Code III - Leases

Question 1

Lease

Answer 1

contract where lessor gives the use of a thing for a term to a lessee in return for a rent

Question 2

Elements of a Lease

Answer 2

1. consent of the parties
2. the thing
3. the rent

Question 3

The thing

Answer 3

all things susceptible of of ownership (except those that cannot be used without being destroyed) may be the object of a lease

Question 4

The Rent

Answer 4

must be CERTAIN or DETERMINABLE by method agreed on by the parties (need not be money)

Question 5

Form requirement

Answer 5

NONE even for immovables

Question 6

Lease and Public Records Doctrine

Answer 6

unrecorded leases are NOT enforceable against 3ps

Notice of lease may be recorded instead of lease, must contain:
1. names, addresses, and signatures of the parties
2. date of execution
3. brief description of leased property
4. The term
5. any renewal or purchase options
6. reference to any options, rights of first refusal, or other agreement of the lessor to transfer the leased premises

Question 7

exceptions to public records doctrine

Answer 7

unrecorded lease of immovable may be enforced against purchaser who:
1. purchases the leased thing “subject to” unrecorded leases or assumes the lessor’s obligations under the lease
2. Accepts rent from the lessee of an unrecorded lease (ratifies the lease)

Question 8

Types of Leases

Answer 8

1. Residential = thing to be occupies as a dwelling
2. Agricultural = a predial estate to be used for agriculture
3. Mineral = for production of minerals
4. Commercial = used for business or commercial purposes
5. Consumer = movable intended for the lessee’s personal or familial use outside his trade or profession

Question 9

Application Fee in Residential Leases

Answer 9

Lessor must give written notice of:
1. amount of fee
2. does lessor consider credit score, employment hist, crim hist, or evicition records
3. applicant may share a statement explaining applicant has experienced financial hardship from disaster or emergency (COVID, Hurricane)

Question 10

Lease Term Requirement

Answer 10

Must have a term

Perpetual leases INVALID

need NOT contain precise term to be valid

No term, law will provide one

Question 11

Lease with indeterminate Term

Answer 11

Ag lease = year-to-year

non-ag lease of immovable OR residential lease of a movable = month-to-month

non-residential lease of movables = day-to-day

Question 12

Tacit Reconduction

Answer 12

lease with a FIXED term continues if possession remains after certain amount of time after conclusion of fixed term without opposition of lessor

continues under same provisions

treated as a lease with an indeterminate term

Question 13

Time Periods for Reconduction

Answer 13

Ag Leases: 30 days

Non-Ag: 1 Week

fixed terms equal to or less than one week:1 day

Question 14

Term of Reconducted Lease

Answer 14

**Ag Lease: ** Year-to-Year

Non-Ag: month-to-month when the lease term is a month or longer;
day-to-day (day - month);
equal to expired term (< day)

Question 15

Termination of Lease w/Fixed Term

Answer 15

at expiration of the term

Question 16

Termination of Lease w/ indeterminate Term

Answer 16

terminated by either party by notice

Question 17

Time for Notice of termination for lease

Answer 17

Must be written for immovables or residential movables; other may be oral

1. 30 days before end of period if term longer than a month
2. 10 days end of month for month-to-month
3. 5 days for week - month
4. any time for term less than a week

Question 18

Loss or Destruction of Leased thing

Answer 18

if lost or totally destroyed absent fault of anyone, lease terminated and neither owe

if partial loss or destruction and lessee NOT at fault may obtain either diminution of rent a dissolution of the least

If lessor at fault lessee also may demand damages

Question 19

Lessor’s Obligations

Answer 19

1. deliver the thing
2. Maintain the thing
3. protect the lessee’s peaceful possession of the thing

Question 20

Delivery

Answer 20

delivered at agreed time in good condition (fit for its intended use)

Question 21

Lessor’s Maintenance Obligation

Answer 21

must make all repairs necessary to maintain the thing in a condition suitable for the purpose for which it was leased

If lessor refuses Lessee may make the repairs and demand reimbursement or deduct the cost from the rent

Question 22

Lessee’s Maintenance Obligations

Answer 22

1. Repairs caused by his fault or persons with his consent
2. remedy deterioration resulting from his use (exceeding normal or agreed upon use)

Question 23

Warranty for Vices and Defects

Answer 23

liable for all that prevent the thing from being used for its intended purpose that do not arise from the lessee’s fault

Irrelevant when appeared or knowledge

Question 24

Waiver of Warranty against Vices and Defects

Answer 24

must be clear and unambiguous and brought to the attention of the lessee

ineffective to extend they:
1. pertain to vices or defects of which the lessee did not know and lessor knew or should have known
2. Violate rules prohibiting advance limitations of liability for intentional acts, acts of gross fault, or physical injury
3. Residential and consumer leases only seriously affect health or safety

Question 25

Delictual Obligations

Answer 25

lessor can contractually modify rules of warranty for vices and defects having lessee assume responsibility for the condition of premises

Relieves lessor so long as
1. injured person derived his right to be on the premises from the lease and
2. lessor neither knew nor should have known of the defect

Question 26

Lessee’s activities

Answer 26

owner-lessor with FULL knowledge of the potentially harmful effects of the lessee’s activities on the property is answerable for the damages the lessee causes

Question 27

Lessee’s duties

Answer 27

1. pay rent
2. use as a prudent administrator according purpose
3. return the thing as it was delivered except normal wear and tear

Question 28

Changing use of Misuse of Property

Answer 28

lessor may get injunctive relief, dissolve the lease, and recover damages to rectify violations of a lessee’s duties

Question 29

Failure to Pay Rent

Answer 29

1. sue to dissolve the lease and regain possession; OR
2. demand specific performance

Either case may recover accrued rent

Question 30

Acceleration of Rent

Answer 30

May not collect rent not yet due

Only if lease contains an acceleration clause

Question 31

Reletting Premises

Answer 31

lessee abondons, lessor has right to retake possession and relet as mandatary

lease is not terminated and the lessee is NOT relieve of obligations under the contract

Question 32

Right to sublease, assign, or encumber

Answer 32

lessee can sublease, assign, or encumber their rights under the lease UNLESS EXPRESSLY prohibited in contract

any provision prohibiting one deems to prohibit the others unless stated otherwise

Question 33

Assignment vs. Sublease

Answer 33

Assignment the assignee promises to fulfill the assignor’s obligation including paying rent to lessor (both original and assignee have promised to lessor)

Sublease is a transfer of right of occupancy, sublessee pays lessee who remains bound to the lessor

Question 34

Abuse of Right

Answer 34

lessor cannot abuse right to reject a proposed assignment or sublease

predominant intent to harm the other party

Question 35

Lessee’s right to Improvements

Answer 35

Right to remove (must restore to former condition)

Question 36

Lessee Failure to Remove Improvements

Answer 36

lessor may
1. appropriate ownership and pay lessee the lesser of costs or enhanced value
2. demand removal within reasonable time
3. If failure to remove
- remove at lessee’s expense
- take ownership w/o payment

Question 37

Security deposit

Answer 37

must be returned within one month of termination of the lease

lessor may retain all or part for unreasonable wear and tear

if lessor fails to return within 30 days after written demand lessee has right to recover the amount of the deposit plus greater of $300 or twice the amount of the deposit held