Explanation of Article 421
The article addresses the ruling in the event of partial destruction of the leased property, which may be physical; such as when part of the leased property collapses while the other part remains usable, or it may be regulatory; such as when part of the leased land is expropriated for public interest. Partial destruction occurs with the removal of part of the leased property, and the article clarifies that in the application of this article, partial destruction is considered when the leased property becomes in a state that reduces the benefit for which it was leased, even if some of its parts are not destroyed, such as when water floods the first floor of a two-story building, rendering it unusable while the second floor remains usable. The article distinguishes between two scenarios in the event of partial destruction:
The first scenario: If it is caused by the lessee; the contract remains in effect, and the lessee cannot demand a reduction in rent, annulment, or restoration of the leased property to its original state. The lessee remains bound by the contract until its end and must compensate the lessor for the destruction or deficiency caused in the leased property.
The second scenario: If it is not caused by the lessee, whether due to force majeure, the act of the lessor, or a third party; the lessee has the option to request a reduction in rent because the decrease in benefit corresponds to a decrease in rent. If a reduction in rent is granted, it is reduced not only from the time of the claim but from the time the decrease in benefit occurred. The lessor can restore the leased property to its original state, and once restored, the rent returns to its original state. Instead of requesting a reduction in rent, the lessee can choose to request the annulment of the contract, and the general rules for judicial annulment due to breach or partial impossibility apply; the court may reject the annulment request if the decrease in benefit is not substantial and limit the lessee's right to compensation, in accordance with articles (107, 110). The lessee can request a reduction in rent from the time of partial destruction until annulment.
The article does not mention the lessee's right to request specific performance because, in most cases of partial destruction, specific performance is burdensome. According to general rules, if specific performance is burdensome for the debtor, who is the lessor here, the court may limit the creditor's right, who is the lessee, to compensation. Therefore, if it is found that specific performance in the case of partial destruction is not burdensome for the lessor, the lessee can demand the lessor restore the leased property to its original state before the destruction because the lessor is obligated to deliver the leased property fit for use throughout the lease term, in accordance with the general rule established in paragraph (1) of article (164) that compels the debtor, after being warned, to perform his obligation specifically when possible. The execution is according to the details outlined in paragraph (1) of article (167) and article (419) in case the leased property requires necessary repairs.
If the partial destruction or decrease in benefit is caused by the lessor, the lessee, in addition to his right to request specific performance, reduction in rent, or annulment, can demand compensation from the lessor for the damage caused by his act; for example, if the destruction of part of the leased property results in damage to the lessee's property. As for the loss incurred due to the loss of some benefit, compensation for it is the reduction in rent. This ruling applies if the lessee chooses annulment, demanding compensation for the damage caused to his person or property due to annulment, while for the period preceding annulment, compensation for the loss of its benefit is by reducing the rent.
If the partial destruction or decrease in benefit is not caused by the lessor, the lessee cannot demand compensation from the lessor for the damage in this case.
It becomes clear from the above the difference between the effect of partial destruction and its equivalent mentioned in this article, and the effect of the lessor's failure to carry out necessary repairs, and his guarantee of interference and defect according to articles (419, 423, 425), and the explanation is as follows:
The lessor is obligated to maintain the leased property with the necessary repairs required to keep it fit for use and free from any defect or interference affecting its use. If a decrease in benefit occurs due to the lessor's failure to carry out necessary repairs required of him, or due to a defect or interference he guarantees, the lessor is considered in breach of his obligation. As for partial destruction, the default is that it is due to an unforeseen event, not because the leased property needs repairs or due to a defect or interference. The default is that the decrease in benefit in partial destruction is not a result of the lessor's breach of his obligation. Based on this, the lessor's responsibility in case of a decrease in benefit due to his failure to carry out necessary repairs, or due to the appearance of a defect or occurrence of interference, is not limited to bearing the consequence of the decrease in benefit only, but also guaranteeing the damage resulting from that decrease to the lessee, as the lessor is in breach of his obligation. Therefore, he is required to compensate the lessee not only for the decrease in benefit but also for other damages incurred by the lessee as a result of this breach. In contrast, the lessor's responsibility in case of partial destruction, if not caused by the lessee, is limited to bearing the consequence of the decrease in benefit, without guaranteeing the damage resulting from the destruction or deficiency unless it is proven that it was due to his fault, in which case he is required, in addition to bearing the consequence, to compensate the lessee for the damage incurred, such as if the destruction was due to the lessor's negligence in his obligation to maintain the leased property with repairs or free from defects.
Related To
Article 421
If, during the term of the lease, the leased thing is partially destroyed or becomes in a condition that adversely affects its use and enjoyment for reasons not attributable to the lessee, the lessee may demand termination of the lease contract or reduction of the rent.