Explanation of Article 425
The article addresses the fourth obligation of the lessor, which is the guarantee against hidden defects; this obligation complements the positive obligations of the lessor. It follows the lessor's obligation to deliver the leased property by enabling the lessee to derive benefit, not merely by vacating it, and his obligation to make necessary repairs. In line with this, is his obligation to guarantee against hidden defects.
The article stipulates that the lessor guarantees defects found in the leased property if these defects prevent the lessee from benefiting from the leased property or diminish that benefit. The intended benefit from the leased property is determined similarly to that in a sale; there is no difference between them in this regard. It may be inferred from what is stated in the contract, what is apparent from the nature of the thing, or the purpose for which it was prepared. If a defect is found in the leased property but does not diminish the benefit, the lessor does not guarantee it.
The article excludes two types of defects that the lessor does not guarantee: The first type: a defect that is customarily tolerated; the lessor does not guarantee it, even if it is significant. The second type: a non-hidden defect, which the lessee is aware of at the time of contracting. The lessee's knowledge of the defect in the leased property, like the buyer's knowledge of a defect in the sale, may be actual or presumed, as follows: 1- Actual knowledge is realized if the defect is apparent at the time of contracting, or if it is hidden but the lessor proves the lessee's knowledge of it at the time of contracting; because the lessee's knowledge of the defect at the time of contracting indicates his acceptance of it, thus waiving his right to the guarantee. 2- Presumed knowledge is realized if the defect is not apparent, but an ordinary person could have identified it himself if he had examined the leased property with the care of an ordinary person; in this case, the defect is considered apparent and not hidden, and the lessee bears the consequence of his negligence. However, the required care here is less than that required in a sale, as the buyer's examination of the sale item is usually more thorough than the lessee's examination of the leased property.
As established in sales, there are two exceptions to the absence of the guarantee for the lessor in presumed knowledge: The first scenario: if the lessee proves that the seller guaranteed him that the leased property was free from the specific defect found in it; because the lessor's assurance to the lessee that the leased property is free from that defect is considered an implicit agreement that the lessor guarantees this specific defect. The second scenario: if the lessor deliberately conceals the defect out of deceit, because the lessor has committed an error that outweighs the lessee's negligence in not examining.
The article indicates that it is not required for the defect guaranteed by the lessor to be old before delivery as in sales; in a lease contract, the lessor guarantees the defect even if it occurs after delivery, as long as it prevents or diminishes the benefit from the leased property.
Related To
Article 425
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The lessor shall warrant against defects in the leased thing that prevent or adversely affect the use and enjoyment thereof.
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The lessor shall not warrant against defects that are accepted by custom or of which the lessee was aware at the time of contracting.