lease

lease

• 1.
  LEASES OF IMMOVABLEPROPERTY Transfer Of Property Act By - Shivraj Singh Roll No.-098 Div-B
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  LEASE Sections-(105-117 ofTOPA)
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  Definition-Transfer of rightto enjoy an immovable property for certain time and rent.
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  Person who transfersthe right- lessor
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  Person whom rightis transferred- lessee
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  LEASE defined inTOPASection 105 of TOPA defines lease as- A lease of immoveable property is a transfer of a right to enjoy such property, made for a certain time, express or implied, or in perpetuity, in consideration of a price paid or promised, or of money, a share of crops, service or any other thing of value, to be rendered periodically or on specified occasions to the transferor by the transferee, who accepts the transfer on such terms. Lessor, lessee, premium and rent defined .- The transferor is called the lessor, the transferee is called the lessee, the price is called the premium, and the money, share, service or other thing to be so rendered is called the rent.
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  SALE & LEASESALE- All rights of ownership, which transferor has transfers to transferee. Valid for minor.
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  LEASE- Partial transfer,thatis transfer of right of enjoyment for certain time.Void for minor.
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  Essential Elements ofLEASE- Parties;
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  Subject matter ofimmovable property;
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  Duration;
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  Consideration.
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  Parties - lessorand lessee must be competent to contract. There must be contract between the parties,express or implied,in consideration of either premium, rent or both.
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  Lease to aminor is void,as lease imports a binding agreement,to pay rent & to perform various conditions.
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  Subject matter - subject matter must be immovable property.
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  “immovable” also includesany benefit out of land such as fisheries,ferries,market dues.
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  Duration- leasemust be for a certain time or in perpetuity.
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  It may commenceon present day,future date,happening of some event.
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  Sec.110 enacts ifno commencement day stated,lease begins from date of execution.
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  Both time ofbeginning and ending date must be fixed.
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  Consideration- Eitherpremium or rent.
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  Premium is pricepaid or promised to be paid in a lump sum.
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  Rent is aperiodical payment.
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  Rent can alsobe delivery of share of crops or rendering of services etc.
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  Difference between Rentand Premium -
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  When the interestof lessor is parted with for a price the price paid is called premium or salami.
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  The periodical paymentsmade for continuous enjoyment of benefits under the lease are in nature of rent.
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  In M emberfor the board of agriculture income-tax v. sindhurani chowherani AIR 1957 SC 729 SC told the indicia of salami are:
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  1)its single non-recurringcharacter
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  2)payment prior tothe creation of tenancy.
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  Renewal clause inlease - In state of U.P. Vs. Lalji Tondon, AIR 2004 SC 32 it was held A lease, which creates a tenancy for a term of years, may yet confer on the lessee an option of renewal. The option is exercisable not merely by the lessee personally but also by hisrepresentative-in-interest. If the option does not state the terms of renewal, the new lease will be for the same period and on the same terms as the original lease, in respect of all the essential conditions thereof, except as to the covenant for renewal itself.
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