Explanation of Article 420
The article stipulates that the contract is automatically terminated in the event of total destruction of the leased property during the lease term. This destruction may be physical, such as if the leased property is destroyed due to a lightning strike, fire, or heavy rain, or it may be legal, such as if the ownership of the leased property is expropriated for public interest, or if a decision is issued to vacate the leased property for health reasons. In these cases, the contract is automatically terminated, regardless of whether the destruction is due to force majeure, the fault of the lessee, the fault of the lessor, or the fault of a third party; because the termination of the contract here is due to the impossibility of executing the lease agreement. However, if the total destruction is due to the fault of the lessor, they are responsible for compensating the lessee for the damage caused by the termination of the contract before its expiration. If the total destruction is due to the fault of the lessee, they are responsible for compensating the lessor for the destruction and the termination of the contract before its expiration. If the destruction is caused by a third party, they are responsible for compensating both the lessor and the lessee.
Related To
Article 420
If a leased thing is completely destroyed during the lease term, the lease contract shall be automatically terminated.