Read also: CONTRACT OF LEASE
-
When in the contract of lease of things there is no express prohibition, the lessee may sublet the thing leased.
-
The contract of lease must expressly stipulate the prohibition on subletting.
-
In a sublease, the lessee becomes in turn a lessor to a sublessee.
If a lessee entered in a 5-year contract of lease with the lessor and by some event he cannot continue with the lease, may he sublease the property he rented?
Yes, provided he is not restricted to do so by the Contract of Lease.
The law says:
In a sublease, the lessee becomes in turn a lessor to a sublessee. The sublessee then becomes liable to pay rentals to the original lessee. However, the juridical relation between the lessor and lessee is not dissolved. The parties continue to be bound by the original lease contract. Thus, in a sublease arrangement, there are at least three parties and two distinct juridical relations.
The sublease of a leased property cannot affect the efficacy of the contract of lease which subsists with all its legal consequences notwithstanding said sublease. By express provision of the law, the lessee is still responsible for the performance of his obligations toward the lessor.
The sublessee generally does not have any direct action against the lessor to require compliance with his or lessee’s obligations, or vice versa. The sublessor is the one directly liable to the sublessee whose damages are included in whatever damages the former may recover from the lessor.
A judgment of eviction against the lessee affects the sublessee even if the latter is not sued in the ejectment case. This is so because the sublessee can invoke no right superior to that of the sublessor from which his own right is derived, and the moment the sublessor is duly ousted from the premises, the sublessee has no leg to stand on. His possession is entirely dependent on the lessee. His right, if any, is to demand reparation for damages from his sublessor, should the latter be at fault. If the contract of lease prevents the lessee from subleasing the property, and the lessee sublets it in violation of the agreement, he may be held liable for damages. However, if the prohibition is merely implied, a sublease is still allowed. The contract of lease must expressly stipulate the prohibition on subletting.
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″]