Civil Law
Renewal of Lease Contracts under Jordanian Law
A summary of the rules governing lease renewal under the Jordanian Civil Code, distinguishing express renewal from implied renewal and their respective prerequisites. The note outlines practical effects of implied renewal and procedural limits on transfer of securities and enforcement.
Updated: 2 October 2024
Prepared and reviewed by: Ashraf Al-Khawaja
Concept and Scope of a Lease Contract
A lease grants the tenant the right to use a thing's benefit in exchange for payment for a specified period; it includes real-estate leases and contracts for services. Under Jordanian practice the Civil Code definition frames the parties’ obligations and consequences, with particular attention to whether the lease is tied to the person or the thing when deciding termination or continuation effects.
Contract Termination and Modes of Renewal
A lease ends upon expiry of its term unless the parties agreed on express renewal; older statutory regimes may impose special continuity rules for legacy leases. Express renewal requires a new agreement between parties, whereas implied renewal is inferred from the tenant’s continued occupation with the landlord’s consent, as reflected in Article 707(2) of the Civil Code.
Conditions for Implied Renewal and Burden of Proof
Implied renewal requires a prior lease whose term expired, the tenant’s continued use after expiry, and the landlord’s assent or silence indicating consent, together with no evacuation notice manifesting a refusal to renew. The claimant bears the burden to prove these elements, and the trial court has discretionary power to assess whether the post-expiry occupation and the landlord’s behavior amount to consent rather than mere tolerance.
Effects of Implied Renewal and Limits on Transfer of Securities
Implied renewal is treated as a new lease adopting most prior contractual terms except for the fixed term; consequently rent and operative clauses generally continue, while the new lease may be for an indefinite period unless otherwise agreed. Practically, certain personal guarantees and formal enforcement instruments tied to the old lease do not automatically move to the renewed lease without the guarantor’s consent or explicit provision, affecting enforcement remedies and secured rights.
Practical Procedures and Case-Law Guidance
Practically, parties should record renewal intentions expressly to avoid disputes over implied consent, and a clear evacuation notice prevents presumptive renewal. Appellate courts have affirmed that landlord silence coupled with tenant occupation may constitute implied renewal, and that pre‑existing contractual clauses providing for automatic renewal will operate without additional offer and acceptance after expiry.
Legal notice
Notice: This content is for general educational and explanatory purposes only and does not constitute legal advice. The original source is linked on the publication page; verify the official statutory texts, amendments, deadlines and applicable procedures, and consult a licensed Jordanian lawyer before taking any action.
Sources and references
Verify the official text and latest amendments before relying on this material professionally.