SECURITY DEPOSIT IN THE LEASE AGREEMENT

Abstract

This article deals with the use of a security deposit in a lease contract, as well as certain types of pecuniary obligations under the contract that can be secured by a security deposit. In addition, the paper highlights the issues of using security deposit, and in what ways it is different from other means of securing obligations that are still unsettled in law. The article analyses changes in the civil legislation concerning the ways to enforce obligations, as well as relevant jurisprudence. The author attempts to determine the legal nature of the security deposit, its characteristics, and to identify in what way security deposit is different from such well-known ways of securing pecuniary liabilities as penalty, collateral, retention and deposit. Consideration is being given to the use of the security deposit in a preliminary contract set forth as an interim measure of conclusion and performance of the basic contract. The article provides recommendations for assessing pecuniary obligations under a lease that can be secured by the security deposit, as well as conditions for not returning the security deposit under the lease.