Provisions of Lease Automatic Renewal Analytical Study for the Jordanian Law

Anees Al-Mansour, Khalid Samam’ah

Abstract


The prior agreement of the parties upon the automatic renewal for the lease term shall result in that the contract’s renewal shall not be conditional upon the consent of either of them after the expiration of the first term of the contract. In fact, it has been shown that this condition is valid based on the rule “Pacta Sunt Servanda” denoting that the contract shall be the rule for acting by the contracted parties. However, the said condition shall not mean that the lease shall last forever as the same conflicts with the character of the lease which shall be for a specific term. Accordingly, we considered it that the maximum term for the lease contract was set at thirty years according to the Civil Law in article (671/1). In fact, the Law amending the provisions related to the immovable properties caused the maximum term of the lease to be amounting to ninety nine years and hence, it shall not be possible to apply the provision of article 671/1 of the Civil Law while the provision of the fifth article of the amending Law related to the immovable properties is in place as the last law is the one applicable being a special law.
However, the said concept related to the automatic renewal remained prevailing till the issuing of the Law amending the Landlords and Tenants Law No. 17, 2009 which caused the concept of the automatic renewal of the lease, and according to article 5/B/2, to be restricted to a similar contractual term to that of the lease term and to be practiced for once unless the tenant shall notify the landlord to the effect of his/its non wish to renew prior to the expiration of the principal term. In fact, we concluded that the said concept is unsound as it confiscates the will of the of the contracted parties and hence, it conflicts with the rule “Pacta Sunt Servanda” as stated before.

Keywords


Automatic Renewal, Lease

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