Can the termination of a farming lease agreement be requested if the tenant or landlord fails to fulfill their obligations?

Flemish Farming Lease Decree explained (Part 6)

For the termination of a farming lease agreement because one of the parties fails to fulfill their obligations, one must look at the general rule of the Civil Code, specifically Article 1184 CC, both according to the Farming Lease Law and the Farming Lease Decree.

This is because a lease contract is a reciprocal contract. Consequently, each party has the choice, if the other party fails to meet their obligations, to either demand the execution of the agreement or to seek termination with compensation for damages.

In accordance with Article 1184 CC, the resolutive condition is always implicitly understood in a reciprocal contract, in the event that one of the parties fails to fulfill his obligation.

The Farming Lease Decree and the Farming Lease Law describe circumstances under which it is assumed that the tenant or landlord fails to fulfill their obligations and the other party can seek termination of the lease agreement in court.

The Farming Lease Decree provides a resolutive condition when the area specified in the agreement does not match reality (landlord):

“If a farming lease agreement attributes a smaller or larger area to the leased property than it actually has, the lease price is proportionally increased or decreased, starting from the first due date following the claim. The tenant also has the right to demand the termination of the farming lease agreement. The claim for reduction or increase of the farming lease price and the claim for termination of the farming lease agreement are only admissible if the difference between the actual area and the area stated in the agreement is at least one-twentieth.”

Additionally, the Farming Lease Decree incorporates the following resolutive condition for the landlord, which was already present in the old Farming Lease Law. The landlord may, depending on the circumstances, terminate the lease agreement if the tenant:

• does not provide the leased property with the animals and equipment necessary for the farming business,
• ceases building,
• does not act as a prudent and reasonable person in building,
• uses the leased property for a purpose other than that for which it was intended, or
• generally, seriously breaches the terms of the farming lease agreement, causing damage to the landlord.

In the event of termination due to the tenant’s fault, the tenant will be liable for damages.

Note: A penalty clause and an explicit resolutive condition remain null and void.

Termination can therefore never occur automatically but must always be sought through legal proceedings.

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