Lease Definitions on Lease Arts. 1643, 1644, and 1713 Other important provisions on lease to be remembered includes: 1. 2. 3. 4. 5. 6.

Formalities- Art. 1647 & 1674, 1724- 1403, 1878 1649, 1650- assignment & sublease 1670-implied new lease 1673, 1678 1680 1723- rights and obligations Period of lease- 1682, 1687 Rights of 3rd persons- 1729

kinds of lease: 1. Lease of things - 1642 2. Lease of work or service- 1642 a.household service b.contract of labor c. contract of carriage d. contract for a piece of work 3. Lease of rights Q. If a person or party binds himself to give another the enjoyment or use of a thing does it necessarily make it a lease of a thing? A. No, the most important distinction from commodatum it must be for a price certain. Q. If in an agreement, one of the parties binds himself to render service for a price certain does it make it a lease of service? Not necessarily. It may be a contract of agency. Under 1644, the relationship between principal and agent must not exist between the parties. Distinguished a contract for a piece of work and contract of agency. Case: Fretzel vs. Mariano Enchangco Mariano was the owner and he asked Merritt to construct an edifice for him. In their agreement, merit is to supply not only labour but also materials. Meritt bought the materials from fretzel however the price for the materials was unpaid by Meritt. Fretzel demanded payment from mariano. One of the grounds is that Meritt is an agent of Mariano thus for failure to pay the materials Mariano is liable for the amount. The court ruled that there was no contract of agency. From the terms and conditions of the contract it would show that the control of mariano over Meritt goes only through the results and not the method and manner of the performance of the obligation therefore it cannot be considered a contract of agency.

Q. As to the relationship between the taxi driver and the operator, is this a leased of a thing or is it a contract of leased? A. It is a leased but it is not a contract of the leased of a thing. It is a lease of service. An employment contract. It is because of the control of the operator over the taxi driver as to the time. The relationship is lease of service. Q. Are safety deposit boxes lease of things? A. SC declared no. The contract is a special kind of deposit. This cannot be considered a lease of things because the lessor has no control over the safety deposit box. A contract of lease is a consensual contract. Know what the real and formal contracts are: Real Contracts: 1. 2. 3. 4. Mutuum commodatum deposit pledge

Formal Contracts: 1. donation

As a rule lease is a consensual contract. A contract of lease of thing is essentially onerous. An agreement between the Bureau of Animal industry and Mr. Bagtas. Three bulls were delivered to Bagtas for Breeding purposes. There was a period in the contract of 1 year. Bagtas failed to return the Bulls within the one year period despite demand until he died. Only 2 bulls were returned and the 3rd bull allegedly killed in crossfire between the AFP and Huk. Claiming that the agreement between the Bureau and bagtaswas commodatum. Thus the lost pertains to the government because ownership was not transferred. The court ruled that it is not a commodatum but lease of things because there was a stipulation for payment of breeding fee. It was compensation for use of the bulls thus it is lease of things. Lease of things is not essentially personal thus the death of the lessee does not terminate the lease.