Question: My landlord suddenly doesn't want to continue renting the commercial property to us although we signed a 1-year lease that started on June 18, 2023. He claims that he has a right to terminate since we haven't paid for 2 months. However, we paid half for one month and therefore only have a 1½ month balance. Can he legally terminate the lease?
Answer:
What Does Philippine Law Say About Lease Termination for Non-Payment?
In Philippine law, the Civil Code governs lease agreements. As a general rule, the landlord (lessor) and the tenant (lessee) must adhere to the terms stipulated in the lease agreement. If the agreement states that a particular number of missed payments can trigger a termination, then the landlord has the right to terminate under those conditions.
What About Partial Payments?
If you have made partial payments, and the lease agreement doesn't specify how such payments are treated, Philippine law tends to be silent on this aspect. In practice, many agreements stipulate that partial payment doesn't absolve the lessee from the obligation to fulfill the entire agreed-upon rent.
Is the Lease Automatically Voided with 1½ Months of Missed Payments?
No, not automatically. Even if the landlord claims you haven't paid for two months, it's crucial to check what your lease agreement states concerning non-payment and termination. If the lease agreement specifies that a certain period of non-payment leads to automatic termination, then the landlord could potentially terminate the lease. However, if the agreement doesn't contain such a clause, the landlord would generally not have the right to terminate without proper legal proceedings.
What Can You Do to Remedy the Situation?
Review the Lease Agreement: Check the terms related to non-payment and termination. Is there a grace period? Are there any provisions for partial payments?
Open Communication: It's always best to openly communicate with your landlord to see if you can arrive at an amicable solution, such as catching up on missed payments.
Legal Consultation: If your landlord is insistent on terminating the lease against the terms agreed upon, it may be best to consult with a legal advisor to understand your rights and possible courses of action.
Can a Court Overturn a Landlord’s Decision to Terminate?
Yes, a court can overturn a landlord's decision if it finds that the termination was unlawful or unfair. However, this would involve a potentially lengthy legal process that may not be ideal for either party.
Conclusion:
If you're facing potential lease termination due to missed payments, your rights and obligations would generally be governed by the terms of your lease agreement. It's essential to consult this document and, if necessary, seek legal advice to ensure that both parties are acting in accordance with Philippine law.