THE LAW FIRM OF HAZIM AL MADANI ATTORNEYS AND LEGAL CONSULTANTS
Lease Contracts and Key Termination Cases
A lease contract is an agreement between two parties, the property owner and the tenant, granting the latter the right to use the property for a specified period in exchange for financial compensation. The lease contract serves as a legal instrument that defines the rights and obligations of both parties. Its significance lies in providing a legal framework that determines the rights and duties of each party, thereby avoiding disputes and ensuring the stability of the landlord-tenant relationship. The contract also specifies the extent to which both parties are bound by the agreed-upon conditions, such as the duration and value of the rent.
Lease contracts are among the important and common agreements in daily transactions between individuals and companies. Recently, the new Civil Transactions System was issued, which included detailed regulations regarding lease contracts.
Notably, the new system obligates the landlord to deliver the leased property in a usable condition and requires them to carry out necessary repairs throughout the lease duration. This serves as an important guarantee for the tenant. Furthermore, the system grants the tenant the right to terminate the lease without notice if the landlord refuses to make necessary repairs and prohibits agreements that exempt the landlord from their obligations towards the tenant.
On the other hand, the system restricts the landlord’s right to increase the rent or modify the contract’s terms by imposing specific controls. This ensures the protection of the tenant’s interests as well.
Hence, it is evident that there is a general trend towards enhancing tenant protection and ensuring their rights in relation to the landlord. This achieves the desired balance in these important contracts.
It is worth mentioning that disputes may arise from time to time, necessitating the termination of such contracts. The new Civil Transactions System has regulated cases of lease contract termination to protect the rights of contracting parties. The following are the prominent termination cases:
- Either party may request the termination of the lease contract if there is an urgent reason related to it, and the requesting party is obliged to compensate the other party for any resulting damages.
- If the landlord requests the termination of the contract, the tenant is not obliged to return the rent until they receive compensation or a sufficient guarantee, as per Article 242 of the new system.
- If the tenant fails to pay the rent according to the agreed-upon schedule in the contract, the landlord has the right to request contract termination through legal means.
- If the tenant subleases the leased property without the landlord’s consent or uses it for purposes other than the intended use, the landlord has the right to request contract termination.
- If the tenant breaches their obligation to maintain the leased property and carry out necessary repairs, resulting in damage, the landlord has the right to request contract termination.
- If circumstances require the demolition and reconstruction of the leased property, and the tenant cannot be provided with an equivalent property or a suitable alternative, the contract is terminated.
- If there is a regulatory change that designates the leased property for public benefit, making it impossible to continue the contract, the tenant may request contract termination.
Finally, it should be noted that a lease contract does not terminate upon the death of either party. The tenant’s heirs can request contract termination within a reasonable period if they prove that the contract’s burdens have become heavier on their resources due to the deceased’s inheritance, or if the contract exceeds their needs. Similarly, the landlord has the right to request contract termination if the tenant dies, and the contract was based on considerations related to the tenant’s person, as stated in Article 441 of the new Civil Transactions System.