In the Philippines, even though the sublessee is not a direct party to the contract between the lessor and the lessee, the sublessee still bears direct liability to the lessor for actions related to the use and preservation of the leased property. Specifically:
Use and Preservation: The sublessee must adhere to the terms stipulated between the lessor and the lessee regarding the use and maintenance of the property. If the sublessee fails to do so, the lessor can take legal action directly against them.
Exception to the Rule: While the general rule in contracts states that the sublessee can only be held liable directly to the sublessor, Article 1651 of the Civil Code provides an exception. The lessor may bring an action directly against the sublessee if they do not use and preserve the leased property in accordance with the agreement or the nature of the property.
Rent Obligations: Additionally, the sublessee is subsidiarily liable to the lessor for any rent due from the lessee. However, this liability is limited to the amount of rent owed by the sublessee according to the terms of the sublease at the time of the lessor’s extra-judicial demand.
In summary, the sublessee has both direct liability to the lessor for property-related matters and subsidiary liability for rent obligations.
Source: Ziggurat Real Estate Corp.
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