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RIGHTS AND OBLIGATIONS OF THE PERSON GIVING AND THE PERSON TAKING ON HIRE AFTER THE CONCLUSION OF THE CONTRACT

SECTION I.

Delivery of the thing hired.

Article 582. Delivery of the thing hired consists of permission being given by the person giving the thing on hire to the person taking the thing on hire to enjoy such thing without let or hindrance.

Article 583. Upon the conclusion of a valid contract of hire for a particular time or for a particular journey, the thing hired must be delivered to the person taking the thing on hire to be continuously in his possession until the expiration of such period, or the end of such journey. Example:- A takes a cart on hire for a certain period, or in order to go to a certain place. A can use the cart during such period or until he has arrived at his destination. The owner may not use it for his own purposes during that period.

Article 584. If a person who owns real property in absolute ownership containing other property of his own, gives such real property on hire, no rent is payable until it is delivered free from all such encumbrances, unless they have been sold to the person taking the property on hire,

Article 585. When the lessor of a house hands the house over minus a room in which he has stored his goods, the proportion of the rent represented by such room must be deducted. As regards the rest of the house the lessee may exercise an option. If the lessor evacuates the house entirely and hands it over before cancellation of the contract, such contract is irrevocable; that is to say, the right of the lessee to cancel the contract is lost.

SECTION II.

Right of the contracting parties to deal with the thing hired after the conclusion of the contract.

Article 586. If the thing hired consists of real property, the person taking such real property on hire may give it on hire to some third person before taking delivery thereof. He may not do so, however, if it is movable property.

Article 587. The person taking the thing on hire may let such thing on hire to some third person if it is not changed by use or enjoyment.

Article 588. In the case of a voidable contract of hire the person taking the thing on hire may validly give it on hire to some third person after taking delivery thereof.

Article 589. If a person who has given his property on hire to some other person for a definite period in accordance with the terms of an irrevocable contract of hire, again gives such property on hire to some third person, the second contract of hire is ineffective.

Article 590. If the person giving the thing on hire sells the thing hired without the permission of the person taking the thing on hire, the sale is not executory as regards the latter, but is executory as regards the vendor and the purchaser, and on the expiration of the period of hire, the sale is irrevocable as regards the purchaser and he may not refuse to take delivery thereof. However, if before the expiration of the period of hire the purchaser asks the vendor to hand over the thing sold, and it is impossible to do so, the Court shall cancel the contract of sale. If the person taking the property on hire ratifies the sale, the sale becomes executory in respect to each party. If the person taking the thing on hire, however, has made payment in advance, the thing hired cannot be taken from him until he has received payment of the amount of the rent paid by him in respect to the unexpired portion of the lease. If the person taking the thing on hire hands it over without receiving payment, he loses his right of retention.

SECTION III.

Return of the thing hired.

Article 591. On the termination of the contract of hire, the person taking the thing on hire must give up the thing hired.

Article 592. The person taking the thing on hire may not use the thing hired after the termination of the contract of hire.

Article 593. If the person giving the thing on hire asks for the return of his property upon the termination of the contract of hire, the person taking the thing on hire is bound to return it to him.

Article 594. The person taking the thing on hire is not bound to return the thing hired, but the person giving the thing on hire is bound to take over the thing hired on the expiration of the contract of hire.

Examples:

(1) Upon the termination of the lease of a house the owner must come and take delivery thereof.

(2) An animal is taken on hire to go to a certain place. If the owner is in that place, he must take over his animal. If he arrives and does not take it over, and it is destroyed while in the possession of the person hiring the animal without such person’s fault, or neglect, such person may not be called upon to make good the loss, If, however, the animal is hired to leave and return to a definite place, it must be brought to that place. If it is not brought to such place, but is brought to the house of the person taking the animal on hire and is destroyed while there, the loss must be made good by such person.

 

Article 595. If the return of the thing hired involves expenditure for transport, such expenses fall upon the person giving the thing on hire.