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1. TRUE

A contract of lease of things is a consensual, bilateral, onerous,

and commutative contract by which a person temporarily grants

the use or enjoyment of certain property to another who

undertakes to pay rent or a price certain therefor, said contract to

last for a period which is either defi nite or indefi nite, but in no

case should exceed 99 years. (Art. 1643; 4 Sanchez Roman 736;

and Lim Si v. Lim, L-8496, Apr. 25, 1956).

2.  A contract of lease for professional services may be implied because no

specific form is required. TRUE. One who performs work or service in favor of another who

impliedly consents thereto and who benefits thereby, is entitled

to compensation by virtue of an innominate contract (Art. 1307)

of facio ut des or of the case of services tacutly contracted in

which case the courts will fix the reasonable worth of the services

rendered (Arroyo v Azur 76 Phil 493).

3. In lease of things, one of the parties binds himself to render to the other

some service for a price certain, but the relation of principal and agent does

not exist between them.

FALSE. Lease of service not lease of things

4. The term price certain must be in money or its equivalent  

FALSE. It may be in money, fruits or some other useful

things/prestation. Tolentino, p. 206

5. A lease for 99 years is valid.

TRUE. Art. 1643 "... for a period which may be definite or

indefinite. However, no lease for more than 99 years shall be

valid."

As long as is it not more than 99 years,it is valid. This is with

regard to an indefinite period of lease.

6. It is required that the lessor is the owner of the thing leased.  

Ans: FALSE. Ownership on the part of the lessor is not necessary

to constitute a contract of lease (Pineda, p. 452; Mem Aid 2015, p. 368).

7. The contract of lease for the lease of services may be definite or

indefinite.

TRUE. Art. 1697 and Kasamahan law for household help, Labor

Code for laborers, Civil Code for common carriers - period can be fixed or not

fixed

8-12. Persons disqualified to become lessees.

Answer: Art. 1646. The persons disqualified to buy referred to in

Articles 1490 and 1491, are also disqualified to become lessees of

the things mentioned therein.

Article 1490. The husband and the wife cannot sell property to

each other, except:

(1) When a separation of property was agreed upon in the

marriage settlements; or 

(2) When there has been a judicial separation of property under

article 191. (1458a)

Article 1491. The following persons cannot acquire by purchase,

even at a public or judicial auction, either in person or through the

mediation of another:

(1) The guardian, the property of the person or persons who may

be under his guardianship; 

(2) Agents, the property whose administration or sale may have

been intrusted to them, unlessthe consent of the principal ha

been given; 

(3) Executors and administrators, the property of the estate unde

administration; 

(4) Public officers and employees, the property of the State or o

any subdivision thereof, or of any government owned o

controlled corporation, or institution, the administration of which

has been intrusted to them; this provision shall apply to judges

and government experts who, in any manner whatsoever, take

part in the sale; (5) Justices, judges, prosecuting attorneys, clerks of superior and

inferior courts, and other officers and employees connected with

the administration of justice, the property and rights in litigation

or levied upon an execution before the court within whose

 jurisdiction or territory they exercise their respective functions

this prohibition includes the act of acquiring by assignment and

shall apply to lawyers, with respect to the property and right

which may be the object of any litigation in which they may take

part by virtue of their profession; 

(6) Any others specially disqualified by law. (1459a)” 

13. Question: The contract of lease shall not bind third persons unless

recorded  

Answer: TRUE.

General rule: contract of lease does not bind third persons

Exceptions:

1. In case of lease of real estate recorded in the registry of

property

2. If not recorded, it shall be binding if third persons have actua

knowledge. Actual knowledge is equivalent to registration

14. The lessee has a right to sublet the thing leased without express

 prohibition. 

Answer: TRUE. (BASIS: ART. 1650. When in the contract of lease of

things there is no express prohibition, the lessee may sublet thething leased, in whole or in part, without prejudice to hi

responsibilty for the performance of the contract toward the

lessor.)

15. The lessor may hold the sublessee subsidiarily liable for any rent due

 from the lessee.

TRUE. ARTICLE 1652. The sublessee is subsidiarily liable to the

lessor for any rent due from the lessee. However, the sublessee shall not be

responsible beyond the amount of rent due from him, in accordance with the

terms of the sublease, at the time of the extra-judicial demand by the lessor.

16-17. What are the warranties in a contract of lease?  

Ans:

16. To warrant ejectment on the ground of need for personal use

of the owner and the immediate member of his family as a residential unit

and

17. To warrant ejectment on the ground of need of the lessor to

make necessary repairs of the leased premises which is the subject of an

order of condemnation in order to make the premises safe and habitable.

(R.A. 9341, Sec. 7 (c), (d); pp. 1014-1015, Jurado Reviewer) 

18-20.) Obligations of the lessor  

a.) Not to alter the form of the thing leased (Art. 1661)

b.) Protect the lessee’s possession from prejudicial acts of third

persons (Bercero vs. Capital Development)

c.) Deliver the object of the lease (Art. 1654 [1])

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d.) Maintaienance of peaceful and adequate possession in case of

legal trespass (Art. 1654 [3])

e.) Make necessary repairs (Art. 1654[2])

21-23 Rights of the lessor  

A. Rescission and Damages

B. Damages only

C. Ejectment

24 to 28

Causes for EjectmentArt. 1673. The lessor may judicially eject the lessee for any of the

following causes:

1) when the period agreed upon, or that which is fixed for the

duration of the lease under Art. 1682 and 1687, has expired

2) lack of payment of the price stipulated

3) violation of any of the conditions agreed upon in the contract

4) when the lessee devotes the thing leased to any use or service

not stipulated which causes the deterioration thereof, or if he

does not observe the requirement in No. 2 of Art. 1657, as

regards the use thereof.

The ejectment of tenants of agricultural lands is governed by

special laws.

 Alternative Answer:

24 to 28: causes of ejectment

Under rent control act of 2009:

A. Assignment of lease or subleasing of residential

units in whole or in part including the acceptance of

boarders or bedsoacers without the written consent of

the owner or lessor

B.arrears in the payment of rent for a total of 3

months.

C. Legitimate need of the owner or lessor to repossess

his share or his property for his or her own use or forthe use of any immediate member of his family as a

residential unit

D. Need of the lessor to make necessary repairs of the

leased premises which is the subject of an existing

order of condemnation by appropriate authorities

concerned in order to make the said premises safe and

habitable

E. Expiration of period of the lease contract

*except when the lease is for a definite period,

provision of par 1 of article 1673 of NCC insofar as they

refer to residential units covered by the rent control

law shall be suspended.

(Meron kasing ibang grounds sa Article 1673 civil code

 for judicial ejectment. So di ko Alam if alin sa 2 ang

hinahanap ni VD.)

29-32 Obligations of the lessee: 

1. To pay rent.

2. To use thing leased as a diligent father of family, devoting it to

the use stipulated.

3. to make urgent repairs even if annoying to him unless the place

becomes uninhabitable.

4. To pay expenses for the deed of lease.

5. To notify lessor of usurpation or untoward acts.

6. To notify lessor of need of repairs.

7. To return the property upon the termination of lease (Art 1657

1633)

33-36. Rights of the lessee.

1.) Right to suspend payment in case the lessor fails to make the

necessary repairs or tomaintain the lessee in peaceful and

adequate enjoyment of the property leased. (Art. 1658)

2.) Right to sublease when there is no express prohibition (Art1650)

3.) Right to make useful improvements which are suitable to the

use for which the lease is intended, without altering the form and

substance of the property leased and to demand one half of the

value of the improvements at that time upon termination of the

lease (Art. 1678)

4.) Right to continue the lease even after the sale of the leased

property provided the lease is recorded in the Registry of Property

and if not, when there is stipulation in the contract of sale, o

when the purchaser knows of the existence of the lease. (Art

1676, par.1)

37. The destruction of the thing by fortuitious event obligates the lessor to

rebuild. 

FALSE. The remedy of lessee in case of partial destruction is to

rescind or ask for proportionate reduction of price and not to ask

lessor to rebuild it; neither is there an obligation to rebuild if

there is total destruction since the contract of lease is now

extinguished (Art. 1655)

38. Q: There is an implied new lease if at the end of the contract of lease,

the lessee continues to enjoy the thing leased for 15 days even without the

acquiescence of the lessor.

A: FALSE. Art. 1670 provides that it must be with the acquiescence

of the lessor.

39. The lessee in a lease of rural lands has a right to a reduction of renta for loss of the fruits of more than one-half and due to extraordinary and

unforeseen event.

ANS: TRUE. ART. 1680. The lessee shall have no right to a

reduction of the rent on account of the sterility of the land leased

or by reason of the loss of fruits due to ordinary fortuitous events

but he shall have such right in case of the loss of more than one-

half of the fruits through extraordinary and unforeseen fortuitou

events, save always when there is a specific stipulation to the

contrary.

Extraordinary fortuitous events are understood to be: fire, war

pestilence, unusual flood, locusts, earthquake, or others which

are uncommon, and which the contracting parties could not have

reasonably foreseen. 

40. A tenant on shares may be ejected if the landholder intends to cultivate

the land hinself personally or through the employment of machinery or

equipments.

FALSE. Tenant on shares cannot be ejected except in case

specified by the law.

Section 36 of R.A. No. 3844 enumerates these grounds, to wit:

SEC. 36. Possession of Landholding; Exceptions. 

Notwithstanding any agreement as to the period or future

surrender of the land, an agricultural lessee shall continue in the

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enjoyment and possession of his landholding except when his

dispossession has been authorized by the Court in a judgment

that is final and executory if after due hearing it is shown that:

(1) The agricultural lessor owner or a member of his immediate

family will personally cultivate the landholding or will convert the

landholding, if suitably located, into residential, factory, hospital

or school site or other useful non-agricultural purposes: Provided;

That the agricultural lessee shall be entitled to disturbance

compensation equivalent to five years rental on his landholding in

addition to his rights under Sections [25] and [34], except whenthe land owned and leased by the agricultural lessor is not more

than five hectares, in which case instead of disturbance

compensation the lessee may be entitled to an advance notice of

at least one agricultural year before ejectment proceedings are

filed against him: Provided, further, That should the landholder

not cultivate the land himself for three years or fail to

substantially carry out such conversion within one year after the

dispossession of the tenant, it shall be presumed that he acted in

bad faith and the tenant shall have the right to demand

possession of the land and recover damages for any loss incurred

by him because of said dispossession; 

(2) The agricultural lessee failed to substantially comply with any

of the terms and conditions of the contract or any of the

provisions of this Code unless his failure is caused by fortuitous

event or force majeure; 

(3) The agricultural lessee planted crops or used the landholding

for a purpose other than what had been previously agreed upon; 

(4) The agricultural lessee failed to adopt proven farm practices as

determined under paragraph 3 of Section *29+; 

(5) The land or other substantial permanent improvement

thereon is substantially damaged or destroyed or has

unreasonably deteriorated through the fault or negligence of the

agricultural lessee; 

(6) The agricultural lessee does not pay the lease rental when it

falls due: Provided, That if the non-payment of the rental shall be

due to crop failure to the extent of seventyfive per centum as a

result of a fortuitous event, the non-payment shall not be a

ground for dispossession, although the obligation to pay the

rental due that particular crop is not thereby extinguished; or 

(7) The lessee employed a sublessee on his landholding in

violation of the terms of paragraph 2 of Section [27].