CONTRACT OF LEASE
This Contract of Lease (this
"Contract") made and executed this ______________ at _______________,
by and between:
_______________________________, a corporation duly organized and
existing under and by virtue of the laws of the Republic of the Philippines, with office address
at ________________, represented herein by its duly authorized representative,
______________, hereinafter referred to as the LESSOR;
and
_____________,
a corporation duly organized and existing under and by virtue of the laws of the Republic of the
Philippines, with office address at ______________________ represented herein by
its duly authorized representative, ______________, hereinafter referred to as
the LESSEE;
RECITALS
The LESSOR is
the registered owner of a parcel of land, with an approximate area of
______________,more or less, situated at_____________, covered by Transfer
Certificate of Title No. ___________ of the Registry of Deeds for the
_________, (hereinafter the "Leased Premises");
The LESSOR has offered for
lease and the LESSEE wants to lease the Leased Premises;
The
parties therefore agree as follows:
1.
TERM OF LEASE: This lease
shall be for a period of _________ commencing on _____________,
renewable for another _________________ by giving written notice to renew at
least ___________ days prior to the expiration of the original term of lease,
upon terms and conditions mutually agreed by the parties.
2.
RENTALS: The LESSOR shall
pay [annual or monthly] rentals in the amount of ___________ Pesos (Php
____________) payable in advance within ___ (__) days from the start of the
[year or month], exclusive of VAT. The [monthly/annual] rentals shall be
subject to escalation equivalent to ___percent ( ___%) at the end of every ___
(_) years.
3.
REAL ESTATE TAXES. All real
estate taxes levied or assessed or those which may thereafter be levied or
assessed on the Leased Premises, including real estate taxes assessed on the
improvements introduced by the LESSEE on the Leased Premises shall be for the
account of the LESSEE for the duration of the lease.
4.
SECURITY DEPOSIT. Upon
signing of this Contract and upon delivery of the LESSOR of the Leased Premises
to the LESSEE, the LESSEE shall remit the sum of _____________Pesos
(Php_____________) (the "Security Deposit"). The Security Deposit
shall remain intact during the entire term of this lease and shall not be
applied by the LESSOR as payment for rentals, but shall serve as security to
answer for any unpaid utility bills, charges and other obligations due to the
LESSOR under this Contract, and real property taxes due on the improvements
introduced by the LESSEE, which are payable by the LESSEE at the termination or
expiration of this Contract. The Security Deposit shall be refunded by the
LESSOR and returned to the LESSEE, within ___ (__) days after the expiration or
termination of this Contract and after presentation by the LESSEE to the LESSOR
of proof that the former has paid all of its utility bills and real property
taxes, if any, and provided that the LESSEE has vacated the Leased Premises.
5.
ADVANCE RENTAL – Upon
execution of this Contract, the LESSEE shall pay to the LESSOR the amount of
___________ Pesos (Php ___________) as Advance Rental to be applied as rental
payment for the last month prior the expiration of the lease period.
6.
RIGHTS OF LESSEE
NON-TRANSFERABLE - LESSEE shall not directly sublease, assign, or transfer all
or any portion of the Leased Premises to any third party, written consent of
the LESSOR, which consent shall not be unreasonably conditioned, withheld or
delayed.
7.
ALTERATIONS/IMPROVEMENT. -
The LESSEE hereby expressly acknowledges that the Leased Premises is in good
tenantable condition at the commencement of the lease and undertakes its
exclusive expense all ordinary repairs necessary to maintain the same in such
condition.
All improvements or
alterations as may be made in the Leased Premises, whether the same be with or
without the consent of the LESSOR, except those which are not permanently attached
thereto, such as air conditioning units and systems, refrigerators
and similar items, shall form a part of the Leased Premises and shall not be
removed therefrom but shall belong to and become the exclusive property of the LESSOR upon the termination of the lease, without need for reimbursement for
the cost thereof.
8.
UTILITIES AND SERVICES.
Payment of all utilities bills, including electric, telephone, and water bills,
if any, shall be for the account of the LESSEE.
9.
OPTION TO PURCHASE. Should
the LESSOR decide to sell the Leased Premises, the LESSEE shall be granted the
first option to purchase the Leased Premises at the same terms and conditions
as offered by the LESSOR to a third party, and such option shall be exercisable
by the LESSEE within ___(__) days from receipt by the LESSEE of written notice
of LESSOR's intention to sell or transfer the Leased Premises. The LESSEE shall
have the right to assign its option to purchase the Leased Premises to a
qualified designee.
10.
SALE OR ENCUMBRANCE OR
PREMISES. In the event of a sale, transfer, or mortgage or any encumbrance of
the Leased Premises to any person other than the LESSEE, the LESSOR shall
warrant and ensure that the purchaser, transferee, mortgagee or person in whose
favor the encumbrance is constituted shall respect all the terms and conditions
of this Contract, including the provision for renewal thereof. To this end, the
LESSOR shall cause the pertinent deed or agreement with such person to reflect
this foregoing commitment.
11.
TERMINATION.
(a)The LESSOR shall have
the right to terminate this Contract upon a ___ (__) day prior
written notice to the LESSEE in any of the following instances:
(i) the LESSEE fails to pay rentals; or
(ii) in the event of any violation by the LESSEE of the terms and conditions stipulated in this Contract and the LESSEE fails to rectify or remedy the default within ___ (__) days from its receipt of written demand from the LESSOR.
(b) The LESSEE shall have
the option to terminate this Contract upon a ___ (__) day written prior notice
to the LESSOR in the event of any breach by the LESSOR of this Contract, and
the LESSOR fails to rectify or remedy such breach or default within __(__) days
from its receipt of the written demand of the LESSEE.
(c) Should the LESSEE
decide to pre-terminate this Contract without just cause, the LESSEE shall
forfeit as liquidated damages in favor of the LESSOR the Security Deposit and
the Advance Rental, and LESSOR is without further recourse of any other remedy at
law or in equity.
(d) In the event of
termination by the LESSOR of this Contract for causes under (a), the LESSEE
shall forfeit the Security Deposit as liquidated damages in favor of the
LESSOR, and shall padlock the Leased Premises.
12.
RETURN OF PREMISES. Upon
expiration or termination of this Contract, the LESSEE shall immediately vacate
the Leased Premises and peacefully surrender complete possession thereof to the
LESSOR, devoid of all occupants, furniture, articles and effects of any kind,
in the same good and tenantable condition, normal wear and tear excepted and
other than for such alterations, additions or improvements which pertain to the
LESSOR in accordance with the provisions of Paragraph 6 hereof.
13.
ENTIRE AGREEMENT. This
Contract represents the entire agreement between the parties with respect to
the subject matter hereof and supersedes any prior expression of intent,
representation or warranty with respect to this transaction. This Contract may
only be modified by an instrument in writing signed by both parties.
14.
VENUE. The
parties hereby agree that the venue for the settlement of the dispute shall
fall exclusively within the jurisdiction of the proper courts in _____ or in
______________, at the option of the plaintiff.
15.
SEVERABILITY. If any one or
more of the provisions of this Contract is declared invalid or unenforceable in
any respect under any applicable law, the validity, legality or enforceability
of the remaining provisions contained therein shall not in any way be affected
or impaired.
16.
COUNTERPARTS. If the
parties sign this Contract in several counterparts, each will
be deemed an original but all counterparts together will constitute
one instrument.
The parties are signing this Contract on the
date and at the place above-mentioned.
_______________ ______________
(LESSOR) (LESSEE)
By:
Signed in the presence of:
_______________ ______________
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