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Article 420. In a contract of hire, the subject matter of the contract consists of some advantage to be derived from such contract.

Article 421. Hire in relation to the subject matter of the contract is of two categories. The first is a contract for hire made with reference to an interest in specific things. The thing which is the subject of hire is called both the object given on hire and the object taken on hire. The first category is divided into three classes.

The first class relates to the lease of real property, such as the hire of houses and lands.

The second class relates to the hire of merchandise such as the hire of clothes and utensils.

The third class relates to the hire of animals.

The second category is a contract of hire with regard to labor. In this category, the person hired is called the employee, as in the case of workmen and servants employed for a wage. Hiring the services of craftsmen and artisans is also included in this category.

Example:- A contract for manufacture and sale is concluded when clothes are ordered to be made by a tailor who supplies the cloth. If the cloth is given to the tailor in order that he should make the clothes, such person’s labor has been hired.

Article 422. Employees are of two classes.

The first class comprises private employees, that is, persons whose services are retained by one employer only, as in the case of a servant paid a monthly wage.

The second class comprises public employees, that is persons who are not bound by an undertaking not to work for more than one employer. Example:- Porters, brokers, tailors, clock-makers, jewelers, harbor boatmen, cab drivers, and village shepherds are all public employees; that is, persons who are not employed specially by one particular individual, but work for anyone. But if any one of such persons undertakes to give his services on hire to one employer only for a specific period, he becomes during that period a private employee. Again, a porter, or a cab-driver, or a boatman who gives his services on hire to one employer alone to take such employer to a certain place, and who works for no other person is, until he arrives at his destination, a private employee.

Article 423. The person employing a private employee may be one single individual or several persons contemplated as one individual only. Consequently, when the inhabitants of a village hire the services of a shepherd for themselves alone by means of a single contract, such shepherd becomes a private employee. But should those persons permit the shepherd to tend some other person’s animals, such shepherd becomes a public employee.

Article 424. The wages of a public employee are due when the work is done.

Article 425. The wages of a private employee are due if he is ready to work during the period for which his services were hired. It is not essential that he should actually have performed the work. He cannot, however, decline to do the work. If he does so, he is not entitled to his wages.

Article 426. A person who is entitled to a definite_ advantage arising out of a contract of hire may obtain enjoyment of such advantage or the equivalent thereof, or of some lesser advantage. He cannot, however, obtain any greater advantage.


(1) A blacksmith hires a shop in order to carry on his trade there. He can carry on any other trade there which causes no greater injury to the lessor, or a trade causing a lesser degree of injury.

(2) If a person does not live in a house which he has hired for purposes of habitation, he may store goods therein. But he may not carry on trade as a blacksmith in a shop which he has hired as a grocer’s shop.


Article 427. Anything which becomes altered by any change in the person using it may validly be made the subject of a restriction.

Example:- A person hires a horse to ride himself. No other person may ride it.

Article 428. Any restriction imposed in connection with any thing which does not become altered by any change in the person using it is inoperative.

Example:- A hires a house to dwell in. B can also dwell in it.

Article 429. The owner of a share of undivided jointly owned property may let such share to his co-owner whether such share is capable of division or not. He may not let it to any other person. He may, however, after a partition of the usufruct has been made, let his share to some other person.

Article 430. The existence of undivided shares of jointly owned property after the conclusion of a contract of hire does not invalidate such contract.

Example:- A lets his house and after doing so a half share is seized by a person entitled thereto. The lease relating to the other undivided share remains in force.

Article 431. Two joint owners may simultaneously let property jointly owned to some other person.

Article 432. One particular thing may be let to two particular persons. Each one must pay the amount of the rent which falls to his own share. The share of one may not be obtained from the other unless they are guarantors of one another.

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