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ARTICLE 1670
Implied New Lease
when the lessee, with the acquiescence of the lessor,
holds over after the expiration of the contract of lease,
under the same terms and conditions except that instead
of the original period.
- the period of the new lease will be according to
the character of the property and mode of
payment of the rent
- Article 1682 (Rural lease)—period extends to
1year or period necessary to father the fruits
- Article 1687 (urban lease)— depends upon the
periods of payment.
Terms which are revived. —only those which are
germane to the lessee’s right of continued enjoyment of
the property leased or related to such possession, such
as the amount of rental, the date when it must be paid,
the care of the property, the responsibility for repairs,
etc.
- No such presumption may be indulged in with respect
to special agreements (e.g., preferential right given to
lessee to purchase leased property) which by their
nature are foreign to the right of occupation or
enjoyment inherent in a contract of lease.
REQUISIRES FOR IMPLIED RENEWAL OF
LEASE:
1. The term of the original contract of lease are:
2. The lessee continues enjoying the thing leased for at
least 15 days;
3. The continuation of the occupation by the lessee is
with the acquiescence of the lessor; and
4. The lessor or lessee has not previously given a notice
to vacate
Notice required
- Article 1670 is the one given after the
expiration of the lease period for the purpose of
aborting an implied renewal of lease.
- notice to vacate constitutes an express act on the
part of the lessor that he no longer consents to
the continued occupation by the lessee of the
leased property.
Ex. A lessor who gives notice after the 15-day period
has no cause of action for unlawful detainer as there is
already an implied new lease.
Instances when implied renewal is not applicable
1. Stipulation against implied renewal. — There can
be no implied renewal of the lease where the parties
stipulated that there would be no renewal by
implication or that the renewal requires mutual
consent.
2. Invalidity of original lease. — Where the original
lease was declared void for being repugnant to the
Constitution and the lessor and the lessee could not
agree on the rental to be paid, the acceptance by the
former of monthly payments from the latter with
reservation or condition cannot be considered as
evidence of an implied new lease.
3. Acceptance of rentals beyond original term—
beyond the original term by the lessor who had
previously informed the lessee that she was not
renewing the lease, later demanded the lessee to
vacate the property, did not signify that she had
agreed to the implied renewal of the lease where
the lessee remained in possession and had to pay
rentals for the use of the property.
 Instead of implied renewal, there was an
express termination of the contract of lease
4. Acceptance of rentals less than amounts
stipulated. — The fact that the lessor had
accepted partial payments from the lessee, in
amounts less than the stipulated monthly rentals,
may not be considered as a renewal of lease
contract.
 a lessor may tolerate the continued default of
the lessee, hoping that the latter would
eventually pay all his back rentals, lessor could
not refuse to accept payments by the lessee just
because they did not cover full unpaid rental.
ARTICLE 1671
Continuous possession by lessee over lessor’s
objection.
- Lessee may with acquiescence of the lessor,
continue enjoying the thing leased after
expiration of the contract and create an implied
new lease.
- If he continues the lease over the objection of
the lessor, he becomes a possessor in bf and
subjects himself to the liabilities of the
possessor.

Remedy an action of unlawful detainer to recover
possession of the premises and the rents or fair rental
value of the premises.
Damages in forcible entry and unlawful detainer cases.
1. While damages may be adjudged in forcible
and detainer cases
damages mean “rents” or the reasonable
compensation for use and occupation fo the
premises or fair rental value of the property.
Fair rental value is recoverable in the concept of
actual damages. The amount at which a willing lessee
would pay and a willing lessor would receive, for the
use of certain property neither being under compulsion
and both parties having a reasonable knowledge of all
facts, such as the extent character and utility of the
property, sales and holding prices of similar land and
the highest and best use of the property.
ARTICLE 1672
Effect of implied new lease on accessory obligations
contracted by a third person.
Renewal of lease a novation of the original contract
of lease. (Art. 1291.)
The renewal of lease is considered a new lease.
general rule: when the principal obligation is
extinguished in consequence of a novation, accessory
obligations (e.g., guaranty) are also extinguished.
ARTICLE 1673
The lessor may judicially eject the lessee for any of the
following causes:
1. When the period agreed upon, or that which is
fixed for the duration of lease under Articles 1682
and 1687, has expired;
2. Lack of payment of the price stipulated;
3. Violation of any of the conditions agreed upon in
the contract;
4. When the lessee devotes the thing leased to any use
or service not stipulated which causes the
deterioration thereof; or if he does not observe the
requirement in No. 2 of Article 1657, as regards the
use thereof.
The ejectment of tenants of agricultural lands is
governed by special laws.
Article 1673 must be read in conjunction with Section
2, Rule 70 of the Rules of Court:
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- a demand to pay or to comply with the
conditions of the lease and to vacate the
premises is a condition precedent for the
institution of an ejectment suit against the
lessee
- this provision is to grant the lessor the option of
extrajudicially terminating the lease by simply
serving a written notice upon the lessee—this
has the same effect as rescission.
Applicability of Section 2, Rule 70
1. where there is a lessor-lessee relationship under
a contract of lease
2. where the grounds relied upon for ejectment is
non-payment of rentals or violation of any of
the conditions of the lease. In such situations,
notice to vacate is crucial.
A demand is a prerequisite to an action for unlawful
detainer where the action is based on either ground but
not where the action is to terminate the lease because of
the expiration of its term.
Expiration of period—
1. Conventional or Fixed by agreement of the
parties
2. legal or that fixed by law in accordance with
Article 1682 in case of rural leases and Article
1687 in case of urban leases.
Ejectment—there is no need for a demand when the
period of the lease has expired—notice of the lessor is
immaterial. He shall be free to dispose the property to
another lessee.
lease on a month-to-month basis: only for a definite
period and may be terminated at the end of any month.
 Valid for parties to stipulate that either party
may terminate a month to month lease on a 30
day notice.
The lessee must restore possession of the leased
property after the expiration of the stipulated period.
 The unlawful holding or deprivation of
possession is to be counted from the date of the
demand to vacate.
Possession of land by tolerance becomes an unlawful
detainer, from the time a demand to vacate is made.
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A notice giving the lessee the alternative either to pay rent equal to that demanded by the plaintiff of
the increased rental or otherwise to vacate the leased the defendant, is prima facie proof
premises is not the demand contemplated in an unlawful
Where the lessee refuses to pay the stipulated rentals
detainer case.
and the lessor initiates an ejectment suit, the juridical
 The demand to vacate must be definite, subject bond between the parties is severed
to no condition; otherwise, the lessor cannot
- No subsequent payment by the lessee can
bring the action of unlawful detainer.
automatically restore the parties to what they
It is not a valid defense in ejectment cases that the lessor once were.
refused to receive the rent. The lessee must consign in - Nor will the lessor’s acceptance of the
court the rent due from him. increased rentals have the effect of reviving the
earlier contract of lease
Lack of payment of stipulated rental
- Upon the moment of acquiescence by the lessor
- lessee is obliged to pay the price of the lease to the increased amount, an entirely new
according to the terms stipulated. contract of lease is entered into, forging an
- failure to comply with this principal duty entirely new juridical relation.
entitles the lessor to ask for rescission of the
lease or fulfillment, with right to damages in
Violation of any condition agreed upon
either case
 The contract of lease may provide for accidental
Mere failure to pay rents, or a breach of contract to pay
stipulations, clauses, terms and conditions as the parties
rents
may deem convenient.
- does not render the possession of the lessee per
- Any violation would constitute a breach of
se unlawful, nor may the action for his
lease contract.
ejectment from the land accrue upon such
- Violation of the lessee of prohibition against
failure or breach.
devoting the property to a use not stipulated in
Under Section 2 Rule 70 of ROC the right to the contract or introducing improvement
bring the action of ejectment or unlawful detainer without consent of lessor is a ground.
must be counted from the time the defendant has
demand—pre-requisite in an action of unlawful
failed to pay rents as agreed upon in a contract, but
detainer when it is for failure to comply w any of the
it is the failure to pay the rents after a demand
condition of the lease
therefor is made that entitles the lessor to bring an
action of unlawful detainer  A lease contract may validly stipulate that the lessor
may take possession of the leased premises without
If the default in the payment of rent is based on the fact
resorting to judicial action, upon failure of the lessee to
that the rent sought to be collected is not that agreed—
comply with any of the terms and conditions of the
action for ejectment will not lie.
contract.
Lessor has the right to increase the rent from and after
Improper use of the leased property
expiration of the period of lease
- Second principal duty of the lessee is to use the
- if the tenant remains in possession without
thing leased, exercising the diligence of a good
agreeing to the increase—he is bound to pay the
father of a family, according to the terms of the
reasonable value of the USE AND
contract, or in the absence of stipulation, the
OCCUPATION OF THE PROPERTY.
nature of the thing leased.
The lessor has the right not only to terminate the lease - It is his duty to return the thing, upon the
at the expiration of the term, but to demand a new rate termination of the lease, just as he received it
of rent.
Presumption: he received it in good condition.
- The testimony of the owner that another person
Rental Reform Act of 2002****
was willing to lease the property at an annual

ARTICLE 1674
Preliminary mandatory injunction to restore possession
pending appeal.
Lease of rural and urban lands—refers not only to the
lease of the lands but also to the buildings standings on
the principle that the accessory follows the principal.
ART 539—refer only to forcible entry actions
ART 1674—refers to ejectment cases or those in which
there is a pre-existing relationship of lessor and lessee.
GROUNDS:
- The lessor is entitled to a writ of preliminary
injunction to restore him in his possession in
case the higher court is satisfied that the lessee’s
appeal is frivolous or dilatory or the lessor’s
appeal is prima facie meritorious
In article 1674 it is sufficient that the plaintiff is the
owner of the land and defendant is in the temporary
occupancy under the lease contract or mere tolerance or
temporary will.
If after termination of lease or revocation, lessee
unlawfully prolongs occupation—unlawful detainer.
Article 1674 is an consonance with the summary
character of an ejectment suit which is an expeditious
means for recovering possession of realty but the
effectiveness of which is often frustrated by the lessee’s
dilatory tactics often tolerated by Municipal Trial
Courts
Purpose of remedy to put an end to the present state
of the law which unjustly allows the lessee to continue
in possession during an appeal.
REMEDY GIVEN TO LESSOR
 available to the lessor in unlawful detainer
cases but only in case of an appeal.
 In forcible entry case, the writ may be granted
even when there is no appeal.
Period of filing motion to secure the writ 10 days
from the date when petitioning party or lessor is
notified of the perfection of the appeal.
SUPERDEAS BONDS AND MONTHLY DEPOSIT
BY LESSEE
- are primarily designed to insure that the lessor
would be paid back the back rentals.
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- Should the lessee fail to make the payments
from time to time during the pendency of the
appeal, execution shall issue.
ARTICLE 1675
Use by lessee of legal period
GR: Lessee is entitled to make us of the period agreed
upon or period established in art 1682 and 1687
EXPN: there is a proper ground for his ejectment
ARTICLE 1676
Termination of lease by purchaser of leased land
Where the lease is on a month to month basis and the
purchaser seeks to recover from the lessee property
which said lessee had leased from the vendor
 the purchaser’s right of action is not based on
the provisions of Article 1676 authorizing him
to terminate the lease
 it is based on his right as the owner or vendee
to recover possession from a tenant holding
over after the termination of the right to hold
possession—vendee’s action is governed by
ROC RULE 70 ON FORCIBLE ENTRY AND
DETAINER.
Lease binds only the parties, their assigns and heirs.
(Art. 1311.)
It does not create a real right unless recorded in the
Registry of Property in which case it shall be binding
upon third persons. (Art. 1648.)
Purchaser is not entitled to terminate the lease even if he
has no actual knowledge of its existence—he has
constructive knowledge that is equivalent to actual
knowledge.
UNRECORDED LEASE
1. There is a stipulation in the contract of sale he
must respect the existing lease;
2. He knows of the existence of the lease;
3. The property is sold fictitiously just to
terminate the lease.
An innocent purchaser for value without notice of an
unrecorded lease has a right to rely on the certificate of
title.

A purchaser with full knowledge of the existence of an
unrecorded lease is bound to respect it because actual
knowledge is equivalent to registration.
- Lease becomes a part of the contract of sale.
Right in the 2nd par of Article 1676 to a lessee to gather
fruits of the crop corresponding to the current agri
year—does not extend to gathering of fishes which
requires 2 years.
ARTICLE 1677
Where sale subject to right of redemption
In case of sale with right of repurchase by the vendor
- the vendee cannot terminate an existing lease
entered into between the vendor and a third
person until after the period for redemption has
expired.
- However, he can make use of the power to oust
the lessee if any of the grounds for ejectment
under Article 1673 is present.
Limitation refers to tenant or lessee who has contracted
w the vendor and who had no relation whatever with the
purchaser.
If the vendor, by redemption recover the property the
lessee would again be entitled to the enjoyment of the
lease.
When article 1677 is not applicable
- Where the vendor on disposing of real property
under right of repurchase continues in
possession by virtue of a special agreement not
as owner but as a tenant of the purchaser by
payment of rent.
a vendor who remains in possession as a lessee and
violates any of the conditions agreed upon in the
contract of lease  may be evicted by the vendee even
before the end of the redemption period.
ARTICLE 1678
Right of lessee with regard to useful improvements and
ornamental expenses
1. Reimbursement or removal as to useful
improvements
 , he is given the right to reimbursement of one-
half of their value or to their removal should the
lessor refuse to reimburse.
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Expenses for useful improvements are reimbursed to a
possessor in good faith— the lessee is not a possessor in
good faith in the sense that he believes himself to be the
owner, but neither is he a possessor in bad faith. He is
in possession by virtue of a contract, so his possession
is lawful
REIMBURSEMENT WITH RESPECT TO USEFUL
IMPROVEMENTS
a. that lessee should make the improvements in
good faith;
b. that the improvements be suitable to the use for
which the lease is intended;
c. that the form and substance of the property
leased be not altered.
These requisites will prevent the lessee from making
such valuable improvements that the lessor may never
recover the property leased.
The improvements can be considered made in good
faith if they are not in violation of the lease contract
the lessee has a right to make reasonable improvements
to attain his purpose in entering upon the lease.
The lessor is to pay only one-half of the value of the
improvements at the time the lease terminates because
the lessee has enjoyed the same.—lessor will enjoy
them indefinitely.
The right to indemnity under Article 1678 (par. 1.)
arises only if the lessor opts to appropriate the
improvements
The lessee has no right to reimbursement by the lessor
of improvements made after the termination of the
lease.
Ornamental expenses similar to expenses for pure
luxury of a possessor in gf.
Right of lessee over necessary repairs
Necessary repairs are those made for the preservation
of the thing upon which they have been expended.
- When a repair is essential to preserve the thing
rented in a condition suitable to the use agreed
upon, it is, in law deemed a necessary repair.
ARTICLE 1679
Place and time for payment of lease.

Article 1251 applies to the obligation of a lessee to pay
rent which is usually in the form of money, an
indeterminate thing
Place—at the designated place in the least contract
- If there is an absence of stipulation—at the
domicile of the lessee or the place where the
leased premises are location
- If the rent is payable in the form of a
determinate thing—whenever the thing might
be at the moment the contract was entered into.
Time of payment- the custom of the place shall be
followed unless there is a contrary stipulation in the
lease contract.
SECTION 3. — Special Provisions for Leases of Rural
Lands
ARTICLE 1680-81
Reduction of rent in rural leases
- Cannot apply to ordinary leases because of its
special character, it was only meant for special
lease.
- designed to relieve poor farmers from the harsh
consequences of their contracts, with rich
landowners.
Requisites:
(a) The land leased is rural;
(b) More than one-half of the fruits have been lost;
(c) The loss occurred through extraordinary and
unforeseen fortuitous event; and
(d) There is no specific stipulation that the lessee is
nevertheless not entitled to reduction.
The lessee is not entitled to reduction of rent in the
following cases:
(a) on account of the sterility of the land leased;
(b) by reason of the loss of the fruits due to ordinary
fortuitous events, regardless of the extent of the loss;
(c) by reason of the loss of less than one-half of the fruits
even though extraordinary and unforeseen events;
(d) by reason of the loss of the fruits through
extraordinary but foreseen1 events, regardless of the
extent of the loss;
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(e) by reason of the loss of more than one-half of the
fruits through extraordinary and unforeseen events,
where there is a specific stipulation to the contrary; and
(f) where the loss of the fruits occurred after they have
already been gathered, regardless of the extent of the
loss.
Other cases:
(a) Where by the terms of the contract of lease the rent
is fixed at an aliquot part of the crops
 the tenant cannot demand a reduction on
account of loss of more than half of the crop
by fortuitous events under Article 1680
 the failure to deliver the stipulated proportion of
the crop gathered entitles the landlord to evict
the tenant.
(b) Where a bidding was held by a municipality for the
lease of the municipal fishponds, and the lease was
awarded by lot and by area of the fishponds
involved
 reduction of the rent is not proper although it
turns out that the areas of the fishponds were
actually smaller than those given in the notice
of bid
FORTUITOUS EVENTS
 Under Article 1680, the fortuitous event must not
only be extraordinary or uncommon but also one which
the contracting parties could not have reasonably
foreseen.
Percentage of reduction
the rent stipulated be reduced in the same ratio that
the actual receipts bear to the normal income obtainable
from the land leased.
The rent must be reduced proportionately
ARTICLE 1682
Duration of rural lease.
(1) The duration is that fixed in the contract of lease
between the parties.
(2) In the absence of stipulation, the duration is fixed by
law, to wit:
(a) the time necessary to gather the fruits which
ordinarily would cover one (1) year in case of
agricultural crops; or

(b) more than one (1) year in case the land may yield
only once and two or more years may have to elapse
for the purpose.
Since the duration of a lease depends upon the
stipulations in the contract of lease it cannot be
affected by the more or less valuable improvements
voluntarily made by the lessee upon the property.
ARTICLE 1683
Obligation of outgoing/incoming lessee or lessor
a reciprocal obligation/privilege is given by the present
article as follows:
(1) The outgoing lessee shall allow the incoming lessee
or lessor to make the necessary work preparatory for the
crop the following year; and
(2) The incoming lessee and lessor shall permit the
outgoing lessee to gather or harvest and utilize the fruits
he has produced.
ARTICLE 1684-85
Rules governing law tenancy on shares.
Land tenancy on shares is primarily governed by special
laws, and suppletorily, by the stipulations of the parties,
the provisions on partnership, and the customs of the
place.
Only those laws of a more or less permanent nature
should be included in a Civil Code
AGRICULTURAL TENANCY HAS BEEN
ABOLISHED.
Extinguishment of leasehold relation.
(1) Abandonment of the landholding without the
knowledge of the lessor;
(2) Voluntary surrender of the landholding by the
lessee, written notice of which shall be served three (3)
months in advance;
(3) Absence of a successor or heir in the event of death
or permanent incapacity (such as total blindness,
insanity, etc.) of the lessee
(4) Termination of the leasehold by the lessee under
Section 28;
(5) Acquisition of the land in question by the lessee;
(6) Mutual consent of the parties; and
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(7) Judicial ejectment of the lessee under Section 36.
Causes for dispossession of leasehold tenant.
1. Declaration of suitability for non-agricultural
purposes. —Land Reform to be suited for
residential, commercial, industrial or some other
urban purposes;
2. Non-compliance with obligations. — Failure of the
lessee to substantially comply with his contractual
and legal obligations except if caused by fortuitous
event;
3. Use of land contrary to stipulations. — Planting
crops or using the landholdings for a purpose other
than what had been previously agreed upon;
4. Non-adoption of proven farm practices. — Failure
of the lessee to adopt proven farm practices;
5. Wrongful injury to land. — Substantial damage or
destruction or unreasonable deterioration of the
land or other substantial improvements thereon
through the fault or negligence of the lessee;
6. Non-payment of rental. — Failure of the lessee to
pay the lease rental; and
7. Employment of sub-lessee. — Employing a sub-
lessee except if the lessee is ill or temporarily
incapacitated.
SECTION 4. — Special Provisions for the Lease of
Urban Lands
ARTICLE 1686
Kind of repairs on urban property by lessor.
- lessor is obliged to make the necessary repairs
on the property leased.
- The kind of repairs he is required to make is that
provided in the lease agreement
 in the absence of a special stipulation, the
same must be determined in accordance with
the custom of the place.
In case of doubt as to who shall bear the cost of the
repairs—chargeable against the LESSOR unless the
party stipulated that the lessor is relieved from such
duty.

The right to repair may be waived by the lessee or he
may assume the duty to repair.
ARTICLE 1687
 a situation where neither of the parties being at
fault, the lessor decided to terminate the
contract of lease
Duration of lease depending on period at which rent
payable.
- It applies only to a lease without a fixed period
and
- to a lessee, that is, one who has a contract of
lease with the owner.
- Hence, a sublessee, much less a mere occupant,
is not entitled to its benefits
Article does not apply— does not apply where there is
a fixed period, whether such period is definite or
indefinite.
A lease contract on a month-to-month basis is a lease
with a definite period; it expires at the end of each
month without the need of a demand
- A previous demand by the lessor to vacate can
justify ejectment
- terminable at the end of each month upon
demand to vacate by the lessor
A lease stipulating that the lessee will vacate as soon as
the lessor needed the premises, fixes a period
- If it is shown that the lessor needs the property,
the lease is considered terminated as of the end
of the month after proper notice or demand to
vacate is given
Article does not apply— in the case of a lease contract
with a period subject to a resolutory condition.
The lessor is within his right to increase the rental each
period (year, month, or day, as the case may be) subject
to existing laws and the lessee is similarly within his
right to refuse to acquiesce.
If refused:
1. the contract of lease between the parties is
terminated.
2. The lessor has the right to demand that the
lessee vacate the leased property
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If the contract has no fixed duration the law fixes the
term according as the parties have agreed to pay the
rentals annually, monthly, weekly, or daily.
Even if the parties have agreed as to the periodical
payment of rentals—the courts can exercise their
discretion in fixing the term, if the lessee has stayed in
the premises for a certain length of time.
Implied new lease. — A lease whose duration is
dependent upon the mode of payment of the rental may
also arise, where at the expiration of a lease for a fixed
term
- the lessee should continue to enjoy the thing
leased for at least 15 days with the acquiescence
of the lessor, not for the period of the original
contract, but for the time established in Article
1687.
the court is authorized to fix a longer term
 if the lessee who is not at fault has been in
occupation of the premises for a certain period
and the lessor decided to terminate the lease.
 It may legally refuse to do so, if the
circumstances surrounding the case warrants
such action.
Article 1687 does not grant a lessee an absolute right to
an extension of the lease term but merely gives the
courts the discretion to allow additional time for the
lessee to prepare for his eventual ejection.
The stipulation that the lease can be renewed at the
option of both parties implies that the lease cannot be
renewed without the lessor’s consent.
The lessee cannot be granted an extension of the lease
when the parties stipulated that the lease shall not be
renewed or extended by implication
ARTICLE 1688
Lease of premises together with furniture.
The lease of the furniture shall be deemed to be for the
duration of the lease of the premises because the former
is considered as an accessory to the latter.
it may be inferred that the intention of the parties is that
the lease of the premises also covers the furniture
contained therein although not expressly included by
the terms of the lease agreement.