LEASAE

INTRODUCTION
A lease is a transfer of a right to enjoy the property of lessor made for a
certain time under which the lessee is put in possession of the property. The rights of
ownership or title are not passed on the transferee. There is only transfer of right of enjoyment
in lease

MEANING OF LEASE
It means an agreement by which the owner of property allows another person to use it for
specified time in return for payment

Simple Meaning
An agreement which gives rise to relationship of landlord and tenant or lesser
and lessee. It is a contract for exclusive possession of lands, tenements or hereditaments for
life, for term of years at will, or for any interest less than that of lesser, usually for a specified
rent or compensation

DEFINITION OF LEASE
According to Oxford Dictionary of Law
A contract under which an owner of property (the
landlord or lessor) grants another person (the tenant or lessee) exclusive possession of the
property for an agreed period, usually but not necessarily) in return for rent and sometimes for
a capita sum known as premium

SECTION 105 of the TPA 1882

A lease of immovable property is transfer of right to enjoy
such property, made for a certain time express or implied, or in perpetuity, in consideration for
a price paid or promised, or of money a share of crops, service or any other thing of value, to be
rendered periodically, or on specified occasions to the transferor by the transferee, who
accepts the transfer on such terms.

Definition of Transferor: Section 105

The transferor is called the lessor

Transferee: Section 105

The transferee is called lessee

Definition of Premium: Section 105

The price is called the premium
 Definition of Rent: Section 105
The money, share service or other thing to be so rendered is called the rent.

DIFFERENCE BETWEEN LEASE & LICENSE

Lease
A Lease is a transfer of interest in the property the right of the enjoyment of the
property is conferred or transferred for consideration and for certain period. During the
continuance of the Lease the right to the enjoyment of the property vests in the tenant and not
in the Landlord. By the creation of lease a right in rem passes to the license

License
The license is the ability to do something which except for this permission would be
against the law. The license does not create any write in the physical property. In license there
is an agreement between the licensor or and the license by which the licensor agrees not to
intervene with the performance of some acts on property which is in possession in license no
right in rem passes to the license.

LEASE HOW MADE SECTION 107

Registered Instrument
A lease of immoveable property from year to year, or for any term
exceeding one year or reserving a year rent can be made only by a registered instrument

Option of Registered Instrument or Oral Agreement

All other lease of immoveable property may
be made either by a registered instrument by oral agreement accompanied by delivery of
possession

Execution by both Lessor and Lessee

Where a lease of immovable property is made by a
registered instrument such instrument or where there are more instruments than one each
such instrument shall be executed by both the lessor and lessee
Notification by Provincial Government
Provided that the provincial Government may, from
time to time, by notification in the official Gazette, direct that leases of immovable property,
other than leases from year to year or for any term exceeding one year, or reserving a yearly
rent, or any class of such leases may be made by unregistered instrument or by oral agreement
without delivery of possession.

CREATION OF LEASE
Lease may be created by contract by either

 Express
 Implied
 Statue

8. ESSENTIALS ELEMENT OF LEASE

Following are essentials elements of lease

Immoveable Property
Lease must relate to immoveable property for Fixed Duration of Enjoyment

Transfer of Right
There must be transfer of such right of enjoyment

Consideration
It must be for consideration

Acceptance
The transfer must be accepted by the transferee

DETERMINATION OF RIGHTS AND LIABILITIES OF PARTIES OF LEASE

 Contract
 Local usage

LIABILITIES OF LESSOR: SECTION 108

Following are the liabilities of lessor Disclose any Material Defect: Section 108
(a)The lessor is bound to disclose to the lessee any material defect in the property with
reference to its intended use, of which the former is and the latter is not aware and which the
latter could not with ordinary case discover

(I) Delivery of Possession: Section 108

It is statutory obligation of the lessor to put the lessee in possession of the property leased out
to him
Contract with Lessee: Section 108 (c)
The lessor shall be deemed to contract with the lessee that if the latter pays the rent reserved
by the lease and performs the contracts binding on the lessee, he may hold the property during
the time limited by the lease without interruption

The benefit of such contract shall be annexed to and go with the lease's interest as such and
may be enforced by every person in whom that interest is for the whole or any part thereof
from time to time vested

Protect the Rights of Heirs

Lessor is bound to protect the rights of lessor's heirs in case of his death

No Interruption
Lessor is bound not to interrupt in the possession of property of the lessee

Repair the Leased Property

Lessor should repair the leased property on the demand of lessee

RIGHTS OF LESSOR
Following are the rights of lessor.

Consideration
He is entitled for the consideration
Right to take Consideration in Time
He has right to take consideration in time from the lessee.

RIGHTS OF LESSEE: SECTION 108

Rights of lessee are as under

Right of Accession: Section 108 (d)

If during the continuance of the lease any accession is made the property, such accession
(subject to the law relating to allusion the time being in force) shall be deemed to be comprised
in the lease

When Lease to be Void in case of Destruction of Property: Section 108(e)

If by fire, tempest or flood or violence of any army or of more or other irresistible force any
material part of the property be wholly destroyed or rendered substantially and permanently
unfit for the purposes for which it was let the lessee shall at the option of lessee be void.

Provided that, if the injury be occasioned by the wrongful act or default of the lessee, he shall
not be entitled to avail himself of the benefit of this provision

Right to Repairs on Property: Section 108 (f)

If the lessor neglects to make within a reasonable time after notice any repairs which he is
bound to make to the property, the lessee may make the same himself and deduct the expense
of repairs with interest from the rent, or otherwise recover it from the lessor.

Right of Deduction With Interest: Section 108 (g)

If the lessor neglects to make any payment which he is bound b make and which he is not make
by him is recoverable from the lessee or against the property the lessee may make such
payment himself and deduct it with interest from the rent or otherwise recover it from the
lessor.
Right to Removal: Section 108 (h)
The lessee may even after the determination of the lease remove at any time whilst he is in
possession of the property leased but not after words all things which he has attached to the
such; provided he leaves the property in the state in which he received it

Right to Crops: Section 108 (i)

When a lease of uncertain duration determines by any means except the fault of the lessee, he
or his legal representative is entitled to ali the crops planted or shown by the lessee and
glowing upon the property when the lease determines to free ingress and egress together and
carry them.

(VII) Right to Transfer of Property: Section 108 (j)

The lessee may transfer absolutely or by way of mortgage or sublease the whole or any part of
his interest in the property and any transferee of such interest or part may again transit. The
lessee shall not by reason only of such transfer, lease to be subject to any of the liabilities
attaching to the lease

LIABILITIES OF LESSEE: SECTION 108

Following are the liabilities of the lessee.

Disclose The Facts: Section 108 (k)

The lessee is bound to disclose to the lessor any fact as to the nature or extent of the interest
which the lessee is about to taken of which the lessee is and the lessor is not aware and which
materially increase the value of such interest

Pay Premium: Section 108 (1)

The lessee is bound to pay or tender at the proper time and place, the premium or rent to the
lessor or his agent in this behalf.

Keep property in Good Condition: Section 108 (m)

The lessee is bound to keep and on the termination of the lease to restore the property in as
good condition it was in at the time when he was put in possession, subject only to the changes
caused reasonable wear and tear or irresistible force and to allow the lessor and his agents at
all reasonable times during the terms to enter upon the property and inspect the condition
thereof and give or leave notice of any defect in such condition and when such defect has been
caused by any act or default on the part of the lessee, his servants or agents, he is found to
make it good with three months after such notice has been given or left
Notice to any Defect: Section 108
If the lessee becomes aware of any proceedings to recover the property or any part thereof or
of any encroachment made upon or any interference with the lessor's right concerning such
property he is bound to give, with reasonable notice thereof to the lessor

Use for Real Purpose: Section 108

Lessor must not use property or permit another to use the property for a purpose other than
that for which it was leased

Unlawful Purposes
Following may be unlawful purposes

 Sell or pull down timber

 Damage to buildings
 Work mines or quarries
 Any other act which is destructive

Permission of Lessor: Section 108

Lessee must not without the lessor's consent erect on the property any permanent structure
except for agricultural purposes

Delivery of Possession of Leased Property

On the determination of lease, the lessee is bound to put the lessor into possession of property

TERMINATION OF LEASE/HOW THE LEASE COMETO END:

Lease of immoveable property come to end in the following ways

Lapse of Time
By efflux of the time limited thereby

Happening of a Specified Event

Where such time is limited conditionally on happening of some event lease of immoveable
property come to end

Termination of the Interest of Lessor

Where the interest of the lessor in property terminates on or his power to dispose of the same
extends only to on the happening of such event
Merger
In case of the interest of the lessor and lessor in the whole of the property become vested at
the same time in one person in the same right

Express Surrender
That is to say in case the lessee yields up his interest under the lease to the lessor, by mutual
agreement between them

Implied Surrender
Lease of immoveable property may come to end by implied surrender

Forfeiture
That is to say in the case the lessee breaks and express condition which provides that on breach
thereof the lessor may reenter or in the case the lessee renounces his character as such by
setting up a title in a third person or by claiming title in himself or the lessee is adjudicated an
insolvent and lease provides that lessor may re-enter on the happening of such event, any in
any of these cases the lessor or his transferee gives notice in writing to the lessee of his
intention to determine the lease

Expiration of time given in Notice to Quit

On the expiration of a notice to determine the lease, or quit or of intention to quit the property
leased, duly given by one party to other.

HOW THE LEASE COME TO END: 70

Lease of immoveable property come to end in the following ways

(1) Lapse of Time

By efflux of the time limited thereby

Happening of a Specified Event

Where such time is limited conditionally on happening some event lease of some event lease of
immoveable property come to end.

Termination of the Interest of Lessor

Where the interest of the lessor in property terminates on, or his power to dispose of the same
extends only to, on the happening of such event hotel in
Merger
In case of the interest of the lessor and lessor in the whole of the property become vested at
the same time in one person in the same right

Express Surrender
That is to say, in case the lessee yields up his interest under the lease to the lessor, by mutual
agreement between them.
Implied Surrender Lease of immoveable property may come to end by implied surrender
Forfeiture
That is to say in the case the lessee breaks and express condition which provides that on breach
thereof the lessor may re enter or in the case the lessee renounces his character as such by
setting up a title in a third person or by claiming title in himself or the lessee is adjudicated an
insolvent and lease provides that lessor may re-enter on the happening of such event, any in
any of these cases the lessor or his transferee gives notice in writing to the lessee of his
intention to determine the lease

Expiration of time given in Notice to Quit

On the expiration of a notice to determine the lease, or quit or of intention to quit the property
leased, duly given by one party to other.

Conclusion
To conclude that a lease is transfer of an interest of immoveable property Under
transfer of property Act 1882 there are different modes which a lease in respect of immoveable
property may be determined