Explanation of Article 413
The article stipulates that if the contracting parties do not agree on specifying the duration of the lease contract, the contract is not invalidated by this. In this case, the following must be followed to determine the lease duration:
First: If the rent is for a unit of time, that unit is considered the duration of the contract, and the contract is deemed to be concluded until its end. For example, if the agreement is that the rent is ten thousand riyals annually, the contract duration is only one year, whether the rent is paid in advance or deferred until the end of the year.
Second: If the rent is not for a unit of time, such as agreeing that the rent is ten thousand riyals without specifying the corresponding duration, the duration is estimated according to custom and the circumstances of the contract. The silence of the contracting parties on specifying the duration is interpreted as their intention for the usual duration for such rent for that leased property. If the usual duration corresponding to the specified rent for benefiting from that leased property, which is ten thousand riyals, is two years according to custom and the circumstances of the contract, then the contract duration is two years. If the contracting parties disagree on determining the duration based on the above, the court will determine it accordingly.
Related To
Article 413
If the lease term is not specified and the rent is based on a time unit, the lease contract shall be deemed valid until the end of such unit. Otherwise, the court shall determine the lease term according to custom and the circumstances of the contract.