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TABLE OF CONTENTS

BOOK IVOBLIGATIONS AND CONTRACTS

TITLE VIII LEASE

Chapter 1 GENERAL PROVISIONS

Article 1642 ........................................................................... 1Article 1643 ........................................................................... 1Article 1644 ........................................................................... 1Article 1645 ........................................................................... 1

Chapter 2 LEASE OF RURAL ANDURBAN LANDS

Section 1 General Provisions

Article 1646 ........................................................................... 3Article 1647 ........................................................................... 3Article 1648 ........................................................................... 4Article 1649 ........................................................................... 4Article 1650 ........................................................................... 4Article 1651 ........................................................................... 4Article 1652 ........................................................................... 4Article 1653 ........................................................................... 4

Section 2 Rights and Obligationsof the Lessor and the Lessee

Article 1654 ........................................................................... 5Article 1655 ........................................................................... 5Article 1656 ........................................................................... 5Article 1657 ........................................................................... 5Article 1658 ........................................................................... 5Article 1659 ........................................................................... 6Article 1660 ........................................................................... 6Article 1661 ........................................................................... 6

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Article 1662 ........................................................................... 6Article 1663 ........................................................................... 6Article 1664 ........................................................................... 7Article 1665 ........................................................................... 7Article 1666 ........................................................................... 7Article 1667 ........................................................................... 7Article 1668 ........................................................................... 7Article 1669 ........................................................................... 8Article 1670 ........................................................................... 8Article 1671 ........................................................................... 8Article 1672 ........................................................................... 8Article 1673 ........................................................................... 8Article 1674 ........................................................................... 8Article 1675 ........................................................................... 9Article 1676 ........................................................................... 9Article 1677 ........................................................................... 9Article 1678 ........................................................................... 9Article 1679 ........................................................................... 10

Section 3 Special Provisions for Leasesof Rural Lands

Article 1680 ........................................................................... 30Article 1681 ........................................................................... 30Article 1682 ........................................................................... 30Article 1683 ........................................................................... 30Article 1684 ........................................................................... 30Article 1685 ........................................................................... 30

Section 4 Special Provisions for theLease of Urban Lands

Article 1686 ........................................................................... 32Article 1687 ........................................................................... 32Article 1688 ........................................................................... 32

Chapter 3 WORK AND LABOR

Section 1 Household Service

Article 1689 ........................................................................... 36Article 1690 ........................................................................... 36Article 1691 ........................................................................... 37Article 1692 ........................................................................... 37Article 1693 ........................................................................... 37Article 1694 ........................................................................... 37Article 1695 ........................................................................... 37Article 1696 ........................................................................... 37

vArticle 1697 ........................................................................... 37Article 1698 ........................................................................... 37Article 1699 ........................................................................... 38

Section 2 Contract of Labor

Article 1700 ........................................................................... 40Article 1701 ........................................................................... 40Article 1702 ........................................................................... 40Article 1703 ........................................................................... 40Article 1704 ........................................................................... 40Article 1705 ........................................................................... 40Article 1706 ........................................................................... 40Article 1707 ........................................................................... 41Article 1708 ........................................................................... 41Article 1709 ........................................................................... 41Article 1710 ........................................................................... 41Article 1711 ........................................................................... 41Article 1712 ........................................................................... 41

Section 3 Contract for a Piece of Work

Article 1713 ........................................................................... 44Article 1714 ........................................................................... 44Article 1715 ........................................................................... 44Article 1716 ........................................................................... 45Article 1717 ........................................................................... 45Article 1718 ........................................................................... 45Article 1719 ........................................................................... 45Article 1720 ........................................................................... 45Article 1721 ........................................................................... 45Article 1722 ........................................................................... 46Article 1723 ........................................................................... 46Article 1724 ........................................................................... 46Article 1725 ........................................................................... 47Article 1726 ........................................................................... 47Article 1727 ........................................................................... 47Article 1728 ........................................................................... 47Article 1729 ........................................................................... 47Article 1730 ........................................................................... 47Article 1731 ........................................................................... 48

Section 4 Common Carriers

Subsection 1 General Provisions

Article 1732 ........................................................................... 53Article 1733 ........................................................................... 54

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Subsection 2 Vigilance Over Goods

Article 1734 ........................................................................... 54Article 1735 ........................................................................... 54Article 1736 ........................................................................... 54Article 1737 ........................................................................... 55Article 1738 ........................................................................... 55Article 1739 ........................................................................... 55Article 1740 ........................................................................... 55Article 1741 ........................................................................... 55Article 1742 ........................................................................... 55Article 1743 ........................................................................... 56Article 1744 ........................................................................... 56Article 1745 ........................................................................... 56Article 1746 ........................................................................... 57Article 1747 ........................................................................... 57Article 1748 ........................................................................... 57Article 1749 ........................................................................... 57Article 1750 ........................................................................... 57Article 1751 ........................................................................... 57Article 1752 ........................................................................... 57Article 1753 ........................................................................... 57Article 1754 ........................................................................... 58

Subsection 3 Safety of Passengers

Article 1755 ........................................................................... 58Article 1756 ........................................................................... 58Article 1757 ........................................................................... 58Article 1758 ........................................................................... 58Article 1759 ........................................................................... 58Article 1760 ........................................................................... 59Article 1761 ........................................................................... 59Article 1762 ........................................................................... 59Article 1763 ........................................................................... 59

Subsection 4 Common Provisions

Article 1764 ........................................................................... 95Article 1765 ........................................................................... 95Article 1766 ........................................................................... 95

TITLE IX PARTNERSHIP

Chapter 1 GENERAL PROVISIONS

Article 1767 ........................................................................... 96Article 1768 ........................................................................... 96

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Article 1769 ........................................................................... 96Article 1770 ........................................................................... 97Article 1771 ........................................................................... 97Article 1772 ........................................................................... 97Article 1773 ........................................................................... 97Article 1774 ........................................................................... 97Article 1775 ........................................................................... 98Article 1776 ........................................................................... 98Article 1777 ........................................................................... 98Article 1778 ........................................................................... 98Article 1779 ........................................................................... 98Article 1780 ........................................................................... 98Article 1781 ........................................................................... 99Article 1782 ........................................................................... 99Article 1783 ........................................................................... 99

Chapter 2 OBLIGATIONSOF THE PARTNERS

Section 1 Obligations of the Partnersamong Themselves

Article 1784 ........................................................................... 106Article 1785 ........................................................................... 106Article 1786 ........................................................................... 108Article 1787 ........................................................................... 108Article 1788 ........................................................................... 109Article 1789 ........................................................................... 109Article 1790 ........................................................................... 109Article 1791 ........................................................................... 109Article 1792 ........................................................................... 109Article 1793 ........................................................................... 110Article 1794 ........................................................................... 110Article 1795 ........................................................................... 110Article 1796 ........................................................................... 110Article 1797 ........................................................................... 110Article 1798 ........................................................................... 111Article 1799 ........................................................................... 111Article 1800 ........................................................................... 111Article 1801 ........................................................................... 111Article 1802 ........................................................................... 112Article 1803 ........................................................................... 112Article 1804 ........................................................................... 112Article 1805 ........................................................................... 112Article 1806 ........................................................................... 112Article 1807 ........................................................................... 113Article 1808 ........................................................................... 113Article 1809 ........................................................................... 113

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Section 2 Property Rights of a Partner

Article 1810 ........................................................................... 113Article 1811 ........................................................................... 113Article 1812 ........................................................................... 114Article 1813 ........................................................................... 114Article 1814 ........................................................................... 115

Section 3 Obligations of the Partnerswith Regard to Third Persons

Article 1815 ........................................................................... 124Article 1816 ........................................................................... 124Article 1817 ........................................................................... 124Article 1818 ........................................................................... 124Article 1819 ........................................................................... 125Article 1820 ........................................................................... 126Article 1821 ........................................................................... 126Article 1822 ........................................................................... 126Article 1823 ........................................................................... 126Article 1824 ........................................................................... 127Article 1825 ........................................................................... 127Article 1826 ........................................................................... 128Article 1827 ........................................................................... 128

Chapter 3 DISSOLUTION ANDWINDING UP

Article 1828 ........................................................................... 134Article 1829 ........................................................................... 134Article 1830 ........................................................................... 135Article 1831 ........................................................................... 136Article 1832 ........................................................................... 136Article 1833 ........................................................................... 137Article 1834 ........................................................................... 137Article 1835 ........................................................................... 138Article 1836 ........................................................................... 139Article 1837 ........................................................................... 139Article 1838 ........................................................................... 140Article 1839 ........................................................................... 141Article 1840 ........................................................................... 142Article 1841 ........................................................................... 144Article 1842 ........................................................................... 144

Chapter 4 LIMITED PARTNERSHIP

Article 1843 ........................................................................... 156Article 1844 ........................................................................... 156Article 1845 ........................................................................... 157

ix

Article 1846 ........................................................................... 157Article 1847 ........................................................................... 158Article 1848 ........................................................................... 158Article 1849 ........................................................................... 158Article 1850 ........................................................................... 158Article 1851 ........................................................................... 159Article 1852 ........................................................................... 159Article 1853 ........................................................................... 159Article 1854 ........................................................................... 160Article 1855 ........................................................................... 160Article 1856 ........................................................................... 160Article 1857 ........................................................................... 161Article 1858 ........................................................................... 162Article 1859 ........................................................................... 162Article 1860 ........................................................................... 163Article 1861 ........................................................................... 163Article 1862 ........................................................................... 163Article 1863 ........................................................................... 164Article 1864 ........................................................................... 165Article 1865 ........................................................................... 165Article 1866 ........................................................................... 166Article 1867 ........................................................................... 166

TITLE X AGENCY

Chapter 1 NATURE, FORM ANDKINDS OF AGENCY

Article 1868 ........................................................................... 177Article 1869 ........................................................................... 177Article 1870 ........................................................................... 177Article 1871 ........................................................................... 177Article 1872 ........................................................................... 177Article 1873 ........................................................................... 178Article 1874 ........................................................................... 178Article 1875 ........................................................................... 178Article 1876 ........................................................................... 178Article 1877 ........................................................................... 178Article 1878 ........................................................................... 178Article 1879 ........................................................................... 179Article 1880 ........................................................................... 179Article 1881 ........................................................................... 179Article 1882 ........................................................................... 180Article 1883 ........................................................................... 180

Chapter 2 OBLIGATIONS OF THE AGENT

Article 1884 ........................................................................... 186Article 1885 ........................................................................... 187

xArticle 1886 ........................................................................... 187Article 1887 ........................................................................... 187Article 1888 ........................................................................... 187Article 1889 ........................................................................... 187Article 1890 ........................................................................... 187Article 1891 ........................................................................... 187Article 1892 ........................................................................... 188Article 1893 ........................................................................... 188Article 1894 ........................................................................... 188Article 1895 ........................................................................... 188Article 1896 ........................................................................... 188Article 1897 ........................................................................... 188Article 1898 ........................................................................... 188Article 1899 ........................................................................... 189Article 1900 ........................................................................... 189Article 1901 ........................................................................... 189Article 1902 ........................................................................... 189Article 1903 ........................................................................... 189Article 1904 ........................................................................... 189Article 1905 ........................................................................... 189Article 1906 ........................................................................... 190Article 1907 ........................................................................... 190Article 1908 ........................................................................... 190Article 1909 ........................................................................... 190

Chapter 3 OBLIGATIONS OF THEPRINCIPAL

Article 1910 ........................................................................... 190Article 1911 ........................................................................... 190Article 1912 ........................................................................... 191Article 1913 ........................................................................... 191Article 1914 ........................................................................... 191Article 1915 ........................................................................... 191Article 1916 ........................................................................... 191Article 1917 ........................................................................... 191Article 1918 ........................................................................... 191

Chapter 4 MODES OF EXTINGUISHMENTOF AGENCY

Article 1919 ........................................................................... 199Article 1920 ........................................................................... 200Article 1921 ........................................................................... 200Article 1922 ........................................................................... 200Article 1923 ........................................................................... 200

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Article 1924 ........................................................................... 200Article 1925 ........................................................................... 200Article 1926 ........................................................................... 200Article 1927 ........................................................................... 200Article 1928 ........................................................................... 200Article 1929 ........................................................................... 201Article 1930 ........................................................................... 201Article 1931 ........................................................................... 201Article 1932 ........................................................................... 201

TITLE XI LOAN

GENERAL PROVISIONS

Article 1933 ........................................................................... 205Article 1934 ........................................................................... 205

Chapter 1 COMMODATUM

Section 1 Nature of Commodatum

Article 1935 ........................................................................... 209Article 1936 ........................................................................... 210Article 1937 ........................................................................... 210Article 1938 ........................................................................... 210Article 1939 ........................................................................... 210Article 1940 ........................................................................... 210

Section 2 Obligations of the Bailee

Article 1941 ........................................................................... 210Article 1942 ........................................................................... 210Article 1943 ........................................................................... 211Article 1944 ........................................................................... 211Article 1945 ........................................................................... 211

Section 3 Obligations of the Bailor

Article 1946 ........................................................................... 211Article 1947 ........................................................................... 211Article 1948 ........................................................................... 211Article 1949 ........................................................................... 212Article 1950 ........................................................................... 212Article 1951 ........................................................................... 212Article 1952 ........................................................................... 212

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Chapter 2 SIMPLE LOAN OR MUTUUM

Article 1953 ........................................................................... 212Article 1954 ........................................................................... 212Article 1955 ........................................................................... 212Article 1956 ........................................................................... 213Article 1957 ........................................................................... 213Article 1958 ........................................................................... 213Article 1959 ........................................................................... 213Article 1960 ........................................................................... 213Article 1961 ........................................................................... 213

TITLE XII DEPOSIT

Chapter 1 DEPOSIT IN GENERALAND ITS DIFFERENT KINDS

Article 1962 ........................................................................... 217Article 1963 ........................................................................... 217Article 1964 ........................................................................... 217Article 1965 ........................................................................... 217Article 1966 ........................................................................... 217Article 1967 ........................................................................... 217

Chapter 2 VOLUNTARY DEPOSIT

Section 1 General Provisions

Article 1968 ........................................................................... 219Article 1969 ........................................................................... 219Article 1970 ........................................................................... 219Article 1971 ........................................................................... 219

Section 2 Obligations of the Depositary

Article 1972 ........................................................................... 220Article 1973 ........................................................................... 221Article 1974 ........................................................................... 221Article 1975 ........................................................................... 221Article 1976 ........................................................................... 221Article 1977 ........................................................................... 221Article 1978 ........................................................................... 222Article 1979 ........................................................................... 222Article 1980 ........................................................................... 222Article 1981 ........................................................................... 222Article 1982 ........................................................................... 223Article 1983 ........................................................................... 223

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Article 1984 ........................................................................... 223Article 1985 ........................................................................... 223Article 1986 ........................................................................... 223Article 1987 ........................................................................... 223Article 1988 ........................................................................... 224Article 1989 ........................................................................... 224Article 1990 ........................................................................... 224Article 1991 ........................................................................... 224

Section 3 Obligations of the Depositor

Article 1992 ........................................................................... 224Article 1993 ........................................................................... 225Article 1994 ........................................................................... 225Article 1995 ........................................................................... 225

Chapter 3 NECESSARY DEPOSIT

Article 1996 ........................................................................... 229Article 1997 ........................................................................... 230Article 1998 ........................................................................... 230Article 1999 ........................................................................... 230Article 2000 ........................................................................... 230Article 2001 ........................................................................... 230Article 2002 ........................................................................... 230Article 2003 ........................................................................... 231Article 2004 ........................................................................... 231

Chapter 4 SEQUESTRATION ORJUDICIAL DEPOSIT

Article 2005 ........................................................................... 232Article 2006 ........................................................................... 232Article 2007 ........................................................................... 232Article 2008 ........................................................................... 232Article 2009 ........................................................................... 232

TITLE XIII ALEATORY CONTRACTS

GENERAL PROVISIONS

Article 2010 ........................................................................... 234

Chapter 1 INSURANCE

Article 2011 ........................................................................... 235Article 2012 ........................................................................... 235

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Chapter 2 GAMBLING

Article 2013 ........................................................................... 236Article 2014 ........................................................................... 237Article 2015 ........................................................................... 237Article 2016 ........................................................................... 237Article 2017 ........................................................................... 237Article 2018 ........................................................................... 237Article 2019 ........................................................................... 237Article 2020 ........................................................................... 237

Chapter 3 LIFE ANNUITY

Article 2021 ........................................................................... 239Article 2022 ........................................................................... 239Article 2023 ........................................................................... 239Article 2024 ........................................................................... 239Article 2025 ........................................................................... 240Article 2026 ........................................................................... 240Article 2027 ........................................................................... 240

TITLE XIV COMPROMISES ANDARBITRATIONS

Chapter 1 COMPROMISES

Article 2028 ........................................................................... 242Article 2029 ........................................................................... 242Article 2030 ........................................................................... 242Article 2031 ........................................................................... 242Article 2032 ........................................................................... 242Article 2033 ........................................................................... 243Article 2034 ........................................................................... 243Article 2035 ........................................................................... 243Article 2036 ........................................................................... 243Article 2037 ........................................................................... 243Article 2038 ........................................................................... 243Article 2039 ........................................................................... 244Article 2040 ........................................................................... 244Article 2041 ........................................................................... 244

Chapter 2 ARBITRATIONS

Article 2042 ........................................................................... 250Article 2043 ........................................................................... 250Article 2044 ........................................................................... 250Article 2045 ........................................................................... 250

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Article 2046 ........................................................................... 250

TITLE XV GUARANTY

Chapter 1 NATURE AND EXTENTOF GUARANTY

Article 2047 ........................................................................... 252Article 2048 ........................................................................... 252Article 2049 ........................................................................... 252Article 2050 ........................................................................... 252Article 2051 ........................................................................... 252Article 2052 ........................................................................... 252Article 2053 ........................................................................... 253Article 2054 ........................................................................... 253Article 2055 ........................................................................... 253Article 2056 ........................................................................... 253Article 2057 ........................................................................... 253

Chapter 2 EFFECTS OF GUARANTY

Section 1 Effects of Guaranty Betweenthe Guarantor and the Creditor

Article 2058 ........................................................................... 259Article 2059 ........................................................................... 259Article 2060 ........................................................................... 259Article 2061 ........................................................................... 259Article 2062 ........................................................................... 259Article 2063 ........................................................................... 260Article 2064 ........................................................................... 260Article 2065 ........................................................................... 260

Section 2 Effects of Guaranty Betweenthe Debtor and the Guarantor

Article 2066 ........................................................................... 260Article 2067 ........................................................................... 261Article 2068 ........................................................................... 261Article 2069 ........................................................................... 261Article 2070 ........................................................................... 261Article 2071 ........................................................................... 261Article 2072 ........................................................................... 262

Section 3 Effects of Guaranty as BetweenCo-Guarantors

Article 2073 ........................................................................... 262Article 2074 ........................................................................... 262

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Article 2075 ........................................................................... 262

Chapter 3 EXTINGUISHMENTOF GUARANTY

Article 2076 ........................................................................... 268Article 2077 ........................................................................... 268Article 2078 ........................................................................... 268Article 2079 ........................................................................... 268Article 2080 ........................................................................... 268Article 2081 ........................................................................... 268

Chapter 4 LEGAL AND JUDICIALBONDS

Article 2082 ........................................................................... 270Article 2083 ........................................................................... 270Article 2084 ........................................................................... 271

TITLE XVI PLEDGE, MORTGAGEAND ANTICHRESIS

Chapter 1 PROVISIONS COMMON TOPLEDGE AND MORTGAGE

Article 2085 ........................................................................... 272Article 2086 ........................................................................... 272Article 2087 ........................................................................... 272Article 2088 ........................................................................... 272Article 2089 ........................................................................... 272Article 2090 ........................................................................... 273Article 2091 ........................................................................... 273Article 2092 ........................................................................... 273

Chapter 2 PLEDGE

Article 2093 ........................................................................... 279Article 2094 ........................................................................... 279Article 2095 ........................................................................... 279Article 2096 ........................................................................... 279Article 2097 ........................................................................... 280Article 2098 ........................................................................... 280Article 2099 ........................................................................... 280Article 2100 ........................................................................... 280Article 2101 ........................................................................... 280Article 2102 ........................................................................... 280Article 2103 ........................................................................... 281Article 2104 ........................................................................... 281

xvii

Article 2105 ........................................................................... 281Article 2106 ........................................................................... 281Article 2107 ........................................................................... 281Article 2108 ........................................................................... 281Article 2109 ........................................................................... 281Article 2110 ........................................................................... 282Article 2111 ........................................................................... 282Article 2112 ........................................................................... 282Article 2113 ........................................................................... 282Article 2114 ........................................................................... 282Article 2115 ........................................................................... 283Article 2116 ........................................................................... 283Article 2117 ........................................................................... 283Article 2118 ........................................................................... 283Article 2119 ........................................................................... 283Article 2120 ........................................................................... 283Article 2121 ........................................................................... 283Article 2122 ........................................................................... 284Article 2123 ........................................................................... 284

Chapter 3 MORTGAGE

Article 2124 ........................................................................... 284Article 2125 ........................................................................... 284Article 2126 ........................................................................... 284Article 2127 ........................................................................... 285Article 2128 ........................................................................... 285Article 2129 ........................................................................... 285Article 2130 ........................................................................... 285Article 2131 ........................................................................... 285

Chapter 4 ANTICHRESIS

Article 2132 ........................................................................... 285Article 2133 ........................................................................... 286Article 2134 ........................................................................... 286Article 2135 ........................................................................... 286Article 2136 ........................................................................... 286Article 2137 ........................................................................... 286Article 2138 ........................................................................... 286Article 2139 ........................................................................... 286

Chapter 5 CHATTEL MORTGAGE

Article 2140 ........................................................................... 287Article 2141 ........................................................................... 287

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TITLE XVII EXTRA-CONTRACTUALOBLIGATIONS

Chapter 1 QUASI-CONTRACTS

Article 2142 ........................................................................... 308Article 2143 ........................................................................... 308

Section 1 Negotiorum Gestio

Article 2144 ........................................................................... 309Article 2145 ........................................................................... 309Article 2146 ........................................................................... 310Article 2147 ........................................................................... 310Article 2148 ........................................................................... 310Article 2149 ........................................................................... 310Article 2150 ........................................................................... 311Article 2151 ........................................................................... 311Article 2152 ........................................................................... 311Article 2153 ........................................................................... 311

Section 2 Solutio Indebiti

Article 2154 ........................................................................... 315Article 2155 ........................................................................... 315Article 2156 ........................................................................... 315Article 2157 ........................................................................... 315Article 2158 ........................................................................... 315Article 2159 ........................................................................... 315Article 2160 ........................................................................... 315Article 2161 ........................................................................... 315Article 2162 ........................................................................... 316Article 2163 ........................................................................... 316

Section 3 Other Quasi-Contracts

Article 2164 ........................................................................... 318Article 2165 ........................................................................... 318Article 2166 ........................................................................... 318Article 2167 ........................................................................... 318Article 2168 ........................................................................... 319Article 2169 ........................................................................... 319Article 2170 ........................................................................... 319Article 2171 ........................................................................... 319Article 2172 ........................................................................... 319Article 2173 ........................................................................... 319Article 2174 ........................................................................... 319Article 2175 ........................................................................... 319

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Chapter 2 QUASI-DELICTS

Article 2176 ........................................................................... 320Article 2177 ........................................................................... 320Article 2178 ........................................................................... 320Article 2179 ........................................................................... 320Article 2180 ........................................................................... 320Article 2181 ........................................................................... 321Article 2182 ........................................................................... 321Article 2183 ........................................................................... 321Article 2184 ........................................................................... 321Article 2185 ........................................................................... 322Article 2186 ........................................................................... 322Article 2187 ........................................................................... 322Article 2188 ........................................................................... 322Article 2189 ........................................................................... 322Article 2190 ........................................................................... 322Article 2191 ........................................................................... 322Article 2192 ........................................................................... 323Article 2193 ........................................................................... 323Article 2194 ........................................................................... 323

TITLE XVIII DAMAGES

Chapter 1 GENERAL PROVISIONS

Article 2195 ........................................................................... 351Article 2196 ........................................................................... 351Article 2197 ........................................................................... 351Article 2198 ........................................................................... 351

Chapter 2 ACTUAL OR COMPENSATORYDAMAGES

Article 2199 ........................................................................... 353Article 2200 ........................................................................... 353Article 2201 ........................................................................... 353Article 2202 ........................................................................... 354Article 2203 ........................................................................... 354Article 2204 ........................................................................... 354Article 2205 ........................................................................... 354Article 2206 ........................................................................... 354Article 2207 ........................................................................... 355Article 2208 ........................................................................... 355Article 2209 ........................................................................... 356Article 2210 ........................................................................... 356

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Article 2211 ........................................................................... 356Article 2212 ........................................................................... 356Article 2213 ........................................................................... 356Article 2214 ........................................................................... 356Article 2215 ........................................................................... 356

Chapter 3 OTHER KINDSOF DAMAGES

Article 2216 ........................................................................... 368

Section 1 Moral Damages

Article 2217 ........................................................................... 370Article 2218 ........................................................................... 370Article 2219 ........................................................................... 370Article 2220 ........................................................................... 371

Section 2 Nominal Damages

Article 2221 ........................................................................... 381Article 2222 ........................................................................... 381Article 2223 ........................................................................... 382

Section 3 Temperate or ModerateDamages

Article 2224 ........................................................................... 385Article 2225 ........................................................................... 385

Section 4 Liquidated Damages

Article 2226 ........................................................................... 386Article 2227 ........................................................................... 386Article 2228 ........................................................................... 386

Section 5 Exemplary or CorrectiveDamages

Article 2229 ........................................................................... 387Article 2230 ........................................................................... 387Article 2231 ........................................................................... 387Article 2232 ........................................................................... 387Article 2233 ........................................................................... 387Article 2234 ........................................................................... 387Article 2235 ........................................................................... 387

xxi

TITLE XIX CONCURRENCE ANDPREFERENCE OF CREDITS

Chapter 1 GENERAL PROVISIONS

Article 2236 ........................................................................... 393Article 2237 ........................................................................... 393Article 2238 ........................................................................... 393Article 2239 ........................................................................... 393Article 2240 ........................................................................... 393

Chapter 2 CLASSIFICATIONOF CREDITS

Article 2241 ........................................................................... 394Article 2242 ........................................................................... 395Article 2243 ........................................................................... 396Article 2244 ........................................................................... 396Article 2245 ........................................................................... 398

Chapter 3 ORDER OF PREFERENCEOF CREDITS

Article 2246 ........................................................................... 398Article 2247 ........................................................................... 398Article 2248 ........................................................................... 398Article 2249 ........................................................................... 398Article 2250 ........................................................................... 398Article 2251 ........................................................................... 398

TRANSITIONAL PROVISIONS

Article 2252 ........................................................................... 414Article 2253 ........................................................................... 414Article 2254 ........................................................................... 414Article 2255 ........................................................................... 414Article 2256 ........................................................................... 414Article 2257 ........................................................................... 415Article 2258 ........................................................................... 415Article 2259 ........................................................................... 415Article 2260 ........................................................................... 415Article 2261 ........................................................................... 416Article 2262 ........................................................................... 416Article 2263 ........................................................................... 416Article 2264 ........................................................................... 416Article 2265 ........................................................................... 416Article 2266 ........................................................................... 416

xxii

Article 2267 ........................................................................... 417Article 2268 ........................................................................... 417Article 2269 ........................................................................... 417

REPEALING CLAUSE

Article 2270 ........................................................................... 423

i856 Nicanor Reyes, Sr. St.Tel. Nos. 736-05-67 735-13-64

1977 C.M. Recto AvenueTel. Nos. 735-55-27 735-55-34

Manila, Philippineswww.rexinteractive.com

Published & Distributed by

CIVIL LAW

By

JOSE C. VITUG, LL.B., LL.M., M.N.S.A.

Senior Professor, Philippine Judicial AcademyFormerly an Associate Justice of the Supreme Court

of the Philippines

Volume IV

(Articles 1642-2270)

Second Edition

2006

ii

Printed by

Philippine Copyright, 2006

by

JOSE VITUG

ISBN 978-971-23-4556-2

No portion of this book may be copied orreproduced in books, pamphlets, outlines ornotes, whether printed, mimeographed, type-written, copied in different electronic devices orin any other form, for distribution or sale, with-out the written permission of the author exceptbrief passages in books, articles, reviews, legalpapers, and judicial or other official proceedingswith proper citation.

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1TITLE VIII. LEASE

Chapter 1

General Provisions

Art. 1642. The contract of lease may be of things,or of work and service. (1542)

Art. 1643. In the lease of things, one of the partiesbinds himself to give to another the enjoyment or useof a thing for a price certain, and for a period whichmay be definite or indefinite. However, no lease formore than ninety-nine years shall be valid. (1543a)

Art. 1644. In the lease of work or service, one ofthe parties binds himself to execute a piece of work orto render to the other some service for a price certain,but the relation of principal and agent does not existbetween them. (1544a)

Art. 1645. Consumable goods cannot be thesubject matter of a contract of lease, except when theyare merely to be exhibited or when they are accessoryto an industrial establishment. (1545a)

1. Concept

The contract of lease may be of things, or of workand service (Art. 1642, Civil Code). In the lease of things,one of the parties binds himself to give to another theenjoyment or use of a thing for a price certain and for aperiod which may be definite or indefinite. However, nolease for more than ninety-nine years shall be valid (Art.1642, Civil Code). In the lease of work or service, one ofthe parties binds himself to execute a piece of work or torender to the other some service for a price certain, butthe relation of principal and agent does not exist between

1

2 CIVIL LAW

them (Art. 1644, Civil Code). A lease of work and servicesincludes: (a) household service, (b) contract of labor, (c)contract for a piece of work, and (d) contract with commoncarriers.

A right may also be the object of a lease, and thecontract is more commonly known as a license and theconsideration as a royalty. Consumable goods cannot bethe subject matter of a contract of lease, except whenthey are merely to be exhibited or when they are accessoryto an industrial establishment (Art. 1645, Civil Code);otherwise, the contract may instead partake the natureof mutuum.

2. Elements

a. Consent

The lease, being consensual, is perfected at themoment there is a meeting of the minds (offer and accept-ance) upon the thing, right or service and the cause orconsideration which are to constitute the contract (seeArt. 1319, Civil Code, supra.). No specific form is required;hence, a lease for professional services may be express(written or verbal) or implied (Dee vs. Court of Appeals,176 SCRA 651). However, for enforceability, a lease ofreal property is covered by the Statute of Frauds (see Art.1405, Civil Code, supra.). To bind third persons, a lease ofrealty may be recorded in the Registry of Property (seeArt. 1648, in relation to Arts. 708-709, Civil Code; seeYusay vs. Alojado, 107 Phil. 1156).

Every lease of real estate may be recorded in theRegistry of Property. Unless a lease is recorded, it shallnot be binding upon third persons (Art. 1648, Civil Code).If a lease is to be recorded in the Registry of Property, thefollowing persons cannot constitute the same withoutproper authority: the husband with respect to the wifesparaphernal real estate, the father or guardian as to theproperty of the minor or ward, and the manager withoutspecial power (Art. 1647, Civil Code). The disqualification

Arts. 1642-1645

3of parties under Article 1490 and Article 1491 in salesapply to lease of things (not services), and persons dis-qualified to buy are also disqualified to become lessees ofthings (Art. 1646, Civil Code). Aliens, although disquali-fied from acquiring lands, may lease real property (seePhilippine Banking Corp. vs. Lui She, 21 SCRA 52;Krivenko vs. Register of Deeds, 79 Phil. 461).

b. Object

Things, rights and works or services, within thecommerce of man, may be the object of lease. A publicstreet is for public use, and it may not be bargained awaythrough a contract (see Dacanay vs. Asistio, 208 SCRA404).

c. Cause

The cause or consideration in lease contracts refersto the rentals (for things), royalties (for rights), or com-pensation (for services). When money is used as a me-dium of exchange of values, it is invariably considered asthe cause of the contract. The amount may be fixed byagreement, customs or usage or by the courts to avoidunjust enrichment or when the rental demanded is clearlyexorbitant or unreasonable as a matter of equity (seeRamon Magsaysay Award Foundation vs. Court ofAppeals, 134 SCRA 136), and it may be regulated such asin the case of public services and rental laws (see Herreravs. Herrera, 7 Phil. 274; Arroyo vs. Azur, 76 Phil. 493).

Chapter 2

Lease of Rural and Urban Lands

Section 1 General Provisions

Art. 1646. The persons disqualified to buy referredto in Articles 1490 and 1491, are also disqualified tobecome lessees of the things mentioned therein. (n)

Art. 1647. If a lease is to be recorded in the Registryof Property, the following persons cannot constitute the

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same without proper authority; the husband with respectto the wifes paraphernal real estate, the father orguardian as to the property of the minor or ward, andthe manager without special power. (1548a)

Art. 1648. Every lease of real estate may berecorded in the Registry of Property. Unless a lease isrecorded, it shall not be binding upon third persons.(1549a)

Art. 1649. The lessee cannot assign the leasewithout the consent of the lessor, unless there is astipulation to the contrary. (n)

Art. 1650. When in the contract of lease of thingsthere is no express prohibition, the lessee may subletthe thing leased, in whole or in part, without prejudiceto his responsibility for the performance of the contracttoward the lessor. (1550)

Art. 1651. Without prejudice to his obligationtoward the sublessor, the sublessee is bound to thelessor for all acts which refer to the use andpreservation of the thing leased in the mannerstipulated between the lessor and the lessee. (1551)

Art. 1652. The sublessee is subsidiary liable tothe lessor for any rent due from the lessee. However,the sublessee shall not be responsible beyond theamount of rent due from him, in accordance with theterms of the sublease, at the time of the extra-judicialdemand by the lessor.

Payments of rent in advance by the sublesseeshall be deemed not to have been made, so far as thelessors claim is concerned, unless said payments wereeffected in virtue of the custom of the place. (1552a)

Art. 1653. The provisions governing warranty,contained in the Title on Sales, shall be applicable tothe contract of lease.

In the cases where the return of the price isrequired, reduction shall be made in proportion to thetime during which the lessee enjoyed the thing. (1553)

Arts. 1648-1653

5Section 2 Rights and Obligationsof the Lessor and the Lessee

Art. 1654. The lessor is obliged:

(1) To deliver the thing which is the object of thecontract in such a condition as to render it fit for theuse intended;

(2) To make on the same during the lease all thenecessary repairs in order to keep it suitable for theuse to which it has been devoted, unless there is astipulation to the contrary;

(3) To maintain the lessee in the peaceful andadequate enjoyment of the lease for the entire durationof the contract. (1554a)

Art. 1655. If the thing leased is totally destroyedby a fortuitous event, the lease is extinguished. If thedestruction is partial, the lessee may choose betweena proportional reduction of the rent and a rescission ofthe lease. (n)

Art. 1656. The lessor of a business or industrialestablishment may continue engaging in the samebusiness or industry to which the lessee devotes thething leased, unless there is a stipulation to thecontrary. (n)

Art. 1657. The lessee is obliged:

(1) To pay the price of the lease according tothe terms stipulated;

(2) To use the thing leased as a diligent fatherof a family, devoting it to the use stipulated; and in theabsence of stipulation, to that which may be inferredfrom the nature of the thing leased, according to thecustom of the place;

(3) To pay the expenses for the deed of lease.(1555)

Art. 1658. The lessee may suspend the paymentof the rent in case the lessor fails to make the necessary

Arts. 1654-1658 OBLIGATIONS AND CONTRACTSTitle VIII. Lease

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repairs or to maintain the lessee in peaceful and ad-equate enjoyment of the property leased. (n)

Art. 1659. If the lessor or the lessee should notcomply with the obligations set forth in Articles 1654and 1657, the aggrieved party may ask for the rescissionof the contract and indemnification for damages, oronly the latter, allowing the contract to remain in force.(1556)

Art. 1660. If a dwelling place or any other buildingintended for human habitation is in such a conditionthat its use brings imminent and serious danger to lifeor health, the lessee may terminate the lease at onceby notifying the lessor, even if at the time the contractwas perfected the former knew of the dangerouscondition or waived the right to rescind the lease onaccount of this condition. (n)

Art. 1661. The lessor cannot alter the form of thething leased in such a way as to impair the use towhich the thing is devoted under the terms of the lease.(1557a)

Art. 1662. If during the lease it should becomenecessary to make some urgent repairs upon the thingleased, which cannot be deferred until the terminationof the lease, the lessee is obliged to tolerate the work,although it may be very annoying to him, and althoughduring the same, he may be deprived of a part of thepremises.

If the repairs last more than forty days the rentshall be reduced in proportion to the time includingthe first forty days and the part of the property ofwhich the lessee has been deprived.

When the work is of such a nature that the portionwhich the lessee and his family need for their dwellingbecomes uninhabitable, he may rescind the contract ifthe main purpose of the lease is to provide a dwellingplace for the lessee. (1558a)

Art. 1663. The lessee is obliged to bring to theknowledge of the proprietor, within the shortest

Arts. 1659-1663

7possible time, every usurpation or untoward act whichany third person may have committed or may be openlypreparing to carry out upon the thing leased.

He is also obliged to advise the owner, with thesame urgency, of the need of all repairs included inNo. 2 of Article 1654.

In both cases the lessee shall be liable for thedamages which, through his negligence, may besuffered by the proprietor.

If the lessor fails to make urgent repairs, thelessee, in order to avoid an imminent danger, may orderthe repairs at the lessors cost. (1559a)

Art. 1664. The lessor is not obliged to answer fora mere act of trespass which a third person may causeon the use of the thing leased; but the lessee shallhave a direct action against the intruder.

There is a mere act of trespass when the thirdperson claims no right whatever. (1560a)

Art. 1665. The lessee shall return the thing leased,upon the termination of the lease, just as he receivedit, save what has been lost or impaired by the lapse oftime, or by ordinary wear and tear, or from an inevitablecause. (1561a)

Art. 1666. In the absence of a statement concerningthe condition of the thing at the time the lease wasconstituted, the law presumes that the lessee receivedit in good condition, unless there is proof to the contrary.(1562)

Art. 1667. The lessee is responsible for thedeterioration or loss of the thing leased, unless he provesthat it took place without his fault. This burden of proofon the lessee does not apply when the destruction isdue to earthquake, flood, storm or other natural calamity.(1563a)

Art. 1668. The lessee is liable for any deteriorationcaused by members of his household and by guestsand visitors. (1564a)

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Art. 1669. If the lease was made for a determinatetime. It ceases upon the day fixed, without the need ofa demand. (1565)

Art. 1670. If at the end of the contract the lesseeshould continue enjoying the thing leased for fifteendays with the acquiescence of the lessor, and unless anotice to the contrary by either party has previouslybeen given, it is understood that there is an impliednew 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.(1566a)

Art. 1671. If the lessee continues enjoying the thingafter the expiration of the contract, over the lessorsobjection, the former shall be subject to the respon-sibilities of a possessor in bad faith. (n)

Art. 1672. In case of an implied new lease, theobligations contracted by a third person for the securityof the principal contract shall cease with respect to thenew lease. (1567)

Art. 1673. The lessor may judicially eject the lesseefor any of the following causes:

(1) When the period agreed upon, or that whichis fixed for the duration of leases under Articles 1682and 1687, has expired;

(2) Lack of payment of the price stipulated;

(3) Violation of any of the conditions agreedupon in the contract;

(4) When the lessee devotes the thing leased toany use or service not stipulated which causes thedeterioration thereof; or if he does not observe therequirement in No. 2 of Article 1657, as regards the usethereof.

The ejectment of tenants of agricultural lands isgoverned by special laws. (1569a)

Art. 1674. In ejectment cases where an appeal istaken, the remedy granted in Article 539, second para-

Arts. 1669-1674

9graph, shall also apply, if the higher court is satisfiedthat the lessees appeal is frivolous or dilatory, or thatthe lessors appeal is prima facie meritorious. The pe-riod of ten days referred to in said article shall be countedfrom the time the appeal is perfected. (n)

Art. 1675. Except in cases stated in Article 1673,the lessee shall have a right to make use of the periodsestablished in Articles 1682 and 1687. (1570)

Art. 1676. The purchaser of a piece of land whichis under a lease that is not recorded in the Registry ofProperty may terminate the lease, save when there is astipulation to the contrary in the contract of sale, orwhen the purchaser knows of the existence of the lease.

If the buyer makes use of this right, the lesseemay demand that he be allowed to gather the fruits ofthe harvest which corresponds to the currentagricultural year and that the vendor indemnify him fordamages suffered.

If the sale is fictitious, for the purpose ofextinguishing the lease, the supposed vendee cannotmake use of the right granted in the first paragraph ofthis article. The sale is presumed to be fictitious if atthe time the supposed vendee demands the terminationof the lease, the sale is not recorded in the Registry ofProperty. (1571a)

Art. 1677. The purchaser in a sale with the right ofredemption cannot make use of the power to eject thelessee until the end of the period for the redemption.(1572)

Art. 1678. If the lessee makes, in good faith, usefulimprovements which are suitable to the use for whichthe lease is intended, without altering the form orsubstance of the property leased, the lessor upon thetermination of the lease shall pay the lessee one-halfof the value of the improvements at that time. Shouldthe lessor refuse to reimburse said amount, the lesseemay remove the improvements, even though theprincipal thing may suffer damage thereby. He shallnot, however, cause any more impairment upon theproperty leased than is necessary.

Arts. 1675-1678 OBLIGATIONS AND CONTRACTSTitle VIII. Lease

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With regard to ornamental expenses, the lesseeshall not be entitled to any reimbursement, but he mayremove the ornamental objects, provided no damageis caused to the principal thing, and the lessor doesnot choose to retain them by paying their value at thetime the lease is extinguished. (n)

Art. 1679. If nothing has been stipulated concern-ing the place and the time for the payment of the lease,the provisions of Article 1251 shall be observed asregards the place; and with respect to the time, thecustom of the place shall be followed. (1574)

(1) In General

Obligations of the Lessor

The lessor is obliged: (1) to deliver the thing which isthe object of the contract in such a condition as to renderit fit for the use intended; (2) to make on the same duringthe lease all the necessary repairs in order to keep itsuitable for the use to which it has been devoted, unlessthere is a stipulation to the contrary; and (3) to maintainthe lessee in the peaceful and adequate enjoyment of thelease for the entire duration of the contract (Art. 1654,Civil Code).

The lessor cannot alter the form of the thing leasedin such a way as to impair the use to which the thing isdevoted under the terms of the lease (Art. 1661, CivilCode; Enriquez vs. Watson, 22 Phil. 623). If the thingleased is totally destroyed by a fortuitous event, the leaseis extinguished. If the destruction is partial, the lesseemay choose between a proportional reduction of the rentand a rescission of the lease (Art. 1655, Civil Code).

The lessor of a business or industrial establishmentmay continue engaging in the same business or industryto which the lessee devotes the thing leased, unless thereis a stipulation to the contrary (Art. 1656, Civil Code).

The provisions governing warranty, contained in theTitle on Sales, shall be applicable to the contract of lease.

Arts. 1646-1679

11

In the cases where the return of the price is required,reduction shall be made in proportion to the time duringwhich the lessee enjoyed the thing (Art. 1653, Civil Code).The lessor is not obliged to answer for a mere act oftrespass which a third person may cause on the use of thething leased (Guzman vs. Court of Appeals, 177 SCRA604); but the lessee shall have a direct action against theintruder. There is a mere act of trespass when theintrusion is devoid of any juridic intention of the trespasser(Liwayway vs. Union, 108 SCRA 161) or when the thirdperson claims no right whatever (Art. 1664, Civil Code;see Goldstein vs. Roces, 34 Phil. 562).

If a dwelling place or any other building intended forhuman habitation is in such a condition that its use bringsimminent and serious danger to life or health, the lesseemay terminate the lease at once by notifying the lessor,even if at the time the contract was perfected the formerknew of the dangerous condition or waived the right torescind the lease on account of this condition (Art. 1660,Civil Code).

If during the lease it should become necessary tomake some urgent repairs upon the thing leased, whichcannot be deferred until the termination of the lease, thelessee is obliged to tolerate the work, although it may bevery annoying to him, and although during the same, hemay be deprived of a part of the premises. If the repairslast more than forty days, the rent shall be reduced inproportion to the time including the first forty days andthe part of the property of which the lessee has beendeprived. When the work is of such a nature that theportion which the lessee and his family need for theirdwelling becomes uninhabitable, he may rescind thecontract if the main purpose of the lease is to provide adwelling place for the lessee (Art. 1662, Civil Code).

Obligations of the Lessee

The lessee is obliged: (1) to pay the price of the leaseaccording to the terms stipulated; (2) to use the thing

Arts. 1646-1679 OBLIGATIONS AND CONTRACTSTitle VIII. Lease

12 CIVIL LAW

leased as a diligent father of a family, devoting it to theuse stipulated; and in the absence of stipulation, to thatwhich may be inferred from the nature of the thing leased,according to the custom of the place; and (3) to pay theexpenses for the deed of lease (Art. 1657, Civil Code).

Where the lessee had occupied the premises andpaid rentals without protest on the condition of the thingleased, he cannot unilaterally suspend payment on abelated claim of breach by the lessor (Geronimo RealtyCo. vs. Court of Appeals, 83 SCRA 542). The lessee maysuspend the payment of the rent in case the lessor fails tomake the necessary repairs or to maintain the lessee inpeaceful and adequate enjoyment of the property leased(Art. 1658, Civil Code; Guzman vs. Court of Appeals, 177SCRA 604). Where repairs are undertaken by the lessorbut the lessee is not satisfied, the latters remedy is nolonger to suspend payment but to make the urgent repairshimself at the lessors cost (see Banzon vs. Ubay, 94 SCRA454).

If nothing has been stipulated concerning the placeand the time for the payment of the lease, the provisionsof Article 1251 (supra.) shall be observed as regards theplace; and with respect to the time, the custom of theplace shall be followed (Art. 1679, Civil Code; see Gomezvs. Ng, 76 Phil. 555).

The lessee is obliged to bring to the knowledge of theproprietor, within the shortest possible time, everyusurpation or untoward act which any third person mayhave committed or may be openly preparing to carry outupon the thing leased. He is also obliged to advise theowner, with the same urgency, of the need of all repairs.In both cases the lessee shall be liable for the damageswhich, through his negligence, may be suffered by theproprietor. If the lessor fails to make urgent repairs, thelessee, in order to avoid an imminent danger, may orderthe repairs at the lessors cost (Art. 1663, in relation toArt. 1654, Civil Code).

Arts. 1646-1679

13

The lessee shall return the thing leased upon thetermination of the lease, just as he received it, save whathas been lost or impaired by the lapse of time, or byordinary wear and tear, or from an inevitable cause (Art.1665, Civil Code). In the absence of a statement concerningthe condition of the thing at the time the lease wasconstituted, the law presumes that the lessee received itin good condition, unless there is proof to the contrary(Art. 1666, Civil Code).

The lessee is responsible for the deterioration or lossof the thing leased, unless he proves that it took placewithout his fault. This burden of proof on the lessee doesnot apply when the destruction is due to earthquake,flood, storm or other natural calamity (Art. 1667, CivilCode; Gonzales vs. Mateo, 74 Phil. 573). The lessee isliable for any deterioration caused by members of thehousehold and by guests and visitors (Art. 1668, CivilCode).

Parties to a lease contract are not prohibited fromagreeing on certain mandatory provisions delineatingtheir respective rights and obligations considering thelegal precept that contracts are respected as being thelaw between the contracting parties. The only requirementis that these contractual stipulations, clauses, terms andconditions must not be contrary to law, morals, goodcustoms, public policy or public order (Campo AssetsCorporation vs. Club X.O. Company, G.R. No. 134986, 17March 2000, 123 SCAD 428).

Assignment/Sublease

The lessee cannot assign the lease without theconsent of the lessor, unless there is a stipulation to thecontrary (Art. 1949, Civil Code; see Dakudao vs. Conso-lacion, 122 SCRA 877).

When in the contract of lease of things there is noexpress prohibition, the lessee may sublet the thingsleased, in whole or in part, without prejudice to his re-

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sponsibility for the performance of the contract towardthe lessor (Art. 1650, Civil Code; see Manlapat vs. Salazar,98 Phil. 356). Without prejudice to his obligation towardthe sublessor, the sublessee is bound to the lessor for allacts which refer to the use and preservation of the thingleased in the manner stipulated between the lessor andthe lessee (Art. 1651, Civil Code). The lessee ceases to beliable if upon the termination of the lease he gives uppossession but the sublessee continues enjoyment thereof.The lessor can instead eject the sublessee (Syjuco vs.Court of Appeals, 172 SCRA 111). Sublessees can invokeno right superior to that of their sublessor, for they merelyderive their right from the latter whose termination ofthe contract with the lessor necessarily ends the subleasecontract (Jimenez vs. Patricia, Inc., 134 SCAD 29, 340SCRA 525).

The sublessee is subsidiarily liable to the lessor forany rent due from the lessee. The sublessee cannot thusbe required to, nor should he, pay directly to the lessor(Syjuco vs. Court of Appeals, 172 SCRA 111; Blas vs.Court of Appeals, 180 SCRA 60). Relative to the subsidiaryliability of the sublessee, the lessor may proceed againstthe sublessee without having to join the lessee in theaction (see Ortiz vs. Balgos, 54 Phil. 171; Dee vs. Court ofAppeals, 176 SCRA 651). A sublessee is bound by ajudgment rendered against the lessee (see Sevilla vs. Courtof Appeals, 206 SCRA 559; Guevarra vs. Court of Appeals,160 SCRA 478). However, the sublessee shall not beresponsible beyond the amount of rent due from him, inaccordance with the terms of the sublease, at the time ofthe extra-judicial demand by the lessor. Payments of rentin advance by the sublessee shall be deemed not to havebeen made, so far as the lessors claim is concerned, unlesssaid payments were effected in virtue of the custom of theplace (Art. 1652, Civil Code; see Philippine ConsolidatedFreight Lines, Inc. vs. Ajon, 103 Phil. 318; Duellome vs.Gotico, 7 SCRA 841).

Arts. 1646-1679

15

Rescission/Damages

If the lessor or the lessee should not comply with theobligations set forth in Articles 1654 and 1657, theaggrieved party may ask for the rescission of the contractand indemnification for damages, or only the latter,allowing the contract to remain in force (Art. 1659, CivilCode; Certifie