The legal nature of the lease contract under Article 4 of Royal Decree No. 6/89 regulating the rental relationship

A lease is a contract under which the lessor seeks to exploit and invest the property he owns so that the lessee can benefit from the leased property for a specified period in return for a certain rent .Given that rental contracts are among the most prevalent contracts in daily life, the legislator intervenes and regulates its provisions in accordance with the provisions of Decree No. 6/89 in addition to the general rules contained in the Civil Transactions Law No. 29/2013 starting with Article 516. Recently, the Law on Simplifying Litigation Procedures No. 125/2020 was issued, which enhance the legal value of the contract documented by the municipality and make it in the power of the executive document. By following the rulings of the courts in the Sultanate as well as the Arab Gulf states with regard to the interpretation and application of the text of Articles 2 and 3 and their equivalents in the Gulf states' courts, which imposed the obligation to register the lease contract with the competent municipality and pay the prescribed fees, and Article 4 according to which the penalty was organized in the event of violation of the texts above-mentioned, whereupon that the penalty in this case is unacceptance of this contract before any official body in the Sultanate, so this study examines the reasons for the different interpretation from the courts of the mentioned articles, and whether registration changes the nature of the lease contract, presenting some results and recommendations extracted from this study.