the sales contract due to deficiency of goods: what implications for lease contract this triggers? Conscious of contract’s true purpose to finance the purchase, European courts unite in treating financial lease contract as terminated, also being inclined to recognize its retrospective character and, as a result, restitution of all rent payments, including already received by the lessor. However, the courts subject it to different doctrines and differ in legal classification that leads to discrepancies in treatment of particular cases.

Loss given default in SME leasing

Leasing provides a fundamental source of firm funding, especially for small and medium-sized enterprises. A crucial difference from loans and bonds is that the lessor retains ownership rights of the leased asset during the lease term. This facilitates the asset utilization and work-out process and leads to higher liquidation proceeds. Hence, previous findings on the loan and bond loss given default (LGD) are not transferable to the leasing industry. Our analysis is based on a very granular data set covering a great variety of information on the lessee, the leased asset, as well as contractual and transactional characteristics. We examine novel LGD determinants such as an external credit rating, the lessee’s limited liability, and the number of leased assets and collaterals. Moreover, new results on previously explored factors question earlier findings, for example, on the lease contract type. Most importantly, as proposed by Miller and Töws (J Bank Finance 91:189–201, 2018), we analyze two different LGDs, one based on the asset utilization proceeds, the other on repayments. Our results clearly indicate the crucial importance of this separation when analyzing the drivers of the leasing LGD in detail because several determinants affect these LGDs in different ways. Our study assists both lessors and regulators in assessing the effective risk of lease contracts and enables lessors to enhance their risk management and work-out processes.

REAL OPTION AND VERTICAL MIXED-USE DEVELOPMENT

Vertical mixed-use development is a favourite choice in urban development in high-density Asian cities to increase the land use efficiency. The flexibility of construction timing and the restrictions by lease contracts in vertical mixeduse projects are usually different from horizontal ones and single-use properties. To improve the valuation for vertical mixed-use projects, this study re-examines the real option pricing model. Simultaneous development for different uses and a finite maximum waiting period are the major characteristics of these projects. An approach is introduced to determine whether to develop a mixed-use project vertically or horizontally on the basis of a statistics called the critical height premium. The vertical mixed-use project pricing model can be further verified by containing a height premium if market price information is derived from non-vertical mixed-use properties. This study suggests a more comprehensive real option approach to quantify the advantages and disadvantages of operating vertical mixed-use developments.

The Right to Make Forest Block Lease Contracts for Another Term without Auction Procedures and the Basic Principles of Forest Law

Introduction: the article covers the problems of exercising a lessee’s right to make a forest block lease contract for another term with no auction procedures in the light of the basic principles of forest law. The main problematics resulted from the 2007-2008 procedure of re-issuance of forest block lease contracts made at auction in accordance with the prior Forest Code of the Russian Federation, and the refusal of law enforcement agencies to recognize these lease relations as single and effective after the new Forest Code of the Russian Federation was adopted in 2007. Purpose: to provide a theoretical assessment of the lessors’ refusal to enter into forest block lease contracts with the good faith lessees for another term through no auction procedure, and to assess the compliance of these refusals with the principles of forest legislation. Methods: the dialectical method was used in research as the main one: the right to make a forest block lease contract for another term through no auction procedure is viewed with reference to its genesis, nature, purpose and differentiation from the priority right to make a forest block lease contract for another term on the basis of the results of an auction. Results: it is proved that the re-issuance of a lease contract resulted in a single effective relation between a lessee and a lessor which had arisen on the basis of an auction and was documented in two lease agreements, and that the re-issuance procedure did not cancel the legal basis of the relations commencement (i.e. the auction being won by the lessee) and did not affect the lease duration. Therefore, the good faith lessees who won forest-related auctions, subsequently re-issued the lease contracts, and used the forest blocks for a period of 10 years or more, have the right to conclude lease contracts for a new period without auctions. This approach corresponds to the basic principles of forest law (the need to conserve forests, ensure the quality of forests, sustainably use forests, etc.).

Zur Problematik des Textanfangs am Beispiel der Vertragstexte

The paper discusses the problems of the opening a text texts as exemplified by contracts. Twelve contracts were examined, including sales contracts, construction contracts, lease contracts, rental contracts and employment contracts. The contract was defined as a text type. Aspects such as a text’s subject matter, function and structure are particularly important for the determination of its opening and its delimitation from the remaining parts of the text. The article illustrates the ways in which these elements determine the opening of the text. The article also contains information on other studies on text openings.

The Impact of the Corona Crisis On the Obligations of the Tenant

The lease contract is one of the most common contracts among members of society, and the most important of which is all, and the reason for that is due to the importance this contract entails for its parties: For the lessor, the lease provides him with the opportunity to invest his money in a guaranteed manner that provides him with financial resources without losing the ownership of the leased, and for the lessee in particular Rent arranges a way to use the money at costs much lower than the price of buying it, so the rent makes the benefit of the rent within the reach of those who need it and cannot buy it, such as renting a home or a place of work or anything else that he needs and cannot buy it because he is unable to pay its price or because of his temporary need for the wages. The social structure of any society includes two sects, the lessor and the lessee, and these two sects are linked with each other in a direct legal relationship, which raises some disputes, and perhaps the most important problem facing both parties to the lease contract is the issue of determining the rent, so if the will of the two parties plays an important role in the issue of determining the rent, then this The will may stand helpless if emergency circumstances arise that impede the tenant without fulfilling his obligation to pay the rent and at the same time push the lessor to ensure that the rent is collected on the basis of which the contract is obligatory N parties. Because of the spread of the Corona epidemic, which was classified by the World Health Organization as a global epidemic, and as a result, a state of curfew was declared throughout Iraq, which led to the failure to enable the tenant to benefit from the wages, and in light of this the Committee considered Diwaniya No. (55) for the year / 2020 (The period of the Corona virus crisis is a force majeure for all projects and contracts, starting from 2/20/2020 until the Ministry of Health announces the end of the Corona epidemic). Based on these circumstances, there are questions that require a precise legal answer: Will the lease contracts expire by the rule of law if the tenant proves that paying the rent has become impossible? Is this spillage in the interest of the tenant under these circumstances? Can the judge interfere in restoring the contractual balance between the two parties? And does the judge’s intervention contradict the obligation of the contract derived from the principle of the contract, the Shari'a of the contractors? What are the aspects that the judge must take into account before weighing the two parties? Therefore, we will try to answer all these questions through this research.

Accounting for modifications to the lease agreement in the lessee's financial reporting

Subject. In their financial statements for 2022 and later on, the Russian entities will have to apply FSBU 25/2018 – Accounting for Lease if they need to recognize lease transactions. As FSBU 25/2018 fails to clearly regulate the procedure for recognizing contractual modifications, we examined approaches provided by IFRS 16 – Lease and illustrate how such modifications should be presented in the lessee's financial statements. Objectives. We make suggestions on the way modifications of lease contracts should be recognized in the lessee's financial statements with reference to its preparation to the adoption of FSBU 25/2018. Methods. The study relies upon the systems analysis and logic summary of legislative and regulatory documents and special literature on the subject. Results. Illustrating some cases, we showcase how various types of modifications influence figures in financial statements. We also provide the rationale for a professional judgment on the correct understanding of various aspects of such modifications in terms of IFRS 16. Conclusions. The adoption of FSBU 25/2018 will entail considerable preparations, since it substantially alters the way lease transactions are accounted for. Adapting the logic of IFRS 16 to the Russian context, FSBU 25/2018 unfolds the basic approach to accounting for such transactions. However, some complicated practical issues are overlooked in FSBU 25/2018. Therefore, it is reasonable to make methodological clarifications on the way modifications of lease contracts should be correctly recognized, including implications of COVID-19, which considerably influence the scale of business and the need of many entities to lease items. The findings are intended for research and practice, training on accounting and financial management. They also may underlie suggestions on the improvement of the Russian accounting technique pursuing the convergence of modern international practices.

Discounted Cash Flow Methods in Lease versus Purchase Analysis—A Technical Note

The earlier framework uses the before-tax cost of debt as the discount rate in valuation of lease contracts for the reason that such framework explicitly includes the interest tax credits as a component of each period’s cash flows. The short-cut or modern standard textbook approaches use after-tax cost of debt as the discount rate for the reason that it ignores the interest tax credits. Some existing literatures state the two approaches are equivalent without exploring the reasons analytically. This note provides a mathematical demonstration showing, the two approaches are not equivalent accompanied by numerical examples.