Lease Agreement

PREPARED FOR
[Lessee Name] 

PREPARED BY
[Lessor Name] 

Lease Agreement

This Lease Agreement (the “Agreement”) is made on [Execution Date] (the “Execution Date”), 

By and Between

[Lessor Name] (hereinafter the “Lessor” which term shall, unless repugnant to the context, shall mean and include its representatives, successors, administrators, and assigns of the party at the “First Part”) and;

[Lessee Name] (hereinafter the “Lessee” which term shall, unless repugnant to the context, shall mean and include its representatives, successors, administrators, and assigns of the party at the “Second Part”).

The Lessor and Lessee are referred to individually as the “Party” and collectively as the “Parties.”

RECITALS.

WHEREAS:
 
(a) The Lessor is the sole owner and is absolutely seized and possessed of and/or is otherwise sufficiently entitled to the Land (as defined in the First Schedule hereto) and the commercial premises situated thereon (hereinafter referred to as the “Premises”) at [Place]. 
 
(b) The Lessee is in the business of [Lessee’s Business Description] (“Business”) and is in need of industrial premises to carry on its activities; the Lessee has requested the Lessor to grant the Lessee a lease of the Premises for a period of [Lease Term] commencing from [Lease Commencement Date] (the “Lease Commencement Date”) and expiring on [Lease Expiry Date] (the “Lease Expiry Date”) (both days inclusive), which the Lessor has agreed to do, at or for the monthly lease rent and upon the terms and conditions hereinafter appearing.
 
(c) The Parties hereto are desirous of recording the said terms and conditions in the manner hereinafter stated.
 
NOW THIS AGREEMENT WITNESSETH and it is hereby agreed by and between the Parties hereto as under:

TERMS AND CONDITIONS.

1. DEFINITIONS.

In this Agreement, in addition to the terms defined in this Agreement or unless a contrary intention appears, the following words and expressions shall have the following meanings:
 
(a) “Acts of God” shall mean the effects of any natural element or other natural disasters, including but not limited to flood, tempest, accident, storm, flood, lightning, earthquake, etc., that are beyond the control of the Parties. 
 
(b) “Agreement” shall mean this Lease Agreement and all Schedules and Annexures attached to it, all read together, and shall include any modifications of this Lease Agreement from time to time in accordance with its terms.
 
(c) “Amenities” shall mean the specifications and amenities enlisted in the Third Schedule hereunder written to be provided in the Premises by the Lessor for use by the Lessee for and during the Lease Term (as defined below), in terms of Clause 7 hereof.
 
(d) “Applicable Laws” shall include any statute, legislation, treaty, code, law, regulation, ordinance, rule, notification, circular, judgment, order, decree, by-law or approval, order or judgment of any competent authority, directive, guideline, policy, requirement, or other governmental restriction or any similar form of a decision of, or determination by, or any interpretation or adjudication having the force of law in United States, of any of the foregoing, by any competent authority/Governmental Authority having jurisdiction over the matter in question.

2. GRANT OF LEASE.

The Lessor hereby grants the Premises as defined above to the Lessee for the Term described herewith.

3. TERM OF LEASE.

The lease hereby granted shall be for a period of [Lease Term] (“Lease Term”) commencing from [Lease Commencement Date] (“Lease Commencement Date”) and expiring on [Lease Expiry Date] (“Lease Expiry Date”) (both days inclusive). 

Neither Party shall be entitled to terminate the Agreement during the first [Lock-in Period] of the Lease Term (“Lock-in Period”). Provided that, notwithstanding anything contained herein, the Lessor shall be entitled to terminate the lease during the Lock-In Period in the event that the Lessee defaults in the payment of Lease Rent or a part thereof for a period of [Payment Default Cap_Termination] consecutive month(s). 

After the expiry of the Lock-in Period, either Party shall have the right to terminate the Agreement by giving the other Party prior written notice of [Termination Notice Period] month(s).

4. LEASE RENT.

(a) In consideration of the Lessor granting a lease of the Premises to the Lessee, the Lessee shall pay the Lessor the monthly lease rent of [Lease Rent Amount] (the “Lease Rent”) from the Lease Commencement Date for the first [Initial Lease Term in Years] year(s) of the Lease Term. 

(b) The Lease Rent shall be payable in advance on or before the [Month Day For Rent Payment] day of the relevant calendar month (“Due Date”). Such Lease Rent shall be payable in [Mode of Payment] on the agreed-upon date.

(c) If the Lessee fails to make the payment by the Due Date, a late fee of [Late Fee Amount] will be charged for each [Frequency of the Late Fee] the payment is overdue.

(d) The Lessee shall bear and pay any sales taxes, use taxes, or other similar taxes, impositions, or charges that may be levied in the future in respect of the use of the Demised Premises by the Lessee. However, real-estate taxes assessed on the Demised Premises shall be the responsibility of the Lessor unless otherwise agreed upon.

5. SECURITY DEPOSIT AND HANDOVER OF POSSESSION.

(a) The Lessee has, as of the execution of this Agreement, deposited with the Lessor a sum of [Deposit Amount], as and by way of an interest-free refundable security deposit as security for the due observance/performance of the terms and conditions of this Agreement by the Lessee (the “Security Deposit”), the receipt of which the Lessor hereby admits and acknowledges.

(b) The Security Deposit, the unadjusted Lease Rent, and any other amount of money refundable/ payable by the Lessor to the Lessee shall be paid/refunded to the Lessee subject to and upon the following terms:

(i) At the time of the handover of vacant possession of the Premises by the Lessee to the Lessor, the Lessor shall refund the Security Deposit. 

(ii) Without prejudice to any and all rights available to the Lessor, in the event of default in payment of Lease Rent for a period of [Payment Default Cap_Termination] consecutive month(s), the Lessor shall be entitled to make an appropriate deduction from the Security Deposit prior to refund, in accordance with Clause 5.  

(iii) In the event the Lessor fails to pay/refund the Security Deposit, the unadjusted Lease Rent and/or any other amount of money refundable/payable by the Lessor to the Lessee in accordance with sub-clause (a) above, without prejudice to any other rights the Lessee may have in law, (i) Lessor shall refund the Security Deposit, the unadjusted Lease Rent and/or any other amount of money refundable/payable by the Lessor to the Lessee in accordance with sub-clause (b) above till the time of actual payment thereof; and (ii) the Lessee may continue to use the Premises without having to pay any further Lease Rent (if any) until the Lessor pays/refunds the Security Deposit, the unadjusted lease Rent and/or any other amount of money refundable/payable by the Lessor to the Lessee.   

(c) The Security Deposit amount shall be returned by the Lessor to the Lessee either on the expiry of the Lease Term or on earlier termination of the Agreement, at the time of handover of vacant possession of the Premises, subject to deductions/set off or adjustments for any damage caused to the Premises, as may be mutually agreed between the Parties, and whereas the Lessee shall not unreasonably deny the Lessor such deductions/set-off, pending EB bills, etc.

(d) On the expiry or sooner termination of the lease granted hereunder in accordance with this Agreement, and subject to the provisions mentioned above, the Lessee shall remove itself together with its belongings from the Premises (without causing any damage thereto) and shall within [Number of Days For Lessee To Vacate] day(s) handover vacant possession of the Premises to the Lessor, in good condition and on an “as is where is” basis.

6. MAINTENANCE AND REPAIRS.

The Parties agree that the Lessee shall, at its own expense, maintain and make all repairs and alterations to the non-structural portions of the Premises, including fixtures, utilities, and improvements carried out and used by the Lessee during the Lease Term, and that the Lessor shall bear the expenses for all the requisite repairs, maintenance, alterations or improvements to the basic structure of the Premises.

7. AMENITIES.

The Lessor agrees that the Premises shall conform to the specifications and shall be provided with the amenities (more particularly described/enlisted in the “Third Schedule” hereunder written) (the “Amenities”) for use by the Lessee for and during the Lease Term.

8. LESSOR'S COVENANTS, REPRESENTATIONS, AND WARRANTIES.

The Lessor hereby covenants, represents, and warrants with and to the Lessee as under: 

(a) The Lessor is fully authorized to enter into this Agreement. The execution of this Agreement constitutes legal, valid, and binding obligations on the part of the Lessor and all resolutions, filings, consents, and declarations as may be necessary for law or otherwise to be made by the Lessor to give effect to this Agreement have been duly passed, made and/or obtained.

(b) The Lessor hereby covenants with the Lessee that the execution of this Agreement would not result in a breach of any arrangement, Agreement, or understanding arrived at with any other person or party.

(c) The Premises is free from any charge, mortgage, lien, or other encumbrance whatsoever of nature, and no other person has any claim, right, or title interest in respect of the Premises. The Premises is not the subject matter of any order of attachment or other prohibitory order likely to affect the day-to-day operations of the Lessee or prevent the Lessor from giving the same on lease to the Lessee in the manner contemplated in this Agreement. 

(d) The Lessor has obtained all approvals, permissions, clearances, sanctions, and licenses from the relevant governmental authorities in respect of the Premises and the Amenities necessary to render them fit for occupation and use by the Lessee in the manner contemplated in this Agreement.  

(e) The Lessor hereby declares and warrants that all applicable taxes and utility bills related to the Premises have been paid till the date of execution of this Agreement.

(f) The Lessor hereby warrants that the Lessee shall be entitled to peacefully use the Premises in the manner specified in this Agreement for and during the Lease Term, without any hindrance or interruption by the Lessor and/or by any other person(s) claiming by, from, through and/or in trust for the Lessor and further, the Lessee and/or its employees, officers, sub-contractors, suppliers or other persons duly authorized by the Lessee to enter upon the Premises shall have unhindered and uninterrupted access to the Premises at all times during the Lease Term. 

(g) The Lessor hereby warrants that the Lessee shall enjoy exclusive and unhindered use of the Premises under the terms of this Agreement. 

(h) The Lessee shall be entitled to carry out, from time to time, at its own cost and expense, renovations, additions, and/or alterations of a non-permanent and non-structural nature in the Premises as may be reasonably necessary.

(i) The Lessor shall carry out all major and/or structural repairs to the Premises, and the costs of the same shall be borne by the Lessor provided; however, if such repairs are attributable to any act or default of the Lessee, then the entire cost and expense of such repairs shall be borne by the Lessee alone.

(j) The Lessor shall not do anything or omit or suffer to be done anything whereby the lease of the Premises under the terms of this Agreement is avoided, forfeited, prejudicially affected, or extinguished.

9. LESSEE'S COVENANTS, REPRESENTATIONS, AND WARRANTIES.

The Lessee hereby covenants, represents, and warrants with and to the Lessor as under:

(a) The Lessee shall pay the Lease Rent to the Lessor in a timely manner as contemplated in this Agreement.

(b) The Lessee shall not part with the charge of the Premises (or any part thereof) to anyone except the Lessor.

(c) The Lessee shall keep and maintain, at its own cost and expense, the Premises in good and tenantable repair and condition, subject to ordinary wear and tear. 

(d) The Lessee shall pay, directly to the relevant authorities and by their respective due dates, electricity charges as recorded in the meter and water charges as per consumption by the Lessee on the Premises. The Lessee shall pay the electricity charges pertaining to both such electricity connections, as more fully described in the Third Schedule hereto.

(e) The Lessee shall only use the terrace area mentioned in the Third Schedule for dining purposes and not commercial activities or storage. 

(f) The Lessee shall duly observe all Applicable Laws including any relevant bylaws in relation to the Premises.

10. INSPECTION.

The Lessor and/or its designated representatives shall have the right, from time to time, during regular business hours on any working day, to enter the Premises, with prior notice in writing of at least one (1) business day to the Lessee, for the purpose of inspection or repairs and to view any user of the Premises.

11. FORCE MAJEURE.

If at any time during the Lease Term, and notwithstanding anything to the contrary contained in these presents, the Premises are destroyed or damaged by fire, any acts of God, war, acts of terrorism, or due to any other cause beyond the control of the either Party and not attributable to any act, Agreement or omission of the Lessee, so that the Premises becomes unfit for occupation and use by the Lessee, then in such event, the Lease Rent hereby reserved shall be suspended until the Premises is rendered fit for occupation and use.

12. TERMINATION.

(a) Neither Party shall be entitled to terminate this Agreement at any time during the Lease Term, save and except as specified in Clauses 3 and 11 above or in Clauses 12(b)to 12(c) below. 

(b) The Lessee shall be entitled to terminate this Agreement at any time during the Lease Term if the Lessor commits a material breach of any of the terms and conditions of this Agreement. In addition to what has already been mentioned above, the following shall be deemed to be a material breach of the terms and conditions of this Agreement:

(i) If the Lessor commits a material breach of any of the terms and conditions of this Agreement at any time and fails to remedy such breach within a period of [Number of days for Lessor to remedy breach] day(s) of receiving notice of such breach from the Lessee.

(ii) In the event the Lessee is unable to use and/or occupy the Premises due to any defect in the title of the Lessor.

(c)  The Lessor shall be entitled to terminate this Agreement only if: 

(i) The Lessee commits a material breach of any of the terms and conditions of this Agreement at any time and fails to remedy such breach within a period of [Number of days for Lessee to remedy breach] day(s) of receiving notice of such breach from the Lessor.

(ii) The Lessee fails to make payment of the Lease Rent for [Payment Default Cap_Termination] consecutive month(s).

13. INDEMNITY.

The Parties are aware that it is in the faith of the representations and covenants by the other Party herein that the Parties have agreed to this lease of the Premises. Accordingly, each Party does hereby indemnify, defend, and keep harmless and agree to keep indemnified, defended, and harmless the Lessee of, from, and against any and all claims, expenses, losses, damages, charges, demands, actions, and liabilities whatsoever arising due to any misrepresentation and/or breach of the terms and conditions of this Agreement on the part of the other Party, including:

(a) If the Lessor becomes insolvent, the Lessee can recover costs related to setting up or relocating their business.

(b) If the Lessee becomes insolvent, the Lessor can claim any overdue lease payments as losses.

14. WAIVER.

(a) Any term or condition of the Agreement may be waived at any time by the Party that is entitled to the benefit thereof, but no such waiver shall be effective unless set forth in a written instrument duly executed by or on behalf of that Party waiving such term or condition.  

(b) No waiver by any party of any term or condition of the Agreement, in any one or more instances, shall be deemed to be or construed as a waiver of the same or any other term or condition of the Agreement on any future occasion.

(c) Neither the failure by either Party to insist on any occasion upon the performance of the terms, conditions, and provisions of the Agreement or any obligation hereunder nor time or other indulgence granted by a Party to the other Party shall be treated or deemed as waiver/breach of any terms, conditions or provisions of the Agreement.

(d) All remedies under the Agreement or under any Applicable Law or otherwise afforded will be cumulative and not alternative.

15. SEVERABILITY.

Each and every obligation under the Agreement shall be treated as a separate obligation and shall be severally enforceable as such and in the event of any obligation or obligations being or becoming unenforceable in whole or in part. To the extent that any provision or provisions of the Agreement are unenforceable, they shall be deemed to be deleted from the Agreement, and any such deletion shall not affect the enforceability of the remainder of the Agreement, provided the fundamental terms of the Agreement are not altered. Any invalid or unenforceable provision of the Agreement shall be replaced with a provision that is valid and enforceable and most closely reflects the original intent of the invalid and unenforceable provision.

16. FURTHER ASSURANCES.

Each Party covenants and agrees that, subsequent to the execution and delivery of this Agreement and without any additional consideration, each Party shall execute and deliver any further legal instruments and perform any acts that are or may become necessary to effectuate the purposes of this Agreement.

17. ENTIRE AGREEMENT.

The Parties hereto acknowledge, declare, and confirm that this Agreement represents the entire agreement between them regarding the subject matter hereof, and no alterations, additions, or modifications hereto shall be valid and binding unless the same is reduced in writing, and signed by both Parties and stamped and registered according to law.

18. NOTICES.

(a) Unless otherwise stated, all notices, approvals, instructions, demands, and other communications under this Contract shall be in English and in writing. Such communications shall be delivered by email, personal delivery, or pre-paid registered mail addressed to the relevant Party at its designated address below. Communications shall be deemed duly given or made when delivered (in the case of personal delivery) and confirmed by a return receipt in the case of electronic mail or upon confirmation of dispatch by a recognized courier or pre-paid registered mail.

(b) All notices and communications shall be sent to the appropriate address set forth below.

Lessee:

Lessor:

[Lessee Mailing Address]

[Lessor Mailing Address]

19. GOVERNING LAW.

The Parties agree that this Agreement shall be governed by the laws of [Governing Law]. In the event the Parties do business in different states, this Agreement shall be governed by the laws of [Jurisdiction].

20. ADVOCATE'S FEES.

Parties shall bear and pay their respective Advocates’ fees.

21. RECORDING FEES.

(a) Upon execution of this Agreement, both Parties shall attend the applicable Recorder's Office to acknowledge the execution of this Agreement on a mutually agreed upon date and time.

(b) Any recording fees applicable to this Agreement (and the counterpart thereof) shall be borne by the Lessee.

22. EXECUTION AND COUNTERPARTS.

This Agreement has been executed in duplicate, and each counterpart shall be the original of the other. The original Lease Agreement shall be retained by the Lessee, and the counterpart of such Agreement shall be kept by the Lessor for their records.

1. THE FIRST SCHEDULE.

DESCRIPTION OF THE LAND.

[Description of Land] 

2. THE SECOND SCHEDULE.

DESCRIPTION OF THE PREMISES.

[Description of the Premises]  

3. THE THIRD SCHEDULE.

DESCRIPTION OF THE PREMISES.

[List and Description of the Amenities]  

ACCEPTANCE AND SIGNATURE.

IN WITNESS WHEREOF, the undersigned Parties have duly entered into this Lease Agreement as of the aforementioned date.

[Lessee Name]

[Lessor Name]

Name:

Name:

Signature:

Signature:

Date:

Date:

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