Leases

Question 1

Lease

Answer 1

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

Question 2

Lease: Term

Answer 2

If the parties do not fix a term for the lease, a term will be supplied by law.

Question 3

Fixed Term Lease

Answer 3

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.

Question 4

Required Elements of a Lease

Answer 4

agreement on the thing
agreement on the rent
*does NOT have to be in writing!

Question 5

Indefinite Lease: Agriculture

Answer 5

an agricultural lease without a stated term shall have a year-to-year term (imposed by law)

Question 6

Indefinite Lease: Non-Agriculture (immovable) or Residential (movable)

Answer 6

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)

Question 7

Lessee’s Right to Sublease

Answer 7

a lessee has a right to sublease the leased thing (with or without the owner’s consent) unless the lease contract prohibits it

Question 8

Payment of Taxes on a Leased Thing

Answer 8

Lessor is responsible

Question 9

Making of Repairs on a Leased Thing

Answer 9

*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

Question 10

Dissolution of a Lease for Breach

Answer 10

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

Question 11

Enforcement of a Lease Against a Third Party

Answer 11

requires that the lease be recorded in the mortgage records of the parish in which the immovable property is situated
(actual knowledge is irrelevant)

Question 12

Tacit Reconduction

Answer 12

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

Question 13

Period of Time Required for Tacit Reconduction

Answer 13

agricultural leases: 30 days

non-agricultural leases: 1 week

leases with a fixed term of 1 week or less: 1 day

Question 14

New Term of Tacitly Reconducted Lease

Answer 14

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

Question 15

Lessee Abandonment

Answer 15

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

Question 16

Acceleration Clause

Answer 16

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)

Question 17

Warranty of Peaceful Possession

Answer 17

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)

Question 17

Termination of the Lease: Indefinite Term

Answer 17

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

Question 18

Lessor’s Obligations

Answer 18

(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

Question 19

Lessor’s Duty to Maintain

Answer 19

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)

Question 20

Lessee’s Obligations

Answer 20

(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

Question 21

Motorcycle Steering Problem when Going Above Speed Limit: Whose Duty to Repair?

Answer 21

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

Question 22

Lessee Withholding Rent

Answer 22

only acceptable if the lessee could consider the lease extrajudicially dissolved

Question 23

Lessor Refuses to Make Necessary Repairs

Answer 23

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.