Is there a specific form in executing a contract of lease?

Dear PAO, I built a three-door town house in Manila to be sold to anyone who desires to buy it. For marketing about the said property online. However, my relatives wanted to rent one unit of my town house for their children who will study in executing a contract of lease? Can it bed one verb ally since my tenants will be my relatives?

Thankyouverymuch, Miggy

Dear Miggy,

Under the law, particularly, Article 1356 of the New Civil Code, contracts are binding on the parties in whatever form they have been executed. However, when the law requires that a contract be in some form for its validity and enforceability, the same must be complied with.

“Article 1356. be obligatory, in whatever form they may have been entered

into, provided all the essential requisites for their validity are

some form in order that it may way, that requirement is absolute

In such cases, the right of the parties stated in the following article cannot be exercised.” (Emphasis supplied)

While the said law requires that a contract need not be in any form for its validity, a contract of lease of real property for a period of more than a year, under Article 1403 of the NewCivilCode requires that the same must be put in writing. The said provision is quoted

below:

“Article 1403. The following contracts are unenforceable, unless

1. xxx

2. Those that do not comply with the Statute of Frauds as set forth in this number. In the following cases an agreement hereafter made shall be unenforceable by action, unless the same, or some note or memorandum thereof be in writing, and subscribed by the party charged, or by his agent; xxx e. An agreement for the leasing for a longer period than one year, or for the sale of real property or of an interest therein; xxx” (Emphasis supplied). However, this requirement is not for its validity but more for the convenience of the parties. This was what the Supreme Court in the case of the Estate of Pedro C. Gonzales and Heirs of Pedro Gonzales vs. the Heirs of Marcos Per es( G. R. No. 169681, November 05, 2009, Ponente: Honorable Associate Justice Diosdado Peralta), said that the form required under the said article is not essential to the validity or enforceability of the transaction, but merely for convenience.

Based on the foregoing and though it may not be required, it would be better if you execute the contract in a written instrument, because the same shall be the best evidence of your agreement regardless of whether the lease is for a year or less.

that this opinion is solely based on the facts you have narrated and our appreciation of the same. The opinion may vary when the facts are changed or elaborated. We hope that we were able to enlighten you on the matter.

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