La Barbri Lease

Front 1

Elements of Lease

1

Back 1

→ thing, rent, consent

Front 2

Lease - Rent

2

Back 2

→ must be certain/determinable through an agreed upon method or left to determination of 3dP
• If 3dP doesn’t fix or method agreed upon proves unworkable, there is no lease (ct will not fix)
• Exception→ if rent’s been established, but is subject 2 redetermination by method agreed upon by parties or by 3dP, & method proves unworkable or 3dP fails 2 redetermine, ct may fix rent
• Lease may be oral/written, but subject to public records doctrine. Anyone w/possession may grant lease

Front 3

Lease - Duration

3

Back 3

→ A lease need not contain a precise term. Cant exceed 99 years (o/w will be reduced)
• Absent a Fixed Term:
• Agricultural – year to year
• Non-Agricultural IMM - month to month
• Residential Lease of Mov- month to month
• Non Residential Mov –day to day

Front 4

Lease - Tacit Reconduction

4

Back 4

→ a lease w/a fixed term is tacitly reconducted if the lessee continues in possession & no steps are taken to terminate the lease for (1) 30 days in ag leases; (2) 1 week in non ag if lease was for a fixed term that was longer than a week OR (2) 1 day if lease was for a fixed term that was a week or shorter
• New Term is→ (1)year to year IF original Ag lease (2) mth to mth IF original term was longer than a mth & (3) day to day if original term was at least a day but shorter than a mth
• All other terms of the lease remain the same

Front 5

Lease - Termination

5

Back 5

→ fixed term – term upon expiration of that term indeterminate term – term by notice:
• 30 days notice – before end of period for a lease with a term longer than a month
• 10 days – before end of month in month to month
• 5 days – before end of period between 1 week and a month
• shorter than a week – anytime prior to expiration of period

Front 6

Lease - Lessor’s Obls

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Back 6

→ deliver, maintain, protect peaceful possession, & responsible for vices & defects

Front 7

Lease - Maintenance Obl

7

Back 7

Lessor must make all necessary repairs to maintain thing in a condition suitable 4 purpose 4 which is was leased, except those Lessee is liable to make repairs (1) caused by how own fault or that of persons on the premises w/his consent & (2) to remedy deterioration exceeding the normal or agreed use
• Lessee must tolerate all repairs that can’t be postponed until the end of the lease, BUT if he suffers inconvenience/loss of use of the thing, he may be entitled to reduction/abatement of rent.
• If Lessor refuses to make repairs – Lessee can make and demand reimbursement or deduct from rent

Front 8

Lease - Duty to Protect Peaceful Possession

8

Back 8

Lessor Liable for disturbances by any person claiming a right in leased thing. Includes disturbances by persons (1) w/access to the thing w/lessor’s consent or (2) who occupy adjacent prop belonging to the lessor
• If the thing is totally destroyed/expropriated/lost without lessor fault, the lease is terminated

Front 9

Lessor’s Responsibility for Vices & Defects

9

Back 9

→ liable for all defects & vices that prevent leased thing from being used for its intended purpose UNLESS vice/defect has arisen from lessee’s fault
• May be waived by clear & unambiguous language that’s brought to the attention of the lessee.
• Lessor with full knowledge of Lessee’s activities can be responsible to 3dP– Yokum 2008

Front 10

Lessee’s Obls

10

Back 10

→ pay rent, use as a prudent administrator, & return the thing
• Pay Rent→ If doesn’t, lessor may dissolve the lease & regain possession (give 5days notice)
• If lessee abandons the premises, lessor may retake possession & relet them as a mandatary for the lessee. Original lessee remains liable to lessor for any reduced amount of rent 3d party pays
• Use the thing as a prudent administrator according to it’s intended purpose

Front 11

Lessee’s Right to Sublease/Assign/Encumber

11

Back 11

→ has right UNLESS expressly prohibited from doing so
• Prohibiting any 1 is deemed to prohibit the rest, but provision is strictly construed a/g the lessor
• Assignment→ transfers the entire K (original lessor and 2d lessor are solidarily liable for rent)
• Sublease→ transfers right of occupancy (lessor may only go after original lessee for rent)
• A lessor can’t abuse his right to reject a proposed assignment/sublease. But, it’s not an abuse of right when lessor’s intention was to negotiate for higher rentals (not just to screw the lessee)

Front 12

Lessee’s right to improvements

12

Back 12

→ can take but need to restore thing to its former condition
• If Lessee doesn’t remover – Lessor may:
• Appropriate ownership – pay lessess lesser or costs or enhanced value
• OR Demand remove within reasonable time – If lessee fails, lessor can remove at lessees expense or appropriate with a notice by cert mail