Can a lessor terminate our contract of lease because he changed his mind?

Question

We have a contract of lease until 2035. Now, the lessor wants to terminate the contract because he has changed his mind. The reason why we have agreed on this contract is that the lessor owed money to us, the lessee. Since he cannot pay, we agreed that in exchange, he will provide us with a long-term lease of his property, which is until 2035, and we agreed that he will not increase the rent since I didn't ask for interest as well for the money he owed. But in the contract, we didn't specify the money he owed. It's just a plain contract to lease stating the rental amount. Now, he has changed his mind and decided to stop the contract, and he just wants to pay for the debt he owes. What should I do? What's my right as a lessee?

Recososa Law Firm · Accepted Answer

Good day from Recososa Law Firm!

Based on your account, the unilateral termination of the lease by the lessor despite a binding agreement until 2035 is not legally justified under Philippine law. Even if the contract does not mention the underlying debt, the lease agreement itself is a valid and enforceable contract under Article 1305 of the Civil Code, which defines a contract as a meeting of minds between two persons whereby one binds himself to give something or to render some service.

a.) Under Article 1306 of the Civil Code, parties may establish such stipulations as they may deem convenient, provided they are not contrary to law, morals, good customs, public order, or public policy. Since the lease contract clearly states a fixed term and rental rate, the lessor cannot simply revoke it at will due to a change of mind. Any attempt to do so may constitute breach of contract.

b.) Even if the lease served to compensate for the unpaid debt, the contract remains valid and binding unless it is shown that consent was vitiated by fraud or mistake. Your rights as a lessee are further protected by Article 1673 of the Civil Code, which limits the grounds for judicial ejectment. None of those grounds include the lessor’s change of intent.

c.) In your case, you may file an action for specific performance with damages or an injunction to restrain the lessor from unlawfully evicting you. Since the lease is for a definite period, you have the right to enjoy peaceful possession of the property until 2035. The law on contracts upholds the principle of mutuality, meaning one party cannot revoke the obligation without valid cause.

d.) If the lessor forcibly takes steps to evict you, you may also consider filing an action for injunction or even unlawful detainer if possession is disturbed, and you may claim for actual damages and attorney’s fees under Article 2201 of the Civil Code.

We strongly advise that you hire us so we can carefully examine your lease contract and file the necessary legal remedies to protect your tenancy rights and enforce the long-term lease agreement. We can schedule an initial consultation via zoom call. Client may schedule a convenient date and time of the meeting through the below calendly link:
👉 https://calendly.com/recososalawfirm

There is a 2,000 Philippine Peso consultation fee but we will refund consultation fee when client hires us after the consultation. Alternatively, client can also call or text on the below contact number +639175046510 or email recososalawfirm@gmail.com.

We are prepared to assist you in asserting and protecting your legal rights.

P.O OHIKHENA &amp; Co · Answer

Good day,

If you are in Nigeria, contact me via mail paulohimatt@gmail.com or call/Whatsapp 08089901606

KSN Bangkok Co., Ltd. · Answer

Under Thai law, a lease agreement is generally binding until its agreed expiration date, unless terminated by mutual consent or due to a breach of contract. If the lease specifies a fixed term (e.g., until 2035) and there is no valid termination clause allowing the lessor to unilaterally end it, the lessor cannot simply change their mind and terminate the contract.

However, because the debt arrangement was not mentioned in the lease agreement, this may affect how the lease is interpreted and enforced. To provide accurate legal advice, we would need to review the lease agreement and any related communications or documents.

If you are currently in Thailand, please feel free to contact us via WhatsApp at +66 64 994 9614 or by email at thanissa@ksnbangkok.com to schedule a consultation.

Law Office Attorney SVETISLAV STOJANOSKI, LL.M. · Answer

Write to me on WhatsApp: +38970704335

I can help you.

Best Regards,

Geffen Law Firm · Answer

Hi from Bulgaria,

In the lease contract supposed to be described in what condition the Lessor can terminate the contract and if he fulfill then he has the right the terminate, as far you don`t reach some mutual agreement.

Regards

Can a lessor terminate our contract of lease because he changed his mind?

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