Interference in contracts of lease

I refer to the parliamentary report quoting Minister John Dalli, in his introduction to the debate on rent reform, declaring that he would abide by the fundamental principle that there would be no interference by the government when there is an established contract between parties to a lease agreement.

No sooner had he stated so than he urged members to vote against the human rights of leaseholders of commercial properties by saying that contracts with no end date are to cease to be valid in 20 years. Lease contracts with no end date, such as those subject to a revision of rent every five years (or different periods) are sanctioned by Art. 1532, Chap. 16, which lays down rules for the termination period of the leases having no end date with the express omission of "those agreements that include circumstances that tend to show the intention of the contracting parties as to the duration of the lease".

Agreements that include a revision of rent every five years are intended to remain in vigore for as long as the leaseholder remains alive. No authority should intervene and dictate that this period should be limited to 20 years from any determined date.

Had the contracting parties the intention to limit the duration they were at liberty to do so but they agreed not to. Interference resulting from Mr Dalli's suggestions will induce affected leaseholders to seek constitutional redress in our courts.