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

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. There is a 2,000 Philippine Peso consultation fee but we will refund consultation fee when client hires us after the consultation. We are prepared to assist you in asserting and protecting your legal rights.

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.