1896de Book2 Chapter07 Title03 Part01

GERMAN CIVIL CODE OF 1896

• Based on the English Translation by: Wang, Chung Hui (1907). The German Civil Code, translated and annotated with historical introduction and appendices. London: Stevens and Sons. [available on Archive.org]

BOOK II. Law of Obligations.

Chapter VII. Particular Kinds of Obligations.

Title III. Ordinary Lease, Usufructuary Lease.

Section 535.

• By a contract of ordinary lease the lessor is bound to give to the lessee the use of the leased thing during the term of the lease. The lessee is bound to pay to the lessor the rent agreed upon.

Section 536.

• The lessor shall deliver to the lessee the leased thing in a condition fit for the stipulated use, and shall keep it in such condition during the term of the lease.

Section 537.

• [I] If the leased thing is, at the time of delivery to the lessee, affected with a defect which destroys or diminishes its fitness for the stipulated use, or if such a defect arises during the term of the lease, the lessee is released from payment of the rent for the time during which its fitness is destroyed; for the time during which its fitness is diminished he is bound to pay only a part of the rent to be estimated according to 472, 473.
• [II] The same rule applies if a promised quality is absent or disappears subsequently. In the letting of a piece of land the promise of specified dimensions is equivalent to the promise of a quality.

Section 538.

• [I] If a defect of the kind specified in 537 exists at the time of entering into the contract, or if such a defect arises subsequently in consequence of a circumstance for which the lessor is responsible, or if the lessor is in default in respect of the removal of a defect, the lessee may demand compensation for non-fulfilment, instead of enforcing the rights specified in 537.
• [II] If the lessor is in default the lessee may himself remove the defect and demand compensation for any necessary outlay.

Section 539.

• If the lessee knew of the defect of the leased thing at the time of entering into the contract, the rights specified in 537, 538 do not belong to him. If a defect of the kind specified in 537, par. 1, remains unknown to the lessee in consequence of gross negligence, or if he accepts a defective thing although he knows of the defect, he may enforce these rights only under the conditions under which warranty is given to the purchaser of a defective thing as provided in 460, 464.

Section 540.

• An agreement whereby the obligation of the lessor as to responsibility for defects of title or quality in the leased thing is released or limited, is void if the lessor fraudulently conceals the defect.

Section 541.

• If, through the right of a third party, the stipulated use of the leased thing is wholly or in part taken away from the lessee, the provisions of 537, 538, 539, sentence 1, and 540, apply mutatis mutandis.

Section 542.

• [I] If the stipulated use of the leased thing is wholly or in part not given to the lessee in due time, or taken away from him subsequently, the lessee may give notice to terminate the lease without observance of any term of notice. The notice may not be given until after the lessor has allowed a reasonable period of time fixed by the lessee to elapse without affording any remedy. The fixing of such a period is not necessary if the lessee has no interest in the fulfilment of the contract in consequence of the circumstance justifying the notice.
• [II] Notice to terminate the lease may be given on account of an insignificant hindering or withholding of the use only if it is justified by a special interest of the lessee.
• [III] If the lessor contests the permissibility of the notice given on the ground that he has given the use of the thing in due time, or has effected the remedy before the expiration of the period, the burden of proof is upon him.

Section 543.

• [I] The provisions of 539 to 541, and the provisions of 469 to 471 applicable to the cancellation of a sale apply mutatis mutandis to the right of giving notice to terminate which the lessee has under 542.
• [II] If the rent has been paid in advance for a future time, the lessor shall pay it back in accordance with 347, or, if the notice to terminate is given on account of a circumstance for which he is not responsible, in accordance with the provisions relating to the return of unjustified benefits.

Section 544.

• If a dwelling place or any other place intended for human habitation is in such condition that its use is attended with serious danger to health, the lessee may give notice to terminate the lease without observance of any term of notice, even if at the time of entering into the contract he knew of the dangerous condition or waived the rights belonging to him on account of this condition.

Section 545.

• [I] If, during the term of the lease, a defect in the leased thing is discovered, or if precautions become necessary for the protection of the thing against any unforeseen danger, the lessee shall notify the lessor without delay. The same rule applies if a third party claims a right to the thing.
• [II] If the lessee fails to give such notice he is bound to make compensation for any damage arising therefrom ; where the lessor was not in a position to afford any remedy in consequence of the omission of the notification, the lessee is not entitled to avail himself of the rights specified in 537, nor to give notice to terminate without fixing a period as provided for in 542, par. 1, sentence 3, nor to demand compensation for non-fulfilment.

Section 546.

• The lessor shall bear the charges imposed upon the leased thing.

Section 547.

• [I] The lessor is bound to compensate the lessee for any necessary outlay incurred upon the thing. The lessee of an animal shall, however, bear the cost of provender.
• [II] The obligation of the lessor to compensate the lessee for any other outlay is determined according to the provisions relating to management of affairs without mandate. The lessee is entitled to remove an attachment with which he has provided the thing.

Section 548.

• A lessee is not responsible for any alteration or deterioration of the leased thing which is brought about by the stipulated use.

Section 549.

• [I] A lessee is not entitled, without the permission of the lessor, to transfer to a third party the use of the leased thing, e.g., to sublet the thing. If the lessor refuses permission, the lessee may give notice to terminate the lease with observance of the statutory term, unless a grave reason exists affecting such third party personally.
• [II] If the lessee transfers the use to a third party he is responsible for any fault committed by the third party in the use, even if the lessor has given permission for the transfer.

Section 550.

• If a lessee uses the thing leased in a way which violates the contract, and if he continues so to use it notwithstanding a remonstrance of the lessor, the latter may apply for an injunction.

Section 551.

• [I] The rent is payable at the end of the term of lease. If the rent is measured by periods of time, it is payable after the expiration of each of the periods.
• [II] The rent for a piece of land, unless measured by shorter periods, is payable after the expiration of each quarter of the calendar year on the first business day of the following month.

Section 552.

• A lessee is not released from payment of the rent by the fact that he is hindered in the exercise of his right of use by a cause personal to himself. The lessor must, however, deduct the value of any expenditure saved by him, and of any advantages which he derives from the use being otherwise turned to account. So long as the lessor is not in a position to give the use to the lessee in consequence of transfer of the use to a third party, the lessee is not bound to pay the rent.

Section 553.

• A lessor may give notice to terminate his lease without observance of any term of notice, if the lessee or any person to whom the lessee has transferred the use of the thing leased, notwithstanding a remonstrance of the lessor, continues to use the thing in a way which violates the contract and seriously impairs the rights of the lessor, e.g., if the lessee leaves to a third party the use which he has transferred to the latter without authority, or seriously endangers the thing by neglecting the care imposed upon him.

Section 554.

• [I] A lessor may give notice to terminate his lease without observance of any term of notice if the lessee is in default in respect of payment of the rent or a part of the rent for two successive instalments. Such notice may not be given if the lessee has satisfied the lessor before it is given.
• [II] The notice is ineffective if the lessee could release himself from his debt by set-off, and declares the set-off without delay after the notice.

Section 555.

• If the lessor exercises the right of giving notice which he has under 553, 554, he shall, in accordance with 347, pay back the rent paid in advance for a future time.

Section 556.

• [I] The lessee is bound to return the leased thing after the termination of the lease.
• [II] The lessee of a piece of land has no right of lien on account of his claims against the lessor.
• [III] If the lessee has transferred the use of the thing to a third party, the lessor may, after the termination of the lease, demand the return of the thing even from such third party.

Section 557.

• If a lessee does not return the leased thing after the termination of the lease, the lessor may demand the rent agreed upon as compensation for the time during which the thing is retained. Proof of further damage is admissible.

Section 558.

• [I] The claims of a lessor for compensation on account of alteration or deterioration of the leased thing, and the claims of a lessee for compensation for outlay incurred, or for permission to remove an attachment, are barred by prescription in six months.
• [II] The prescription of the lessor's claims for compensation begins to run from the time at which he receives the thing back; the prescription of the claims of the lessee begins to run from the termination of the lease.
• [III] After the prescription of the claim of the lessor for the return of the thing, his claims for compensation are also barred by prescription.

Section 559.

• The lessor of a piece of land has, by way of security for his claims arising from the lease, a right of pledge over the things brought upon the premises by the lessee. The right of pledge may not be enforced for future claims for compensation, nor for any rent for a later time than the current and following year of the lease. It does not extend to things not subject to judicial attachment.

Section 560.

• The lessor's right of pledge is extinguished by the removal of the things from the land, unless the removal takes place without the knowledge or in spite of an objection of the lessor. The lessor may not object to the removal if it takes place in the regular course of business of the lessee, or in accordance with the ordinary affairs of life, or if the things remaining on the premises are evidently sufficient for the security of the lessor.

Section 561.

• [I] The lessor may, even without application to the Court, prevent the removal of the things subject to his right of pledge in so far as he is entitled to object to the removal, and may also, if the hirer moves out, take possession of the things.
• [II] If the things have been removed without the knowledge or in spite of an objection of the lessor, he may demand their delivery for the purpose of replacing them on the land, and may, if the lessee has moved out, demand the transfer of possession. The right of pledge is extinguished on the expiration of one month after the lessor had knowledge of the removal of the things, unless he has enforced his claim in court within such period.

Section 562.

• The lessee may prevent the enforcement of the lessor's right of pledge by giving security ; he may release each individual thing from the right of pledge by giving security to the extent of its value.

Section 563.

• If a thing subject to the lessor's right of pledge is judicially attached by a judgment creditor, then as against such creditor the right of pledge may not be enforced in respect of any rent due for an earlier time than the last year before the judicial attachment.

Section 564.

• [I] A lease terminates on the expiration of the time for which it was entered upon.
• [II] If the term of the lease is not fixed, either party may give notice of its termination as provided for in 565.

Section 565.

• [I] In the case of land notice to terminate the lease may be given only for the end of a quarter of the calendar year; it shall be given, at the latest, on the third business day of the quarter. If the rent is measured by months, notice may be given only for the end of a calendar month; it shall be given, at the latest, on the fifteenth of the month. If the rent is measured by the week, notice may be given only for the end of a calendar week; it shall be given, at the latest, on the first business day of the week.
• [II] In the case of moveables, notice shall be given, at the latest, on the third day before the day on which the lease is to terminate.
• [III] If the rent for a piece of land or for a moveable is measured by days, notice may be given on any day for the following day.
• [IV] The provisions of par. 1, sentence 1, and of par. 2, apply also to all cases in which the lease may be terminated by notice before its expiration with observance of the statutory term.

Section 566.

• A contract relating to the lease of a piece of land which is entered into for a longer term than one year is required to be in writing. If the contract is not in writing it is deemed to have been entered into for an indeterminate time; notice may not, however, be given for an earlier time than the end of the first year.

Section 567.

• If a contract of lease is entered into for a longer term than thirty years, either party may, after thirty years, give notice to terminate the lease with observance of the statutory term. Such notice may not be given if the contract has been entered into for the life of the lessor or of the lessee.

Section 568.

• If, after the expiration of the term of lease, the use of the thing is continued by the lessee, the lease is deemed to have been extended for an indeterminate time, unless the lessor or the lessee declares a contrary intention to the other party within a period of two weeks. The period begins to run, as against the lessee, from the time of the continuance of the use; as against the lessor, from the time at which he has knowledge of the continuance.

Section 569.

• If the lessee dies, both his heir and the lessor are entitled to give notice to terminate the lease with observance of the statutory term. The notice may be given only for the first terminal date for which it is permissible.

Section 570.

• Persons in military service, officials, clergymen, and teachers in public institutions of learning may, in case of their removal to another place and after observance of the statutory term, give notice to terminate the lease of the places which they have leased for themselves or their families in the former place of garrison or residence. The notice may be given only for the first terminal date for which it is permissible.

Section 571.

• [I] If the leased land is alienated to a third party by the lessor after delivery to the lessee, the alienee takes the place of the lessor in the rights and obligations arising from the lease during the existence of his ownership.
• [II] If the alienee does not fulfil his obligations, the lessor is liable as a surety who has waived the plea of beneficium excussionis for any damage for which the alienee is bound to make compensation. If the lessee has knowledge of the transfer of ownership through communication by the lessor, the lessor is released from liability if the lessee does not give notice to terminate the lease for the first terminal date for which notice is permissible.

Section 572.

• If the lessee of the alienated land has given to the lessor security for the fulfilment of his obligations, the alienee takes by subrogation the rights thereby created. He is bound to return the security only if it is delivered to him, or if he assumes towards the lessee the obligation of returning it.

Section 573.

• A disposition which the lessor has made before the transfer of ownership relating to the rent due for the time when the alienee has title, is operative in so far as it relates to the rent for the calendar quarter current at the time of transfer of ownership and the following quarter. A disposition relating to the rent for a future time is valid as against the alienee, if he knew of the disposition at the time of the transfer of ownership.

Section 574.

• A juristic act entered into between the lessee and the lessor in respect of any claim for rent, e.g., the payment of the rent, is effective against the alienee, in so far as it does not relate to the rent for a later time than the calendar quarter in which the lessee has knowledge of the transfer of ownership and the following quarter. A juristic act entered into after the transfer of ownership is, however, ineffective if the lessee has knowledge of the transfer of ownership at the time of entering into the juristic act.

Section 575.

• In so far as the payment of the rent to the lessor is effective against the alienee as provided for in 574, the lessee may set off against the alienee's claim for the rent a claim belonging to him against the lessor. The set-off is barred, if the lessee has acquired the counterclaim after having obtained knowledge of the transfer of ownership, or if the counterclaim has not become due until after the knowledge was obtained and after the rent accrued due.

Section 576.

• [I] If the lessor gives notice to the lessee that he has transferred to a third party the ownership of the leased land, the transfer of which he has given notice avails against himself in favour of the lessee in respect of the claim to rent, even if the transfer has not taken place or if it is invalid.
• [II] The notice may be revoked only with the consent of the person who has been named as the new owner.

Section 577.

• Where the leased land is made subject by the lessor to the right of a third party after delivery to the lessee, the provisions of 571 to 576 apply mutatis mutandis, if the lessee is deprived of the stipulated use by the exercise of the right. If the exercise of the right results only in a limitation of the stipulated use by the lessee, the third party is bound towards the lessee to abstain from exercising such right, in so far as it would interfere with the stipulated use.

Section 578.

• If, before delivery of the leased land to the lessee, the lessor has alienated the land to a third party, or made it subject to a right by whose exercise the stipulated use is taken away from the lessee or is limited, then the same rule applies as in the cases provided for by 571, par. 1, and 577, if the alienee has assumed towards the lessor the fulfilment of the obligations arising from the lease.

Section 579.

• If the leased land is again alienated or made subject to . rights of third parties by the alienee, the provisions of 571, par. 1, and 572 to 578 apply mutatis mutandis. If the new alienee does not fulfil the obligations arising from the lease, the lessor is liable to the lessee as provided for in 571, par. 2.

Section 580.

• If the lessee does not return the object leased after the termination of the lease, the lessor may demand as compensation for the time during which the object is detained, the rent agreed upon in the proportion which the emoluments which the lessee during that time has derived or might have derived, bear to the emoluments of the entire year of lease. Proof of further damage is admissible.