Effects of Lease (A) Obligations of the Lessor

Article 590

The lessor is bound to deliver to the lessee the leased property and its accessories in a condition suitable for the purpose for which it is intended, in accordance with the agreement between parties or with the nature of the property.

Article 591

1. If the leased property is delivered to the lessee in such a condition that it is unfit for the use for which it is leased, or if its usefulness is appreciably diminished, the lessee may demand either the resiliation of the lease or a reduction of the rent equivalent to the loss of use; in both cases he is entitled to claim compensation, if compensation is due.

2. If the leased property is in such a condition that it constitutes a serious danger to the health of the lessee, or those who live with him, or his employees or workmen, the lessee may demand resiliation of the lease, even if he has renounced the right to do so beforehand.

Article 592

The rules laid down as regards the obligation of delivery of the thing sold, especially as to time and place of delivery, as to the extent, deficiency or excess thereof unless there is a provision in the law that provides to the contrary.

Article 593

The lessor is bound to maintain the leased property to keep it in a condition allowing making use of the intended benefit. He shall make, during the continuance of the lease, all repairs which may become necessary according to the prevailing practice unless there is agreement to the contrary.

Article 594

1. If the lessor having been summoned, delays the performance of the repair obligations mentioned in Articles 513 and 515, the lessee may without prejudice to his right to claim revocation of the lease or a reduction of rent, obtain authority of the Court to carry them out by himself without prejudice to his right to seek revocation or reduction of the rent as provided for in the law.

2. The Court authority shall not be necessary if the repair are of an urgent nature or can be carried out at a modest cost.

Article 595

1. The Lessor shall carry out all the urgent repairs that are necessary for the preservation of the leased property even in spite of the lessee’s objection, provided that the latter shall be given a reasonable notice of the intention to carry them out.

2. If such repairs result in total or partial breach of enjoying the intended benefit, the lessee may demand termination of the lease agreement or reduction of the rent.

3. However, if the lessee remains in the leased property until completion of the repairs, his right to demand termination of the agreement shall be forfeited.

Article 596

1. If, during the course of the lease, the leased property is totally destroyed for a cause beyond the control of either of the contracting parties, the lease is ipso facto determined.

2. If, as a result of a cause not imputable to the lessee, the leased property is only partially destroyed or deteriorates to such an extent that it becomes unfit for the use for which it was leased, or if such a use is appreciably diminished, the lessee may, if the lessor, does not

restore the leased property to its original condition within a reasonable time, claim according to the circumstances either a reduction of the rent or revocation of the lease agreement without prejudice to his right to carry out the repairs by himself and restore the leased property to its original condition in accordance with the provisions of Article 516 unless this is burdensome to the lessor.

3. In the preceding two cases, the lessee cannot claim compensation if the loss or deterioration arises from a cause not imputable to the lessor.

Article 597

1. It is not permissible for the lessor to molest the lessee’s enjoyment during the lease period, or make any alteration in the leased property or its annexes that may prevent or upset such enjoyment.

2. Any molestation by a lessor’s servant shall be deemed a molestation by the lessor himself.

Article 598

The lessor shall not be liable for any molestation by a third party unless it is based on a legal reason.

Article 599

1. If a third party claims to have rights incompatible with those derived by the lessee from the agreement of lease, the lessee shall forthwith give notice to the lessor of such a claim and shall be entitled

to demand that he be dismissed from the case. In which event proceedings will be taken solely against the lessor.

2. If, as a result of such a claim, the lessee is effectively deprived of the enjoyment to which he is entitled in accordance with the agreement of lease, he may, in accordance with the circumstances,

claim resiliation of the lease or a reduction of rent together with payment of damages, if damages are due.

Article 600

1. The lessor does not warrant the lessee against trespass by a third party who does not claim a right over the leased property. This shall not, however, affect the right of the lessee to file an action in his name

against such third party for damages and to file all other possessory actions.

2. If, however, the trespass is not in any way attributed to the lessee and is sufficiently serious to deprive him of the enjoyment of the leased property, the lessee may, in accordance with the circumstances, claim revocation of the lease or a reduction of the rent.

Article 601

When there are several lessees of the same property, preference shall be given to the lessee who enters into the possession of the property first. If no lessee entered into possession without fraud, preference shall be given to the lessee who concludes the lease contract first.

Article 602

1. If, as a result of an act lawfully done by a public authority, the enjoyment of the property leased is appreciably diminished, the lessee may claim revocation of the lease or a reduction of rent unless the act of the public authority is for a cause for which he is liable.

2. If the grounds for the act of such public authority are the result of an act attributed to the lessor, the lessee may claim payment of damages.

3. All the above shall apply unless there is agreement to the contrary.

Article 603

1. The lessor warrants to the lessee the freedom of the leased property from all defects which prevent or appreciably diminish enjoyment of the property.

2. However, the lessor does not warrant those defects that are customarily tolerated, or any defect of which the lessee was informed or of which he was aware at the time of the conclusion of the contract or could be aware thereof had he inspected the property with due diligence, unless the lessee proves that the lessor has confirmed that the leased property had no such defects or deliberately concealed them out of fraud.

3. All the above shall apply unless there is agreement to the contrary.

Article 604

If the leased property is found to have a defect against which the lessee has been warranted by the lessor, the lessee may, in this case ask for repair of defect at the expense of the lessor where such repair is not excessive thereto without prejudice to the right of the lessee to claim revocation of the lease or reduction of the rent in addition to damages where there are grounds therefor.

Article 605

Any agreement excluding or limiting the warranty against disturbance or defects is void if the lessor has fraudulently hidden the cause of such warranty.

Article 606

If the leased property does not possess the qualities the lessor warrants, the lessee may seek termination of the lease contract or reduction of the rent, without prejudice to his right to compensation if required.

(B) Obligations of the Lessee Article 607

1. The lessee must pay the rent at the agreed times and, in the absence of agreement, at times established by custom.

2. In the absence of agreement or a custom to the contrary, the rent will be paid at the domicile of the lessee.

Article 608

Unless the lessor proves the contrary, payment of rent for a specific period shall serve as presumption of payment of rent for the preceding period.

Article 609

1. The lessor has, as warranty for all amounts due to him under the lease agreement, a lien on all the attachable movables kept in the leased property, while they are subject to the lessor’s right of privilege, even when they do not belong to the lessee. The lessor has the right to object to their removal and, if they are removed notwithstanding his objections or without his knowledge, to claim their recovery from their possessor even in good faith, subject always to the rights of such possessor thereon.

2. The lessor shall not exercise his rights of retention or of recovery when the movables have been removed to meet the professional requirements of the lessee or in accordance with customary requirements of daily life, or if the movables remaining on the leased property or already recovered are sufficient fully to cover the rent.

Article 610

The lessee shall use the leased property in the manner agreed. In the absence of any agreement, he shall use the property in accordance with the purpose for which it is designed subject to compliance with the prevailing practice.

Article 611

The lessee may not, without the permission of the lessor, make any alteration to the leased property if such alteration would cause damage to the lessor.

Article 612

1. The lessee may put in the leased property any systems or installations that guarantee the intended use of the property as long as they are fixed in a manner consistent with proper standards, and such installations or systems would not cause damage to the property or reduce it value.

2. If the intervention of the lessor is necessary for the completion of any of these installations, the lessee may call upon the lessor to intervene, on condition that he undertakes to pay the expenses incurred by the lessor in this connection.

Article 613

1. The lessee shall exercise ordinary care in the use and preservation of the leased property.

2. The lessee shall be responsible for any deterioration of or loss to the leased property during his enjoyment thereof which is not the result of normal use

Article 614

The lessee shall forthwith notify the lessor of all matters that require his intervention, such as urgent repairs, the discovery of defects, encroachments and disturbances or damage by third parties to the leased property.

Article 615

Unless otherwise agreed, the lessee shall incur the minor repairs required by the normal use of the leased property and custom.

Article 616

The lessee shall be bound, upon the expiration of the lease, to restitute the leased property and its annexes. If he retains it unlawfully, he must pay compensation to the lessor on the basis of the rental value of the property and of the damage suffered by the lessor.

Article 617

1. The lessee is bound to restitute the leased property in the condition in which it was at the time he took delivery thereof, subject to loss or deterioration due to a cause not imputable to him.

2. If no procès-verbal or inventory setting out particulars of the property was drawn up at the time of delivery, the lessee is presumed, subject to proof to the contrary, to have received the property in good condition.

Article 618

The costs of restitution of the leased property shall be incurred by the lessee unless the agreement or prevailing custom otherwise provides.

Article 619

1. If the lessee has erected buildings, planted trees or made other improvements which have increased the value of the property, the lessor is, subject to an agreement to the contrary, bound at the end of the lease to repay him the expenses incurred by him or the increase in

value of the property.

2. If such improvements were made without the knowledge of the lessor or notwithstanding his objections, the lessor may claim their removal and may in addition call on the lessee to pay compensation, if compensation is due, for any damage to property resulting from such removal.

3. If the lessor prefers to keep these improvements and pay one of the two amounts indicated above, the court may give him time for settlement.

III: Assignment of Lease and Sublease