LEASE
Rights and Obligations of Lessor and the Lessee
Lessor
The lessor is obliged to:
1. Deliver the thing which is the object of
the contract in such a condition as to
render it fit for the use intended.
2. Make on the same during the period of
the lease, all necessary repairs in order to
keep it suitable for the use intended,
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 for the entire duration of the
contract.
The lessee may suspend payment in case the
lessor fails to observe 2 & 3.
Failure to comply with their principal obligations entitles the aggrieved party to:
1. Recission of contract + Damages
2. Damages only, allowing the contract to remain in force:
The lessor is also obliged to :
1. Pay the lessee ½ of the value of the useful
improvements, if the lessee makes in
good faith, useful improvements which
are suitable for the use for which the lease
is intended without altering the for or
substance of the property leased
Lessee
The lessee is obliged to:
1. Pay the price of the lease according to the
terms stipulated.
2. Use the thing 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 the expenses for the deed of the
lease.
The lessee is also obliged to:
1. Tolerate the work, when it becomes
necessary to make urgent repairs which
cannot be deferred until the termination of
the lease, although it may become very
annoying to him and may deprive him a
part of his premises
However:
a. The rent may be reduced in
proportion to the time and the part of
the property which the lessee has
been deprived if the repairs last for
more than 40 days; or
b. The lease may be rescinded if the
work is of such a nature that the
portion which the lessee and his
family need for their dwelling
becomes uninhabitable, if the main
purpose of the lease is to provide a
dwelling place for the lessee.
2. Bring to the knowledge of the proprietor

The lessor may:
1. Judicially eject the lessee for any of the
following causes:
a. When the period agreed upon has
expired.
b. Lack of payment of the price
stipulated.
c. Violation of any of the conditions
agreed upon in the contract
d. When the lessee devotes the thing
leased to any use or service not
stipulated which causes deterioration
thereof or does not use the thing as a
diligent father of a family, devoting it
to the use stipulated; and in the
absence of stipulation, to that which
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
thing leased
3. Advise the owner , within the shortest
possible time, of the need for necessary
repairs.
In no. 2 & 3 , the lessee shall be liable for
damages which through his negligence may be
suffered by the proprietor.
4. Return the thing leased, upon the
termination of the lease, just 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.
Lessee is liable for:
1. Deterioration or loss of the thing leased,
unless he proves that it took place without
his fault.
Exception : Destruction is due to
earthquake, flood or other natural
calamity.
2. Any deterioration caused by the members
of his household, guests and visitors
The lessee may:
1. Terminate the lease at once by notifying
the lessor when the 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 and health , even if at the time of the
perfection of the contract, the lessee knew
of the dangerous condition or waived the
right to rescind on account of such
condition.
2. Make urgent repairs at the lessor’s cost,
should the lessor fail to make the same,
in order to avoid an imminent danger.
3. Remove the useful improvements, even
though the principal thing may suffer
damage thereby, should the lessor refuse
 may be inferred from the nature of the to reimburse him ½ of its value. He shall
thing leased, according to the custom not, however, cause any more impairment
of the place. upon the property than is necessary

The lessor cannot: The lessee cannot:

1. Be 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
 Mere act of trespass – person
claims no right whatsoever.
1. 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.
2. Be reimbursed with regard to ornamental
expenses, but he may remove the same
provided no damage is caused to the
principal thing AND the lessor does not
choose to retain them by paying their
value at the time the lease is extinguished.

Other principles governing lease:

Art. 1669: If the lease was made for a determinate time. It ceased upon the day fixed, without need of
a demand

Art. 1670: Tacita Reconduccion:

If at the end of the contract, the lessee should continue enjoying the thing leased for 15 days with the
acquiescence of the lessor, and unless a notice to the contrary by either party has been previously
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

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.

Art. 1672. In case of an implied new lease, the obligation contracted by a third person for the security
of the principal contract shall cease with respect to the new lease

Art. 1682 (For Rural Lands)

When the period has not been fixed, it is understood to have been made for all the time necessary for
the gathering of the fruits which the whole estate leased may yield in one year, or which it may yield
once, although two or more years may have to elapse for this purpose.

Art. 1687 (For Urban Lands)

When the period has not been fixed, it is understood to be from:

a. Year to year, if rent agreed upon is annual

b. Month to month, if rent agreed upon is monthly
c. Week to week, if rent agreed upon is weekly
 d. Day to day, if rent is to be paid daily.

Article 1676. The purchaser of a piece of land which is under a lease that is not recorded in the
Registry of Property may terminate the lease, save when there is a stipulation to the contrary in the
contract of sale, or when the purchaser knows of the existence of the lease

If the buyer makes use of this right, the lessee may demand that he be allowed to gather the fruits of the
harvest which corresponds to the current agricultural year and that the vendor indemnify him for
damages suffered.

If the sale is fictious for the purpose of extinguishing the lease, the supposed vendee cannot make use
of the right granted in the first paragraph. The sale is presumed to be fictious if at the time the supposed
vendee demands the termination of the lease, the sale is not recorded in the Registry of Property.

Article 1677. The purchaser in a sale with right of redemption cannot make use of the power to eject
the lessee until the end of the period for redemption.