MEXICO Law and Practice Contributed by: Roberto Cannizzo, Carlo Cannizzo, Stefano Amato and Mauricio Moreno-Rey, Cannizzo
whether natural, industrial or civil, produced thereby. 6.2 Types of Commercial Leases Mexican civil law recognises only one type of lease agreement, although specific rules are provided in the federal and state civil codes, depending on the purpose or location of the leased premises. 6.3 Regulation of Rents or Lease Terms Rentals and lease terms are usually freely nego - tiable, however, there are certain legal provisions within the regulation provided by the federal and state civil codes that are binding and non- negotiable/waivable since they are considered as public interest provisions. These are usu - ally provisions applicable to residential leases, although certain state civil codes may also pro - vide restrictions to other types of leases, such as maximum duration of the lease (ie, 20 years for commercial leases). It is always recommended to review the set of rules provided by the appli - cable state civil code. The government has not yet enacted any leg - islation directly affecting leases because of the COVID-19 pandemic. However, it should be noted that civil codes already contain legal pro - visions applicable to the impediment of the use of leased premises, mainly in commercial leases where the leased premises cannot be operated due to a force majeure. For example, Article 2431 of the Federal Civil Code, also applicable to commercial leases, provides that, if, by reason of an Act of God or force majeure, the tenant is completely prevented from using the leased premises, no rent shall be due while the impedi - ment lasts, and if such impediment lasts more than two months, the tenant may request the ter - mination of the agreement. Similar provisions are
included in the civil codes of the various states of Mexico. Furthermore, in some state civil codes, the “unforeseeability theory” is acknowledged, the spirit of which is to seek a balance between the mutual obligations undertaken by the par - ties in the event that there are extraordinary and unforeseeable national events that make the obligations of one of the parties more oner - ous. In such a case, the affected party may take action to have the balance between the obliga - tions restored, under certain conditions and cir - cumstances. 6.4 Typical Terms of a Lease Length Normally, the length of a lease term is freely negotiable; however, it must be taken into account that civil codes may contain provisions for minimum and maximum terms. For example, the minimum term of a residential lease agree - ment, pursuant to the Civil Code for Mexico City, is one year for both parties, and may be extended at the tenant’s will for up to one more year, under certain circumstances. Lease of real properties destined for commerce and industry, under the same Code, cannot exceed 20 years. Landlords and tenants may freely determine whether a term is binding and may even agree on penalties to be paid if the binding term is breached by any party. General Rules General rules contained in the federal and state civil codes establish that the landlord is liable for defects in the leased property that may pre - vent the use thereof, even if the landlord was not aware of the defects or they occurred during the lease term, provided they are not a conse - quence of the tenant’s negligence. On the other hand, the tenant is responsible for minor repairs
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