1.5 Analyzing a Lease
1.5 Analyzing a Lease aetrahan Mon, 05/01/2023 - 14:111.5.1 General Principles
1.5.1 General Principles aetrahan Mon, 05/01/2023 - 14:11Some notable principles of lease analysis are:
- Uncertain or ambiguous lease provisions must be construed against the drafter (typically the landlord) and in favor of maintenance of the lease.1
- Oral modifications or the parties’ course of conduct can change a written lease.2
- If the lease does not govern a particular problem, then Louisiana Civil Code arts. 2668-2744 or other applicable laws will govern.
- The lease provision may be unenforceable or prohibited if it violates the law or public policy.3
- If a lease contains conflicting provisions, ordinary principles of contract interpretation may be used to resolve the conflict.
- 1New Orleans Minority Bus. Ctr., Ltd. v. Duong, 97-CV-0894 (La. App. 4 Cir. 11/19/97), 703 So. 2d 157, 158.
- 2Karno v. Joseph Fein Caterer, Inc., 2002-1269 (La. App. 4 Cir. 4/16/03), 846 So. 2d 105, 107–08; Quigley v. T.L. James & Co., 595 So. 2d 1235, 1238 (La. App. 5 Cir. 1992) (finding question of material fact regarding existence of oral modification and holding that the “proponent of an oral amendment must show that there was an oral agreement and meeting of the minds between the lessor and lessee as to the alleged modification”).
- 3La. C.C. art. 1968. For examples of unenforceable lease provisions, see Section 1.5.2.
1.5.2 Unenforceable Lease Provisions
1.5.2 Unenforceable Lease Provisions aetrahan Mon, 05/01/2023 - 14:13Some lease provisions are unenforceable:
- Waiver of repair of/or liability for serious defects in residential lease.1
- Waiver of warranty of peaceable possession.2
- Waiver of minimum notice to terminate lease when one or both parties have reserved the right to terminate the lease before the end of the term.3
- Waiver of rights under rent deposit statute.4
- Any clause allowing landlord to collect future rent due under the lease after electing to terminate the lease.5
- Waivers of liability for intentional or gross fault that causes damage, and waiver of liability for physical injury.6
- Any contract made in violation of the Louisiana Unfair Trade Practices and Consumer Protection Law.7
- Forfeiture or penalty clauses in bonds for deed that purport to forfeit the funds paid by the purchaser if the bond for deed is cancelled.8
Other provisions may be unenforceable if their object or cause is to circumvent the law or public policy.9
- 1La. C.C. art. 2699(3); Shubert v. Tonti Dev. Corp., 09-348 (La. App. 5 Cir. 12/29/09), 30 So. 3d 977, 985–86. However, note the exception to liability under Article 2699 if the lessee has assumed responsibility for defect in the leased premises, found in La. R.S. 9:3221. See Stuckey v. Riverstone Residential SC, LP, 2008-1770 (La. App. 1 Cir. 08/05/09); 21 So. 3d 970.
- 2Entergy La., Inc. v. Kennedy, 2003-0166 (La. App. 1 Cir. 07/02/03), 859 So. 2d 74.
- 3La. C.C. arts. 2718, 2728–2729. However, the 5-day notice to vacate required by La. C.C.P. art. 4701 may be waived for private tenants.
- 4La. R.S. 9:3254.
- 5U.S. Leasing Corp. v. Keiler, 290 So. 2d 427, 430 (La. App. 4 Cir. 1974). But see 745 Olive St., L.L.C. v. Optimal Wellness, LLC, 54,778 (La. App. 2 Cir. 11/16/22), 351 So. 3d 890, 895 (holding that landlord was not precluded from suing for future rent when the lessee abandoned the rental and the landlord changed the locks and attempted to re-lease the premises).
- 6La. C.C. art. 2004.
- 7See La. R.S. 51:1403.
- 8Seals v. Sumrall, 2003-0873 (La. App. 1 Cir. 09/17/04), 887 So. 2d 91, 96.
- 9See La. C.C. art. 1968; Bach Inv. Co. v. Philip, 98-667 (La. App. 5 Cir. 12/16/98), 722 So. 2d 1222, 1223.