Lease Contracts PDF

Contracts 1-‫ﯾﻊ‬ ‫ﺑ‬‫ﻟ‬ ‫ﻋﻘدا‬. 2- The lease contract. 3- The insurance Contract. The lease Contract The lease Contract terminologies ‫ﺎر‬ ‫ﯾﺟ‬‫ﻋﻘداﻹ‬ The lease ‫ﻟﻣؤﺟر‬‫ا‬ The lessor...

Contracts 1-‫ﯾﻊ‬ ‫ﺑ‬‫ﻟ‬ ‫ﻋﻘدا‬. 2- The lease contract. 3- The insurance Contract. The lease Contract The lease Contract terminologies ‫ﺎر‬ ‫ﯾﺟ‬‫ﻋﻘداﻹ‬ The lease ‫ﻟﻣؤﺟر‬‫ا‬ The lessor ‫ﺄﺟر‬‫ﺗ‬ ‫ﻟﻣﺳ‬‫ا‬ The lessee ‫ﻟﻣؤﺟرة‬‫ﯾنا‬ ‫ﻟﻌ‬‫ ا‬object)) The leased premises ‫اﻷﺟرة‬The rent The lease contract contents Definition of the lease contract. Elements of the lease. Characteristics of the lease. Information should be included in the lease contract. Examples of conditions may be included in the lease contract. The obligations of the contracting parties. The obligations of the lessor. The obligations of the lessee. Termination of the lease contract. Models of lease termination agreement. Models of lease agreement. Definition of the lease contract The lease contract is an agreement between two persons (lessor and lessee) by which the lessor shall enable the lessee to utilize a specific object for a specified period in exchange for a defined rental.  Elements of the lease 1- Parties of the lease (Lessor and Lessee). 2- The leased object. 3- The rent. 4- The period of the lease. 1- Parties of the lease contract 2- The leased object 3- The rent The money which the lessee is obliged to pay for the lessor in exchange for using his property. It is usually paid in installments. It is usually sum of money, but also it can be any other kind of offer.  W hat will happen if the lessor and lessee fail to agree on the rent amount or the method of its estimation,or if it is difficult to prove the ?rent amount The adequate rent amount should be considered  4- The period of the lease Short lease A lease can be for a short duration of time:weekly, or monthly. Beneficial for landlords who want frequent income. Good for landlords who want the ability to evict quickly. Permit the landlord to easily sell the property.  Long lease A lease can be for a long duration of time,for a year or multiple years. This kind of lease is a good choice for landlords or tenants who seek stability.  Fixed and not renewable period lease The lessee should quit the lessor' s property and hand it over to him as soon as the duration of the lease comes to an end,without delay for any reason,and without any need for notice.  Fixed and renewable period lease The lease shall be renewed for other similar periods if there is no prior notice by one of the contracting parties to the other before the expiry of the period of the lease or any renewed period by at least month. W hat will happen if the lease is concluded without agreeing on the relevant period,or if it is concluded for an undetermined period,or if it ?is practically difficult to prove the claimed period The lease shall be considered as concluded for the period determined for paying the rent,and shall end with the expiry of that period upon the demand of either contracting parties,if he notifies the other party of the eviction. W hat are the restrictions on the lease by the person holding ?only the right of management of the property The person holding only the right of management shall not conclude a lease contract for a period exceeding three years except by license from the competent authority. If the lease contract is for a longer period,the period shall be reduced to three years. ?W hat are the characteristics of the lease 1- The right to use the lessor' s asset is granted in exchange for a fee called the lease payment or rent. 2- Lease contracts may be long or short-term. 3- The lease payments or the rent are usually paid in installments. 4- A lease agreement constitutes a mutually unperformed contract. Information should be included in the lease :contract 1- Type of the lease contract: such as,lease contract of furnished premises,lease contract of an apartment,or lease contract of a car. 2- Date of the lease contract: Date of concluding the contract. 3- Name, address, occupation, nationality and the identification or passport number of the lessor. 4- Name, address, occupation, nationality and the identification or passport number of the lessee. 5- Object of lease: the premises or estate (the lessor' s property) and it' s description in details and location. 6- The purpose of lease: residential,commercial… 7- Duration of the lease: we can say as a drafting that this lease agreement shall be for a period of … year(s), starting from ….. and ending on …. And this period is renewable upon agreement for a period of …. By … % extra charge to be added to the rent. Second party (the lessee) shall give the first one (the lessor) a notice of 30days prior to the expiration date of the lease' s period. 8- The rent and method of payment: the contracting parties can write that the rent agreed upon is a sum of ….. (only ….) per month. The rent shall be paid in advance every …. Month(s), Cash,debit card,by cheque,or whatever,in exchange for a receipt signed by the first party (the lessor). 9- Conditions: There are two kinds of conditions:general, which apply to all the lease contracts. And the second kind is private conditions which the parties agree upon in each case separately. 10- Water, electric, gas, and phone consumption shall be at the expense of …….. 11- Security Deposit: paid to the lessor under this contract is a sum of … … … This deposit will not be refunded except at the expiry of the present lease at the delivery of the leased premises in perfect condition. 12- Election of domicile: W here all notices can be sent valid to the lessee. 13- The jurisdiction: the court which will have the jurisdiction to settle the disputes which may arise from the lease contract. 14- The obligations of the lessor: as we are going to talkabout hereafter. 15- The obligations of the lessee: as we are going to talkabout hereafter. 16- Additional clauses: here any one of the contracting parties can add any additional clause apply to their lease contract. 17- Limit of liability: as we are going to talkabout hereafter. 18- Breach of the lease contract. 19- Termination of the lease contract. 20- Signatures of the contracting parties (lessor and lessee),and you can add the signature of the witness.  Examples of conditions may be included in the lease contract: 1- The condition of the leased premises. 2- Fire and theft. 3- Assignment and subletting. 4- Quittance before the end of the lease. 5- Jurisdiction. 6- Copies of the lease contract. 7- Election of domicile. 8- The right to show the leased premises. 9- Notices. 10- Removal of fittings and fixtures. 11- Inspection of the property. 12- Language. : The condition of the leased premises -1 As a drafting of this condition,for instance:the lessee declares that he has visited personally the leased premises and found it in the best condition. He also declares that it is suitable for the purpose of the lease and for his health. The lessee undertakes that he will use the leased premises within the limits of the purpose which it is leased for. He also will take care of it and maintains it in a good condition,acting as an ordinary person. Moreover,the lessee undertakes to restore the leased premises to the lessor at the end of the lease in the same condition as that in which it is at present,except the normal damages which arise from the ordinary use of the leased premises. Also,he undertakes to replace any objects which may have been lost or damaged or become unfit for use,by other objects of the same kind and value,or pay their value. : Fire and theft -2 As a drafting of this condition,for instance:The lessee shall be responsible for any fire or theft which may occur to the leased premises if that happen because of his negligence.  : Assignment and subletting -3 W e can say as a drafting of this condition that it is prohibited to the lessee to assign or sublet all or part of the leased premises. In case of violating this commitment,the lessor shall have the right to consider the present lease contract as terminated by force of law without any need for summons or notice. On the contrary,the contracting parties can agree that the lessee shall have the right to assign or sub-lease his right to use the whole leased premises or part of it during the period of the lease to any one, without (or with) the consent of the lessor,provided that such sub- leasing or assignment shall not create any contractual relationship between the lessor and sub-lessee or assignee,and the lessee shall remain responsible for all of his obligations to the lessor under the lease. :Quittance before the end of the lease -4 If the lessee wants to leave the leased premises prior to the end of the lease contract period,he should be bound to pay to the lessor the full rental value for the remaining period,unless he is traveling to another country,provided that he gives the lessor a notice one month in advance by a registered letter. : Jurisdiction -5 The contracting parties can agree that the ordinary competent courts will have the jurisdiction to order eviction of the lessee in case of breach of any of the clauses or obligations of the lease contract in addition to the case of expiry of its term. :Copies of the lease contract -6 The lease contract has been drawn up in duplicate,each copy to one of the contracting parties. :Election of domicile -7 The tenant declares expressly that he elects domicile at the leased premises W here all notices can be sent valid to him. :The right to show the leased premises -8 The lessor will have the right to show the leased premises (his property) to future tenants 30days prior to the termination of lease,although appointments and suitable times should be considered. : Notices -9 Any notice required to be given to any one of the contracting parties shall be sent by registered mail with a receipt of acknowledgment to the address of the other party as stated in the lease contract,or such other address as one party may notify the other. :Removal of fittings and fixtures -10 The lessee shall have the right to remove all fittings and fixtures belonging to him at the end of the lease or at any time during it. The lessee shall amend any damages caused to the leased premises by the removal of such fittings and fixtures. :Inspection of the property -11 The lessor shall have the right to inspect his property twice during the period of the lease provided that the lessor notifies the lessee in writing seven days prior to the date of this inspection,and that such inspection shall happen in the presence of the lessee or his representative. : Language -12 The Arabic text of this lease contract shall be considered the authentic text for the purposes of the interpretation and performance thereof. So as a drafting of this condition,we can say that:this document (the lease contract) has been prepared in the Arabic and the English languages multiple copies,each of it shall be considered as an original. And in the case of contradiction between the Arabic and the English text,the Arabic text shall prevail.  Questions 1- The notice of the lessor to the lessee should be by a registered letter. A- True B- False 2- The lessor and lessee should agree on the competent court which will have the jurisdiction to settle their future disputes. A- True B- False 18- The lessor has the right to show the leased premises to future tenants at any time through 30days prior to the termination of the present lease. A- True B- False 19- The lessor has the right to inspect his property two times only during the period of the lease. A- True B- False  The obligations of the contracting parties The obligations of the lessee: The obligations of the lessor: 1- Maintain the leased 1- Hand over the leased premises. premises to the lesse. 2- Pay the rent. 2- Maintenance and repairing 3- Return the leased premises the leased premises. at the end of the lease. 3- Guarantee. 4- Bear the costs and taxes.  The obligations of the lessor 1- Hand over the leased premises to the lessee The lessor is obliged to hand over the leased premises to the lessee in a suitable condition for the benefit it has been prepared for as agreed upon,or for the nature of the premises. The lessor is obliged to hand over the leased premises itself and its belongings as well. If the leased premises is handed over in unsuitable condition for the benefit it is leased for, or if this benefit is largely reduced, the lessee can ask for terminating the lease contract, or reducing the rent to the extent of what is reduced from the benefit, in addition to claiming compensation in both cases, if it is necessary. If the leased premises is in a condition liable to expose the health of the lessee, those living with him, his employees, or his workers, to a grave danger, the lessee can ask for terminating the lease contract.  2- Maintenance and repairing the leased premises The lessor shall provide due maintenance and servicing to the leased premises to preserve it in the condition which it has been delivered to the lessee. Also, he shall carry out all the necessary repairs during the period of the lease. If the lessor, after receiving a warning notification, delays in the execution of this obligation, the lessee can obtain a license from the court to execute this obligation by himself, and take the money which he has spent from the rent, without derogation to his right to terminate the lease contract, or reduce the rent. Moreover, the lessee without any need for a permit from the court, may affect the urgent or simple repairs which the lessor should fulfill, whether the flaw was existing at the time of beginning to use the leased premises, or later, if the lessor did not perform this obligation after notifying him in suitable time. Then the lessee may deduct the expenses he paid from the rent. We have to notice that the lessee should not prevent the lessor from carrying out urgent repairs which are necessary to maintain the leased premises. However, if these repairs result in reducing the benefit of the leased premises partially or totally, the lessee may according to conditions, either to terminate the lease or reduce the rent. But, in the case of the lessee remains in the leased premises during these repairs, he loses his right to terminate the lease contract. 3- The obligation of guarantee  4- The obligation to bear the costs and taxes The lessor shall bear the costs and taxes due on the leased premises, and pay the price of water if it is estimated at random. But, if it is estimated according to the water counter, the lessee shall bear it. On the other hand, the price of electricity and gas, etc, which is related to the personal use of the lessee, shall be paid by him. All that shall be applied, unless otherwise agreed upon.  The obligations of the lessee 1- The obligation to maintain the leased premises The lessee is obliged to maintain the leased premises. So,he shall use it in the manner agreed upon. If there is no agreement on that,he shall use it in the manner it was provided specifically for. The lessee also shall not make a change in the leased premises without the lessor's permission,unless that change does not cause any damage to the lessor. If the lessee makes any change in the leased premises exceeding the limits of this obligation,he may be forced to restore the leased premises to its former condition, and pay a compensation to the lessor if it is necessary. Anyway,the lessee can put in the leased premises equipments for water,electric,light,gas,radio,and television connection,and so forth, as long as the way in which the mentioned equipment does not contradict with the norms observed, unless the lessor proves that placing such equipment may threaten the safety of the leased premises. And we have to mention that,if the lessor' s intervention is necessary to complete something thereof,the lessee may askhim for this intervention,provided that he shall bear the costs paid by the lessor. Other point I have to mention that,the lessee shall carry out the necessary leasing repairs according to usage and practice,unless otherwise agreed upon. Also,the lessee shall exert in using the leased premises and in maintaining it such care as an ordinary person would exert. He shall be responsible for all damages or loss caused to the leased premises during his utility or benefit of it,as a result of not using it in a familiar manner. Moreover,the lessee shall be responsible for any fire is caused in the leased premises,unless he proves that the fire was caused by an alien reason not by him. Finally,we have to know that the lessee shall notify the lessor of all matters necessitating his intervention,such as when the leased premises require urgent repairs,a flaw is discovered,usurpation has occurred to it,or an alien encroaches by molesting it,or causing damage and harm to it.  2- The obligation to pay the rent As we know,the lessee shall pay the rent at the dates agreed upon. If there is no agreement on that,the rent shall be paid at the dates defined by custom and practice in the area. Payment of the rent shall be made at the domicile of the lessee, unless otherwise prescribed by agreement or by custom. W e have to notice that,the rent is usually paid in installments, and the payment of an installment of the rent shall be a presumption of fact that the previous installments have been paid,until the opposite is proved. W e have also to mention that,whoever rents a house,store, shop,or similar place,or an agricultural land shall put in the leased premises furniture,goods,crops,or tools of which its value shall be adequate to guarantee the rent of the leased premises for two years,or for the whole lease period if it is less than two years,unless the rent has been paid in advance. The lessee shall be exempted from this obligation,if such exception has been agreed upon,or if the lessee submitted another security deposit. Moreover,the lessor,in order to guarantee each of his rights under the lease contract,shall have the right to withhold all chattels existing in the leased premises,as long as they are weighted down by the lessor' s lien,even if they are not owned by the lessee. And the lessor has the right to make objection to moving them. And in case of moving them despite his objection or without his knowledge,he shall have the right to retrieve them from their holder,even if the latter has a good intention,without prejudice to the rights and claims of this holder. But we have to mention that,the lessor shall not use his right to withhold or retrieve the chattels,if moving them is something necessary exacted by the lessee' s trade demands,or by the familiar in life affairs,or if the chattels that were left in the leased premises or those that have been retrieved are adequate or sufficient to guarantee the total payment of rent. 3- The obligation to return the leased premises at the end of the lease The lessee shall return the leased premises to the lessor at the end of the lease. If he retains it without right,he shall pay a compensation to the lessor,in estimating it,the rental amount of the leased premises,and the damage caused to the lessor shall be considered. Moreover,the lessee shall return the leased premises in the condition he had received it,except the damage which might have been caused to the premises for an alien reason,not by him. If delivering the leased premises has taken place without writing a statement of the specifications of the premises,it shall be presumed,until the opposite is proved,that the lessee had received the leased premises in a good condition. If the lessee established in the leased premises a building,plants, or other improvements that increase the value of the premises, the lessor shall refund,to the lessee at the end of the lease contract,the costs he paid for these improvements,or the increase in the value of the premises,unless otherwise agreed upon. If these improvements have been introduced without the knowledge of the lessor,or despite his objection,he shall also have the right to askthe lessee to remove them,and to compensate him for the damage caused to the premises as a result of this removal, if such compensation is necessary. If the lessor chooses to maintain these improvements and refund the lessee the mentioned value,the court may give him a period of time to refund him.  The insurance contract VIP terminologies: The insurance contract The insurer The insured The beneficiaries The insurance benefit or coverage The insurance premiums The insured event or risk  The definition The insurance contract refers to an agreement where one party (the insurer),agrees to provide coverage to another party (the insured),on the occurrence of a specified event that is beyond the control of either party,in exchange for receiving payment of premiums from the policyholder.  The elements 1- The risk,defined as a future,uncertain event,independent from the will of the parties; 2- The insurance premium;sum of money the insured is obliged to pay usually in installments to the insurer. 3- The insurance coverage or benefit;the insurer payment of a sum of money to the insured in case of realization of the risk. 4- Uncertainty,is an essential element of the insurance contract and its absence will generally void the contract.  The characteristics Aleatory Insurance contracts are of this type because,depending upon chance or any number of uncertain outcomes,the insured (or his or her beneficiaries) may receive more than was paid to the insurance company in premium. On the other hand,the insurer could receive more than the insured party if a claim is never filed.  Adhesion In a contract of adhesion one party draws up the whole contract and presents it to the other party on a “take it or leave it basis”; the receiving party does not have the option of negotiating,revising,or deleting any part or provision of the document. Insurance contracts are of this type,because the insurer writes the contract and the insured either ' adheres'to it or is denied coverage.  Utmost Good Faith Although all contracts should be executed in good faith, insurance contracts are held to an even higher standard, requiring the utmost of this quality between the parties. Due to the nature of an insurance agreement,each party needs - and is legally entitled - to rely upon the representations and declarations of the other. Each party must have a reasonable expectation that the other party is not attempting to defraud, mislead, or conceal information and is indeed conducting themselves in good faith. In a contract of utmost good faith,each party has a duty to reveal all material information (that is, information that would likely influence a party' s decision to either enter into or decline the contract),and if any such data is not disclosed,the other party will usually have the right to void the agreement.  Conditional Insurance contracts are also conditional. Even when a loss is suffered,certain conditions must be met before the contract can be legally enforced. For example,the insured must satisfy the condition of submitting to the insurance company sufficient proof of loss,or prove that he or she has an insurable interest. There are two basic types of conditions:condition which is any event or act that must take place or be performed before the contractual right will be granted. For instance, before an insured can collect medical benefits,he or she must become sick or injured. Further, before a beneficiary will be paid a death benefit,the insured must actually become deceased. And the second type is a condition which is an event or act that serves to cancel a contractual right. A suicide clause is an example of such a condition. Suicide clauses cancel the right of payment of the death benefit if the insured takes his or her own life after the life insurance policy's effective date.  Personal contract Insurance contracts are usually personal agreements between the insurance company and the insured individual,and are not transferable to another person without the insurer' s consent.  Insurable interest Insurable interest is a requirement for the issuance of an insurance policy,making it legal,valid and protecting against intentionally harmful acts. If the presence of such an insurable interest would not have been required and if anybody would have been allowed to affect a policy of insurance on anybody’ s life or property in the absence thereof,then there would have been created intentional losses solely for making gains without losing anything at all.  Insurable interest exists in the following cases Owners: Owners have got insurable interest to the extent of full value. Part owners or joint owners: They have an insurable interest to the extent of their part or financial interest. Bailees: They have got insurable interest because of a potential liability being created if goods belonging to others get lost or damaged. Life: A person has got insurable interest in his own life.. It is presumed and decided that wife has the insurable interest in the life of her husband because the husband is legally bound to support his wife. The wife will suffer financially if her husband is dead and will continue to gain if the husband was surviving. Husband has an insurable interest in the life of his wife. This insurable interest is presumed to exist here,and no proof is required. It was decided that the husband has the insurable interest in his wife’ s life because of domestic services performed by the wife,and she take cares of his children and they are sharing life together. If the wife is dead,a husband has to employ another person to render the domestic services,and certain other financial expenditures will involve at her death which is not calculable. The husband is benefited by the survival of his wife,so it is self-proved that husband has the insurable interest in his wife’s life. Debtor and Creditor: A Debtor has an insurable interest in his own life,but he has no insurable interest in the life of his Creditor. A Creditor,on the other hand, has an insurable interest in his own life and he has also insurable interest in the life of his debtor to the extent of the loan,as he may lose money if the debtor dies before the loan is repaid. It should be remembered that in the absence of insurable interest the contract should be void.  Different types of insurance First division: Private insurance and social insurance: 1- Private insurance: It is that insurance in which the insured aims to protect his private interest,such as life insurance,health insurance. So,this type of insurance is optional and the insured only who pays the insurance premiums to the insurer. 2- The social Insurance: This type of insurance aims to provide protection to the weaker sections of the society who are unable to pay the premium for adequate insurance. So,this type of insurance aims to protect the public interest which represented in the interest of the workforce or employees by covering their risks such as pension benefits, disability benefits, unemployment benefits and sickness insurance. So that,the state imposes this type of insurance and participates in covering their risks. Second division: Personal insurance and indemnity (damages) insurance: 1- Personal insurance: It is that insurance which its subject matter is the person of the insured itself. In other words,it is insurance of human life values against the risks of death,injury, illness. So,the personal insurance includes insurance of human life which may suffer loss due to death,accident,and disease. Therefore,the personal insurance is further sub-classified into life insurance, personal accident insurance, and health insurance. Under personal insurance, a payment is made at the accident,regardless of damages,as it is not an indemnity insurance. It is not considered as a compensation for a harm suffered,so that the insured get the full value of the insurance benefit if the insured risk happened regardless of the damages suffered. :A- Life insurance Life insurance is probably the most important insurance policy you will ever purchase. Its subject matter is the life of a human being. It protects your loved ones by providing income for them in the event you pass on, as this insurance provides protection to the family at the premature death. The insurer will pay the fixed amount of insurance benefit at the time of death. Needless to say that the insured event, the death, in life insurance is certain,but the only uncertainty is the time when the death will occur. Contrary to the indemnity insurance,such as in fire insurance, the event may not take place at all or may take place in part. W e have to take into our consideration that the chances of death would increase along with the advance in age whatever measures may be taken for improvement of health,whereas the property in other insurance can be repaired and may remain usually in good condition. :B- Health insurance It is the type of insurance coverage that pays for the medical expenses incurred by the insured in case of illness or injury which may cause permanent or temporary disability which may be partially or totally. :The indemnity (damages) insurance -2 Indemnity insurance is a contractual agreement in which one party guarantees compensation for actual losses or damages sustained by another party. It is also an insurance policy designed to protect professionals and business owners when found to be at fault for a specific event. So,this type of insurance does not related to the person of the insured,but to his financial position,as it covers the risks which cause financial damages. So, contrary to the personal insurance, this type of insurance is indemnity as the insured can get the insurance coverage only when there is damage suffered and he will get only the amount of money which is sufficient to cover the damages not the full and fixed amount of coverage. The indemnity or damages insurance could be divided into two main categories,property or things insurance and liability insurance,as follows: :A- Property (things) insurance Property could be insured against a certain specified risk. The riskmay be fire,theft,damage to property or goods, unexpected death of the animals engaged in business,or break-down of machines. As for the fire insurance:it covers the risk of fire. In its absence,the fire waste will increase. W ith the help of fire insurance,the losses arising due to fire are compensated and his property or business or industry will remain approximately in the same position in which it was before the loss. :B- Liability insurance The liability insurance is insurance,whereby the insured is liable to pay compensation for the damage of property or to compensate for the loss of personal injury or death,the insurer compensates the loss to the insured when he is under the liability of payment to the third party. In other words, Liability insurance protects you against financial loss if your actions,your negligence is found to cause a person to be injured or killed,or a person' s property to be damaged or destroyed or they suffer loss as a result of your conduct. Hence,Liability insurance covers two key financial risks. One is the legal cost of defending a claim. The second is the compensation that you may be directed to pay the injured.  The obligations of the insured 1- The obligation to inform the insurer of the risk: A- Before concluding the insurance contract: B- During the implementation of the contract: 2- The obligation to pay the insurance premium 3- The Obligation to inform the insurer of the occurrence of the risk: 1- The obligation to inform the insurer of the risk A- Before concluding the insurance contract: The insured is obligated to inform the insurer of all the information regarding to the risk which he seeks to be covered under the insurance contract. The information of the risk which is required to be informed shall influence the degree of probability of the occurrence of the risk or its gravity. And consequently,it will affect the insurer' s decision to either enter into or decline the insurance contract. Needless to say that the information should be known by the insured to be obligated to inform the insurer about. And this differs from neglecting to inform the insurer about the information regarding to the risk. Also, the information regarding the risk should be unknown by the insurer,to be able to say that it will affect his decision to either cover the riskor not. W e can say some examples of the information of the risk: as for the fire insurance:the insured should inform the insurer about insured subject whether it is estate or chattel, what are the surrounding activities like the existence of manufactures which contains some materials able to be burned or exploded. As for the life insurance:the insured should inform the insurer about his health status,the previous diseases,his occupation,his age… etc. B- During the implementation of the :contract The insured shall inform the insurer about the new circumstances or conditions which may occur during the implementation of the insurance contract and which may lead to increasing the degree of probability of the occurrence of the risk or its gravity. And if These circumstances were existed before concluding the contract,the insurer would not agree to conclude it,or agree in exchange for higher insurance premium. So, according to what we have mentioned, these circumstances should be occurred after concluding the insurance contract. Because if it were occurred before concluding the insurance contract,the insurer would take it into his account either when he decided to conclude the contract and cover the risk or when he determined the insurance premium. Also,these circumstances should influence the risk either by increasing the degree of probability of its occurrence, or by increasing its gravity. For instance,in the car insurance:if the insured change the usage of the car from personal usage to taxi. And in the injury insurance:if the insured change his occupation to another one more dangerous. Finally, these circumstances should be known by the insured to be obligated to inform the insurer about. W e have to mention that if these circumstances occurred during the implementation of the insurance contract,the insurer have three options or rights:He shall have the right to terminate the insurance contract,to remain the contract and increase the insurance premium, or to remain it without increasing the premium. The obligation to pay the insurance -2 premium The insured is obligated to pay the insurance premiums on the times and at the place which they agreed upon. But usually the premiums shall be paid in installments and in advance every year. But as for the place of paying the premiums:If the contracting parties did not agree on it,the premium shall be paid at the domicile of the insured. 3- The Obligation to inform the insurer of the occurrence of the risk The insured is obligated to inform the insurer of the occurrence of the risk, it' s place,time,gravity,consequences,and it' s reasons, to allow the insurer to make his arrangements and implement his obligation to cover the riskand pay the benefit to the insured. If the contracting parties agreed upon specific time for informing,the insured is obligated to do so at this time. But in case of they fail to agree on that time,the insured shall inform him in reasonable time. Finally,if the insured breach this obligation,the insurer shall have the right to reduce the coverage or benefit. The obligation of the insurer to pay the insurance benefit The insurer is obligated to pay the insurance benefit in case of the occurrence of the insured risk,irrespective of causing harm to the insured. The insurer is obligated to pay the insurance benefit either to the insured or to the beneficiary who is determined in the insurance contract and this is in case of the life insurance when someone insure his life in favor of his children or someone else. Finally the insurer has the right to deduct from the insurance benefit the amount of the delayed insurance premiums.