Section 617: Validity period of contract of lease

1) No contract of lease concluded in relation to the following goods shall remain valid for more than the following period:

(a) Thirty-five years in the case of housing land leased for the construction of a building or housing land in use after construction of a building therein,

(b) Thirty-five years in the case of the land leased for the purpose of servitude,

(c) Forty years in the case of the land leased for the purpose of construction, development, and operation of the infrastructures such as industrial structures, roads, canals, and electricity generation,

(d) Twenty years in the case of land for farming;

(e) Nineteen years in the case of house and land leased for purposes other than those referred to in clause (a), (b), (c), or (d),

(f) Fifteen years in the case of a motor vehicle,

(g) Fifteen years in the case of machinery equipment other than a motor vehicle,

(h) Fifteen years in the case of machinery equipment other than that referred to in clause (f) or (g),

(i) Ten years in the case of a domestic animal,

(j) Ten years in the case of goods other than those set forth in this Section, having regard to their life and nature.

2) Notwithstanding anything contained in sub-section (1), the parties may extend the validity period of the contract of lease, subject to the validity period of the contract, before expiry of the period referred to in such a sub-section.

3) Notwithstanding anything contained in sub-section (2), the parties to a contract of lease may decide whether to extend the period of the contract of lease, having regard to the place where the leased house and land are situated and the nature of the goods.