Termination of Lease Contracts Concluded for a Definite Period of Time

07.04.2015

The Supreme Court of the Czech Republic has stated in its decision as of 28th March 2007, Reference Number 28 Cdo 2747/2004, that if a lease contract for land plots was concluded for a definite period of time which exceeds the usual life length (for example if the lease contract was concluded for 100 years), such contract should be considered as a contract that was concluded for an indefinite period of time. Contracts that are concluded for an indefinite period of time can be terminated by a notice in a three months notice period.

The Supreme Court has recently revised this opinion in its judgment as of 29th January 2014, Reference Number 29 Cdo 60/2012. According to the revised opinion of the Supreme Court, such a long lease period can be justifiable. Therefore the courts shall always take into consideration the purpose of the lease when they are considering if the contract was concluded for a definite or indefinite period of time.