Leases Flashcards
(13 cards)
What is a lease?
A lease is a contract where one party (lessor) gives the other (lessee) use/enjoyment of a thing for a term in exchange for rent.
Types of Leases:
Lease of a thing (movable or immovable)
Lease of labor
Lease of services
What does the law require to form a lease?
K Reflects:
1) Consent of the parties
2) Object (thing to be leased)
3) Rent (must be determinable)
4) ALSO the form of the lease can be oral, written, or it can be implied by conduct.
**If the party wants to use their lease as protection agaisnt third parties in suit, the lease must be in writing and recorded. **
Public Records Doctrine — How do you record a Lease?
File with the public records of the parish where the immovable property is located.
Lease duration?
A lease can either be for a fixed term or an indeterminate term.
Fixed = the terms end at expiration without notice.
Indeterminate = the term ends with proper notice.
Tacit Reconduction – Lease Duration
If a lessee continues possession without opposition, the lease is renewed depending on certain factors.
In Louisiana, what obligations does a lessor have?
Deliver the Thing in good condition for intended use. (art. 2682)
Maintain the Thing in a condition suitable for use. (art. 2682(2))
Ensure Peaceful Possession during lease. (art. 2682(3))
Warranty Against Vices and Defects: Apparent v. Non-apparent…. may be waived, but not for latent defects in bad faith.
What are the obligations of the lessee?
Pay rent as agreed
Use the Thing Prudently
Return the Thing at end of lease in same condition, subject to normal wear and tear.
No Unauthorized Alterations to the leased thing.
Sublease / Assignment is allowed… unless expressly prohibited by lease contract (art. 2725)
What rights and remedies are available to the lessor?
Failure to Pay Rent –> can evict, can sue for dissolution, or compel specific performance.
Acceleration clauses are enforceable.
Can pursue damages for unreasonable damage caused be the lessee or the termination of lease.
What are the lessees rights and and remedies?
Right to quiet enjoyment…
Lessor fails to maintain or disturbs use.
Reduction of rent
Dissolution of lease
Damages
Lease Termination?
Can terminate when the lease term expires.
When there is mutual consent.
When there is judicial dissolution for a breach.
Lessee dies – lease continues with heirs unless the K says otherwise.
Destruction of loss of a thing–> Total destruction: Lease will terminate. OR
Partial: Reduction of rent possible.
Security Deposits
Return within 30 Days
An iteized statement of reductions is required.
If this rule is violated, there is a penalty for up to $200, or actual damages which ever is greater.
Special types of leases?
Residential Leases:
Nonwaivable Rights under landlord-tenant law (e.g., habitability).
Commercial Leases:
Often governed more strictly by contract than by default Civil Code rules.
Agricultural Leases:
Subject to special rules (may require notice of non-renewal before end of harvest).
Defenses
Force majeure –> performance may be excused due to fortuitous events.
Constructive eviction when the lessees use is materially disturbed.
