• Manner of payment determines lease contract

    Persida Acosta

    Persida Acosta

    Dear PAO,
    What is the period of the contract of lease if no agreement was made by the contracting parties as to the duration of the lease?

    Dear Carmen,
    The New Civil Code of the Philippines squarely answers your question, particularly Article 1687 thereof, which provides:

    “Article 1687. If 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 week to week, if the rent is weekly; and from day to day, if the rent is to be paid daily. However, 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. If the rent is weekly, the courts may likewise determine a longer period after the lessee has been in possession for over six months. In case of daily rent, the courts may also fix a longer period after the lessee has stayed in the place for over one month.”

    As explicitly stated above, if there is no agreement as to the period of lease, then the same depends on how rents are being paid. However, if the lessor allows the lessee to stay for 15 days after the lapse of the respective period mentioned above, then the lease is automatically renewed. This is according to Article1670 of the New Civil Code of the Philippines, to wit:

    “Article 1670. If at the end of the contract the lessee should continue enjoying the thing leased for 15 days with the acquiescence of the lessor, and unless a notice to the contrary by either party has previously been given, it is understood that there is an implied new lease, not for the period of the original contract, but for the time established in Articles 1682 and 1687. The other terms of the original contract shall be revived.”

    Again, we find it necessary to mention that this opinion is solely based on the facts you have narrated and our appreciation of the same. The opinion may vary when the facts are changed or elaborated.

    We hope that we were able to enlighten you on the matter.

    Editor’s note: Dear PAO is a daily column of the Public Attorney’s Office. Questions for Chief Acosta may be sent to dearpao@manilatimes.net


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