Read also: OBLIGATIONS OF THE LESSOR
-
If the thing leased is totally destroyed by a fortuitous event, the lease is extinguished.
-
If the destruction is partial, the lessee may choose between a proportional reduction of the rent and a rescission of the lease.
-
The partial destruction, under the circumstances, should be important or substantial as to defeat the purpose of the lessee in entering into the contract of lease.
In a lease contract for 10 years, a fire completely destroyed the house leased at the end of 3 years.
Is the lessee responsible for the remaining 7 years rent? Can he demand that the lessor reconstruct the house?
No, the lessee is not responsible for the remaining 7 years rent because the lease has been extinguished. He cannot also demand that the house be reconstructed.
Civil Code says:
“ART. 1655. If the thing leased is totally destroyed by a fortuitous event, the lease is extinguished. If the destruction is partial, the lessee may choose between a proportional reduction of the rent and a rescission of the lease.”
If the destruction is total, the lease is extinguished, because of the absence of the object of the contract.
The lessee of a building which is subsequently destroyed cannot consider himself a lessee of the land on which said building was constructed. His lease came to an end when the building was destroyed, so that, to make him lessee of the land thereafter, a new contract of lease would have to be made.
If the destruction is partial, the lessee is given the option to choose between a proportionate reduction of the rent or abrogate of contract of lease. Once the choice of the lessee has been communicated to the lessor, the former cannot change it.
If reduction of rent is chosen, the same shall be retroactive to the date the partial destruction occurred. In case of abrogation of contract of lease, the general rule is that it will not be granted for slight or trivial causes. The partial destruction, under the circumstances, should be important or substantial as to defeat the purpose of the lessee in entering into the contract of lease.
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.
All rights reserved.
SUBSCRIBE NOW FOR MORE LEGAL UPDATES!
[email-subscribers-form id=”4″]