Art. 1642. The contract of lease may be of things, or of work and service.

LEASE-is a consensual, bilateral, onerous, and commutative contract by which one person binds himself to grant temporarily the use of a thing or the rendering of some service to another who undertakes to pay some rent, compensation, or price. KINDS OF LEASE: 1. Things 2. Service 3. Work (piece of work) 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. LEASE OF A THING- is a consensual, bilateral, onerous, and commutative contract by which a person temporarily grants the use or enjoyment of certain property to another who undertakes to pay rent or a price certain therefor, said contract last for a period which is either definite or indefinite. CHARACTERISTICS/REQUISITES FOR LEASE OF THINGS: a. consensual b. principal contract c. nominate d. purpose is to allow enjoyment or use of a thing e. subject is within the commerce of man f. should not be subject to immoral e. onerous h. temporary i. definite or indefinite RENT- compensation either in money, provisions, chattels, or labor, received by the lessor from the lessee. LEASE SALES a. only use or enjoyment is transferred a. ownership is transferred b. transfer is temporary b. transfer is permanent c. lessor need not be the owner c. seller must be the owner at the time the d. the price of the object, distinguished from property is supposed to be delivered the rent, is usually not mentioned. d.usually, the selling price is mentioned LEASE a. lessor does not lose ownership. b. relationship is one of lessor and lessee c. not governed by the Usury Law. d. if what is leased is real property for more than 1 year, the statute of frauds must be complied with e. refers to real and personal property LEASE a.onerous contract (although the rent may later on be remitted) b.not essentially personal in character, hence right may be transmitted to heirs. c.consensual contract SIMPLE LOAN a. lender loses ownership b. relationship is one obligor and oblige c. governed by the Usury Law d. not governed by the Statute of Fraud e. refers only to personal property.

COMMODATUM a. this is essentially gratuitous; if there is a price or rent, the contract ceases to be a commodatum b. personal in character, thus death of either bailor or bailee ends the commodatum. c. real contract requires delivery for perfection.

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. LEASE OF SERVICES (location operatum) CONTRACT FOR A PIECE OF WORK (location operis) a. the important object here is the labor a. the important object here s the work done performed for the lessor. (the result of the labor) b. the result is generally not important, b. the result is generally important. Generally hence, the labourer is entitled to be paid the price is not payable until the work is even if there is destruction of the work thru a completed, and said price cannot generally fortuitous event. be lawfully demanded if the work is destroyed before it is finished and accepted. 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. EXCEPTIONS: a. if they are merely to be exhibited as for display purposes b. if they are accessory to an industrial establishment RURAL LANDS are those where the lessee principally is interested in soil products. URBAN LANDS leased principally for purposes of residence FORM FOR THE CONTRACT OF LEASE OF THINGS Lease may be made ORALLY, but if the lease of real property is for more than 1 year, it must be in WRITING under the Statute of Fraud. 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. PERSONS DISQUALIFIED TO BE LESSEES BECAUSE DISQUALIFIED TO BUY: a. Husband and a wife cannot lease to each other their separate properties except: 1. if a separation of property was agreed upon in the marriage settlement. 2. if there has been a judicial separation under Art. 135 of the FC. b. Persons referred to under Art.1491 are disqualified because of fiduciary relationships. 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. PURPOSE IN RECORDING A LEASE: Notifying strangers to the transactions. PROPER AUTHORITY REQUIRED: a. the husband (with respect to the paraphernal real estate of the wife). b. the father or guardian (with respect to the property of the minor or the ward). c. the manager (administrator)(with respect to the property under his administration) 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. EFFECTS IF THE LEASE FO REAL PROPERTY IS NOT REGISTERED a. the lease is not binding on innocent third persons such as a purchaser. b. naturally, such an innocent third person is allowed to terminate the lease in case he buys the property from the owner-lessor. c. when a third person already knows of the existence and duration of the lease, he is bound by such lease even if it has not been recorded. d. if the stranger knows of the existence of the lease, but has been led to believe that the lease would expire very soon, or before the new lease in favour of him begins, the stranger can still be considered innocent. Art. 1649. The lessee cannot assign the lease without the consent of the lessor, unless there is a stipulation to the contrary. 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. SUBLEASE ASSIGNMENT a. the lessee retains an interests in the lease; a. the lessee makes an absolute transfer of he retains an interest in the lease; he his interest as lessee; thus, he dissociates remains a party to the contract. himself from the original contract of lease. b. the sublessee does not have any direct b. the assignee has a direct action against action against the lessor. the lessor. c. can be done even without the permission c. cannot be done unless the lessor consents of the lessor (unless there be an express prohibition) 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. 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 sublessee 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. 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. LESSOR WARRANTIES AGAINST: a. eviction b. hidden defects