METHODOLOGY FOR DETERMINING THE AMOUNT OF COMPENSATION FOR NON-CONTRACTUAL USE OF PROPERTY

Abstract

This paper attempts to design a reliable method for the determination of the amount of compensation for non-contractual use of property. The compensation is equated with the concept of economical and usually means payment being effected service. This applies mainly to pay for work done or made available or acquired right to the conditions specified in the contract. The compensation for non-contractual use of property should, therefore, account for the anticipated income from a lease or rent agreement that would have been concluded if the owner’s rights to property had not been limited. In a market economy, the amount of compensation should be determined based on market data, but this approach can be fraught with problems. The authors discuss practical problems associated with the determination of rental income generated by agricultural property, and they propose a modified method for determining the amount of compensation for non-contractual use of property.