Cap. 16 ст. 1526Definition of contract of letting and hiring of things.

(1) The letting of things is a contract whereby one of the contracting parties binds himself to grant to the other the enjoyment of a thing for a specified time and for a specified rent which the latter binds himself to pay to the former.

(2) Any kind of corporeal property, whether movable or immovable, may be the subject of a contract of letting and hiring.

(3) The letting of ships and aircraft, including aircraft engines, shall be regulated by the provisions of any agreement between the lessor and the lessee in accordance with its terms as well as by the international usages of trade applicable in the context.

Notwithstanding any of the provisions of this sub-title, any agreement relating to the letting of ships or aircraft or aircraft engines, shall be governed by:

(a) the terms and conditions agreed between the parties, and in case of conflict with the provisions of this Code, such terms and conditions shall prevail; and

(b) the special laws relating to merchant shipping and civil aviation, as the case may be.

(4) The requirement in article 1569 for a notice by judicial act for the cessation of a lease shall not apply and the termination of the lease shall be regulated by the agreement between the parties and any notice of termination which may be required to be given by any parties may be given by notice in writing in any manner, including by electronic means.

(5) The lease of a ship or an aircraft, including aircraft engines, or rights thereunder, shall be immediately dissolved or terminated by the lessor (or mortgagee who shall be deemed to have such power unless expressly waived) at any time in the event of a default and upon notice in writing to the lessee, notwithstanding the opposition by the lessee, and this without the need of any authorisation or confirmation by any court that an event of default has taken place.

In such circumstances the lessor may, after notice to the lessee, take possession of the ship or aircraft, including an aircraft engine, in accordance with the agreement between the parties and may, by application, ask the Court for an order authorising or directing these acts, and the Court shall render full support to the lessor or the mortgagee as expeditiously as possible.

(6) In the event that the lessor terminates the lease agreement for reasons which are not:

(a) contemplated in the agreement, or

(b) generally valid reasons at law, the lessee may seek damages for breach of the agreement.

(7) For the purposes of this article:

(a) the term "aircraft" shall have the same meaning as ascribed to it in the Aircraft Registration Act;

(b) the term "default" means:

(i) the fulfilment of a condition under which the dissolution of the lease was expressly covenanted or a failure by a party to perform his obligations; or

(ii) a change in the financial condition of the lessee as stated in article 1079; or

(iii) a default which substantially deprives the mortgagee of what it is entitled to expect under the agreement between the mortgagor and the mortgagee;

(c) the term "lease" of ships and aircraft shall refer to the chartering thereof under terms where possession or control is given to the lessee, including bareboat charters or the equivalent;

(d) the term "mortgagee" shall include a mortgagee acting in its capacity as security trustee, bond trustee or by whatever name called;

(e) the term "ship" shall have the same meaning as ascribed to it in the Merchant Shipping Act; and

(f) the term "writing" shall include any manner through which words may be represented and read and includes notices through electronic means.