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Section I Leases
1. Leases Generally
Elements of a Lease
Article 558
A lease is a contract by which the lessor undertakes to enable the lessee to enjoy a specific thing for a certain time in return for a fixed rent.
Article 559
In the absence of a provision of the law to the contrary, a person who has only a right of management cannot, without the consent of the competent authority, enter into a lease for a term exceeding three years. If the lease is granted for a longer term, it will be reduced to three years.
Article 560
A lease granted by a usufructuary, unless ratified by the bare owner, ends when the usufruct is extinguished, subject to the delay provided for giving notice of evacuation and the time required to gather in the annual crop.
Article 561
Rent may consist either of money or of any other prestation.
Article 562
If the parties have not agreed the amount of the rent or the manner in which the rent shall be fixed, or if the amount of the rent cannot be established, it must be based on the current rent for other similar properties.
Article 563
If a lease is concluded without any agreement as to term, or for an undetermined period, or if the term cannot be established, it is deemed to have been made for the term fixed for payment of the rent. It expires at the end of the term in question, at the request of one of the parties, subject to notice being given by him to the other party as follows:
a) in the case of agricultural and uncultivated land, if rent is payable six monthly or if the term for payment is more than six months, notice must be given three months before the end of the term; if the term is less than six months notice must be given before the last half term, subject always to the right of the lessee to the crops in accordance with custom;
b) in the case of houses, shops, offices, and business premises, industrial establishments, warehouses and other similar premises, if the rent is payable every four months or at longer intervals, notice must be given two months before the end of the term; if the term is less, notice must be given before the last half term;
c) in the case of apartments, furnished rooms and all kinds of premises not mentioned above, if the rent is payable every two months, or at longer intervals, the notice must be given one month before the end of the term; if the term is less than two months the notice must be given before the last half term.
Effects of a Lease
Article 564
The lessor is bound to deliver to the lessee the leased property and its accessories in a condition suitable for the purpose for which it is intended, in accordance with the agreement between parties or with the nature of the property.
Article 565
If the leased property is delivered to the lessee in such a condition that it is unfit for the use for which it is leased, or if its usefulness is appreciably diminished, the lessee may demand either the resiliation of the lease or a reduction of the rent equivalent to the loss of use; in both cases he is entitled to claim compensation, if compensation is due.
If the leased property is in such a condition that it constitutes a serious danger to the health of the lessee, or those who live with him, or his employees or workmen, the lessee may demand resiliation of the lease, even if he has renounced the right to do so beforehand.
Article 566
The rules laid down as regards the obligation of delivery of the thing sold, especially as to time and place of delivery, as to extent, weight or measure, and as to determining its accessories, are applicable to the obligation of delivery of the leased property.
Article 567
The lessor is bound to maintain the leased property in the state in which it was at the time of delivery. He must make, during the continuance of the lease, all repairs which may become necessary, except lessee's repairs.
The lessor is also bound to do such plastering and white-washing of the roofs as may be necessary, and to clear wells, cesspools and drains.
The lessor is responsible for charges and taxes due on the leased property. The lessor is also responsible for the cost of water, if it is supplied for a lump sum, but the lessee is responsible if it is supplied by meter. The costs of electricity, gas and of other requirements for personal use are payable by the lessee.
The above rules only apply in the absence of agreement to the contrary.
Article 568
If a lessor having been summoned, delays the performance of the obligations mentioned in the preceding article, the lessee may, without prejudice to his right to claim resiliation of the lease or a reduction of rent, obtain authority of the court to perform them himself and deduct the cost from the rent.
In the case of immediate repairs or minor repairs for which the lessor is responsible, whether resulting from a defect existing at the time the premises were taken over by the lessee or happening subsequently, the lessee may, without the authority of the court, carry them out and deduct the cost thereof from the rent, if the lessor, having been summoned to do so, does not carry them out in a reasonable time.
Article 569
If, during the course of the lease, the leased property is totally destroyed, the lease is, ipso facto, determined.
If, as a result of a cause not imputable to the lessee, the leased property is only partially destroyed or deteriorates to such an extent that it becomes unfit for the use for which it was leased, or if such a use is appreciably diminished, the lessee may, if the lessor does not restore the leased property to its original condition within a reasonable time, i.e., a delay which does not affect the business or activity of the lessee, claim, according to the circumstances, either a reduction of the rent or the resiliation of the lease, without prejudice to his right to perform himself the obligations of the lessor in accordance with the provisions of the preceding article.
In the two preceding cases, the lessee cannot claim compensation if the loss or deterioration arises from a cause not imputable to the lessor.
Article 570
The lessee must not prevent the lessor from making immediate repairs required for the preservation of the leased property, but if such repairs cause a complete or partial loss of enjoyment, the lessee may claim, according to the circumstances, resiliation of the lease or a reduction of the rent.
If, however, the lessee continues to occupy the premises until the repairs are completed, he will forfeit his rights to claim resiliation of the lease.
Article 571
The lessor shall abstain from doing anything which may disturb the lessee in his enjoyment of the leased property, and shall not make any alterations to the property or to its accessories that diminish such enjoyment.
The lessor not only warrants the lessee against his own acts and against those of his servants, but also against any disturbance or damage based on a lawful claim by any other lessee or by any successor in title of the lessor.
Article 572
If a third party claims to have rights incompatible with those derived by the lessee from the agreement of lease, the lessee shall forthwith give notice to the lessor of such a claim and shall be entitled to demand that he be dismissed from the case. In which event proceedings will be taken solely against the lessor.
If, as a result of such a claim, the lessee is effectively deprived of the enjoyment to which he is entitled in accordance with the agreement of lease, he may, in accordance with the circumstances, claim resiliation of the lease or a reduction of rent together with payment of damages, if damages are due.
Article 573
When there are several lessees of the same property, the lessee who, without fraud, first entered into possession will have preference. If a lessee of an immovable property has, in good faith, effected transcription of his lease, before another lessee has entered into possession or before the renewal of his lease, such lessee will have preference.
In the absence of reasons giving preference to one lessee, the only recourse of a lessee in respect of any right not enjoyed by him is a claim for damages.
Article 574
If, as a result of an act lawfully done by a Government authority, the enjoyment of the property leased is appreciably diminished, the lessee may, in accordance with the circumstances, and unless otherwise agreed between the parties, claim resiliation of the lease or a reduction of rent. If the grounds for the act of such Government authority are the result of an act imputable to the lessor, the lessee may claim payment of damages.
Article 575
A lessor does not warrant the lessee against trespass by a third party who does not claim a right over the leased property; this shall not, however, affect the right of the lessee to take action in his name against such third party for damages and to take all other possessory actions.
If, however, the trespass is not in any way imputable to the lessee and is sufficiently serious to deprive him of the enjoyment of the leased property, the lessee may, in accordance with the circumstances, claim resiliation of the lease or a reduction of rent.
Article 576
Subject to any agreement to the contrary, the lessor warrants the lessee against all defects which prevent or appreciably diminish the enjoyment of the property, but not against those defects that are customarily tolerated, and is responsible for the lack of qualities which he specifically warranted to exist or which are essential to the intended use of the property.
The lessor, however, does not warrant the lessee against defects of which the lessee was informed or of which he was aware at the time of the conclusion of the contract.
Article 577
If the leased property is found to have a defect against which the lessee has been warranted by the lessor, the lessee may, in accordance with the circumstances, claim resiliation of the lease or reduction of the rent. The lessee may also call upon the lessor to make good the defect or do so himself at the cost of the lessor, if the cost thereof is not an excessive burden on the lessor.
If the defect causes any damage to the lessee, the lessor shall be liable to pay compensation, unless the lessor can establish that he was not aware of the defect.
Article 578
Any agreement excluding or limiting the warranty against disturbance or defects is void if the lessor has fraudulently hidden the cause of such warranty.
Article 579
The lessee must use the leased property in the manner agreed. In the absence of any agreement, he must use the property in accordance with the purpose for which it is destined.
Article 580
The lessee may not, without the permission of the lessor, make any alteration to the leased property unless no damage is thereby occasioned to the lessor.
If the lessee makes alterations to the leased property in excess of the limits prescribed in the preceding paragraph, he may be compelled to reinstate the property in its original condition and to pay compensation if compensation is due.
Article 581
The lessee may install in the leased property, unless the lessor can show that the installations endanger the safety of the building, water, electric light, gas, telephone, wireless and other like installations, provided that the manner in which such installations are made is not contrary to general practice.
If the intervention of the lessor is necessary for the completion of any of these installations, the lessee may call upon the lessor to intervene, on condition that he undertakes to pay the expenses incurred by the lessor in this connection.
Article 582
In the absence of an agreement to the contrary, the lessee is bound to carry out lessee's repairs in accordance with general usage.
Article 583
The lessee shall use and preserve the leased property with the care of a reasonable person.
The lessee is responsible for any deterioration of or loss to the leased property during his enjoyment thereof which are not the result of normal use.
Article 584
The lessee is responsible for damage to the leased property by fire, unless he can establish that the cause thereof was not imputable to him.
When the building is occupied by several lessees, all such lessees, including the landlord if he lives on the premises, are responsible for the fire, each in proportion to the part he occupies, unless it is proved that the fire started in the part occupied by one of them, in which case that one alone will be responsible.
Article 585
The lessee must forthwith notify the lessor of all matters that require his intervention, such as urgent repairs, the discovery of defects, encroachments and disturbances or damage by third parties to the leased property.
Article 586
The lessee must pay the rent at the agreed times and, in the absence of agreement, at times established by the custom of the place where the property is situated.
In the absence of agreement or local custom to the contrary, the rent will be paid at the domicile of the lessee.
Article 587
The payment of a term's rent establishes in favor of the payee a presumption, subject to proof to the contrary, that former terms have been paid.
Article 588
Unless the rent is paid in advance or unless the lessee provides other guarantees, the lessee of a house, warehouse, shop or similar establishment or of agricultural land, is bound, in the absence of an agreement to the contrary, to stock the leased property with furniture, goods, crops, cattle, or implements of sufficient value to secure the rent for two years or for the period of the lease if less than two years.
Article 589
The lessor has, as warranty for all amounts due to him under the agreement of lease; a lien on all the attachable movables stocking the leased property, while they are subject to the lessor's right of privilege, even when they do not belong to the lessee. The lessor has the right to object to their removal and if, they are removed notwithstanding his objections or without his knowledge, to claim their recovery from their possessor even in good faith, subject always to the rights of such possessor thereon.
The lessor cannot exercise his rights of retention or of recovery when the movables have been removed to meet the professional requirements of the lessee or in accordance with customary requirements of daily life, or if the movables remaining on the leased property or already recovered are fully sufficient to cover the rent.
Article 590
The lessee is bound, upon the expiration of the lease, to restitute the leased property. If he retains it unlawfully, he must pay compensation to the lessor on the basis of the rental value of the property and of the loss suffered by the lessor.
Article 591
The lessee is bound to restitute the leased property in the condition in which it was at the time he took delivery thereof, subject to loss or deterioration due to a cause not imputable to him.
If no procès-verbal or inventory setting out particulars of the property was drawn up at the time of delivery, the lessee is presumed, subject to proof to the contrary, to have received the property in good condition.
Article 592
If the lessee has erected buildings, planted trees or made other improvements which have increased the value of the property, the lessor is, subject to an agreement to the contrary, bound at the end of the lease to repay him the expenses incurred by him or the increase in value of the property.
If such improvements were made without the knowledge of the lessor or notwithstanding his objections, the lessor may claim their removal and may in addition call on the lessee to pay compensation, if compensation is due, for any damage to property resulting from such removal.
If the lessor prefers to keep these improvements and pay one of the two amounts indicated above, the court may give him time for settlement.
Assignment of Lease and Sub-lease
Article 593
The lessee may, in the absence of an agreement to the contrary, assign his lease or sublet the whole or any part of the leased property.
Article 594
A prohibition of sub-letting implies a prohibition of assignment and vice versa.
When, in the case of a lease of an immovable property in which an industrial or commercial establishment has been created, circumstances have compelled the lessee to sell such industrial or commercial establishment, the court may, notwithstanding the condition prohibiting sub-letting, decide to maintain the lease in force if the purchaser furnishes adequate security and the lessor suffers no real prejudice thereby.
Article 595
When a lease is assigned, the principal lessee remains guarantor for the performance of the assignee's obligations.
Article 596
A sub-lessee is answerable directly to the lessor for the amounts that he, the sub-lessee, owes to the lessee as from the time a summons is served on him by the lessor.
A sub-lease cannot set up against the lessor payments made by him in advance to the principal lessee, unless they were made before the summons, in accordance with custom or a formal agreement concluded at the time of the sub-lease.
Article 597
A lessee ceases to be answerable to the lessor, either as guarantor of the assignee in case of the assignment of the contract of lease, or as regards his obligations arising from the principal contract of lease in the case of a sub-lease:
i) if the lessor has formally agreed to the assignment of lease or to the sub-lease;
ii) if the lessor has received, without reserving his rights as against the lessee, the rent directly from such assignee or sub-lessee.
The End of a Contract of Lease
Article 598
A lease ends at the expiration of the agreed term without it being necessary to give notice of evacuation.
Article 599
If, after the lease has expired, the lessee continues to enjoy the leased property to the knowledge of and without objection on the part of the lessor, the lease is deemed to be renewed upon the same conditions but for an indefinite duration. The lease so renewed is governed by the provisions of Article 563.
This tacit renewal is deemed to be a new lease and not a mere prolongation of the original lease. Nevertheless, subject to the rules of publication applicable to real property, the real securities supplied by the lessee in guarantee of the old lease are transferred to the new lease. The suretyship, whether personal or real, is not transferred to the new lease unless the surety consents thereto.
Article 600
When notice of evacuation has been given by one party to the other and the lessee, notwithstanding the notice, continues to enjoy the property after the expiration of the lease, the lease will not, subject to proof to the contrary, be deemed to have been renewed.
Death or Insolvency of the Lessee
Article 601
A contract of lease is not terminated either by the death of the lessor or of the lessee.
In the event of the death of the lessee, however, his heirs may claim the termination of the lease if they establish that, as a result of the death of the person whose estate they inherited, the burden of the lease has become too heavy for their resources or that the lease exceeds their needs. In such an event, the periods of notice of termination laid down in Article 563 shall be observed and the claim for termination of the lease made within six months at the most from the date of the death of the lessee.
Article 602
If the lease has been granted to the lessee solely on account of his calling or of other considerations relating to his person, his heirs or the lessor may, on his death, claim termination of the lease.
Article 603
The insolvency of the lessee does not render immediately payable rents that have not become due.
The lessor, however, may claim resiliation of the lease, unless he is provided within a reasonable time with securities guaranteeing the payment of rent not due. The lessee may also, if he is not given authority to assign the lease or to sub-let the property, claim the resiliation of the lease on payment of equitable compensation.
Article 604
In the case of a voluntary or forced transfer of the ownership of the leased property to a third party, the new owner is only bound by the lease if it has been given an established date prior to the act entailing the transfer of ownership.
The new owner may, however, avail himself of the contract of lease, even if he is not bound by such contract.
Article 605
A person acquiring the leased property, who is not bound by the lease, can only evict the lessee by giving him notice as provided for in Article 563.
In the absence of a provision to the contrary, the lessor must, if notice of eviction is given before the end of the lease, compensate the lessee. The lessee cannot be evicted before he receives compensation either from the lessor or from the new owner paying on behalf of the lessor, or until he has obtained an adequate security for the payment of such compensation.
Article 606
The lessee cannot set up rent paid in advance against a new owner, if the new owner proves that at the time of payment the lessee knew or should necessarily have known of the transfer of ownership. Failing proof thereof, the new owner has only a remedy against the lessor.
Article 607
When it has been agreed that the lessor may terminate the contract if he becomes personally in need of the property, he shall, if he exercises his right, be bound, unless otherwise agreed, to give the lessee notice of termination in accordance with the delays provided for in Article 563.
Article 608
When a lease is made for a fixed period, either of the contracting parties may, if serious and unforeseen circumstances arise of such a nature as to render, from the commencement of or during the lease, the performance too burdensome, demand the termination of the lease before its expiration, provided he gives notice in accordance with the delays provided for in Article 563 and pays equitable compensation to the other party.
If it is the lessor who demands termination of the lease, the lessee will not be compelled to hand back the leased property before he has been compensated or obtained adequate guarantee.
Article 609
An official or an employee whose duties oblige him to change his place of residence may claim termination of the lease of his dwelling house, when his lease is made for a fixed period, provided that he gives notice of such termination in accordance with the delays provided for in Article 563. Any agreement to the contrary is void.
2. Certain Kinds of Leases
Leases of Agricultural Land
Article 610
If the leased property is agricultural land, the lessor is not bound to hand over to the lessee cattle and agricultural implements existing on the land unless they are included in the lease.
Article 611
When cattle and agricultural implements belonging to the lessor are handed over to the lessee, the lessee is under the obligation to take proper care of them and to maintain them in the manner required for their customary use.
Article 612
When a lease of agricultural land provides that the lease is made for one or several years, it is deemed to be for one or several completed annual rotation of crops.
Article 613
A lease of agricultural land must work the land in accordance with the requirements of normal agricultural use. He must, more particularly, maintain the land in a good state of production.
He must not, without the consent of the lessor, make any substantial change in the established method of cultivating the land, the effects of which might extend beyond the period of the lease.
Article 614
Subject to an agreement or custom to the contrary, the lessee is bound to carry out repairs necessary for the normal enjoyment of the leased land. He is in particular responsible for the clearing and maintenance of canals, trenches, channels and drains. He is also responsible for the normal maintenance of roads, dikes, bridges, fencing, wells, dwelling houses and farm buildings.
The erection of buildings and major repairs to existing buildings and dependencies on the land are, subject to any agreement or custom to the contrary, the responsibility of the lessor. The same rule applies as regards repairs to wells, canals, water channels and reservoirs.
Article 615
If the lessee has, as a result of force majeure, been prevented from preparing or sowing the land, or if the whole or the greater part of the seed has been destroyed thereby, he is, subject to any agreement to the contrary and as the case may be, relieved from payment of the whole or part of the rent.
Article 616
If, after having sown, a lessee loses all his crop by force majeure before harvest time, he can demand remission of the rent.
If the crop is only partially destroyed, but a considerable decrease in yield results therefrom, the lessee may demand a reduction of the rent.
The lessee cannot demand a remission or a reduction of rent if he is compensated against his loss either by the profits he has derived during the whole period of the lease, by an amount received under an insurance policy or by any other means.
Article 617
If, at the end of a lease, the harvest has not ripened for reasons not imputable to the lessee, he may, upon payment of a proportional rent, remain on the leased land until the harvest ripens.
Article 618
An outgoing lessee shall do nothing of a nature to diminish or retard the enjoyment of the land by an incoming lessee. He is bound, in particular, just before vacating the land, to allow the incoming lessee to prepare the land and to sow, if he does not sustain any injury thereby.
Amodiation
Article 619
Agricultural land and land planted with trees may be granted in amodiation to a lessee in consideration of the lessor taking a fixed share in the crop.
Article 620
In the absence of agreement or custom to the contrary, the conditions governing leases apply to amodiation, subject to the following provisions.
Article 621
The amodiation is, when no term is fixed, deemed to have been granted for one yearly rotation of crops.
Article 622
The lease in case of amodiation includes agricultural implements and cattle belonging to the lessor which are on the land at the time of the agreement.
Article 623
The lessee must give to the cultivation and to the preservation of the crop the same care that he gives to his own affairs.
The lessee is responsible for deterioration to the land during his enjoyment, unless he proves that he looked after the preservation and maintenance of the land with the care of a reasonable person.
The lessee is not bound to replace cattle that die or agricultural implements worn out through no fault of his own.
Article 624
The produce is divided between the two parties in the proportion agreed upon or established by custom; in default of agreement or custom the produce is divided equally.
Loss by reason of force majeure of all or part of the produce is borne equally by the two parties and gives rise to no claim by either party against the other.
Article 625
In amodiation, the lessee cannot assign the lease or sub-let the land amodiated without the consent of the lessor.
Article 626
The amodiation does not determine on the death of the lessor, but determines on the death of the lessee.
Article 627
When the amodiation ceases before the end of its term, the lessor must reimburse the lessee or his heirs for any expenditure made in respect of crops which have not ripened, and pay equitable compensation for work that the lessee has done on the land.
If, however, the amodiation is dissolved by the death of the lessee, his heirs may, instead of claiming reimbursement of the expenses herein before referred to, take the place of their principal until the crops have ripened, provided they are in a position to continue the proper cultivation of the land.
Lease of Wakf Property
Article 628
A Nazir has the right to let wakf property.
A beneficiary, even if he is the sole beneficiary, cannot grant a lease unless the right to do so has been given to him by the constituent of the wakf or unless he is authorized to do so by a person who has power to grant a lease, whether he be the Nazir or the judge.
Article 629
The Nazir is the person entitled to receive the rent, and payment must not be made to the beneficiary without the consent of the Nazir.
Article 630
The Nazir is not entitled to take the wakf property or lease even at the current rent for similar properties.
The Nazir may lease wakf property to his ascendants and descendants, provided that the rent is the current rent for similar properties.
Article 631
A lease of wakf property is not valid if the rent is grossly inadequate, unless the lessor is the sole beneficiary with power to administer the wakf. In such a case, the lease notwithstanding the gross inadequacy of the rent, will bind the lessor, but will not bind beneficiaries who succeed him.
Article 632
In cases of lease of wakf property, the estimation of the current rent for similar properties will be made at the time of the conclusion of the contract of lease; any changes taking place after that date shall not be taken into account.
When a Nazir grants a lease of wakf property for a grossly inadequate rent, the lessee is bound, under penalty of resiliation of the contract, to make up the rent to the rent for similar properties.
Article 633
The Nazir cannot, without authority of the judge, lease wakf property for a period exceeding three years, even by successive contracts. Any lease entered into for a longer period shall be reduced to three years.
If, however, the Nazir is also either the founder or the sole beneficiary, he may, without it being necessary to obtain the authority of the judge, lease the wakf property for more than three years, subject to the right of the Nazir succeeding him to claim the reduction of the period to three years.
Article 634
The provisions relating to lease apply to the lease of wakf property, insofar as they are not incompatible with the preceding provisions.
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