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RA 386
CIVIL CODE OF THE PHILIPPINES
(BOOK 4: OBLIGATIONS & CONTRACTS)


TITLE 8 - LEASE
CHAPTER 1 - General Provisions

ARTICLE 1642. The contract of lease may be of things, or of work and service. (1542

ARTICLE 1643. !n the lease of things, one of the "arties binds himself to give to another the en#oyment or $se of a thing for
a "rice certain, and for a "eriod which may be definite or indefinite. %owever, no lease for more than ninety&nine years
shall be valid. (1543a

SECTION 2 - Rig!s an" O#liga!ions o$ !e Lessor an" !e Lessee

Ar!i%le 16&4. The lessor is obliged'
1. To deliver the thing which is the ob#ect of the contract in s$ch a condition as to render it fit for the $se intended(
2. To make on the same d$ring the lease all the necessary re"airs in order to kee" it s$itable for the $se to which it
has been devoted, $nless there is a sti"$lation to the contrary(
3. To maintain the lessee in the "eacef$l and ade)$ate en#oyment of the lease for the entire d$ration of the contract.
(1554a

Ar!i%le 16&'. The lessee is obliged'
1. To "ay the "rice of the lease according to the terms sti"$lated(
2. To $se the thing leased as a diligent father of a family, devoting it to the $se sti"$lated( and in the absence of
sti"$lation, to that which may be inferred from the nat$re of the thing leased, according to the c$stom of the
"lace(
3. To "ay e*"enses for the deed of lease. (1555

Ar!i%le 16&8. The lessee may s$s"end the "ayment of the rent in case the lessor fails to make the necessary re"airs or to
maintain the lessee in "eacef$l and ade)$ate en#oyment of the "ro"erty leased. (n


Researched for PRC Accredited CPD Lecture by Rem Ramirez, REB REA remramirez@yahooo.com 0922.883.9308 FB/rem.ramirez.33 Page 2/3
Ar!i%le 16&(. !f the lessor or the lessee sho$ld not com"ly with the obligations set forth in articles 1+54 and 1+5,, the
aggrieved "arty may ask for the rescission of the contract and indemnification for damages, or only the latter, allowing the
contract to remain in force. (155+

Ar!i%le 1662. !f d$ring the lease it sho$ld become necessary to make some $rgent re"airs $"on the thing leased, which
cannot be deferred $ntil the termination of the lease, the lessee is obliged to tolerate the work, altho$gh it may be very
annoying to him, and altho$gh d$ring the same, he may be de"rived of a "art of the "remises.
!f the re"airs last more than forty days the rent shall be red$ced in "ro"ortion to the time & incl$ding the
first forty days & and the "art of the "ro"erty of which the lessee has been de"rived.
-hen the work is of s$ch a nat$re that the "ortion which the lessee and his family need for their dwelling
becomes $ninhabitable, he may rescind the contract if the main "$r"ose of the lease is to "rovide a dwelling "lace
for the lessee. (155.a

Ar!i%le 1663. The lessee is obliged to bring to the knowledge of the "ro"rietor, within the shortest "ossible time, every
$s$r"ation or $ntoward act which any third "erson may have committed or may be o"enly "re"aring to carry o$t $"on the
thing leased.
%e is also obliged to advise the owner, with the same $rgency, of the need of all re"airs incl$ded in /o. 2 of
0rticle 1+54.
!n both cases the lessee shall be liable for the damages which, thro$gh his negligence, may be s$ffered by
the "ro"rietor.
!f the lessor fails to make $rgent re"airs, the lessee, in order to avoid an imminent danger, may order the
re"airs at the lessor1s cost. (1552a

Ar!i%le 166&. The lessee shall ret$rn the thing leased, $"on the termination of the lease, as he received it, save what has
been lost or im"aired by the la"se of time, or by ordinary wear and tear, or from an inevitable ca$se. (15+1a

Ar!i%le 166'. The lessee is res"onsible for the deterioration or loss of the thing leased, $nless he "roves that it took "lace
witho$t his fa$lt. This b$rden of "roof on the lessee does not a""ly when the destr$ction is d$e to earth)$ake, flood, storm
or other nat$ral calamity. (15+3a

Ar!i%le 166(. !f the lease was made for a determinate time, it ceases $"on the day fi*ed, witho$t the need of a demand.
(15+5

Ar!i%le 16'). !f at the end of the contract the lessee sho$ld contin$e en#oying the thing leased for fifteen days with the
ac)$iescence of the lessor, and $nless a notice to the contrary by either "arty has "revio$sly been given, it is $nderstood
that there is an im"lied new lease, not for the "eriod of the original contract, b$t for the time established in 0rticles 1+.2
and 1+.,. The other terms of the original contract shall be revived. (15++a

Article 1682. The lease of a piece of rural land, when its duration has not been fixed, is understood to have been for all the time
necessary for the gathering of the fruits which the whole estate leased may yield in one year, or which it may yield once,
although two or more years have to elapse for the purpose. (1577a)

Article 1687. f the period for the lease has not been fixed, it is understood to be from year to year, if the rent agreed upon is
annual! from month to month, if it is monthly! from wee" to wee", if the rent is wee"ly! and from day to day, if the rent is to be
paid daily. #owever, even though a monthly rent is paid, and no period for the lease has been set, the courts may fix a longer
term for the lease after the lessee has occupied the premises for over one year. f the rent is wee"ly, the courts may li"ewise
determine a longer period after the lessee has been in possession for over six months. n case of daily rent, the courts may also
fix a longer period after the lessee has stayed in the place for over one month. (15$1a)

Researched for PRC Accredited CPD Lecture by Rem Ramirez, REB REA remramirez@yahooo.com 0922.883.9308 FB/rem.ramirez.33 Page 3/3


Ar!i%le 16'1. !f the lessee contin$es en#oying the thing after the e*"iration of the contract, over the lessor%s ob&ection, the
former shall be s$b#ect to the res"onsibilities of a "ossessor in bad faith. (n

Ar!i%le 16'3. The lessor may #$dicially e#ect the lessee for any of the following ca$ses'
1. -hen the "eriod agreed $"on, or that which is fi*ed for the d$ration of leases $nder articles 1+.2 and 1+.,, has
e*"ired(
2. 3ack of "ayment of the "rice sti"$lated(
3. 4iolation of any of the conditions agreed $"on in the contract(
4. -hen the lessee devotes the thing leased to any $se or service not sti"$lated which ca$ses the deterioration
thereof( or if he does not observe the re)$irement in /o. 2 of article 1+5,, as regards the $se thereof.

The e#ectment of tenants of agric$lt$ral lands is governed by s"ecial laws. (15+2a

Ar!i%le 16'6. The "$rchaser of a "iece of land which is $nder a lease that is not recorded in the 5egistry of 6ro"erty may
terminate the lease, save when there is a sti"$lation to the contrary in the contract of sale, or when the "$rchaser knows of
the e*istence of the lease.
!f the b$yer makes $se of this right, the lessee may demand that he be allowed to gather the fr$its of the
harvest which corres"onds to the c$rrent agric$lt$ral year and that the vendor indemnify him for damages
s$ffered.
!f the sale is fictitio$s, for the "$r"ose of e*ting$ishing the lease, the s$""osed vendee cannot make $se of
the right granted in the first "aragra"h of this article. The sale is "res$med to be fictitio$s if at the time the
s$""osed vendee demands the termination of the lease, the sale is not recorded in the 5egistry of 6ro"erty. (15,1a

Ar!i%le 16''. The "$rchaser in a sale with the right of redem"tion cannot make $se of the "ower to e#ect the lessee $ntil
the end of the "eriod for the redem"tion. (15,2

Ar!i%le 16'8. !f the lessee makes, in good faith, $sef$l im"rovements which are s$itable to the $se for which the lease is
intended, witho$t altering the form or s$bstance of the "ro"erty leased, the lessor $"on the termination of the lease shall
"ay the lessee one&half of the val$e of the im"rovements at that time. 7ho$ld the lessor ref$se to reimb$rse said amo$nt,
the lessee may remove the im"rovements, even tho$gh the "rinci"al thing may s$ffer damage thereby. %e shall not,
however, ca$se any more im"airment $"on the "ro"erty leased than is necessary.
-ith regard to ornamental e*"enses, the lessee shall not be entitled to any reimb$rsement, b$t he may remove
the ornamental ob#ects, "rovided no damage is ca$sed to the "rinci"al thing, and the lessor does not choose to retain them
by "aying their val$e at the time the lease is e*ting$ished. (n

Ar!i%le 16'(. !f nothing has been sti"$lated concerning the "lace and the time for the "ayment of the lease, the "rovisions
or 0rticle 1251 shall be observed as regards the "lace( and with res"ect to the time, the c$stom of the "lace shall be
followed. (15,4





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