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This article was originally published on June 1, 2022 and has been updated to reflect recent legal developments.
The following post does not create a lawyer-client relationship between Alburo Alburo and Associates Law Offices (or any of its lawyers) and the reader. It is still best for you to engage the services of a lawyer or you may directly contact and consult Alburo Alburo and Associates Law Offices to address your specific legal concerns, if there is any.
Also, the matters contained in the following were written in accordance with the law, rules, and jurisprudence prevailing at the time of writing and posting, and do not include any future developments on the subject matter under discussion.
AT A GLANCE:
Under Article 1642 of the Civil Code of the Philippines, a contract of lease may be of things, or of work and service.
In Kilosbayan Incorporated v. Manuel L. Morato, G.R. No. 118910, July 17, 118910, the Supreme Court held that a contract of lease, as this is defined in Civil law, may call for some form of collaboration or association between the parties since lease is a consensual, bilateral, onerous and commutative contract by which one person binds himself to grant temporarily the use of a thing or the rendering of some service to another who undertakes to pay some rent, compensation or price.
Does a contract of lease only involve things?
No. Under Article 1642 of the Civil Code of the Philippines, a contract of lease may be of things, or of work and service.
Kinds of Lease
1. Lease of things
In the lease of things, one of the parties binds himself to give to another the enjoyment or use of a thing for a price certain, and for a period which may be definite or indefinite. However, no lease for more than ninety-nine years shall be valid. (Article 1643, Civil Code)
2. Lease of Work or Service
In the lease of work or service, one of the parties binds himself to execute a piece of work or to render to the other some service for a price certain, but the relation of principal and agent does not exist between them. (Article 1644, Civil Code)
Subject Matter of a Contract of Lease
Consumable goods cannot be the subject matter of a contract of lease, except when they are merely to be exhibited or when they are accessory to an industrial establishment. (Article 1645, Civil Code)
Related Articles:
- What are the Rights and Obligations of the Lessor and Lessee in a Contract of Lease?
- Implied New Lease (Buce vs. Sps. Galeon, G.R. No. 222785, March 2, 2020)
- Long-term foreign lease over lands in the Philippines
- Can foreign investors lease private lands in the Philippines?
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Alburo Alburo and Associates Law Offices specializes in business law and labor law consulting. For inquiries regarding legal services, you may reach us at info@alburolaw.com, or dial us at (02)7745-4391/ 09175772207/ 09778050020.
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