CONTRACT
OF LEASE OF COMMERCIAL BUILDING
Know All Men By These Presents
The CONTRACT OF LEASE, made and entered into by and between:
________________________, a corporation duly organized and
existing under and by virtue of Philippine laws with principal office at _________________________, Philippines, represented by its
President, ________________________,
hereinafter called the "LESSOR";
- and –
________________________, __________ citizen, of legal age, single/married,
doing business under the name and style of
_______________________________________, and a resident of
____________________________________________, hereinafter called the "LESSEE";
W I
T N E S S E T H
WHEREAS, the LESSOR is the absolute owner
of ________________________, a three (3) storey commercial building located at ________________________.
WHEREAS, the LESSEE desires to rent Unit No. ____ of the aforesaid commercial building of
the LESSOR, with a total area of _______________________ (_____ )
square meters and the latter has agreed to lease the same to the LESSEE.
NOW,
THEREFORE, for and
in consideration of the foregoing premises, the LESSOR hereby leases unto the
LESSEE, and the latter hereby accepts the lease from the LESSOR, the
above-mentioned space of the said commercial building, subject to the faithful
performance by the parties of the following terms, stipulations and conditions:
1.
LEASE PERIOD – The period of the lease shall be __________
(_____) years to commence on ____________________ and to end on ____________________,
renewable for another period subject to reasonable terms and conditions
mutually acceptable to both parties, unless sooner terminated as elsewhere
provided herein.
2.
MONTHLY RENTAL – The monthly rental of the LEASED
PREMISES will be as follows:
Lease
Period
Monthly Basic Rent
_______________________ _______________________
_______________________ _______________________
_______________________ _______________________
_______________________ _______________________
_______________________ _______________________
In
addition to the agreed monthly rental, a TWELVE PERCENT (12%) Value Added Tax
shall be paid by the LESSEE. The said
monthly rental shall be due and paid not later than the 1st day of
each month. Upon execution of this
Contract, the LESSOR shall require the LESSEE to issue a yearly Postdated Check. The withholding tax due the government to be
deducted from the basic rent shall be paid separately by the LESSEE directly to
the Bureau of Internal Revenue, furnishing copies to the LESSOR of the
corresponding government official receipts and other documents supporting the
said payments. All amounts mentioned above shall be covered by corresponding
postdated checks and shall be delivered upon signing of this Contract.
3. DEPOSIT – Upon signing of this contract,
the LESSEE shall remit to the LESSOR, the sum of ____________________________
PESOS (P_____________.00), as a non- interest bearing deposit, to answer for any
unpaid utilities and other charges incurred by the LESSEE within the LEASED
PREMISES. PROVIDED, that the balance of the deposit , after deducting the
charges of the unpaid utilities, shall be refunded to the LESSEE within a
period of THREE (3) MONTHS from and after the date the Contract expires or
terminates. In the event that the LESSEE
had to stop its business operations for whatever reason, the deposit shall be
forfeited in favor of the LESSOR as full compensation for LESSEE’S being unable
to survive the Lease Period.
In the event the lessor imposes charges on the deposit for unpaid utility bills and/or damages, the lessor must prove that it is entitled to such charges against the security deposit and shall provide itemized evidence of said charges or any damages on the premises alleged to have been caused by the lessee and the costs to repair them, which costs must be considered reasonable in each instance. At the end of the lease period or upon termination of the lease, the lessor and lessee or their authorized representatives shall jointly inspect the premises and certify a report of its condition. If there are no damages, such shall be noted in the certification and a copy of which given to the lessee. Damages does not include reasonable use and wear. Reasonable use and wear includes natural deterioration and decay resulting from time and normal use, such as but not limited to small holes in walls, scrapes, marks from pictures, shelving and furniture.
4. SERVICE
FACILITIES & UTILITIES – The LESSOR has installed the provision for
water and the LESSEE shall promptly pay the water bill directly to the
Local Water District. There will be a sub-meter for the
electricity and all charges shall be billed to the tenant monthly. Utility
services consumed within the LEASED PREMISES by the LESSEE, as well as the cost
of repair of the same, shall be for the exclusive account of the LESSEE.
5. IMPROVEMENTS
– It is agreed that the LESSEE may only introduce and/or alter any improvements
in the LEASED PREMISES, upon prior written consent from the LESSOR. Installation of the signage and other
commercial advertisements of the LESSEE shall be placed in the areas designated
by the LESSOR.
6. USE
OF THE LEASED PREMISES – The LESSEE hereby expressly agree and warrants
that the LEASED PREMISES shall be for its duly licensed business.
7. CARE
AND MAINTENANCE – During the period and existence of this Contract of
Lease, the LESSEE shall keep and maintain the LEASED PREMISES. The LESSEE shall
be responsible for any repair or improvements made by the LESSEE in the LEASED
PREMISED, the cost of which shall be for the exclusive account of the LESSEE.
The LESSOR shall not be responsible and liable for any loss occasioned and
arising from rats, termites and negligence of the LESSEE or its agents, employees, servants or any and all other persons. Neither
shall the LESSOR be held liable for loss or damage to goods or property or for
injuries to person in, upon and/or about the leased premises for any cause
whatsoever, including acts of occupancy or employment of said premises by the
LESSEE or third persons and the latter hereby expressly indemnify and hold
LESSOR harmless from any or all damages, responsibilities or claims on account of
any such or damage to goods and property or any such injury to persons.
8. COMPLIANCE
WITH LAWS AND REGULATIONS - The LESSEE shall comply with any and all laws,
ordinances, regulations or orders promulgated by the proper government
authorities arising out or from the use, occupation and sanitation of the
LEASED PREMISES.
9. INSPECTION
OF THE LEASED PREMISES - The LESSOR or its duly authorized
representatives shall have the right to inspect the LEASED PREMISES at any
reasonable hour of the day.
10. LOCKOUT – In case of failure to pay the
monthly rental for a period equivalent to two (2) months, the LESSOR shall have
the right to disconnect all facilities without notice to the LESSEE and the
LESSOR shall likewise have the right to lock-out and padlock the doors of the
LEASED PREMISES until the rentals in arrears have been paid. In the event that
the LESSEE is in arrears in the payment of rentals, it shall not remove any
movable items, such as furniture and fixtures without the consent of the
LESSOR, which movables shall serve as security for the payment rentals in
arrears and of other obligations of the LESSEE.
11. EXPIRATION
OF CONTRACT – Upon the expiration or termination of this Agreement, the
LESSEE shall voluntarily vacate and surrender the LEASED PREMISES in favor of
the LESSOR. Fixtures as well as the contents thereof which remain the
properties of the LESSEE may be removed and their removal will not in any way
cause damage to the building of the LESSOR.
12. INSURANCE
– The LESSEE may take an insurance
coverage on its movable properties within the LEASED PREMISES, as well as its
leasehold improvements.
13. ABANDONMENT – In case the LEASED
PREMISES is deserted or vacated before the expiration of this lease, or should
the LESSEE be in arrears in the payment of the rent or on other accounts and
the LEASED PREMISES be closed for business or be unused without notice of
closure to the LESSOR, the LESSOR, at its option or sole decision, shall
consider the LEASED PREMISES abandoned and the lease agreement terminated
without notice. In case of abandonment,
the LESSOR shall have the absolute right to open the premises, take an
inventory of any and all furniture, effects and other materials found in the
LEASED PREMISES, remove the same from the premises and place them in storage,
for which the LESSEE shall be answerable for the payment of such storage
charges. PROVIDED, that should the
amount deposited by the LESSEE be insufficient to answer for such obligation
incurred by the LESSEE, the effects removed from the LEASED PREMISES and placed
in storage shall be considered as taken under constructive pledge and disposed
of by the LESSOR under the applicable provisions of the New Civil Code on
public auction for the pledged articles and the proceeds applied to the
LESSEE’S unsettled obligations. The
proceeds of the sale shall be restrictive in that should the amount realized
from such sale be insufficient, the LESSEE shall continue to be liable for the
remaining unpaid balance.
14. MISCELLANEOUS – This agreement
supersedes and renders void any and all agreements and undertakings oral and/or
written previously entered between the parties covering the properties herein
leased, and this Agreement may not hereafter be modified or altered except by
instrument in writing duly signed by the parties hereto.
IN WITNESS WHEREOF, the parties
hereunto set their hands this __________________ day of _________________________,
2015 in ___________________, Philippines.
______________________ ______________________
Lessee Lessor
TIN: TIN:
By:
______________________
President
SIGNED IN THE PRESENCE OF
__________________________ __________________________
ACKNOWLEDGMENT
Republic of
the Philippines )
City of ________________ ) s.s.
BEFORE ME, a
Notary Public for the City of Cebu, Philippines, personally appeared the
following persons who exhibited their Competent Government Issued
Identification Cards, to wit:
|
Name
|
Passport/Driver’s
License No.
|
Place
Issued
|
Expiry
Date
|
|
|
|
|
|
Known to me and
to me known to be the same persons who executed the foregoing CONTRACT OF LEASE
and have acknowledged that the execution of the same is of their free and
voluntary act and deed.
This instrument
consists of _________ (___) PAGES including this page where the acknowledgment is
written, signed by the parties and their instrumental witnesses on each of
every page thereof.
WITNESS MY HAND
AND NOTARIAL SEAL ON THE DATE AND TIME AT THE PLACE FIRST ABOVE WRITTEN.
DOC NO.
______;
PAGE NO. ______;
BOOK NO.
______;
SERIES OF _____.
