LIFETIME RENTAL AGREEMENT

Concept

The annuity represents a relationship of obligation by virtue of which one party, the debtor,
is obligated to deliver to another natural person, pensioner, a periodic amount during the
life of this one or limited by the life of another natural person. Article 2121 of
The Civil Code says: 'by the aleatory contract of life annuity, one person transfers the
transfer of certain assets to another party that agrees, in return, to pay periodically a
pension during the life of the rentee. The rentee can be the one who transfers the property of the
You come to a third party designated by him in the contract. The life annuity can also
constitute free of charge.

The lifetime rent contract, which is reduced to the agreement by which a person will have,
during their lifetime, the right to an annual income, in cash, called 'pension', and paid by the
renter. It may be constituted for a fee, through a monetary amount, for a thing.
appreciable furniture, or by a property, may also be constituted purely gratuitously
by inter vivos donation or by will.

Likewise, Carlos Vásquez Ortiz indicates that the elements of the life annuity contract are:

a) Personal: The lender is the one who provides the capital, the debtor is the one who receives the capital and
the obligor agrees to pay, the disponor is the person upon whose life the pension is established,
a pensioner is someone who receives a pension;

b) Real: Capital that can consist of money, pension delivers the debtor's performance of
the rent

c) Formal: It constitutes a solemn contract, therefore it must be granted in a public deed.

CHARACTERISTICS

• Random. Since its randomness lies precisely in the fact that the one obligated to pay the rent,
like someone who transfers goods, they do not know, nor can they know when signing the contract,
how long will the rent be payable or, in other words, the total amount of the benefit to
what the tenant is obligated to.

• Free or onerous. It will be free when it derives from a pure and simple donation or from a
rental legacy, in which the donor or testator establishes the rent in favor of the donee or
heir, without compensation on their part. It will be onerous when there is
reciprocal considerations (the property of an asset is transferred in exchange or with the burden
of the pension payment), as would occur in a pure life annuity.
(Art. 2121 C.C.) or in the donation of an asset with the burden on the donee to pay the pension
lifelong, either to the donor or to a third party.

• Transfer of ownership. For it is in its essence the transmission of property of an asset; but
that condition of transfer of ownership does not make the contract real, since the delivery
the physics of the transmitted thing is not a requirement for the validity of the contract, as happens for example
in the loan, deposit, and lease.

Solemn. It is solemn in the sense that it must be recorded in a public deed in order to be
valid (Art. 2122 C.C.). The consent of the parties is not sufficient to give rise to
contract, unless it requires as a validating element the one formalized in writing
Public. The omission in the fulfillment of that formality invalidates the contract (Art. 1577 C.C.)
and there is no legal possibility to rectify it through the procedure indicated in Article
1576 of the Civil Code (action to compel the granting of a public deed in the
Contracts subject to registration.

• Successive obligation. In the sense that the debtor is obliged to perform obligations.
periodic and concrete.

• Unilateral or bilateral. Depending on whether it is gratuitous or onerous.

2.3 Elements

Personal element

In the lifetime lease contract and in the relationships derived from it, parties may intervene.
four subjects:

The one who provides the capital;

The person obliged to pay the rent;

The person whose life the income is constituted upon; and

The one who receives the agreed pension or rent.

2.3.1. The one who provides the capital

It is the person who logically must have the capacity and free disposal of their assets to
to alienate [Link] Civil Code of Guatemala includes a limitation for establishing rent.
lifelong, to that person who is obliged to provide food, who for that purpose will have
to guarantee them, and for this purpose, Article 2126 establishes: "The one who is obligated to pay
food cannot transfer goods to rent, without guaranteeing the rights of the
food providers." And Article 2127 states: "If the rent has been allocated for food,
or if due to unforeseen circumstances the landlord has to be allocated for that purpose, it will not be
compensable, not subject to seizure, that corresponds to the period that is currently running, nor the future ones.
These precepts are clear because the right to food takes precedence over anything else.
another thing or issue and it is also logical that it is not subject to seizure.
2.3.2. The person obligated to pay the rent:

She must be able to obligate herself and furthermore, as our Civil Code mandates, she must provide
sufficient guarantee in favor of the tenant. Article 2128 of the Civil Code.

3.3.3. The person upon whose life the income is established:

Generally, the income is established based on the life of the rentier, meaning their life is the
determinant, which forms the randomness of the contract in question; for saying 'pocautility'
for the pensioner, there will be a pension established based on the life of a
third.” In reality, what is essentially needed is that the person whose life is
determinant for having constituted in it the income, alive at the moment of celebration
contract. In this regard, our Civil Code is clear in stating: 'The contract is null if the
a person whose life is constituted has died before its granting or within the period
that the contract states and that it cannot be less than three months.

2.3.4. The one who receives the agreed pension or rent

Logically, the person who has transferred or ceded their capital must collect the rent.
life has instituted this contract; but since it can also be a third party, such as
the Civil Code establishes, in this case it will be the (third) who receives the rent.

Object

As a bilateral contract, the annuity comprises two benefits: I. The capital that is
transferred by the contractor to the debtor of the rent (Art. 2121 C.C.). The capital may be
composed of movable property, immovable property, fungible or non-fungible, usufruct, money, credits, titles of
credit, etc., that can be subject to economic valuation and Article 2122 of the Civil Code
requires that the goods being transferred be specified and valued in the deed.
that the contract is formalized. II. The rent that he is obliged to pay to the landlord, for the entire
life of this. From the above, it is deduced that the rent must be fixed and determined, that its amount and
frequency must be indicated in the contract and that the debtor's obligation for the rent may
both consisting of a payment in cash and in kind.

Solemnity

Article 2122 of the Civil Code states that for the validity of the contract to be granted in
public deed, which in addition to the general requirements applicable to all deeds
public should include those established in the cited Article.

2.4 Rentier

The rentier can be the same contractor of the rent (who provides the capital) or a third party.
appointed by this in the contract or several persons jointly, in which case it will be presumed
legally, the rent will correspond to them equally, and the death of one of the co-
Renters will not increase the share of others, unless the contract states otherwise.
(Art. 2125 C.C.).
The income beneficiary can be a legal entity, but in this case, the income will end with the life of the
institution or the individual designated by it when the contract is granted (Art. 2123
C.C.).

If the rentier is a person different from the contractor, they must be identified in the deed in which
the lifelong rent contract is formalized.

2.5 Debtor

It is the person who has received the capital and who assumes the obligation to pay the rent. The debtor.
of the rent is assuming an obligation that exceeds the limits of an ordinary one
administration, given the risk that it could prove to be excessively burdensome for it, if
The holder of the contemplative life will survive what would be a normal life expectancy.

It can be inferred that those who represent minors or incapacitated individuals cannot and should not.
celebrate a onerous contract for life annuity without prior judicial authorization (Art.
264 and 321 subsection 1 of the Civil Code). Since the obligation passes to the heirs except as established in
the contract.

The death of the tenant does not affect the existence of the contract, nor the rights of the
income receiver (Art. 2130 C.C.).

2.6 Requirements

• Content

The specification and value of the goods

The identification of the renter if it is a third party

The pension or the rent that he/she has to pay you

The purpose of the rent

The guarantee that ensures payment

The conditions that are convenient for the parties

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Registration

If it is about movable or immovable property that can be registered, they must be registered in the registry of the
property.

• Guarantees

The life annuity debtor must provide a guarantee.

2.8 Termination
Terminating the contract according to Ernesto R. Viteri Echeverría:

a. "By the death of the rentier: This is the usual cause of the exhaustion of the rental contract"
vital in Guatemala, since it is not usually expected that the life contemplated can be
another than that of the renter. The death of the renter leads to the termination of the contract and
extinguishes the obligations of the rent debtor (Art. 2130 C.C.).

b. Termination for breach by the debtor: In accordance with Articles 2128, 2129,
In 2130 C.E., the termination and resolution of the contract may be demanded, and consequently the
restitution of the contract and the restitution of what they respectively would have received
parts, in the event that the debtor fails to fulfill his obligation to establish or expand the guarantee of
compliance with its obligations, in favor of the contractor or the lessor.

c. Special case of nullity: If the renter dies before the contract is formalized, this
it is a special cause of nullity, in accordance with Article 2124 C.C. Of course, in
in this case, it must be a rent established in favor of a third party, since if the
if the contracting party/renter dies before the granting of the public deed, it would not open
contract to annul.

d. Death of the annuitant before the testator or donor: In the life annuities established to
free title, by will or simple donation, it is possible to agree that the income begins to
to be paid from the death of the grantor. Now, if the designated annuitant dies before
that the testator or donor, the income does not acquire validity and will form part of the estate
inheritance (1233 C.C.). The same rule establishes that if the free rent has been established
in compensation for services or obligations (remuneratory donation of life annuity?), the
the death of the annuitant before the testator or donor does not produce effects and the income goes to the
heirs of the rentier.

e. Ingratitude: The death of the renter or the person whose life the annuity was established upon, by
a criminal act attributable to the debtor of the rent leads to the termination of the contract and the
obligation of the debtor to return the capital to the contractor or to their heirs, with the sanction
additional inability to deduct the value of the rents that may have been paid. (Art. 2136 C.C.)

f. Waiver: If the renter waives the rent, the debtor's obligation to pay it is extinguished and
it does not affect the validity of the contract, nor the transfer of goods. It only ceases in
definitive form, by a generosity of the lender towards the debtor, the obligation of the debtor to
to pay the rent". (Art. 1234).

The life annuity represents a relationship of obligation by virtue of which a debtor subject,
is required to pay another individual, a pensioner, a periodic amount.
during the lifetime of this one or having as a limit the lifetime of another natural person; in exchange for the
delivery of an asset. This contract has also been referred to as a loss liquidation,
Well, upon the death of the seller, their heirs will not find the fund, it is also indicated that
which is a procedure commonly used by people of modest means who do not have
close relatives, as it ensures them a reasonable income that allows them
allows to live decently for the rest of their life.
From the above, I can extract the fundamental characteristics of the contract:

a) There is a transfer of goods;

b) From this arises the obligation to pay rent

periodic (credit of a generic nature); and

c) For a time that depends on a person's life.

The transfer of ownership of property that one person makes to another is characteristic of
contract of onerous life annuity (pure life annuity contract or in the form of a donation
for valuable consideration or donation), by which the ownership of a thing is transferred to one party.
with the obligation to pay the transferor or a third party a lifetime pension; but not
exists in the case of donation or legacy of life annuity, where the donor unilaterally assumes
and voluntarily or the testator assigns to their heir the payment of a lifetime annuity in favor of
from the donor or the legatee. The debtor of the rent assumes an obligation to pay a sum
determined, for specified periods (week, month, semester, year), obligation that is of
personal character and does not constitute a real burden. The obligation is unique and singular, but it
completes through periodic payments. That is why the deadline for the obligation to pay the
rent depends on a person's life, how much it can be from the renter or creditor of the
rent, that of the tenant or that of one or more third parties. Here is the element that gives
randomness to the contract, as the amount of the benefit depends on an event
uncertain (the termination of the contemplated life), which determines the gain or the loss that
the parties will obtain from the contract. For this reason, as the presenter of this research
In the thesis, I consider analyzing each of the personal elements of the rental contract.
lifelong since in them I found effectiveness as a response to the formulation of the hypothesis
corresponding and information reflected in the previous chapters, by virtue of which
development in the following way:

Personal element

Renter contractor: It is the person who transfers goods to the debtor of the rent and who with
Hello, it causes this party's obligation to pay it. Given that the contractor is disposing of its
goods, onerously or free of charge, requires the capacity to act in order to transfer, so that
neither minors nor incapacitated individuals, nor their representatives, can enter into this contract, as
contractors. Needing the representatives prior judicial authorization. For that
same reason, the contracting party's representative requires a special mandate or a general mandate
with a special clause, to enter into the onerous contract of life annuity and mandate
very special, that meets the requirements established in our regulations, to celebrate the
contract of free life rent and even the onerous, if it arises from a donation with burden.

Debtor of the rent: It is the person who receives the capital and is obliged to pay the
respective rent. That is to say, that the debtor of said rent is assuming an obligation that
exceeds the limits of ordinary administration, given the risk that it could
be excessively burdensome, which is why the representatives of the minors or
unable, they cannot, nor should they celebrate a costly lifetime rental contract, without having
prior judicial authorization and that the representative also requires authority or mandate
special, to assume, for its principal the obligations that correspond to the debtor of the
rent. The death of the tenant does not affect the existence of the contract, nor the rights
of the tenant, by virtue of the fact that the regulation provides that the obligation to pay the rent passes to the
heirs of the debtor, being jointly liable, unless otherwise agreed.
PANAMERICAN UNIVERSITY OF GUATEMALA

Juridical and Justice Social Sciences

CIVIL LAW V

LICDA. JUANA SOLIS

LIFETIME RENTAL CONTRACT

ALEXANDER MIRANDA REYES

201200313

GUATEMALA MAY 18, 2015