Have you ever wondered what an enjoyment right is? In the realm of civil law, an enjoyment right refers to a specific type of right related to assets. But what exactly does the 2015 Civil Law Code define as an enjoyment right?
What is an Enjoyment Right?
Within the social context of asset ownership, certain entities are focused on exploiting, reaping benefits, and earning profits from assets. The 2015 Civil Law Code (CLC) defines an enjoyment right in Article 257 as follows: an enjoyment right is the right of a subject to exploit the utility, benefits, and profits from assets belonging to another subject within a specified time period.
In daily life, there are many instances where assets are owned by one entity, but the enjoyment of benefits derived from those assets belongs to another entity.
For example, imagine elderly parents who wish to transfer the ownership of their house to their children to avoid future disputes once they pass away. However, they still want to receive rental income to ensure a source of income for their livelihood. Another scenario could be parents who purchase a house in Hanoi for their children to study or work, granting the children full rights to use and enjoy the benefits of the house while retaining ownership to safeguard the asset. In such cases, when the child has the enjoyment right, they also have the authority to lease the property or allow others to exercise that right.
The CLC provides provisions for enjoyment rights to allow the owner to grant others the right to enjoy assets while still retaining ownership. At the same time, the enjoyment rights holder also enjoys relative independence in exercising their enjoyment rights. This allows them to effectively exercise their entitlement to the fullest extent.
Basis for the Emergence of Enjoyment Rights
Article 258 of the CLC stipulates that an enjoyment right can be established based on the provisions of the law, agreements, or wills. Therefore, an enjoyment right can arise from one of three bases: legal provisions, agreements between parties, or the will stated in a testament.
According to current legislation, there is no specific legal provision for the emergence of enjoyment rights. Typically, cases involving the emergence of enjoyment rights based on legal provisions are formed to safeguard the rights and interests of certain subjects, such as the elderly, minors, or disabled individuals.
Among the bases for the emergence of enjoyment rights, agreements and wills are the most common. In these cases, the owner can establish a contract with the person entitled to the enjoyment right or create a will to grant ownership rights to different individuals while leaving the enjoyment right to the owner’s choice. However, agreements in contracts can also involve the transfer of ownership rights to others while retaining the enjoyment right for the owner.
The provision allowing the transfer of ownership rights and enjoyment rights to different entities through a will represents a new and progressive development in the CLC.
Validity and Duration of Enjoyment Rights
Validity of Enjoyment Rights
An enjoyment right is established for the person entitled to enjoy it based on the actual receipt of the transferred assets. In other words, from the moment this person receives ownership rights transfer, they have the right to exploit the utility, enjoy the benefits, and earn profits from those assets. However, if there are different provisions in related laws or agreements between the parties, the establishment of the enjoyment right will be based on the time specified by the law or the time agreed upon by the parties, rather than the time of actual asset transfer.
As an absolute right over an object, once the enjoyment right arises, it will be protected, respected, and have value in relation to other entities in society.
Established enjoyment rights are valid for individuals and legal entities, unless otherwise stipulated by related laws.
Duration of Enjoyment Rights
The duration of enjoyment rights is determined by agreements between the parties or by law, with a maximum duration ending upon the death of the first enjoyment rights holder if an individual, or until the legal entity ceases to exist, with a maximum duration of 30 years if the first enjoyment rights holder is a legal entity.
The enjoyment rights holder has the right to lease the enjoyment right within the specified duration.
In cases where a person is entitled to enjoy throughout their lifetime but allows others to exploit and use the object of the enjoyment right, the maximum period for exercising the right to exploit and use ends when the first enjoyment rights holder passes away.
For legal entities, if they receive the enjoyment right until the legal entity is dissolved but subsequently allow another legal entity to exploit and use the object of the enjoyment right, the maximum period for the second legal entity to exploit and use will not exceed 30 years, calculated from the time the first legal entity begins to enjoy the right.
Termination of Enjoyment Rights
The enjoyment right may be terminated under the following circumstances:
- The duration of the enjoyment right has expired.
- Based on the agreement between the parties.
- The enjoyment rights holder becomes the owner of the asset that is the object of the enjoyment right.
- The enjoyment rights holder renounces or fails to exercise the right within the duration specified by law.
- The asset that is the object of the enjoyment right no longer exists.
- Based on a court decision.
- Other grounds as stipulated by law.
The enjoyment right, which is the right of the subject to exploit the utility, benefits, and profits from assets belonging to another subject within a specified time period, naturally terminates when this time period ends. However, even before the expiration, the enjoyment right can also be terminated if the enjoyment rights holder and the asset owner agree to terminate it or if the enjoyment rights holder voluntarily abandons or fails to exercise their rights. Since the enjoyment right is a right over an object, when the asset, which is the object of the enjoyment right, no longer exists, the enjoyment right will also cease to exist.
In practice, there are cases where the recipient of the enjoyment right is also transferred full ownership of the asset, making them the owner and terminating their status as the enjoyment rights holder. Additionally, the enjoyment right can also be terminated based on a court decision or other grounds as specified by law.
Returning the Asset upon Termination of Enjoyment Rights
The asset, which is the object of the enjoyment right, must be returned to the owner upon the termination of the enjoyment right, unless otherwise agreed upon or stipulated by law.
The above is the content of “Understanding the Concept of Enjoyment Right: Definition and Characteristics” according to the provisions of the 2015 Civil Law Code. If you have any questions, please contact us at LawKey.
Read more: Establishing Ownership Rights according to the 2015 Civil Law Code
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