ARMENIA Law and Practice Contributed by: Narine Beglaryan, Arianna Adamyan and Anahit Aloyan, Concern Dialog
2.7 Lease Assignment/Novation 2.7.1 Recognition of the Concepts of Contractual Assignment and Novation Armenian law recognises both contractual assign - ment and novation, as outlined in the Civil Code of the Republic of Armenia. Contractual assignment allows a creditor to assign their claim to another person, unless such assignment is prohibited by law, other legal acts, or the underlying contract. An obligation may be terminated by novation, which means replacing the original obligation between the same parties with a new obligation that has either a different subject matter or a different method of per - formance. Unless otherwise agreed, novation also ter - minates any ancillary obligations, such as guarantees or pledges, related to the original obligation. 2.7.2 Assignment/Novation of Leases Under Foreign Laws Under Armenian law, the assignment of rights by the lessor does not require the lessee’s consent, unless the identity of the creditor is of material importance to the lessee. However, the lessee must be notified of the assignment. In the context of an aircraft lease, this exception generally does not apply, as the identity of the party receiving payments is typically not consid - ered materially important to the lessee. In case of novation, it is required that the conclusion of the new agreement by the parties substitutes the previous obligation with a new one. Armenian law does not impose any specific manda - tory terms to be included in assignment or novation agreements. However, there are formal requirements relating to the assignment’s form, and depending on the nature of the novated contract, certain formalities may also be required. Failure to comply with these may be considered contrary to Armenian public policy and overriding mandatory principles as established under Armenian conflict of law rules.
2.6.9 Lessor’s Requirement to Pay Taxes/Fees A lessor enforcing an aircraft lease in Armenia is not subject to any specific taxes solely because of the lease enforcement. However, depending on the method of enforcement used, state duties (court fees) and enforcement service fees may apply. These fees are considered procedural and administrative costs, rather than tax obligations. 2.6.10 Mandatory Notice Periods Movable property lease (rent) agreements with an indefinite term can be terminated out of court with one month’s prior notice. For fixed-term movable property rental agreements lacking a clause on renunciation, judicial termination for valid reasons is necessary, requiring at least thirty days’ prior notice. Leasing agreements can be terminated out of court, provided notice is given according to the terms mutu - ally agreed upon by the parties. 2.6.11 Lessees’ Entitlement to Claim Immunity For the answer, please see 2.6.5 Domestic Courts’ Approach to Foreign Laws and Judgments . 2.6.12 Enforcement of Foreign Arbitral Decisions Armenia is a party to the 1958 Convention on the Rec - ognition and Enforcement of Foreign Arbitral Awards (New York Convention) and this, its courts recognise and enforce foreign arbitral awards in accordance with the Convention and the relevant provisions of the Civil Procedure Code and Law on Commercial Arbitration. There is a well-established practice of Armenian courts enforcing foreign arbitral awards (provided none of the limited grounds for refusal apply). The civil courts of general jurisdiction handle enforcement proceedings. 2.6.13 Other Relevant Issues No other significant lease enforcement issues are cur - rently affecting Armenia.
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