Duration of Lease

What is the duration of lease?

Lease made for a determinate time or fixed period be for the said period and it ends on the day fixed without need of a demand. But if there is no fixed period for rural lands it shall be for all time necessary for the gathering of fruits which the whole estate may yield in 1 year, or which it may yield once. It is exemplified in this article of the New Civil Code:

Art. 1680. The lessee shall have no right to a reduction of the rent on account of the sterility of the land leased, or by reason of the loss of fruits due to ordinary fortuitous events; but he shall have such right in case of the loss of more than one-half of the fruits through extraordinary and unforeseen fortuitous events, save always when there is a specific stipulation to the contrary.

Extraordinary fortuitous events are understood to be: fire, war, pestilence, unusual flood, locusts, earthquake, or others which are uncommon, and which the contracting parties could not have reasonably foreseen. (1575)

As for urban lands the following rules shall apply, and below is the supporting article of the law:

a) If rent is paid daily: lease is from day to day
b) If rent is paid weekly: lease is from week to week
c) If rent is paid monthly: lease is from month to month
d) If rent is paid yearly: lease is from year to year

Art. 1687. If the period for the lease has not been fixed, it is understood to be from year to year, if the rent agreed upon is annual; from month to month, if it is monthly; from week to week, if the rent is weekly; and from day to day, if the rent is to be paid daily. However, even though a monthly rent is paid, and no period for the lease has been set, the courts may fix a longer term for the lease after the lessee has occupied the premises for over one year. If the rent is weekly, the courts may likewise determine a longer period after the lessee has been in possession for over six months. In case of daily rent, the courts may also fix a longer period after the lessee has stayed in the place for over one month. (1581a)

What is implied new lease?
Implied lease is which when at the end of the contract the lessee continues enjoying the thing leased for 15 days with the acquiescence of the lessor, unless a notice to the contrary had previously been given by either party. It is required that the term of the original contract has expired, the lessor has not given the lessee a notice to vacate and the lessee continued enjoying the thing leased for at least 15 days with acquiescence of the lessor.

When is there no implied new lease?

The is no implied lease when before or after the expiration of the term, there is a notice to vacate given by either party and when there is no definite fixed period in the original lease contract as in the case of successive renewals. Its effect includes that the period of the new lease is not that stated in the original contract but the time in Article 1682 and 1687 and other terms of the original contract are revived.
Note that the terms that are revived are only those which are germane to the enjoyment of possession, but not those with respect to special agreements which are by nature foreign to the right of occupancy or enjoyment inherent in a contract of lease – such as an option to purchase the leased premises as discussed by the court in the case of Dizon V.Magsaysay (GR No. 23399, May 31,1974).

What is perpetual lease?

Perpetual lease is a lease contract providing that the lessee can stay in the premises for as long as he wants and for as long as he can pay the rentals and its increases. However, this is not permissible, it is a purely potestative condition because it leaves the effectivity and enjoyment of leasehold rights to the sole and exclusive will of the lessee.

Note that In Jespajo Realty V. CA, 27 Sept. 2002, the SC upheld a lease contract, which provides that “the lease contract shall continue for an indefinite period provided that the lessee is up-to-date in the payment of his monthly rentals” for the contract is one with a period subject to a resolutory condition.

References:
Divino V. Fabie de Marcos, G.R. No. L-13924,January 3, 1962

DizonV..Magsaysay ,GR No. 23399, May 31,1974

Jespajo Realty V. Court of Appeals,G.R. No. 113626, September 27, 2002

Jurado, D. (1999). Civil Law Reviewer. Quezon City: Rex Printing Company, Inc.

The New Civil Code

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