Civil Code > TITLE XVII. CONTRACTS FOR THE CUSTODY, USE OR POSSESSION OF CHATTELS 3

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Chapter 2. Letting and Hiring

Section 1. General Provisions

Art. 2727 – Definition.

A contract of letting or hiring is a contract whereby one party, the lessor, undertakes to transfer to the other party, the lessee, the possession of an object for a fixed term in return for a consideration called the rent or hire.

Art. 2728 – Letting and hiring and sale.

(1) The object hired shall remain the property of the lessor to whom it shall be returned on the termination of the contract.

(2) Where it is stipulated that, after a certain number of payments of the rent or hire, the lessee shall become the owner of the object, the contract shall constitute a contract of sale, notwithstanding that the parties have termed it a contract of hire.

Art. 2729 – Letting and hiring and free loans.

Where no rent or hire has been stipulated, the provisions relating to free loans shall apply.

Art. 2730 – Wrongful use.

(1) The lessor may apply for the rescission of the contract where the lessee does not make use of the property in accordance with the contract or usages and such use entails risk of irreparable damage to the object hired.

(2) Where the object has already suffered damage or rescission prejudices him in any way, the lessor shall in addition be entitled to damages.

Art. 2731 – Upkeep of object.

(1) The lessee shall maintain the object.

(2) The cost of upkeep shall be borne by the lessee.

Art. 2732 – Payment of rent or hire.

(1) The lessee shall pay the rent or hire on the agreed or customary dates.

(2) In the absence of any stipulation or custom to the contrary, the rent shall be paid as it falls due, at the end of each quarter.

Art. 2733 – Arrears of payment.

(1) Where the lessee is in arrears with a payment of the rent or hire, the lessor may grant him ten days’ grace, notifying him at the same time that in default of payment, the contract will be rescinded upon the expiration of that period.

(2) The period of grace shall run from the day on which the lessee receives the lessor’s notification.

Art. 2734 – Sub-letting.

Unless otherwise agreed, the lessee may not sub-let the object hired or assign the contract without the consent of the lessor.

Art. 2735 – Termination of contract.

(1) A contract of hire concluded for a fixed term shall terminate on the date agreed upon by the parties.

(2) Unless otherwise provided, the contract shall not be terminated by the death or incapacity of one or both of the parties.

(3) Where the lessee becomes bankrupt, the lessor may rescind the contract unless he is provided, within a reasonable time, with security for the rent or hire in arrears and the rent or hire falling due in the future.

Art. 2736 – Indeterminate contracts.

(1) Where the duration of the contract of hire has not been fixed, either party may terminate the contract at any time.

(2) In such case, the other party shall be entitled so a reasonable period within which to discharge his obligation to return the object hired or to take delivery of it.

Art. 2737 – Delay in return.

(1) Where the lessee fails to return the object when summoned to do so, he shall pay the rent or hire until it is returned.

(2) He shall in addition compensate the lessor for any damage caused to him by the delay.

Art. 2738 – Extension of the contract.

(1) Where, on the expiration of a contract of hire entered into for a fixed term, the lessee remains in possession of the object hired and the lessor does not claim its return, the contract of hire shall be deemed to have been extended by the parties for an indeterminate period on the same terms as the original contract.

(2) In such case, third parties who have guaranteed the performance of the original contract shall be released from their liabilities.

Section 2. Hiring of cattle

Paragraph 1. – Cattle included in lesse of agricultural undertaking

Art. 2739 – Scope of this Paragraph.

Unless otherwise agreed by the parties, the provisions of the following Articles shall apply where an agricultural undertaking leased to a farmer includes cattle.

Art. 2740 – Sale of cattle. – 1. Rights of farmer.

(1) The farmer may sell the cattle included in the undertaking.

(2) He shall however keep on the land cattle equivalent in species, number and quality to that which he received.

(3) The lessor may not compel the farmer to sell cattle, notwithstanding that the cattle have increased in number.

Art. 2741 – 2. Rights of lessor.

(1) The lessor may not sell the cattle included in the undertaking.

(2) He may compel the farmer to prepare every year an inventory of the cattle to be found within the undertaking.

(3) He may terminate the contract where it appears that the cattle are reduced in number by more than one quarter for reasons attributable to the farmer.

Art. 2742 – Products of animals. – 1. Principle.

(1) Without prejudice to the provisions of the following Articles, the farmer may freely dispose of the products of the animals of their hides, skins and increase.

(2) He shall account for his management to the lessor, where the rent consists of a share of these products or is fixed having regard thereto.

Art. 2743 – 2. Wool.

(1) Only the farmer may sell the wool of sheep and ewes where he manages the undertaking or the flock consists of less than fifty heads.

(2) Only the lessor may sell such wool where he manages the undertaking or the flock consists of more than fifty heads.

Art. 2744 – 3. Manure.

Manure form animals shall be used exclusively for the exploitation of the land.

Art. 2745 – 4. Increase from breeding.

Animals which perish or are slaughtered shall be replaced in proportion to the increase form breeding.

Art. 2746 – Duty to return cattle.

(1) The farmer shall, at the end of the contract, return cattle equivalent in species, number and quality to that which he received.

(2) The provisions of sub-art. (1) shall apply notwithstanding that the cattle were valued in the contract.

Art. 2747 – Deficit. – 1. Loss borne by the lessor.

(1) Where there is a deficit, the loss shall be borne by the lessor where the rent consists of a given share in the profits or of certain products of the animals.

(2) The former shall not be liable for such deficit unless the loss of the animals is due to his fault or that of a person for whom he is liable.

Art. 2748 – 2. Loss borne by the farmer.

The farmer shall be liable to repay the value of animals not returned by him where the rent is fixed independently of the profits of the animals.

Art. 2749 – 3. Extent of liability.

(1) The value of animals not returned shall be fixed having regard to the valuation made by the parties.

(2) Failing such valuation, the farmer shall repay their value as on the day of the termination of the contract.

Paragraph 2. – Cattle principal object of the contract

Art. 2750 – Scope of this Paragraph.

(1) The provisions of the following Articles shall apply where the main object of the contract consists in cattle or other animals the breeding of which is of an agricultural or commercial interest.

(2) Nothing shall affect contrary usages.

Art. 2751 – Model contracts.

(1) Model contracts may be drawn up by the Ministry of Agriculture to serve as a basis for individual contracts regarding certain kinds of animals or contracts to be executed in certain regions of the Empire.

(2) Individual contracts relating to the animals or regions specified in model contracts shall be deemed to be made on the conditions laid down in such model contracts.

(3) The parties may be express provisions depart from the terms of model contracts.

Art. 2752 – Duration of contract.

(1) Unless otherwise expressly agreed, the contract shall be deemed to be made for four years.

(2) The period of four years shall be reckoned from the day of the making of the contract.

Art. 2753 – Notice to landowner.

(1) Where cattle is given to another person’s framer, notice shall be given to the owner whose land is exploited by such farmer.

(2) Where notice is not given, the owner may, notwithstanding any custom to the contrary, seize or retain the animals with a view to obtaining payment of his claims against the farmer.

(3) It may not be alleged that he knew or should have known that the animals did not belong to his farmer.

Art. 2754 – Inventory of animals.

(1) The ownership of animals shall not be transferred to the tenant as a result of an inventory of the animals having been made in the contract.

(2) Such inventory has as its sole purpose to permit of establishing whether there is a profit or loss at the end of the contract.

Art. 2755 – Upkeep of animals.

(1) The tenant shall preserve and maintain the animals with the care required by custom.

(2) He shall bear the costs arising therefrom.

Art. 2756 – Increase from breeding.

Increase from breeding shall be jointly owned by the lessor and tenant.

Art. 2757 – Products of animals.

Only the tenant shall be entitled to the dairy products manure and work of the animals.

Art. 2758 – Wool.

(1) The wool of sheep and ewes shall be divided equally between the lessor and tenant.

(2) The tenant shall inform the lessor of the day when the shearing will take place.

Art. 2759 – Sale of animals.

(1) The tenant may not, without the consent of the lessor, dispose of any animal of the flock or of the increase from breeding.

(2) The lessor may not dispose thereof without the consent of the tenant.

Art. 2760 – Loss of animals.

(1) The tenant shall not be liable for the loss of animals unless it is due to his fault.

(2) The lessor shall prove that the tenant is at fault.

(3) The tenant shall account for the hides of animals which have died.

Art. 2761 – Accounts.

(1) The lessor may demand that the tenant submit every year an inventory of the animals together with his annual accounts.

(2) He may terminate the lease where it appears that the animals have reduce in number by more than one quarter for reasons attributable to the tenant.

Art. 2762 – Termination of contract.

(1) The contract shall terminate on the expiry of the period agreed by the parties or prescribed by law.

(2) A party who intends to terminate the contract shall give the other party at least six months notice in advance.

Art. 2763 – Death of parties.

(1) The contract shall not be terminated by the death of either party.

(2) The heirs of the deceased tenant may however terminate the contract by giving notice to the lessor within six months from the death of the tenant.

(3) In such case, the contract shall terminate on the first of Megabit which follows but not less than three months after the lessor has received notice from the heirs of the tenant.

Art. 2764- Settlements of accounts.

(1) Where the contract comes to an end or is rescinded, a new inventory of the animals shall be made.

(2) The lessor may take animals of each species to the extent shown in the first inventory made.

(3) What remains shall be divided equally between the lessor and the tenant.

Art. 2765 – Insufficient number of animals.

(1) Where the animals are reduced below the number shown in the first inventory, the lessor shall take what remains and the parties shall bear the loss equally.

(2) The tenant shall not be liable for the loss unless it is due to his fault or that of a person for whom he is liable.

Art. 2766 – Usages or stipulations null and void.

(1) Any usage or stipulation to the effect that the tenant shall be liable where all the animals are lost as a result of a fortuitous event and without his fault shall be of no effect.

(2) Any usage or stipulation to the effect that the share of the tenant in the loss shall be greater than his share in the profits shall be of no effect.

(3) Any usage or stipulation to the effect that the lessor may, at the end of the contract, take more animals than be supplied shall be of no effect.

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