Read also: Understanding how lease agreements work
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The contract of lease is an agreement whereby lessor binds himself to grant temporarily the enjoyment or use of a thing or to render some work or service to a lessee who undertakes to pay rent, compensation or price therefor.
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The contract of lease may be of things, or of work and service.
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The difference between lease and sale is that, in a lease, the lessor transfers merely the temporary possession and enjoyment of the thing leased. In a sale, he seller transfers ownership of the thing sold.
The contract of lease is an agreement whereby one person (lessor) binds himself to grant temporarily the enjoyment or use of a thing or to render some work or service to another (lessee) who undertakes to pay rent, compensation or price therefor.
Does the contract of lease only involve things?
No.
The Law says:
The contract of lease may be of things, or of work and service.
Thus, lease contract may be:
- Lease of things, whether real or personal, involving an obligation on the part of the lessor to deliver the thing which is the object thereof and the correlative right of the lessee to the peaceful and adequate enjoyment thereof for a price certain; or
- Lease of work which refers to a contract for a piece of work, involving an obligation on the part of the contractor (lessor) to execute a piece of work for the employer (lessee) in consideration of a certain price or compensation; or
- Lease of service involving an obligation on the part of the housekeeper, laborer or employee, or common carrier to do or perform a service for the head of a family, or master, employer, or passenger or shipper of goods, respectively, in consideration of compensation.
The difference between lease and sale is that, 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. In other words, in a lease, the landlord or lessor transfers merely the temporary possession and enjoyment of the thing leased. In a sale, the seller transfers ownership of the thing sold.
Alburo Alburo and Associates Law Offices specializes in business law and labor law consulting. For inquiries, you may reach us at info@alburolaw.com, or dial us at (02)7745-4391/0917-5772207.
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