Lease – Loss, destruction, expropriation

Lease – Loss, destruction, expropriation

Art. 2714. Expropriation; loss or destruction. If the leased thing is lost or totally destroyed, without the fault of either party, or if it is expropriated, the lease terminates and neither party owes damages to the other.

Revision comments-2004 (b) If the loss or destruction is total, or if the whole thing is expropriated, then under Civil Code Article 2714 (Rev. 2004), the lease terminates, regardless of whether the events that brought about the loss or destruction are attributable to the fault of either party. Although this Article contains the phrase “without the fault of either party,” that phrase addresses the parties’ right to claim damages. That is, if the loss or destruction was not attributable to the fault of either party, then neither party owes damages to the other.” Conversely, if the loss or destruction was attributable to the fault of one party then, of course, that party would owe damages to the other, but the lease would also terminate for the simple reason that the destruction of the whole object of the contract renders performance impossible. C£ C.C. art. 1876 (Rev. 1984).

Art. 1876. Contract dissolved when performance becomes impossible When the entire performance owed by one party has become impossible because of a fortuitous event, the contract is dissolved. The other party may then recover any performance he has already rendered.

Art. 2715. Partial destruction, loss, ,expropriation, or other substantial impairment of use. If, without the fault of the lessee, the thing is partially destroyed, lost, or expropriated, or its use is otherwise substantially impaired, the lessee may, according to the circumstances of both parties, obtain a diminution of the rent or dissolution of the lease, whichever is more appropriate under the circumstances. If the lessor was at fault, the lessee may also demand damages. If the impairment of the use of the leased thing was caused by circumstances external to the leased thing, the lessee is entitled to a dissolution of the lease, but is not entitled to diminution of the rent.