Rent review clauses in real estate transactions of assignment for use and commercial exploitation in Perú

Abstract

The following article aims to open the discussion about a contract’s topic that has not received the attention it deserves by civil law country’s doctrine: rent review clauses. The article begins with the authors explaining about use and exploitation of real state contracts, in which rent review clauses can be used. Afterwards, they verse about its origin in common law countries, and its application in civil law countries as well. Then, they do an economic analysis of the rent review clauses, describing the transaction costs of its absence in use and exploitation of real state contracts. Subsequently, they discuss about its lack of regulation and if it should or should not be included in Peruvian law as a supplementary law. The authors then proceed to tell the criteria to evaluate if a rent review clause is efficient or not, and to analyze the mechanisms to review the rent in the contemporary contractual practice, showing its pros and cons in the contractual relation. Finally, the authors end the article by evaluating the possible contingencies in its application in the contemporary contractual practice.