lease

1. LEASES OF IMMOVABLE
PROPERTY
Transfer Of Property Act

By -
Shivraj Singh
Roll No.-098
Div-B

2. LEASE
Sections-(105-117 of TOPA)
Definition-Transfer of right to enjoy an
immovable property for certain time and rent.
Person who transfers the right- lessor
Person whom right is transferred- lessee

3. LEASE defined inTOPA
Section 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.

4. SALE & LEASE
SALE- All rights of ownership, which transferor
has transfers to transferee. Valid for minor.
LEASE- Partial transfer,that is transfer of right
of enjoyment for certain time.Void for minor.

5. Essential Elements of LEASE-
Parties;
Subject matter of immovable property;
Duration;
Consideration.
Parties- lessor and lessee must be competent
to contract. There must be contract between
the parties,express or implied,in consideration
of either premium, rent or both.

6. Lease to a minor is void,as lease imports a
binding agreement,to pay rent & to perform
various conditions.
Subject matter- subject matter must be
immovable property.
“immovable” also includes any benefit out of
land such as fisheries,ferries,market dues.
Duration- lease must be for a certain time or
in perpetuity.
It may commence on present day,future
date,happening of some event.

7. Sec.110 enacts if no commencement day
stated,lease begins from date of execution.
Both time of beginning and ending date must
be fixed.
Consideration- Either premium or rent.
Premium is price paid or promised to be paid
in a lump sum.
Rent is a periodical payment.
Rent can also be delivery of share of crops or
rendering of services etc.

8. Difference between Rent and Premium-
When the interest of lessor is parted with for a
price the price paid is called premium or
salami.
The periodical payments made for continuous
enjoyment of benefits under the lease are in
nature of rent.
In Member for the board of agriculture income-
tax v. sindhurani chowherani AIR 1957 SC
729 SC told the indicia of salami are:
1)its single non-recurring character
2)payment prior to the creation of tenancy.

9. Renewal clause in lease- 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
merelyby 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.

10. THANK YOU