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  • Interpretation
  • No.124
  • Date
  • 1968/08/23
  • Issue
    • May the tenant farmer under the Statute for the Reduction of Farm Rent to 37.5 Percent waive his right of first refusal in advance?
  • Holding
    •        According to Article 15, Paragraph 1, of the Act Governing Reduction of Farm Rent to 37.5 Percent, when cultivated land is going to be sold or diened, the tenant has the right of first refusal, which he may decide to exercise or not, only if the landowner has informed the tenant the purchase terms in written form. Such provision shall not be set aside even though the tenant has expressed in advance the intention of giving up the right.
  • Reasoning
    •        Article 15, Paragraph 1, of the Act Governing Reduction of Farm Rent to 37.5 Percent reads: "When cultivated land is going to be sold or diened, the tenant has the right of first refusal. The landowner should inform the tenant in written form of the purchase or pawn terms. If the tenant does not reply in writing within 15 days, he or she will be deemed to have relinquished the right." The purpose of this provision is founded on a basic national policy that supports self-tilling tenants by granting them the purchase right under the same terms when the land is subject to sale or pawn. The tenant*s right is further protected by way of requiring the landowner to inform him of the terms in written form. Such right of first refusal does not prevail until the land is subject to sale or pawn, nor can the tenant expresses the intention to buy or not until the landowner informs him of the terms in writing. Such provision shall not be set aside even though the tenant has expressed in advance the intention of giving up the right. Whether such intention was expressed to the landowner or other tenants, in fact no sale or pawn occurred at that time. Since the right of first refusal did not prevail, nothing concerning the issue of termination or forfeit occurred. Thereafter, when the cultivated land is subject to sale or pawn, the landowner, according to the above provision, still has to inform the tenant of the terms in written form. If the tenant does not express the intention of purchasing in writing within 15 days, he will be deemed as having given up the right.  
      
    • *Translated by Dr. F. T. Liao, Assistant Research Fellow, Institute of European and American Studies, Academia Sinica.
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