Explanation of Article 423

Explanation of Article 423

The article addresses the third obligation of the lessor, which is his obligation to guarantee the lessee's enjoyment of the benefit throughout the lease term. The article states that the interference guaranteed by the lessor includes two types:

The first paragraph explains the first type of interference guaranteed by the lessor, which is interference by the lessor himself, whether it is physical interference or based on a legal reason. The lessor guarantees physical interference from himself, such as preventing the lessee from using the elevator, or allowing his livestock to enter the leased agricultural land to graze, or making changes to the leased property or its appurtenances that prevent its use or impair the intended benefit, such as demolishing part of the leased property, blocking some of its windows or doors, building on the leased land, uprooting trees or palm trees located there, or other modifications and changes that prevent use or impair the intended benefit.

The lessor also guarantees interference from himself based on a legal reason, such as if a person leases a property not owned by him, then becomes its owner due to a reason of ownership like inheritance, will, or purchase from the true owner, and then the lessor, after becoming the owner, requests the return of the property from the lessee based on the ownership acquired after the lease. The lessor's interference with the lessee in this case is based on a legal reason because the lessor bases his interference on having become the owner of the leased property after the lease, claiming that he has the right to reclaim the leased property in this capacity. In this case, the lessee can refuse to return the leased property based on the fact that the lessor guarantees his personal interference, and recovery is not allowed for one who is obligated to guarantee.

The guarantee of interference is not limited to interference from the person of the lessor but also includes interference from one of his subordinates. The meaning of subordinate in this context is broader than the meaning of a subordinate for whom the superior is liable for tortious liability. The subordinate of the lessor refers to any person who is not foreign to him in executing the lease contract, and the interference from him is due to his connection with the lessor. This includes those who act on his behalf, such as a guardian, executor, curator, and agent, and those who assist him in exercising his rights and fulfilling his obligations arising from the lease contract, such as the building guard appointed by the lessor, and those whose connection with the lessor enabled them to interfere with the lessee, such as the lessor's household, guests, and friends, and those who replace the lessor in exercising his rights and fulfilling his obligations arising from the lease contract, such as the contractor and engineer if they carry out necessary repairs to the leased property instead of the lessor. It also includes his general and specific successors and anyone who received the right from him, such as another lessee from the lessor himself if the interference is related to his status as a lessee.

The second paragraph explains the second type of interference guaranteed by the lessor, which is interference from a third party, provided that the interference is based on a legal reason, such as if a third party claims that he is the owner of the leased property and that the lessor does not own it, or claims that he has a right of usufruct on the leased property. The third party here refers to anyone foreign to the lease contract.

For the guarantee to be realized in both types, the interference must actually occur and not just be a threat. If it is personal interference from the lessor and his interference is physical, it involves a physical act that prevents the lessee from benefiting from the leased property. If the lessor's interference is based on a legal reason, it involves the lessor demanding the return of the leased property or the right that affects the benefit. If it is interference from a third party, the interference actually occurs either through physical acts, such as entering the leased land claiming a right of easement for passage, or the third party limits himself to filing a lawsuit claiming his right without resorting to physical acts that prevent the lessee from benefiting from the property.

Once the interference actually occurs and is guaranteed by the lessor, whether by his interference or one of his subordinates, or by interference from a third party based on a legal reason, the lessee can demand specific performance from the lessor. This means that the lessor or his subordinate must cease the interference if it is from him or one of his subordinates, and if the interference is from a third party, specific performance involves making the third party who interfered with the lessee cease the interference.

Obligating the lessor to specific performance is merely an application of general rules because the lessor is obligated to enable the lessee to benefit from the leased property throughout the lease term. According to the general rule established in paragraph (1) of Article (164), the creditor can compel the debtor, after warning him, to perform his obligation specifically whenever possible.

The third paragraph states that if the lessor does not cease his interference or fails to stop the interference from a third party, such as if the third party wins the claim of entitlement he filed, the lessee can request a reduction in rent proportional to the reduction in benefit. This is specific performance through compensation, and when a reduction in rent is granted, it is reduced not only from the time of the claim but from the time the reduction in benefit occurred. The lessee can also request the termination of the contract, and the general rules of judicial termination apply to the request for termination. The court can refuse the request for termination if the reduction in benefit is not substantial enough to justify termination and limit the lessee's right to compensation, applying Article (107). The lessor can avoid termination if he performs his obligation specifically by stopping the interference, provided that this avoidance does not harm the lessee. The lessee can request a reduction in rent from the time the benefit was reduced until termination, along with the request for termination.

If the interference is from the lessor, the lessee, whether requesting specific performance, a reduction in rent, or termination, can demand compensation from the lessor for any damage caused by the lessor's breach of his obligation to enable the lessee to benefit.

If the interference is from a third party, the lessor is not liable to the lessee if he successfully prevents the interference from the third party, i.e., in the case of specific performance, whether the interference from the third party was through physical acts or by filing a lawsuit against the lessee, because the lessor fulfilled his obligation, and it was shown that the third party was not justified in his claim, meaning his interference was physical, so there is no liability on the lessor. This interference is governed by the provisions of the following Article (424). However, if the lessor fails to prevent the interference, such as if the third party wins the lawsuit, the lessor is liable to the lessee in this case because it was shown that he breached his obligation to enable the lessee to benefit throughout the lease term. The lessee, whether requesting a reduction in rent or termination, can demand compensation from the lessor for any damage caused by this interference.

Related To

Article 423

1. The lessor shall refrain from any action that interrupts the lessee’s full use and enjoyment of the leased thing during the term of the lease, including making changes to the leased thing that would render it unusable for the purpose for which it is leased; otherwise, he shall be deemed liable therefor. Interruption caused by a subordinate of the lessor shall be deemed caused by the lessor.

2. The lessor shall warrant the leased thing against any interruption by a third party if such interruption is based on legal grounds.

3. If the interruption provided for in paragraphs (1) and (2) of this Article prevents the lessee’s full or partial enjoyment of the leased thing, the lessee may demand termination of the lease or reduction of the rent, without prejudice to his right to compensation.