In a judgment handed down on 23 April 2019 (file no. 26 Cdo 4109/2018), the Czech Supreme Court addressed the extension of fixed-term leases that were concluded under the old Civil Code.
It is the accepted view of Czech courts that section 676(2) of the Civil Code creates an irrefutable presumption that fixed-term leases are automatically renewed. In other words, a lease will continue on the same terms after the expiry of the agreed period so long as the tenant continues to use the leased property and the landlord does not file an eviction notice by the prescribed deadline. When assessing whether all requirements in section 676(2) have been met, the extent of the tenant’s continuing use of the property after the agreed lease term is not crucial. Instead, the requirement of continued use is fulfilled by the mere failure of the tenant to vacate the property and return it to the landlord or its failure to hand over the leased item to the lessor in cases of moveable property.
As far as agreements concluded under the old Civil Code are concerned, this means for the requirements of section 676(2) of the Civil Code to be met and a lease successfully extended, it is not important whether the parties agreed to extend the lease after the expiry of the agreed term. That the lease ends at the expiry of the agreed term is one of the requirements for a lease extension under section 676(2). if the parties merely agreed that the lease would terminate at the expiry of that period, this does not amount to a tacit waiver of the statutory extension of the lease (relocatio tacita, or tacit relocation).