Rules On Implied Lease

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RULES ON IMPLIED LEASE

An implied new lease is created pursuant to Article 1670 of the Civil Code,
which expressly provides:

Article 1670. If at the end of the contract the lessee should continue
enjoying the thing leased for fifteen 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.

Art. 1682. The lease of a piece of rural land, when its duration has not
been fixed is understood to have been made for all the time necessary
for the gathering of the fruits which the whole estate leased may yield in
one year, or which it may yield once, although two or more years may
have to elapse for the purpose.

Duration of Rural Lease

(a) How long is a rural lease with an unspecified duration if it takes only 3
months to plant and harvest the crops, and therefore, harvest can be made in
one year? ANS.: One year. (Art. 1682).

(b) How long is a rural lease of unspecified duration if to plant and harvest
crops once will take 3 years? ANS.: 3 years. (Art. 1682, last part).

Iturralde v. Garduno 9 Phil. 605

FACTS: A rural lease was agreed upon to last for a certain definite period.
But the tenant planted fruit trees which would require a long period of time to
bear fruit, as well as introduced certain more or less valuable improvements.
Has this act of the tenant changed the duration of the contract?

HELD: No, the duration of the lease has not been changed.

Reason: There was a fixed period for the lease and therefore the nature of
the fruit trees or valuable improvements is immaterial.

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If the understanding between the parties as to the term of the lease was
vague and uncertain, it cannot be said that a definite period was agreed
upon; hence the proper Article to apply would be Article 1687 of the Civil
Code.

Article 1687 of the Civil Code on implied new lease provides:

Art. 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.

In Samelo v. Manotok Services, Inc.
1
, it was held that:

Since the rent was paid on a monthly basis, the period of lease is
considered to be from month to month, in accordance with Article 1687 of
the Civil Code. [A] lease from month to month is considered to be one
with a definite period which expires at the end of each month upon a
demand to vacate by the lessor. When the respondent sent a notice to
vacate to the petitioner on August 5, 1998, the tacita reconduccion was
aborted, and the contract is deemed to have expired at the end of that
month. [A] notice to vacate constitutes an express act on the part of the
lessor that it no longer consents to the continued occupation by the
lessee of its property.

After such notice, the lessees right to continue in
possession ceases and her possession becomes one of detainer.

In Chua Lao, et al. v. Raymundo, et al.
2
, it was held that:

The lease of market stalls, where the duration is not fixed by agreement,
terminates every day if the fee is paid daily or every week if the fee is paid
weekly, or every month if the fee is paid monthly, or every year if the rent is
paid annually. Upon such expiration, the municipal council can revoke the
lease privilege.

1
G.R. No. 170509, June 27, 2012.
2
G.R. L-12662, Aug. 18, 1958.
3
The longer period stated in the second half of Article 1687 is discretionary,
not mandatory, with the Court. Hence, the Court may refuse to grant it. It
should be noted that the law uses the word MAY. The power is thus
potestative to be exercised in accordance with the particular circumstances of
the case; a longer term to be granted where equities come into play
demanding extension; to be denied where none appear, always with due
deference to the parties freedom to contract. (Prieto v. Santos & Gaddi, 98
Phil. 609; Acasio v. Corporacion de los P.P. Dominicos de Filipinas, 100 Phil.
523).

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RULES ON IMPLIED LEASE

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