LEASE

Art. 1642. The contract of lease may be of things, or of work and service. (1542)
Art. 1643. In the lease of things, one of the parties binds himself to give to another the enjoyment or
use of a thing for a price certain, and for a period which may be definite or indefinite. However, no
lease for more than ninety-nine years shall be valid. (1543a)
Art. 1644. In the lease of work or service, one of the parties binds himself to execute a piece of work
or to render to the other some service for a price certain, but the relation of principal and agent does
not exist between them. (1544a)
Art. 1645. Consumable goods cannot be the subject matter of a contract of lease, except when they
are merely to be exhibited or when they are accessory to an industrial establishment. (1545a)
Art. 1319. Consent is manifested by the meeting of the offer and the acceptance upon the thing and
the cause which are to constitute the contract. Consent is the conformity of wills (offer and
acceptance) and with respect to contracts.
Offer is a proposal made by one party to another to enter into a contract. Offer must be certain or
definite so that the liability of the parties my exactly fixed.
Characteristics of Consent:
(1) It is intelligent
(2) It is free and voluntary
(3) It is conscious and spontaneous
Acceptance is the manifestation by the offeree of his assent to the terms of the offer. “Acceptance of
the offer must be absolute” Acceptance may be ORAL or WRITTEN.
Art. 1405. Unenforceable contracts (paragraph 2, Article 1403: Statute of Frauds) may be ratified in
two ways:
Failure to object to the presentation of oral evidence. This is tantamount to a waiver. Contracts that
are infringed in the Statute of Frauds are ratified by the failure to object to the presentation of parol
evidence and are enforceable
Acceptance of Benefits under these contacts is equivalent to waiver or estoppel; only applies to
executor contracts. If the oral contract was reduced into writing by the party charged, this exercise is
called recognition. It is the express ratification of the contract.
*** If the party in whose favor the statute may be invoked, cross examined the witness who is
testifying on the oral contract, the former is deemed to have waived the right to object to the
admission of the testimonial evidence
The party should promptly object to the presentation of the witness once it becomes apparent that no
evidence in writing could be presented to prove the contract. The objection must be invoked during
the “offer of the testimony” of the witness. OR a motion to dismiss may be filed before answer to the
complaint is filed.
Art. 1646. The persons disqualified to buy referred to in Articles 1490 and 1491, are also disqualified
to become lessees of the things mentioned therein. (n)
Art. 1647. If a lease is to be recorded in the Registry of Property, the following persons cannot
constitute the same without proper authority: the husband with respect to the wife’s paraphernal real
estate, the father or guardian as to the property of the minor or ward, and the manager without special
power. (1548a)
Art. 1648. Every lease of real estate may be recorded in the Registry of Property. Unless a lease is
recorded, it shall not be binding upon third persons. (1549a)
Art. 1649. The lessee cannot assign the lease without the consent of the lessor, unless there is a
stipulation to the contrary. (n)
Art. 1650. When in the contract of lease of things there is no express prohibition, the lessee may
sublet the thing leased, in whole or in part, without prejudice to his responsibility for the performance
of the contract toward the lessor. (1550)
Art. 1651. Without prejudice to his obligation toward the sublessor, the sublessee is bound to the
lessor for all acts which refer to the use and preservation of the thing leased in the manner stipulated
between the lessor and the lessee. (1551)
Art. 1652. The sublessee is subsidiarily liable to the lessor for any rent due from the lessee. However,
the sublessee shall not be responsible beyond the amount of rent due from him, in accordance with the
terms of the sublease, at the time of the extrajudicial demand by the lessor.
Payments of rent in advance by the sub lessee shall be deemed not to have been made, so far as the
lessor’s claim is concerned, unless said payments were effected in virtue of the custom of the place.
(1552a)
Art. 1653. The provisions governing warranty, contained in the Title on Sales, shall be applicable to
the contract of lease.
In the cases where the return of the price is required, reduction shall be made in proportion to the time
during which the lessee enjoyed the thing. (1553)
SECTION 2. – Rights and Obligations of the Lessor and the Lessee
Art. 1654. The lessor is obliged:
(1) To deliver the thing which is the object of the contract in such a condition as to render it fit for the
use intended;
(2) To make on the same during the lease all the necessary repairs in order to keep it suitable for the
use to which it has been devoted, unless there is a stipulation to the contrary;
(3) To maintain the lessee in the peaceful and adequate enjoyment of the lease for the entire duration
of the contract. (1554a)
Art. 1655. If the thing leased is totally destroyed by a fortuitous event, the lease is extinguished. If the
destruction is partial, the lessee may choose between a proportional reduction of the rent and a
rescission of the lease. (n)
Art. 1656. The lessor of a business or industrial establishment may continue engaging in the same
business or industry to which the lessee devotes the thing leased, unless there is a stipulation to the
contrary. (n)
The lessee is obliged:
(1) To pay the price of the lease according to the terms stipulated;
(2) To use the thing leased as a diligent father of a family, devoting it to the use stipulated; and in the
absence of stipulation, to that which may be inferred from the nature of the thing leased, according to
the custom of the place;
(3) To pay expenses for the deed of lease. (1555)
Art. 1659. If the lessor or the lessee should not comply with the obligations set forth in Articles 1654
and 1657, the aggrieved party may ask for the rescission of the contract and indemnification for
damages, or only the latter, allowing the contract to remain in force. (1556)
Art. 1660. If a dwelling place or any other building intended for human habitation is in such a
condition that its use brings imminent and serious danger to life or health, the lessee may terminate
the lease at once by notifying the lessor, even if at the time the contract was perfected the former
knew of the dangerous condition or waived the right to rescind the lease on account of this condition.
(n)
Art. 1661. The lessor cannot alter the form of the thing leased in such a way as to impair the use to
which the thing is devoted under the terms of the lease. (1557a)
Art. 1662. If during the lease it should become necessary to make some urgent repairs upon the thing
leased, which cannot be deferred until the termination of the lease, the lessee is obliged to tolerate the
work, although it may be very annoying to him, and although during the same, he may be deprived of
a part of the premises.
If the repairs last more than forty days the rent shall be reduced in proportion to the time – including
the first forty days – and the part of the property of which the lessee has been deprived.
When the work is of such a nature that the portion which the lessee and his family need for their
dwelling becomes uninhabitable, he may rescind the contract if the main purpose of the lease is to
provide a dwelling place for the lessee. (1558a)
Art. 1663. The lessee is obliged to bring to the knowledge of the proprietor, within the shortest
possible time, every usurpation or untoward act which any third person may have committed or may
be openly preparing to carry out upon the thing leased.
He is also obliged to advise the owner, with the same urgency, of the need of all repairs included in
No. 2 of Article 1654.
In both cases the lessee shall be liable for the damages which, through his negligence, may be suffered
by the proprietor.
If the lessor fails to make urgent repairs, the lessee, in order to avoid an imminent danger, may order
the repairs at the lessor’s cost. (1559a)
Art. 1664. The lessor is not obliged to answer for a mere act of trespass which a third person may
cause on the use of the thing leased; but the lessee shall have a direct action against the intruder.
There is a mere act of trespass when the third person claims no right whatever. (1560a)
Art. 1665. The lessee shall return the thing leased, upon the termination of the lease, as he received it,
save what has been lost or impaired by the lapse of time, or by ordinary wear and tear, or from an
inevitable cause. (1561a)
Art. 1666. In the absence of a statement concerning the condition of the thing at the time the lease
was constituted, the law presumes that the lessee received it in good condition, unless there is proof to
the contrary. (1562)
Art. 1667. The lessee is responsible for the deterioration or loss of the thing leased, unless he proves
that it took place without his fault. This burden of proof on the lessee does not apply when the
destruction is due to earthquake, flood, storm or other natural calamity. (1563a)
Art. 1669. If the lease was made for a determinate time, it ceases upon the day fixed, without the need
of a demand. (1565)
Art. 1670. If at the end of the contract the lessee should continue enjoying the thing leased for fifteen
days with the acquiescence of the lessor, and unless a notice to the contrary by either party has
previously been given, it is understood that there is an implied new lease, not for the period of the
original contract, but for the time established in Articles 1682 and 1687. The other terms of the
original contract shall be revived. (1566a)
Art. 1671. If the lessee continues enjoying the thing after the expiration of the contract, over the
lessor’s objection, the former shall be subject to the responsibilities of a possessor in bad faith. (n)
Art. 1672. In case of an implied new lease, the obligations contracted by a third person for the
security of the principal contract shall cease with respect to the new lease. (1567)
Art. 1678. If the lessee makes, in good faith, useful improvements which are suitable to the use for
which the lease is intended, without altering the form or substance of the property leased, the lessor
upon the termination of the lease shall pay the lessee one-half of the value of the improvements at that
time. Should the lessor refuse to reimburse said amount, the lessee may remove the improvements,
even though the principal thing may suffer damage thereby. He shall not, however, cause any more
impairment upon the property leased than is necessary.
Art. 1687. If the period for the lease has not been fixed, it is understood to be from year to year, if the
rent agreed upon is annual; from month to month, if it is monthly; from week to week, if the rent is
weekly; and from day to day, if the rent is to be paid daily. However, even though a monthly rent is
paid, and no period for the lease has been set, the courts may fix a longer term for the lease after the
lessee has occupied the premises for over one year. If the rent is weekly, the courts may likewise
determine a longer period after the lessee has been in possession for over six months. In case of daily
rent, the courts may also fix a longer period after the lessee has stayed in the place for over one
month. (1581a)