Leases Flashcards
Lease
a synallagmatic contract by which one party, the lessor, binds himself to the other party, the lessee, the use and enjoyment of a thing for a term in exchange for a rent that the lessee binds himself to pay
Lease: Term
If the parties do not fix a term for the lease, a term will be supplied by law.
Fixed Term Lease
A lease is a fixed term lease when it terminates upon the expiration of a term, without need for notice, though it may be reconducted or extended.
Required Elements of a Lease
agreement on the thing
agreement on the rent
*does NOT have to be in writing!
Indefinite Lease: Agriculture
an agricultural lease without a stated term shall have a year-to-year term (imposed by law)
Indefinite Lease: Non-Agriculture (immovable) or Residential (movable)
a non-agricultural lease of an immovable or a residential lease of a movable without a stated term shall have a month-to-month term (imposed by law)
Lessee’s Right to Sublease
a lessee has a right to sublease the leased thing (with or without the owner’s consent) unless the lease contract prohibits it
Payment of Taxes on a Leased Thing
Lessor is responsible
Making of Repairs on a Leased Thing
*unless otherwise agreed
Lessor’s responsibility:
all other repairs, including those necessary to keep the thing in a condition suitable for the purpose for which it is leased
Lessee’s responsibility:
damage that is lessee’s fault, and
deterioration caused by lessee’s use beyond the normal use of the thing
Dissolution of a Lease for Breach
within the court’s discretion
factors court will consider:
(a) whether the breach was major
(b) whether breach was fault of lessee/lessor
(c) whether the breach was in good faith
Enforcement of a Lease Against a Third Party
requires that the lease be recorded in the mortgage records of the parish in which the immovable property is situated
(actual knowledge is irrelevant)
Tacit Reconduction
supplies a new determinate term for the lease
occurs when:
(1) lease has fixed term, and
(2) lessee continues possession for a certain period of time after the conclusion of the fixed term without opposition from the lessor
effects: lease continues under the same provisions of the old lease except for the term
Period of Time Required for Tacit Reconduction
agricultural leases: 30 days
non-agricultural leases: 1 week
leases with a fixed term of 1 week or less: 1 day
New Term of Tacitly Reconducted Lease
agricultural lease: year to year
non-agricultural lease with a term of a month or longer: month to month
non-agricultural lease with a term between 1 week and 1 day: day to day
nonagricultural lease with a term less than 1 day: term is equal to expired term
Lessee Abandonment
allows lessor to retake the premises and rent to another lessee as a mandatary for the original lessee
but lessor can only recover from original lessee the difference between rent paid by new lessee and rent owed by old lessee
Acceleration Clause
if put in lease, allows lessor to demand payment of all rent due for the duration of the lease when one payment is not made on time
*does not apply after tacit reconduction because lease becomes month to month (usually)
Warranty of Peaceful Possession
lessor is liable if lessee’s possession is disturbed by any person claiming a right in the leased thing, including disturbances by persons with access to the thing with lessor consent and persons occupying adjacent property belonging to lessor
likely not waivable (but not expressly non-waivable under the code)
Termination of the Lease: Indefinite Term
can be terminated by either party with proper notice
in lease for an immovable or residential movable, notice of termination must be in WRITING
term longer than a month: 30 days before the end of the period
month-to-month term: 10 days before the end of the month
term between a week and a month: 5 days before the end of the period
term shorter than a week: any time before the end of the term
Lessor’s Obligations
(1) deliver the thing to the lessee
(2) maintain the thing in a condition suitable for the purpose for which it was leased
(3) protect the lessee’s peaceful possession for the duration of the lease
Lessor’s Duty to Maintain
duty to make certain necessary repairs and warranty against vices and defects in the thing that prevent its use for the purpose for which it was leased (so must maintain in a condition suitable for the purpose for which it was leased)
Lessee’s Obligations
(1) repair damage to the thing caused by his fault or that of persons who use the thing with his consent
(2) repair damage or deterioration resulting from his use of the thing to the extent it exceeds normal wear and tear
Motorcycle Steering Problem when Going Above Speed Limit: Whose Duty to Repair?
provided the steering problem was not caused by the misuse of the lessee, it is the lessor’s duty to make the necessary repairs, because the steering problem seems to prevent the use of the motorcycle for the purpose in which it was leased
Lessee Withholding Rent
only acceptable if the lessee could consider the lease extrajudicially dissolved
Lessor Refuses to Make Necessary Repairs
Lessee must demand the repairs be made. If they are not, the lessee may cause the repairs to be made.
Lessee may demand immediate reimbursement of the amount expended for the repair or apply that amount to the payment of rent, but only to the extent the repair was necessary and the expended amount was reasonable.
