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Question 8: Justification for Time Limit<br />

a) L <strong>and</strong> T have concluded a contract limited to one year with automatic renewal for<br />

another year, provided that no party has given notice three months before the annual<br />

deadline. No particular reason for this limitation is mentioned in the contract. After 6<br />

years, respecting the delay <strong>of</strong> three months before the annual deadline, L gives notice <strong>of</strong><br />

termination without alleging any reasons. Is this lawful?<br />

b) Does the restriction <strong>of</strong> notice under a) (which is possible only once per year) apply to T,<br />

too?<br />

When the lease is concluded for a duration <strong>of</strong> less than three years, <strong>and</strong> neither <strong>of</strong> the<br />

parties wants to put an end to it by giving notice <strong>of</strong> a request to leave at least three months<br />

before the expiration <strong>of</strong> the agreed term, this lease will only be able to be renewed a single<br />

time, <strong>and</strong> on condition that the total duration does not exceed three years. If at the expiration<br />

<strong>of</strong> the duration <strong>of</strong> a maximum <strong>of</strong> three years set by agreement the tenant remains in the<br />

premises without opposition from the l<strong>and</strong>lord, the lease will be considered to be concluded<br />

ab initio for a duration <strong>of</strong> nine years, <strong>and</strong> article 3 §§ 2 to 4 will be applicable (powers <strong>of</strong><br />

anticipatory termination).<br />

In the case cited above, because the renewals <strong>of</strong> the lease concluded initially for one<br />

year take the total duration to more than three years, the lease has become a nine-year lease.<br />

The lessor will be able to terminate it legally, without reason, only while respecting the<br />

conditions decreed in Article 3, § 4, that is by means <strong>of</strong> the payment <strong>of</strong> compensation. If the<br />

rupture occurs at the expiration <strong>of</strong> six years that is at the end <strong>of</strong> the second three-year period<br />

the compensation will be six months <strong>of</strong> rent.<br />

The notice to quit must be given at least six months before the expiration <strong>of</strong> the threeyear<br />

period under way 114 , for lack <strong>of</strong> which it will be deprived <strong>of</strong> effect <strong>and</strong> the tenant will be<br />

able to remain in the premises until the expiration <strong>of</strong> nine years calculated from the day <strong>of</strong> the<br />

conclusion <strong>of</strong> the initial lease.<br />

However, the lease can always be renewed for "exceptional circumstances" (accepted in<br />

an agreement between the parties or by judicial decision) (article 11 <strong>of</strong> the Statute on<br />

Tenancy). In this case, a request to leave will no longer have to be given at the expiration <strong>of</strong><br />

the renewed lease.<br />

Question 9: Termination in Special Cases<br />

L <strong>and</strong> T have concluded a contract with or without time limit.<br />

a) L dies. Can her heirs give immediate notice to T?<br />

b) The house is sold. Has the buyer a right to give anticipated notice?<br />

c) A bankruptcy procedure is carried out against L at the end <strong>of</strong> which the house is<br />

auctioned <strong>of</strong>f. Can the buyer give anticipated notice?<br />

114 One must note that article 3, § 9 <strong>of</strong> the Law indicates that "when a leave can be given at any time, the length <strong>of</strong> notice becomes<br />

effective the first day <strong>of</strong> the month which follows the month during which the request to leave is given".<br />

- 18 <strong>of</strong> <strong>47</strong> -

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