ORS 91.090
Termination of tenancy by failure to pay rent

  • reinstatement

The failure of a tenant to pay the rent reserved by the terms of the lease for the period of 10 days, unless a different period is stipulated in the lease, after it becomes due and payable, operates to terminate the tenancy. No notice to quit or pay the rent is required to render the holding of such tenant thereafter wrongful; however, if the landlord, after such default in payment of rent, accepts payment thereof, the lease is reinstated for the full period fixed by its terms, subject to termination by subsequent defaults in payment of rent.

Source: Section 91.090 — Termination of tenancy by failure to pay rent; reinstatement, https://www.­oregonlegislature.­gov/bills_laws/ors/ors091.­html.

Notes of Decisions

In absence of facts sufficient to warrant equitable relief, failure of tenant to pay rent within 10 days after date due operated to terminate tenancy, notwithstanding a subsequent tender. State Hwy. Comm. v. Demarest, 263 Or 590, 503 P2d 682 (1972); Fry v. D.H. Overmyer Co., 269 Or 281, 525 P2d 140 (1974)

This section operated to automatically terminate defendant’s leasehold when the 10-day grace period elapsed, and there was no waiver of the time provision as a result of any previous acceptances of late payments. Ratoza v. The Flame, Inc., 277 Or 185, 559 P2d 1283 (1977)

Prior acceptance of late rent payments did not supersede rule of this section that failure to pay rent operates to terminate tenancy without notice to quit or pay. Washington Square, Inc. v. First Lady Beauty Salons, 290 Or 753, 625 P2d 1311 (1981)

Where agent disbursed funds from trust account containing payments on lease during pendency of FED action, this did not have the effect of reinstating lease where record did not indicate that payments were anything but inadvertent. Pratt v. McNally-Rathbone, 61 Or App 443, 658 P2d 516 (1983), Sup Ct review denied

Where lease did not require separate written notice of termination for failure to pay rent, plaintiff’s notification to defendant that it was in default and demand for full payment within 10 days complied with the lease and the statute did not require more. Beri, Inc. v. LaPointe’s, Inc., 66 Or App 257, 673 P2d 570 (1983), Sup Ct review denied

In FED action, lessor’s acceptance of administrative rent from bankruptcy court for period after lessor’s filing of action did not waive lessor’s default in payment or reinstate lease under this section. Shlim v. Alimeg, Inc., 87 Or App 178, 742 P2d 54 (1987), Sup Ct review denied

This section does not require written notice of default before commencing FED action. Shlim v. Alimeg, Inc., 87 Or App 178, 742 P2d 54 (1987), Sup Ct review denied

Where tenant fails to pay rent timely and therefore forfeits estate in real property, tenant remains liable for damages for breach of agreement to lease premises in future. Sunset Fuel and Engineering Co. v. Compton, 97 Or App 244, 775 P2d 901 (1989), Sup Ct review denied

Where lease contains forfeiture provision with terms contrary to statutory terms, lease controls and forfeiture action is treated as contract interpretation and enforcement issue. 2606 Building v. MICA OR I, Inc., 334 Or 175, 47 P3d 12 (2002)

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