LEASES

LEASE (intro) defined code art

-Art. 2668. Contract of lease defined - Lease is a synallagmatic contract by which one party, the lessor, binds himself to give 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. - The consent of the parties as to the thing and the rent is essential but not necessarily sufficient for a contract of lease.

LEASE (lessor's obligations) lessor's duty to maintain lessee in peaceful possession (destruction of and changes in the thing)

-generally the LESSOR is NOT considered as having breached his duty to maintain the lessee in peaceful possession if the thing is destroyed or changed through NO fault of the LESSOR. - as long as the LESSOR is not at fault, damages are NOT recoverable by the LESSEE

LEASE code articles cont.........................

art 2699 continued - Art. 2004 - any clause is null that, in advance, excludes or limits the liability of one party for intentional or gross fault that causes damage to the other party. - And, any clause is null that, in advance, excludes or limits the liability of one party for causing physical injury to the other party. - In a residential or consumer lease, to the extent it purports to waive the warranty for vices or defects that seriously affect health or safety - La cases are generally in accord and constitute a recognition that where limitations of warranty are not the result of actual bargaining, they should not be given literal effect

LEASE (intro) type of leases

there are different classifications of leases: -1. RESIDENTIAL (when the thing is to be occupied as a dwelling -2. AGRICULTURAL (when the predial estate to be used for agricultural purposes) -3. MINERAL (when the thing is to be used for the production of minerals) -4. COMMERCIAL (when the thing is to be used for business or commercial purposes) -5. CONSUMER (when the thing is a movable intended for the lessee's personal or familial use outside his trade profession. - WHEN THE THING IS LEASED FOR MORE THAN ONE OF THE ABOVE TYPES, THE DOMINANT PURPOSE CONTROLS.

LEASE note

- A binding lease imposes on the lessor the obligation to warrant the lessee's peaceful possession - By the same token, as long as the lessor is willing and able to protect the lessee's peaceful possession for the remainder of the term, the lessee may not refuse to pay rent or carry out his other obligations under the lease solely because of the lessor's claimed or real lack of ownership. - The use of the word "may" in this article is intended to cover cases in which there is a contrary understanding and cases in which ownership of the thing by the lessor was part of the cause of the K of lease. In such cases, the lessee is entitled to the remedies provided by the Title of Conventional Obligations or Contracts

LEASE note about 2679

- A lease for an indeterminate term, such as a year to year lease, that is allowed by the parties to last longer than 99 years does not violate this article. - Since a lease for an indeterminate term can be terminated by either party through notice, the continuation of such a lease depends on the mutual and constantly-renewed consent of both parties. - The fact that the lease is thus allowed to last for longer than 99 years is due not to the parties' initial agreement, but rather to their subsequently expressed volition not to terminate the lease.

LEASE note about 2678

- A term is fixed when, pursuant to the agreement of the parties, its terminal point is marked in advance by a particular date on the calendar or by the occurrence of a future event that is bound to occur, albeit on a date not yet known -ex. the terminal point is the death of the lessee - A term is indeterminate if its terminal point is not fixed in advance but depends on the will of the parties

LEASE code articles

- Art. 2669 - in all matters not provided for in this Title, the K of lease is governed by the rules of the "Titles of Obligations in General" and "Conventional Obligations or Contracts"

LEASE code articles cont

- Art. 2670, - A contract to enter into a lease at a future time is enforceable by either party if there was agreement as to the thing to be leased and the rent, unless the parties understood that the K would not be binding until reduced to writing or until its other terms were agreed upon. - Agreement as to the term is not necessary since the term may be supplied by law

LEASE code articles cont.

- Art. 2672 - A mineral lease is governed by the mineral code

LEASE code articles cont..

- Art. 2673 - All things, corporeal or incorporeal, that are susceptible of ownership may be the object of a lease, except those that cannot be used without being destroyed by that very use, or those the lease of which is prohibited by law.

LEASE code articles cont...

- Art. 2674 - A lease of a thing that does not belong to the lessor may nevertheless be binding on the parties.

LEASE code articles cont....

- Art. 2675 - The rent may consist of money, commodities, fruits, services, or other performances sufficient to support an onerous K. - NOTE: Because a lease is an onerous K, all the performances contemplated by the Civil Code must be sufficient to support an onerous K. - This is consistent with the jurisprudence, which held that in the absence of rent there is no lease and that the rent must be serious and not of proportion to the thing's value.

LEASE code articles cont.....

- Art. 2676 - The rent shall be fixed by the parties in a sum either certain or determinable through a method agreed by them. It may also be fixed by a 3d person designated by them. - if the agreed method proves unworkable or the designated 3d person is unwilling or unable to fix the rent, then there is no lease. - If the rent has been established and thereafter is subject to redetermination either by a designated 3d person or through a method agreed to by the parties, but the 3d person is unwilling or unable to fix the rent or the agreed method proves unworkable, the court may either fix the rent or provide a similar method in accordance with the intent of the parties.

LEASE code articles cont......

- Art. 2677 - When the parties to an agricultural lease agree that the rent will consist of a portion of the crops, that portion is considered at all times the property of the lessor

LEASE code articles cont.......

- Art. 2678 - The lease shall be for a term. Its duration may be agreed to by the parties or supplied by the law. - The term may be fixed or indeterminate. It is fixed when the parties agree that the lease will terminate at a designated date or upon the occurrence of a designated event. - It is indeterminate in all other cases

LEASE code articles cont........

- Art. 2679 - The duration of a term may not exceed 99 years. If the lease provides for a longer term or contains an option to extend the term to more than 99 years, the term shall be reduced to 99 years. - If the term's duration depends solely on the will of the lessor or the lessee and the parties have not agreed on a maximum duration, the duration is determined in accordance with the following Article.

LEASE code articles cont.........

- Art. 2680 (dont red as a term to derive timelines req for notices to terminate leases with indeterminate term) - If the parties have not agreed on the duration of the term, the duration is established in accordance with the following rules: -An agricultural lease shall be from year to year -Any other lease of an immovable, or a lease of a movable to be used as a residence, shall be from month to month -A lease of other movables shall be from day to day, unless the rent was fixed by longer or shorter periods, in which case the term shall be one such period, not to exceed one month - An agreement as to duration may be express or implied. - notice to cancel lease must be at least 30 before the leased year ends - ex. if entered into lease jan 1 2015 and wanted to cancel lease must give notice by the latest Dec, 1st 2015, and the lease will terminate on December 30 2015 (the day before the next term starts)

LEASE code articles cont..........

- Art. 2681 - A lease may be made orally or in writing. A lease of an immovable is not effective against 3d persons until filed for recordation in the manner prescribed by legislation.

LEASE code articles cont...........

- Art. 2682 - The lessor is bound: - To deliver the thing to the lessee - To maintain the thing in a condition suitable for the purpose of which it was leased; AND - To protect the lessee's peaceful possession for the duration of the lease

LEASE code articles cont............

- Art. 2683 - The lessee is bound: - To pay the rent in accordance with the agreed terms - To use the thing as a prudent administrator and in accordance with the purpose for which it was leased; AND - To return the thing at the end of the lease in a condition that is the same as it was when the thing was delivered to him, except for normal wear and tear or as otherwise provided hereafter

LEASE code articles cont.............

- Art. 2684 - The lessor is bound to deliver the thing at the agreed time and in good condition suitable for the purpose for which it was leased - What is "good condition" is determined by reference to the purpose for which the thing was leased as that purpose is defined in, or derived from, the K. - In keeping with the intent of the source provisions as indicated by the phrase "free from any repairs," the lessor's obligation to deliver the thing in good condition includes the obligation to make, before delivery, the repairs that are necessary in order for the thing to serve the purpose for which it was leased

LEASE code articles cont..............

- Art. 2685 - If a leased thing is an immovable and its extent differs from that which was agreed upon, the rights of the parties with regard to such discrepancy are governed by the provisions of the title "Sale." - As for movables, when the extent or quantity of the delivered movable or movables differs from that which was agreed upon, the rights of the parties are governed by the title "Obligations in General" and "Conventional Obligations or Contracts."

LEASE code articles cont...............

- Art. 2686 - If the lessee uses the thing for a purpose other than that for which it was leased or in a manner that may cause damage to the thing, - the lessor may obtain injunctive relief, - dissolution of the lease, AND - any damages he may have sustained - The actual granting of relief, as well as the choice of appropriate relief, is left to the discretion of the court upon proper weighing of all the circumstances of the particular case. - Depending on the circumstances, the court may decide to grant none, one, any two, or all three remedies - The lessor need not show irreparable harm in order to obtain an injunction

LEASE code articles cont................

- Art. 2687 - The lessee is liable for damage to the thing caused by his fault or that of a person who, with his consent, is on the premises or uses the thing

LEASE code articles cont.................

- Art. 2688 - The lessee is bound to notify the lessor without delay when the thing has been damaged or requires repair, or when his possession has been disturbed by a 3d party. - The lessor is entitled to damages sustained as a result of the lessee's failure to perform this obligation - NOTE: Failure to give notice does not give rise to a right of dissolution of the lease, nor does it relieve the lessor from the obligation to make repairs, or from any other responsibility the lessor may have under other provisions of law.

LEASE code articles cont..................

- Art. 2689 - The lessor is bound to pay all taxes, assessments, and other charges that burden the thing, except those that arise from the use of the thing by the lessee

LEASE code articles cont...................

- Art. 2690 - During the lease, the lessor may not make any alterations in the thing.

LEASE code articles cont....................

- Art. 2691 - During the lease, the lessor is bound to make all repairs that become necessary to maintain the thing in a condition suitable for the purpose for which it was leased, except those for which the lessee is responsible. - NOTE: all repairs not expressly assigned to the lessee are borne by the lessor

LEASE code articles cont.....................

- Art. 2692 - The lessee is bound to repair damage to the thing cause by his fault or that of a person who, with his consent, are on the premises or use the thing, and to repair any deterioration resulting from his or their use to the extent it exceeds the normal or agreed use of the thing. - NOTE: In some instances, the parties may have agreed, expressly or tacitly, that the lease may engage in uses that exceed or differ from the normal uses of a thing. - In those instances, the leasee should not be responsible for deterioration resulting from uses that remain within the limits of the agreed use.

LEASE code articles cont......................

- Art. 2693 - If during the lease the thing requires a repair that cannot be postponed until the end of the lease, the lessor has the right to make that repair even if this causes the lessee to suffer inconvenience or loss of use of the thing. - In such a case, the lessee may obtain a reduction or abatement of the rent, or dissolution of the lease, depending on all of the circumstances, including: - each party's fault or responsibility for the repair, - the length of the repair period, AND - the extent of the loss of use.

LEASE code articles cont.......................

- Art. 2694 - If the lessor fails to perform his obligation to make necessary repairs within a reasonable time after demand by the lessee, the lessee may cause them to be made. - The 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 that the repair was necessary and the expended amount was reasonable. - NOTE: - To determine "reasonable" get quotes - If agreement specifies method of notice, must abide by their agreement - "Necessary" means whatever is necessary for the thing to be suitable for its use. Thus, we have to look at what the parties' intended - Vance likes this article b/c there is room for argument. In our answers, we should explain why we came to our conclusion

LEASE code articles cont........................

- Art. 2699 - The warranty provided in the preceding articles may be waived, but only by clear and unambiguous language that is brought to the attention of the lessee. - Nevertheless, a waiver of warranty is ineffective: - To the extent it pertains to vices or defects of which the lessee did not know and the lessor knew or should have known - To the extent it is contrary to the provisions of art. 2004; OR Art. 2004 → any clause is null that, in advance, excludes or limits the liability of one party for intentional or gross fault that causes damage to the other party. • And, any clause is null that, in advance, excludes or limits the liability of one party for causing physical injury to the other party. • In a residential or consumer lease, to the extent it purports to waive the warranty for vices or defects that seriously affect health or safety • Editor's Notes → La cases are generally in accord and constitute a recognition that where limitations of warranty are not the result of actual bargaining, they should not be given literal effect

LEASE code articles cont..........................

- Art. 2700 - The lessor warrant's the lessee's peaceful possession of the leased thing against any disturbance caused by a person who asserts ownership, or right to possession of, or any other right in the thing - In a residential lease, this warranty encompasses a disturbance caused by a person who, with the lessor's consent, has access to the thing or occupies adjacent property belonging to the lessor

LEASE code articles cont...........................

- Art. 2701 - The lessor is bound to take all steps necessary to protect the lessee's possession against any disturbance covered by the preceding Article, as soon as the lessor is informed of such a disturbance. - If the lessor fails to do so, the lessee may, w/o prejudice to his rights against the lessor, file any appropriate action against the person who caused the disturbance. - If a 3d party brings against the lessee an action asserting a right in the thing or contesting the lessee's right to possess it, the lessee may join the lessor as a party to the action and shall be dismissed from the action, if the lessee so demands. - NOTE: - Both of the two preceding articles only apply when the disturbance or action in question is one of those that fall within the lessor's warranty

LEASE code articles cont............................

- Art. 2702 - Except as otherwise provided in Article 2700, the lessor is not bound to protect the lessee's possession against a disturbance caused by a person who does not claim a right in the leased thing. - In such a case, the lessee may file any appropriate action against that person.

LEASE code articles cont.............................

- Art. 2703 - In the absence of a contrary agreement, usage, or custom: - The rent is due at the beginning of the term. If the rent is payable by intervals shorter than the term, the rent is due at the beginning of each interval. - The rent is payable at the address provided by the lessor and in the absence thereof at the address of the lessee.

LEASE code articles cont..............................

- Art. 2704 - If the lessee fails to pay the rent when due, the lessor may, in accordance with the provisions of the Title "Conventional Obligations or Contracts," dissolve the lease and may regain possession in the manner provided by law

LEASE code articles cont...............................

- Art. 2705 - In the absence of a contrary agreement, the agricultural lessee may not claim an abatement of the rent for the loss of his unharvested crops unless the loss was due to an unforeseeable and extraordinary event that destroys at least ½ of the value of the crops. - Any compensation that the lessee has received or may receive in connection with the loss, such as insurance proceeds or government subsidies, shall be taken into account in determining the amount of abatement. - NOTE: - Note that this only applies to unharvested crops. NOT HARVESTED CROPS

LEASE code articles cont................................

- Art. 2706 - When the rent consists of a portion of the crops, then any loss of the crops that is not caused by the fault of the lessor or the lessee shall be borne by both parties in accordance with their respective shares.

LEASE code articles cont.................................

- Art. 2707 - To secure the payment of rent and other obligations arising from the lease of an immovable, the lessor has a privilege on the lessee's movables that are found in or upon the leased property. - In an agricultural lease, the lessor's privilege also encompasses the fruits produced by the land. - NOZTE: - Absent a contemporaneous agreement or voluntary surrender of the property by the debtor, enforcement of the privilege requires, like all other nonpossessory privileges, a judicial seizure and sale of property as an incident to the enforcement of the secured obligation itself.

LEASE code articles cont..................................

- Art. 2708 - The lessor's privilege extends to the movables of the sublessee but only to the extent that the sublessee is indebted to his sublessor at the time the lessor exercises his right.

LEASE code articles cont...................................

- Art. 2711 - The transfer of the leased thing does not terminate the lease, unless the contrary had been agreed between the lessor and the lessee.

LEASE code articles cont....................................

- Art. 2712 - A 3d person who acquires an immovable that is subject to an unrecorded lease is not bound by the lease. - In the absence of a contrary provision in the lease K, the lessee has an action against the lessor for any loss of the lessee sustained as a result of the transfer.

LEASE code articles cont......................................

- Art. 2713 - The lessee has the right to sublease the leased thing or to assign or encumber his rights in the lease, unless expressly prohibited by the K of lease. - A provision that prohibits one of these rights is deemed to prohibit the others, unless a contrary intent is expressed. - In all other respects, a provision that prohibits subleasing, assigning, or encumbering is to be strictly construed against he lessor.

LEASE code articles cont.......................................

- Art. 2714 - If the leased thing is lost or totally destroyed, w/o the fault of either party, or if it is expropriated, the lease terminates and neither party owes damages to the other. - NOTE: - When the requirements of Civil Code Article are met, the lease terminates of right or by operation of law, that is, without the need for judicial intervention. - The fact that the lease terminates by operation of law does not mean that such termination is inescapable. - The jurisprudence has held that the parties may prevent such termination by inserting appropriate clauses in the lease K.

LEASE code articles cont........................................

- Art. 2715 - If, without the fault of the lessee, the thing is partially destroyed, lost, or expropriated, or its use is otherwise substantially impaired the lessee may, according to the circumstances of both parties, obtain a diminution of the rent or dissolution of the lease, whichever is more appropriate under the circumstances. - If the lessor was at fault, the lessee may also demand damages. - If the impairment of the use of the leased thing was caused by circumstances external to the leased thing, the lessee is entitled to dissolution of the lease, but is not entitled to diminution of the rent.

LEASE code articles cont.........................................

- Art. 2716 - A lease granted by a usufructuary terminates upon the termination of the usufruct. - The lessor is liable to the lessee for any loss caused by such termination, if the lessor failed to disclose his status as a usufructuary

LEASE code articles cont..........................................

- Art. 2717 - A lease does not terminate by death of the lessor or the lessee or by the cessation of existence of a juridical person that is party to the lease

LEASE code articles cont...........................................

- Art. 2718 - A lease in which one or both parties have reserved the right to terminate the lease before the end of the term may be so terminated by giving the notice specified in the lease K or the notice provided in Article 2727 through 2729, whichever period is longer. - The right to receive this notice may not be renounced in advance.

LEASE code articles cont............................................

- Art. 2719 - When a party to the lease fails to perform his obligations under the lease or under this Title; the other party may obtain dissolution of the lease pursuant to the provisions of the Title of Conventional Obligations or Contracts.

LEASE code articles cont.............................................

- Art. 2720 - A lease with a fixed term terminated upon the expiration of that term, without need of notice, unless the lease is reconducted or extended as provided in the following articles

LEASE code articles cont..............................................

- Art. 2721 - A lease with a fixed term is reconducted if, after the expiration of the term, and w/o notice to vacate or terminate or other opposition by the lessor or the lessee, the lessee remains in possession: - For 30 days in the case of an agricultural lease; - For one week in the case of other leases with a fixed term that is longer than a week; OR - For one day in the case of a lease with a fixed term that is equal to or shorter than a week

LEASE code articles cont...............................................

- Art. 2722 - The term of a reconducted agricultural lease is from year to year, unless the parties intended a different term which, according to local custom or usage, is observed in lease of the same type.

LEASE code articles cont................................................

- Art. 2723 - The term of a reconducted nonagricultural lease is: - From month to month in the case of a lease whose term is a month or longer; - From day to day in the case of a lease whose term is at least a day but shorter than a month; and - For periods equal to the expired term in the case of a lease whose term is less than a day

LEASE code articles cont.................................................

- Art. 2724 - When reconduction occurs, all provisions of the lease continue for the term provided in Article 2722 or 2723 - A reconducted lease is terminated by giving the notice directed in Article 2727 through 2729 - NOTE: - A reconducted lease is not a new lease but rather a continuation of the old lease under the same terms and conditions, except for duration

LEASE code articles cont..................................................

- Art. 2725 - If the lease K contains an option to extend the term and the option is exercised, the lease continues for the term and under the other provisions stipulated in the option. - it only changes the term not the rest

LEASE code articles cont...................................................

- Art. 2726 - An amendment to a provisions of the lease contract that is made without an intent to effect a novation does not create a new lease - NOTE: - novation is the replacement of one obligation with a new obligation

LEASE code articles cont....................................................

- Art. 2727 - A lease with an indeterminate term, including a reconducted lease or a lease whose term has been established through article 2680, terminates by notice to that effect given to the other party by that party desiring to terminate the lease, as provided in the following articles

LEASE code articles cont.....................................................

- Art. 2728 - The notice of termination required by the preceding article shall be given at or before the time specified below: - In a lease whose term is measured by a period longer than a month, 30 calendar days before the end of that period; - In a month to month lease, 10 calendar days before the end of that month - In a lease whose term is measured by a period equal to or longer than a week but shorter than a month, 5 calendar days before the end of that period; AND - In a lease whose term is measured by a period shorter than a week, at any time prior to the expiration of that period - A notice given according to the preceding Paragraph terminates the lease at the end of the period specified in the notice, and, if none is specified, at the end of the first period for which notice is timely.

LEASE code art 2700 notes

- Depending on the circumstances, the lessee's remedies may consist of - damages, - injunctive relief, or - dissolution of the lease - When the person who disturbs the lessee's possession does not claim a right in the thing, as in the case of a passerby, trespasser, or squatter, the lessor is not bound to protect the lessee's possession - Both of the following types of disturbances fall within the scope of the lessor's warranty of peaceful possession: - Disturbance in Fact→ an eviction or any other physical act which, though falling short of eviction, prevents the possessor from enjoying his possession quietly, or which throws any obstacle in the way of that enjoyment. - Disturbance in Law → the execution, recordation, registry, or continuing existence of record of any instrument which asserts or implies a right of ownership or to the possession of ownership or right to the possession thereof

LEASE (intro)

- The LESSEE'S right is a personal rather than a real right, and the LESSOR'S obligation is a personal rather than a real one. - Thus, personal servitudes of usufruct or habitation AND the limited personal servitude of right of use ARE NOT LEASES even though they confer on a person the right to use a thing belonging to another - A lease is a synallagmatic (bilateral) K which is a K by which the parties obligate themselves reciprocally, so that the obligation of each party is correlative to the obligation of another - W/o an agreement as to the thing and the rent, there cannot be a K of lease. - ON THE OTHER HAND, the existence of such an agreement does not necessarily mean that a K of lease has come into existence if the parties did not so intend.

LEASE note about 2676

- The first sentence of this article clarifies the law by providing that the requirement of determinability is satisfied if the parties specified a method for fixing the rent. - For example, an agreement for a rental price of one cent per gallon on all gasoline sold during the month was held to be sufficiently certain to support a lease contract - "Designation" of the 3d party may be by name or by title or position. - For example, a stipulation in a commercial lease that the rent shall be fixed by the president of the local chamber of commerce or her designee is sufficient under this sentence, even if at the time of the stipulation the parties did not know who would be the president or her designee

LEASE note 2

- The rule of this article is subject to exceptions provided by more specific provisions of La legislation which prohibit the lease of a thing belonging to another. - For example, the Civil Code provides that a spouse may not lease to a 3d person his undivided interest in the community or in particular things of the community prior to the termination of the regime. - Also, the Civil Code provides that a spouse may not lease former community property w/o the concurrence of the other spouse. - Leases entered into in violation of these articles are null

LEASE (lessee's rights and obligation) lessee's right to sublease, assign, and or encumber (general)

- a LESSEE can SUBLEASE the leased thing, or ASSIGN or encumber his rights under the lease, unless this right has been expressly prohibited in the lease contract. - a provision prohibiting any one of these rights is deemed to prohibit the others, but is otherwise strictly construed against the LESSOR.

LEASE (lessee's rights and obligation) lessee's right to sublease, assign, and or encumber (abuse of right)

- a LESSOR CANNOT abuse his right to reject a proposed assignment or sublease - abuse of right occurs when a right is exercised with predominant intent to harm the other party. -

LEASE (duration of the lease) general rule

- a lease does NOT need to contain a precise term to be valid - the term may be fixed or indeterminate - a term is fixed when it is tied to a designated date, or the occurrence of an uncertain event - a term is indeterminate when it depends on the will of the parties subsequently expressed

LEASE (intro) defined

- a lease is a bilateral contract which gives one the use of a thing for a term in return for rent

LEASE (duration of the lease) tacit reconduction

- a lease with a fixed term is tacitly reconducted if the lessee continues in possession and no steps are taken to terminate the lease for: -1. 30 days in agricultural leases -2. one week in non-agricultural leases with fixed terms of longer than one week OR -3. one day in leases with fixed terms of equal to or less than one week.

LEASE (lessee's rights and obligation) lessee's right to sublease, assign, and or encumber (assignment v sublease) assignment

- an assignment is a TRANSFER of a CONTRACT (rights and duties) - a sublease is a transfer of a RIGHT ONLY - when the LESSEE assigns his rights under the lease, the assignee promises to fulfill the assignor's contractual commitment, which includes paying the rent to the LESSOR

LEASE (lessor's obligations) lessor's obligations to 3rd parties for lessee's activities

- an owner-lessor cannot escape liability simply because he leases his property - an owner-lessor with full knowledge of the potentially harmful effects of the LESSEE tenant's activities on the property is answerable for the damages the LESSEE causes

LEASE (lessee's rights and obligation) lessee's right to improvements (failure to remove)

- if the LESSEE does not remove the improvements, the LESSOR may EITHER appropriate ownership of the improvements paying the LESSEE the lesser of their costs or the enhanced value of the leased thing OR demand that the LESSEE remove them within a reasonable time. - if the LESSOR chooses the later and the LESSEE fails to remove the improvements, the LESSOR may either remove them at the LESSE'S expense or appropriate ownership of them with a notice by certified mail to the LESSEE but without any payment

LEASE (lessee's rights and obligation) failure to pay rent (general)

- if the LESSEE fails to pay rent when due, the LESSOR may dissolve the lease and regain possession of the thing

LEASE (lessee's rights and obligation) failure to pay rent (lessor acting as lessee's agent in reletting premises)

- if the LESSEE has abandoned the premises, the LESSOR has the right to RETAKE POSSESSION of the premises and to RELET them as mandatary for the LESSEE - if this occurs, the lease is NOT terminated, and the LESSEE is NOT RELIEVED of his obligations under the contract - BUT if the LESSOR'S arraignment with the 3rd party is incompatible with the original lease, the court may find that the LESSOR was NOT merely acting as mandatary - ex. LESSOR remodels premises for 3rd party in such a way that the original LESSEE would be incapable of resuming possession - the LESSOR is not merely acting as mandatary and the leas would be terminated

LEASE (lessee's rights and obligation) liability for changing use or misuse of property

- if the LESSEE uses the thing for a purpose other than that for which it was originally leased, or in a way that may cause damage to the thing, the LESSOR may get injunctive relief, dissolve the lease, and recover damages

LEASE (lessor's obligations) maintenance (lessee's right to repair and deduct)

- if the LESSOR refuses to make necessary repairs, the LESEE may make the repairs and demand immediate reimbursement or deduct the cost from the rent - the LESSEE must first make a demand on the LESSOR that the repair be made. - the price that the LESSEE pays must be reasonable

LEASE (duration of the lease) termination of the lease

- if the lease has a fixed term, the lease terminates upon the expiration of that term. - a lease with an indeterminate term may be terminated by either party by notice - for leases of immovables, or residential leases of movables, notice must be written, all other cases it can be oral - the notice must be given: -1. 30 calendar days before the end of the period in a lease with a term longer than a month OR -2. 10 calendar days before the end of the month in a MONTH-TO-MONTH lease -3. 5 calendar days before the end of the period in a lease with a period of between one week and one month OR -4. any time prior to the expiration of the period in a lease with a period shorter than a week.

LEASE (duration of the lease) lease with an indefinite term

- in the absence of a fixed term, an agricultural lease will be deemed YEAR-TO-YEAR - any non agricultural lease of an IMMOVABLE, or a residential lease of a movable, will be deemed MONTH-TO-MONTH. - a non-residential lease of movables will be deemed DAY-TO-DAY unless the rent is fixed by shorter or longer periods, in which case the term shall be one such period not to exceed ONE month.

LEASE (intro) form requirement

- leases are valid if they are ORAL or WRITTEN and they are subject to the public records doctrine - an UNRECORDED lease cannot be enforced against 3rd parties who purchases the property from the lessor. - a notice of lease may be recorded instead of the lease contract -the notice must include: the names, addresses and signatures of the parties, the date of execution, a brief description of the leased property, the term, any renewal or purchase option, and a reference of the existence of an option, right of first refusal or other agrement of the lessor to transfer the leased premisis.

LEASE (intro) who may grant a lease

- one who has POSSESSION of a thing of another may lease it - the non-owner lessor WARRANTS the lessee's peaceful possession

LEASE (lessee's rights and obligation) lessee's right to sublease, assign, and or encumber (assignment v sublease) sublease

- sublease is the transfer of the LESSEE'S right of occupancy. - the subleasee does not promise to pay the LESSOR anything. - there is no 3rd party beneficiary arrangement and no solidarity in a sublease

LEASE (lessee's rights and obligation) duties

- the LESSEE has the following duties: -1. to pay the RENT AND -2. to use the thing as a PRUDENT ADMINISTRATOR according to the purpose for which it was leased AND -3. to RETURN THE THING at the end of the lease in the same condition it was delivered to him, except for normal wear and tear.

LEASE (lessee's rights and obligation) lessee's right to improvements (right to remove)

- the LESSEE may remove ALL improvements HE made to the leased thing, but MUST restore the thing to its former condition

LEASE (lessor's obligations) lessor's responsibilities for vices and defects (contractual modifications) delictual obligations

- the LESSOR can also contractually modify the rules of warranty for vices and defects by having the LESSEE assume responsibility for the condition of the premises - the LESSEE can assume liability for injuries due to defects in the premises, which relieves the lessor from liability IF the following 2 conditions are fulfilled: -1. the person injured derived his right to be on the premises from the LESSEE AND -2. the LESSOR NEITHER KNEW OR SHOULD HAVE KNOWN of the defect. - if the LESSOR received notice of the defect, he is liable if the defect is not remedied within a reasonable time

LEASE (lessor's obligations) lessor's responsibilities for vices and defects (generally)

- the LESSOR is liable for all defects and vices that prevent the thing leased from being used for its intended purpose. - does not matter whether the LESSOR knew of the existence of the vice or defect at the time the contract was confected, or whether the vice arose before or since the lease was made - the warranty applies to all persons that reside in the premises in accordance with the lease. - EXCEPTION: the LESSOR is NOT responsible if the vice or defect has arisen from the LESSEE'S fault.

LEASE (lessor's obligations) lessor's duty to maintain lessee in peaceful possession (general)

- the LESSOR is liable if the LESSEE's possession is disturbed by any person claiming a right in the leased thing. - the warranty of peaceful possession includes disturbances by persons with access tot he thing with the LESSOR'S consent or who occupy adjacent property belonging to the lessor.

LEASE (lessor's obligations) maintenance (repairs)

- the LESSOR must make all repairs necessary to maintain the thing in a condition suitable for the purpose for which it was leased, except those that the lessee is obligated to make. - the LESSEE is liable for repairs caused by his own fault or that of persons on the premises with his consent, and those to remedy deterioration resulting from his use, to the extent it exceeds normal or agreed us of the thing. - the LESEE must tolerate all repairs that cannot be postponed until the end of the lease, and if he suffers inconvenience or loss of the use of the thing, he may be entitled to a reduction or abatement of the rent or dissolution of the lease.

LEASE (duration of the lease) limit on contractual freedom

- the duration of a term cannot EXCEED 99 YEARS - a lease that provides an initial term for more than 99 years is not invalid only for that reason but the term will be reduced to 99 years

LEASE (duration of the lease) tacit reconduction cont

- the lease continues under the same provisions of the old lease except that it is treated as an indeterminate term lease - a reconducted agricultural lease becomes a YEAR-TO-YEAR lease - non-agricultural leases are extended MONTH-TO-MONTH when the lease term is a month or longer, DAY-TO-DAY when the lease is between a day and a month, and for period equal to the expired term when the lease is for less than a day

LEASE (intro) substantive elements (the thing)

- the lease gives possession of a thing and is different form a sale because a sale gives ownership.

LEASE (lessor's obligations)

- the lessor has 3 basic obligations: -1. to DELIVER the thing AND -2. to MAINTAIN the thing in a condition suitable for the purpose for which it was leased, AND -3. to protect the lessee's PEACEFUL POSSESSION of the thing

LEASE (intro) substantive elements (the rent)

- the rent must be CERTAIN or DETERMINABLE through a method agreed upon by both parties - the price need not be in money - increase in rent can be tied to a definite index without making the price indefinite. - rent can also be determined by a 3rd party - when rent has been established and is then subject to redetermination by some method agreed upon by the parties or a 3rd person, and the methods prove unworkable for redetermination or the 3rd party does not redetermine the rent, the court may fix the rent.

LEASE (lessor's obligations) delivery

- the thing must be delivered at the agreed time in good condition

LEASE (lessor's obligations) lessor's responsibilities for vices and defects (contractual modifications) waiver of warranty

- the warranty for vices and defects may be waived by CLEAR AND UNAMBIGUOUS language that is BROUGHT TO THE ATTENTION OF THE LESSEE - waivers are ineffective though: -1. to the extent they pertain to vices or defect of which the LESSEE did NOT know and the LESSOR knew or should have known AND -2. to the extent they violate the obligation rules prohibiting advance limitations of liability for intentional acts, acts of gross fault, or acts causing physical injury AND -3. in RESIDENTIAL and CONSUMER leases ONLY, to the extent the waived vices or defects seriously affect health or safety

LEASE (intro) substantive elements

- things that CANNOT be used without being destroyed cannot be lease - a lease hase the same 3 requirements as a sale: the rent (price), consent, and thing

LEASE (lessee's rights and obligation) lessee's right to sublease, assign, and or encumber (assignment v sublease) assignment (effects)

- we now have 2 parties, both of whom have promised to pay the LESSOR - the LESSOR is a 3rd PARTY BENEFICIARY of the assignment. - also, UNLESS the LESSOR agrees to a novation (substitution of the assignee for the assignor) the LESSOR has 2 debtors, both bound for the same thing aka SOLIDARY OBLIGORS

LEASE (lessor's obligations) lessor's duty to maintain lessee in peaceful possession (destruction of and changes in the thing) cont.

- where there is only partial loss/destruction/expropriation, or some other substantial impairment of use, if the LESEE was NOT at fault, he may obtain either a diminution of the rent or dissolution of the lease. - if the LESSOR was at fault, the LESSEE may also demand damages - BUT if the impairment of the leased thing was cause by circumstances external to the leased thing, the LESSEE is entitled to the dissolution of the lease only and reduction of the rent is not an option.

LEASE (lessor's obligations) lessor's duty to maintain lessee in peaceful possession (destruction of and changes in the thing) cont

- where there is total loss/destruction/expropriation and the LESSOR is NOT at fault, the lease is terminated AND the LESSOR does NOT owe damages

LEASE code articles 2715 notes

NOTE: - The second paragraph introduces an exception to the rule of the first paragraph. Examples of circumstances in which this exception would apply include: - A neighbor who, by raising his walls, intercepts the light of a house leased - Zoning or other governmental regulation that results in or imposes substantial restrictions on the use of the leased thing. - As these examples indicate, the circumstances contemplated by this exception must not be attributable to the fault of the lessor. - If such fault is shown, however, then the lessee's remedies are not confined to dissolution of the lease