|
IX LEASE
Form No. 2--Contract
of Lease Commercial Building
(Contract of Lease
Commercial Building)
CONTRACT OF LEASE
KNOW ALL MEN
BY THESE PRESENTS:
This Contract
of Lease, made and entered into, by and between:
_____________, of
legal age, Filipino, (single / married / widow), and a resident of
_____________, Philippines,
(hereinafter referred to as the "LESSOR";
- and -
_____________, a
domestic corporation duly organized and existing under and by virtue
of the laws of the Republic of the Philippines, with principal
office at _____________, and
represented in this act by its __Position__,
__Name of Officer__,
(hereinafter referred to as the "LESSEE");
WITNESSETH;
that -
WHEREAS, the
LESSOR is the registered owner of a building known as
_____________ situated at
_____________, Philippines.
WHEREAS, the
Lessor desires to
lease out a portion of the afore-described property in favor of the
LESSEE and the LESSEE accepts the lease subject to the terms and
conditions herein set forth.
NOW, THEREFORE,
for and in consideration of the foregoing premises and the covenants
hereinafter stipulated, the parties hereby agree as follows:
ARTICLE I
PROPERTIES
FOR LEASE
1.
The LESSOR hereby
transfers and conveys by way of LEASE in favor of the LESSEE a
portion of the afore-stated properties (hereinafter referred to as
the Leased Properties) specifically described as follows:
Bldg. Portion App.
Covered Flr. Area
_____________
___________________
2.
Inspection; No Warranty.
- The LESSOR leases the Leased Properties to the LESSEE on an "as
is, where is" basis. The LESSEE hereby declares that it has
inspected the Leased Properties prior to the execution of this Lease
Agreement, and acknowledges that it is fully satisfied with the
conditions thereof. The LESSOR makes no warranty as to the
condition, operational or structural capability, or as to any hidden
defects of the Property which the LESSEE warrants to know by virtue
of the LESSEE's duty to inspect.
3.
Condition Precedent.
- It is a condition precedent for the effectivity of this Lease
Agreement that the LESSEE submits to the LESSOR a copy of its
Articles of Incorporation and By-Laws and latest General Information
Sheet including a Board Resolution specifically authorizing the
corporation and the person representing the same in this instance to
enter into this lease agreement with the LESSOR under the terms and
conditions contained herein.
ARTICLE II
CONSIDERATION
1.
Rental Payment and Escalation Clause.
- Within the first five (5) days of each calendar month, the LESSEE
shall pay the LESSOR a monthly rent at the rate of
__________________________ (P_____________)
per square meter or the total amount of
__________________________ (P_____________).
In addition, the monthly rent shall escalate yearly by
_____________ (_____%)
percent of the base monthly rent starting on the
_____________ year and each year
thereafter until the termination of this contract, the base rent
being understood to be the monthly rent applicable for the said year
as opposed to the original rent provided above.
2.
Advance Rental Payment. -
Within five (5) days from the
signing of this Lease Agreement, the LESSEE shall remit to the
LESSOR an amount equivalent to __________
(_____) months rent or the
total sum of __________________________
(P_____________) to be applied as
rental payment for the last two (2) months of this contract.
3.
Security Deposit. -
Within five (5) days upon the signing of this Lease Agreement, the
LESSEE shall remit to the LESSOR an amount equivalent to
_____________ (_______)
month's rent or __________________________
(P___________) to serve as security
deposit for any unpaid utility bills such as electricity, water,
telephone, sanitation, sewerage and others, and to answer for any
damages which the Leased Properties may suffer as well as to cover
any unpaid monthly rent; interests or penalties. This amount is
refundable to the LESSEE free of any interest thirty (30) days after
the termination of this Lease Agreement subject to deduction for
whatever utility bills and monthly rentals, interests, penalties
that have remained unpaid and damages that may have been incurred,
provided, that the LESSEE shall still be liable for any and all
bills, rentals, interests, penalties and damages that may exceed
this security deposit. The LESSEE shall not be allowed to offset or
use its security deposit as its monthly rental payment.
ARTICLE
III
TERM OF
LEASE
1. Term. - Unless earlier terminated for reasons specified herein, the term of
this Lease Agreement shall be for
_____________ (_____) years to
start on _____________ and end at
noontime on _____________ renewable
upon mutual agreement of the parties.
ARTICLE IV
PURPOSE OF
THE LEASE
1. Use
of the Leased Properties.
- The LESSEE shall use the
Leased Properties strictly and exclusively as
__________________________. If the
Leased Properties are used for other purposes, the LESSOR has the
choice to:
(i) Rescind the Lease Agreement; or
(ii) Increase the rent; or
(iii) Compel the LESSEE to stop the new activities.
In no case
shall the Leased Properties be used for immoral or illicit purposes
and illegal acts or purposes.
2.
Sub-Lease. - The LESSEE may sub-lease the Leased Properties; provided, that
it has secured the prior express written consent of the LESSOR and
that the provisions of this Lease Agreement is incorporated by
reference in the proposed sub-lease; provided, further, that
the purpose of the sub-lease will be substantially similar to that
of the original lease; provided, finally, that if the LESSOR so
consents to the sub-lease, the LESSOR shall receive a fixed
percentage of ten (10%) of the sub-lease rates over and above the
regular rent already collected under this Lease Agreement.
It is
understood that the LESSEE shall act as the surety of the sub-lessee
for purposes of this Lease Agreement. The LESSEE shall provide
LESSOR with a copy of the sub-lease agreement not later than ten
(10) days after the execution of the sub-lease agreement. In
addition, the LESSEE shall remit LESSOR'S percentage participation
in the sub-lease rentals within the first five (5) days of each
calendar month.
ARTICLE V
DEFAULT
1.
Interest Payment. -
In the event the LESSEE fails to pay its monthly rent within the
first five (5) days of each month, the LESSOR shall charge interest
on the monthly rent at the rate of
_____________ (______%)
percent per month, which shall be compounded monthly until full
payment is made.
Furthermore
and whenever applicable, in the event the LESSEE fails to remit the
LESSOR'S percentage participation in the sub-lease rentals within
the first five (5) days of each month, the LESSOR shall charge
interest on the LESSOR'S percentage participation in the sub-lease
rentals at the rate of _____________
(______%) percent per month, which
shall be compounded monthly until full payment is made.
ARTICLE VI
CANCELLATION
1.
Grounds for Cancellation.
- The LESSOR may cancel or terminate this Lease Agreement, upon the
happening of any of the following events:
2.1. The LESSEE fails to pay its monthly rent when the same
falls due.
2.2. The LESSEE fails to remit LESSOR'S percentage
participation in the sub-lease rentals, if any, when the same falls
due.
2.3. The LESSEE uses the Leased Properties for purposes other
than those specified herein, without prejudice to the options
available to LESSOR under Section 1, Article IV hereof.
2.4. The LESSEE violates any of the other terms and conditions
of this Lease Agreement or fails to get the necessary permits from
the national and/or local government units / agencies.
ARTICLE
VII
MISCELLANEOUS
1.
Insurance. - The LESSEE shall obtain insurance coverage for the Leased Properties,
against all insurable risks applicable from a duly accredited and
reputable insurance company in an amount equal to the maximum
insurable value of the Leased Properties. The LESSOR shall be the
Beneficiary of the required Insurance. In case of complete loss or
damage to the Leased Properties, and/or the improvements therein,
during the term of this lease, the LESSOR shall have the option to
reconstruct or restore the lost or damaged Leased Properties, and/or
the improvements therein, to their original condition or to consider
this lease automatically terminated. In case of damage in part,
rental shall be reduced in proportion to the remaining tenantable or
useable area.
2.
Utilities. - All expenses for water, electricity, telephone, sanitation, sewerage,
gas and other public utility services shall be for the account of
the LESSEE. The cost of installation of utilities within the Leased
Properties, such as water and electricity, shall be for the account
of the LESSEE; provided, that any installation shall be under the
control and supervision of the LESSOR and the latter has the right
to indicate where the meter connections shall be placed.
3.
Improvements. - The
LESSEE shall not make any structural changes, alterations, additions
or improvements on the Leased Properties without the prior written
consent of the LESSOR. Any alterations or improvements made or
introduced by the LESSEE on the Leased Properties with the written
consent of the LESSOR shall, upon the termination of this Lease
Agreement, automatically be owned by the LESSOR without any
obligation on the part of the LESSOR to pay or refund its value or
cost to the LESSEE.
4. Signs
and Advertisements. -
Subject to prior written consent of the LESSOR, the LESSEE may
install, erect or affix upon the Leased Properties, signs or
advertisements as may be necessary to promote and/or advertise the
business in which it is engaged in. In requesting the approval of
the LESSOR, LESSEE should submit a description and the specification
of its proposed sign or advertisement.
5. Care
of Leased Properties.
- The LESSEE shall, at its own expense, maintain the Leased
Properties in a clean and sanitary condition free from noxious
odors, disturbing noises or other nuisances. The LESSEE, its
employees, agents or representatives shall not in any manner damage
or deface any part of the Leased Properties.
The LESSEE
shall comply with any and all reasonable rules and safety
regulations which may be promulgated from time to time by the
LESSOR, together with all the rules, regulations, ordinances or laws
made by the duly constituted authorities; either by the National or
City government or any of its agencies and instrumentalities,
arising from or regarding the use, occupancy and sanitation of the
Leased Properties.
6.
General Maintenance, Sanitation, Repairs and Safety.
- The cost of general maintenance and upkeep of the Leased
Properties shall be for the account of the LESSEE. The LESSEE shall
keep the Leased Properties in a clean, safe and sanitary condition
and introduce all the needed repairs at all times. The LESSEE shall
dispose all its garbage, waste, and other pollutants in accordance
with the rules promulgated by the national or local government.
All major repairs resulting from damages not attributable to the
LESSEE's negligence shall be for the account of the LESSOR. For
purposes of this contract, repairs in amount not exceeding TWENTY
THOUSAND PESOS (P20,000,00) per occurrence of repairs shall be
considered as minor repairs.
In case of
damage to the Leased Properties or its appurtenances by fire,
earthquake, volcanic eruption, war or any unforeseen cause, the
LESSEE shall give notice to the LESSOR within a reasonable time. In
the event that the LESSEE through its own fault or negligence or
that of its employees, agents or representatives, damages the Leased
Properties, and LESSEE fails to repair the damage within a
reasonable time, then the LESSEE shall be liable to LESSOR for
liquidated damages in an amount equivalent to six months rent
without prejudice to such other amounts as may be due LESSOR under
this Lease Agreement and/or the law.
7. Fire
Hazard and Obnoxious Substances.
- The LESSEE shall not introduce, keep, deposit or store in the
Leased Properties any obnoxious substance or inflammable material or
substance not reasonably connected with the herein stated purpose of
the lease which might constitute a fire hazard, without the prior
written consent of the LESSOR. The LESSEE shall also not install
within the Leased Properties any apparatus, machinery or equipment
which may cause obnoxious tremors or noises nor store newspapers,
cartons, wood, or other articles of light nature which may expose
the Leased Properties to fire or increase the fire hazard of the
Leased Properties or change its insurance rate.
8.
Inspection of Premises.
- The LESSOR reserves the right to enter and inspect the Leased
Properties at reasonable times during business hours and with prior
notice. The LESSEE agrees to cooperate with the LESSOR in keeping
the Leased Properties in good and tenantable condition.
9.
Assignment. - The LESSOR reserves the right to assign, transfer or encumber any of
its rights and interests under this Lease Agreement to any entity
without the need of obtaining the consent of the LESSEE except to
notify the latter of the same. In the event of such transfer,
assignment or encumbrance, the rights and interest of the LESSEE
under this Lease Agreement shall be respected and observed in its
entirety by such assignee, transferee or mortgagee, and for the
entire term hereof unless otherwise mutually agreed upon by the
parties including the LESSEE.
10. Return
of Premises. - Upon
the termination of this Lease Agreement for any reason whatsoever,
the LESSEE shall peacefully and immediately vacate the Leased
Properties and return possession thereof to the LESSOR in good and
tenantable condition, devoid of all occupants, equipment and effects
of any kind. Failure of the LESSEE to return the Leased Properties
as provided herein shall make it liable to pay liquidated damages to
the LESSOR in an amount equivalent to six (6) months rent without
prejudice to such other amounts as may be due LESSOR and/or such
other remedies available to the LESSOR under this Lease Agreement
and/or under the law.
11. Right
to Enter the Premises to Recover Actual Possession. -
Upon the failure of the LESSEE,
or the sub-lessee as the case may be, to comply with any of the
terms and conditions of this lease or its failure to vacate and
return the premises as provided herein, the LESSOR or her authorized
representative(s) shall have the right, upon five (5) days written
notice to the LESSEE, or upon written notice posted at the entrance
of the Leased Properties for the same period, to enter and take
possession of the said premises, without need of resorting to any
court action, holding, taking custody and impounding such
possessions and belongings of the LESSEE found therein after
conducting an inventory of the same in the presence of witnesses,
until such time that all the rentals, interests, penalties, unpaid
utility bills, damages or other amounts due to the LESSOR has been
fully settled by the LESSEE. All these acts being hereby agreed to
by the LESSEE as tantamount to his voluntary vacation of the leased
premises without necessity of suit in court and authorizing LESSOR
to use all necessary and reasonable force to break open doors and to
enter the premises and take actual possession thereof, and such
entry and use of reasonable force should not be regarded as
trespass, nor be sued as such, or in any wise be considered as
unlawful.
12.
Transfer of Rights. -
The LESSEE shall not assign, or transfer or encumber its rights
under this lease without the prior written consent of the LESSOR and
no right, title or interest thereto or therein shall be conferred on
or vested in any other party other than the LESSEE without such
written consent.
13.
Indemnity. - The LESSEE shall hold LESSOR free and harmless from any loss, damage,
injury suffered by the LESSEE, its agents or employees, clients,
guests or customers or other third persons arising out of the use
of the Leased Properties by LESSEE, its agents, employees, clients,
guests, or customers including but not limited to, claims for
property damage, personal injury or wrongful death, or losses or
damages occasioned by reason of any event or cause which could not
be foreseen, or which, though foreseen, were inevitable such as but
not limited to fire, earthquake, lightning, typhoons, flood,
volcanic eruption, robbery, theft or other crimes. In addition,
the LESSOR shall not be liable nor responsible:
(i) For the presence of bugs, vermin, rats, insects, or
other similar creatures, if any, in the Leased Properties:
(ii) For the failure of electrical and/or water supply due to
causes beyond LESSOR's control;
(iii) For any injury, loss or damage which the LESSEE, its
agents or employees, might sustain while in the Leased Properties
due to causes attributable to the fault of said LESSEE, employees,
agents and/or representatives, or those of its clients, guests or
customers;
(iv) For any damage done or occasioned by, or arising from the
plumbing, gas, water, and/or other pipes or air-conditioning system
or for the bursting, leaking or destruction of any tank, cistern,
washers, and water closets or waste pipelines in, above, upon, or
about said Leased Properties, nor for any damage arising from or
attributable to acts of negligence of the LESSEE or its agents,
employees, representatives or any and all other persons over which
the LESSOR has no control.
14.
Non-Waiver. - The failure of the LESSOR to insist upon a strict performance of any
of the terms, conditions and covenants hereof shall not be deemed a
relinquishment or waiver of any of the rights or remedies that the
LESSOR may have, nor shall it be construed as a waiver of any
subsequent breach or default of its terms, conditions and covenants
which shall continue to be in full force and effect. No waiver by
the LESSOR of its rights under this Lease Agreement shall be deemed
to have been made unless expressed in writing and signed by the
LESSOR.
15.
Amendments. - Any amendments or additional terms and conditions to this Lease
Agreement must be in writing.
16. Venue. - In case of any dispute arising in connection with this Lease
Agreement, the parties hereby agree that the venue for the
settlement of the dispute shall fall exclusively within the
jurisdiction of the proper courts in the City of
_____________, Philippines.
IN WITNESS WHEREOF,
the parties have set their hands and affixed their signatures this
_____________ in the City of
_____________, Philippines.
LESSOR
LESSEE
SIGNED IN THE PRESENCE OF:
__________________ __________________
(ACKNOWLEDGMENT)
Form No. 3--Contract
of Lease Condominium Unit
|
