The termination of royalty agreement and legal consequences of termination

In this study, the termination of the royalty contract is discussed. A royalty contract is basically a contract concluded for the operation of a mine. One side of the contract has a licensee. The licensee transfers the license for the exploration and operation of the mine to the royalty with a contract. In return, the royalty bears an obligation to pay a fee to the license holder. Permission must be obtained from MAPEK and ETKB at the establishment stage of the royalty agreement. In addition, the contract is registered in the mine registry. The royalty contract has the character of a strengthened relative right in terms of its legal nature. It is a contract that is based on the consent of both parties and imposes debts on both parties. In response to the royalty obligation of the royalty regarding the operation of the mine, the obligation to notify and bear, the license holder has obligations such as making substantial repairs, guarantee against defect and guarantee against seizure. Although royalty contracts are considered as a special aspect of product lease contracts, there are also aspects that differ from it. The termination of the royalty contract may occur for various reasons. These reasons are primarily the default of the debtor in the context of the general regime of the lease law, the liability of the license holder against the defect and the termination of the royalty as the optional right in the context of the warranty against the seizure. On the other hand, there are also reasons for the termination of the product lease. These are causes such as expiration of the term or bankruptcy, death. Due to the nature of the royalty agreement, reasons such as the cancellation or abandonment of the license also appear as the reason for termination in this context.