CHAPTER IV

EXTINCTION OF CONTRACT OF HIRE

 

Section 564.- A contract of hire is extinguished at the end of the agreed period without notice.

 

Section 565.- A hire of garden land is presumed to be made for one year.

A hire of paddy land is presumed to be made for the agricultural year.

 

Section 566.- If no period is agreed upon or presumed, either party may terminate the contract of hire at the end of each period for the payment of rent, provided that notice of at least one rent period is given. But no more than two months notice need be given.

 

 Section 567.- If the whole of the property hired is lost, the contract is extinguished.

 

Section 568.- If part only of the property is lost without the fault of the hirer, he may claim that the rent be reduced in proportion to the part lost.

If in such case the hirer cannot with the remaining part accomplish the purpose for which he entered into the contract of hire, he may terminate it.

 

Section 569.- A contract of hire of immovable property is not extinguished by the transfer of the ownership of the property hired.

The transferee is entitled to the rights and is subject to the duties of the transferor towards the hirer.

 

Section 570.- If, at the end of the agreed period, the hirer remains in possession of the property and the letter knowing thereof does not object, the parties are deemed to have renewed the contract for an indefinite period.

 

Section 571.- If a contract of hire of paddy land is terminated or extinguished after the hirer has planted the paddy, the hirer is entitled to remain in possession until the harvest is finished, but he must pay the rent.

 

TITLE V

HIRE-PURCHASE

 

Section 572.- A hire-purchase is a contract whereby an owner of a property lets it out on hire and promises to sell it to, or that it shall become the property of, the hirer, conditionally on his making a certain number of payments.

The contract of hire-purchase is void unless made in writing.

 

Section 573.- The hirer may at any time terminate the contract by redelivering the property at his own expense to the owner.