Lease in general

Lease in general, Lease Law

1. IN GENERAL

The contract of lease may be of things, or of work and service. (Article 1642, Civil Code)

a. Things

⦁ Definite period; Indefinite period – subject to 99-year lease limitation. 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. (Article 1643, Ibid.)

⦁ Excludes consumable – subject to exception. 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. (Article 1645, Ibid.)

b. Work and Service

⦁ 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. (Article 1644, Ibid.)

2. LEASE OF RURAL AND URBAN LANDS

a. In General

Disqualified to become lessees 

⦁ The persons disqualified to buy referred to in Articles 1490 and 1491, are also disqualified to become lessees of the things mentioned therein. (Article 1646, Ibid.)

The husband and the wife cannot sell property to each other, except:1) When a separation of property was agreed upon in the marriage settlements; or2) When there has been a judicial separation or property under Ar...