BUSL6222 LU11
BUSL6222 LU11 – The contract of
lease
Chapter 15 – The law of lease
15.1 Definitions related to a contract of lease
A lease is an agreement where the lessor gives the lessee temporary,
undisturbed use and enjoyment of identifiable property (movable or immovable)
in exchange for rental.
The lessor usually owns the property but does not have to (subletting is allowed
if the main lease permits it). The lessee pays rent and may use the property and
its fruits, but cannot consume or sell the property itself. Lease agreements can
be verbal or written, but written leases are easier to enforce.
A lessee may sublet if the lease allows it, and most rights (like occupation) pass
to the sub-lessee. Some rights do not pass, such as renewal rights. If subletting
is forbidden, the lessor may evict the sub-lessee and cancel the lease.
15.1.1 Use and enjoyment of the property
The lessor must make the property available for the lessee’s use and enjoyment
for the lease period. The object of the lease must be identifiable (for example, a
specific address or item). The lessee has rights to use the property and its fruits,
but must return them at the end of the lease. The lessee must use the property
only for the agreed purpose.
15.1.2 Duration of a lease
A lease must be temporary.
The parties may choose a fixed period but do not have to. Valid leases may run
until an uncertain future event, for as long as either party wishes, or with no set
duration.
A long-term lease is between 10 and 99 years and must be registered in the
Deeds Office. A lease cannot exceed 99 years.
15.1.3 Agreement on rental
There is no lease without rental.
Rent = lessee’s payment to the lessor for use of the property, usually in money.
- The exception is farm leases, where rent may be a portion of the produce.
- The rental amount must be certain, either expressly agreed, implied, or
calculable by an agreed method.
Bracketed rental (a range instead of a fixed amount) is generally invalid because
the exact amount cannot be determined.
1
, BUSL6222 LU11
2
BUSL6222 LU11 – The contract of
lease
Chapter 15 – The law of lease
15.1 Definitions related to a contract of lease
A lease is an agreement where the lessor gives the lessee temporary,
undisturbed use and enjoyment of identifiable property (movable or immovable)
in exchange for rental.
The lessor usually owns the property but does not have to (subletting is allowed
if the main lease permits it). The lessee pays rent and may use the property and
its fruits, but cannot consume or sell the property itself. Lease agreements can
be verbal or written, but written leases are easier to enforce.
A lessee may sublet if the lease allows it, and most rights (like occupation) pass
to the sub-lessee. Some rights do not pass, such as renewal rights. If subletting
is forbidden, the lessor may evict the sub-lessee and cancel the lease.
15.1.1 Use and enjoyment of the property
The lessor must make the property available for the lessee’s use and enjoyment
for the lease period. The object of the lease must be identifiable (for example, a
specific address or item). The lessee has rights to use the property and its fruits,
but must return them at the end of the lease. The lessee must use the property
only for the agreed purpose.
15.1.2 Duration of a lease
A lease must be temporary.
The parties may choose a fixed period but do not have to. Valid leases may run
until an uncertain future event, for as long as either party wishes, or with no set
duration.
A long-term lease is between 10 and 99 years and must be registered in the
Deeds Office. A lease cannot exceed 99 years.
15.1.3 Agreement on rental
There is no lease without rental.
Rent = lessee’s payment to the lessor for use of the property, usually in money.
- The exception is farm leases, where rent may be a portion of the produce.
- The rental amount must be certain, either expressly agreed, implied, or
calculable by an agreed method.
Bracketed rental (a range instead of a fixed amount) is generally invalid because
the exact amount cannot be determined.
1
, BUSL6222 LU11
2
