COMMERCIAL LEASE AGREEMENT
This Commercial Lease Agreement (“Agreement”) is made and executed on ____________, at ____________.
BETWEEN
LESSOR / LANDLORD
Mr. S/o, hereinafter referred to as the “LESSOR”, which expression shall include his/her legal heirs, successors, representatives and permitted assigns.
AND
LESSEE / TENANT
Mr. S/o, hereinafter referred to as the “LESSEE”, which expression shall include his/her legal heirs, successors, representatives and permitted assigns.
The Lessor and Lessee are collectively referred to as the “Parties.”
WHEREAS
- That the Lessor is the lawful owner/authorized person in respect of the commercial premises situated at ____________.
- That the Lessee has approached the Lessor for taking the said premises on lease for carrying out lawful commercial/business activities.
- That the Lessor has agreed to lease the premises to the Lessee on the terms and conditions contained in this Agreement.
NOW THIS AGREEMENT WITNESSETH AS FOLLOWS:
1. DEMISED PREMISES
The Lessor hereby leases to the Lessee the commercial premises situated at:
____________
Details of the premises:
Property/Shop/Office No.: ____________
Floor: ____________
Approx. Area: ____________ sq. ft.
Parking, if any: ____________
2. PURPOSE OF LEASE
The premises shall be used exclusively for: ____________
The Lessee shall not use the premises for any illegal, hazardous, immoral or prohibited activity.
3. TERM OF LEASE
The lease shall commence from ____________ and shall remain valid for a period of ____________ Months, ending on ____________, unless terminated earlier in accordance with this Agreement.
4. MONTHLY RENT
The Lessee shall pay monthly rent of ₹____________ (Rupees ____________ only). The rent shall be payable on or before the ____________ day of every calendar month.
5. RENT ESCALATION
The monthly rent shall increase by ____________% after every ____________ Months, subject to mutual agreement and applicable law.
6. SECURITY DEPOSIT
The Lessee shall pay an interest-free refundable security deposit of ₹____________ (Rupees ____________ only). The security deposit shall be refunded upon expiry/termination of the lease after adjustment of unpaid rent, utility charges, damages or other lawful dues.
7. LOCK-IN PERIOD
The Parties agree to a lock-in period of ____________ months commencing from ____________. During the lock-in period, neither Party shall terminate the Agreement except in accordance with the terms specifically provided herein or applicable law.
8. NOTICE PERIOD
After completion of the lock-in period, either Party may terminate this Agreement by giving ____________ days' prior written notice to the other Party.
9. ELECTRICITY CHARGES
Electricity consumption shall be paid by the Lessee according to the actual meter reading/bill or as mutually agreed: ____________
10. WATER AND OTHER UTILITY CHARGES
Water, sewerage, internet, telephone, gas, maintenance and other utility charges attributable to the Lessee's use shall be borne by the Lessee as applicable.
11. MAINTENANCE CHARGES
The monthly maintenance/common-area charges shall be: ____________. Responsibility for major structural repairs shall remain with the Lessor unless damage is caused by the Lessee.
12. REPAIRS AND MAINTENANCE
The Lessee shall maintain the premises in good and tenantable condition. Any damage caused due to negligence, misuse or unauthorized alterations by the Lessee, its employees, agents or visitors shall be repaired at the Lessee's cost.
13. STRUCTURAL REPAIRS
Major structural repairs relating to the building, foundation, roof and structural portions shall be the responsibility of the Lessor, except where such damage has been caused by the Lessee.
14. ALTERATIONS
The Lessee shall not make any structural alteration, addition or permanent modification to the premises without prior written permission of the Lessor and necessary approvals.
15. SIGNBOARD
The Lessee may install a business name board/signboard at the premises subject to the Lessor's consent, building rules and applicable municipal/local laws.
16. LICENSES AND REGISTRATIONS
The Lessee shall obtain and maintain all licences, registrations, permissions and approvals required for carrying on its business from the premises.
17. TAXES
Property tax and ownership-related taxes shall be borne by the Lessor, while taxes, duties, licences and statutory liabilities arising from the Lessee's business shall be borne by the Lessee, subject to applicable law.
18. GST
GST, if applicable on the rent, shall be charged and paid in accordance with applicable law.
19. BUSINESS ACTIVITIES
The Lessee shall conduct only the business/activity mentioned in this Agreement and shall not conduct any activity which may cause nuisance, danger, inconvenience or legal liability to the Lessor or other occupants.
20. NO SUB-LETTING
The Lessee shall not sub-let, assign, license or transfer possession of the premises, wholly or partly, to any third party without prior written consent of the Lessor.
21. EMPLOYEES AND CUSTOMERS
The Lessee shall be responsible for the conduct of its employees, workers, customers, agents, contractors and visitors at the premises.
22. COMPLIANCE WITH LAW
The Lessee shall comply with all applicable Central, State and local laws, municipal regulations, fire-safety requirements, labour laws and other statutory requirements applicable to its business.
23. FIRE AND SAFETY
The Lessee shall not store any explosive, inflammable, hazardous or prohibited material at the premises except as legally permitted and with required approvals.
24. INSURANCE
The Lessee shall obtain appropriate insurance for its stock, equipment, furniture, business assets and other property, wherever necessary.
25. SECURITY
The Lessee shall take reasonable precautions for the security of its goods, documents, equipment and other belongings kept at the premises.
26. ENTRY BY LESSOR
The Lessor or authorized representative may inspect the premises at reasonable times after giving reasonable notice to the Lessee, except in emergencies.
27. QUIET ENJOYMENT
Subject to compliance with this Agreement, the Lessee shall be entitled to peacefully use and occupy the premises during the lease period without unlawful interference by the Lessor.
28. CLEANLINESS
The Lessee shall keep the premises clean and hygienic and shall properly dispose of waste in accordance with applicable rules.
29. NUISANCE
The Lessee shall not create excessive noise, obstruction, nuisance or inconvenience to neighbouring occupants, customers, residents or the public.
30. PARKING
Parking, if available, shall be provided as follows: ____________. The Lessee shall comply with parking rules of the building/local authority.
31. FIXTURES AND FITTINGS
The fixtures and fittings provided by the Lessor shall be listed in an inventory attached to this Agreement. The Lessee shall return the same in reasonable condition, subject to normal wear and tear.
32. INVENTORY
The following items are provided with the premises: ____________
33. DEFAULT IN PAYMENT
If the Lessee fails to pay rent or other agreed charges within the prescribed time, the Lessor shall have the right to issue a written demand notice and take appropriate lawful action.
34. LATE PAYMENT PENALTY
In case of delay in payment of rent beyond the agreed due date, the Lessee shall pay a late payment charge of ₹____________ per day / ____________% per month, subject to applicable law.
35. DISHONOURED PAYMENT
Any bank charges, reasonable administrative charges or other lawful costs arising from dishonour of cheque/payment shall be borne by the Lessee.
36. BREACH OF AGREEMENT
If either Party materially breaches this Agreement and fails to remedy the breach within ____________ days after written notice, the non-defaulting Party may exercise remedies available under this Agreement and applicable law.
37. TERMINATION
This Agreement may be terminated: (a) upon expiry of the lease term; (b) by mutual written consent; (c) after the applicable notice period; (d) in case of material breach; (e) in case of unlawful use of the premises; or (f) on any other ground permitted under applicable law.
38. VACATING THE PREMISES
Upon expiry or termination, the Lessee shall peacefully vacate the premises and hand over vacant possession to the Lessor along with keys, fixtures and other items belonging to the Lessor.
39. RESTORATION OF PREMISES
The Lessee shall restore unauthorized alterations or modifications made by it, unless the Lessor agrees otherwise in writing.
40. SECURITY DEPOSIT REFUND
The refundable security deposit shall be returned within ____________ days from the date of vacant possession, after adjustment of lawful outstanding dues, damages and other charges.
41. HOLDING OVER
If the Lessee continues to occupy the premises after expiry/termination without the Lessor's written consent, the Lessee shall be liable for occupation charges as mutually agreed or as permitted by applicable law.
42. FORCE MAJEURE
Neither Party shall be liable for delay or failure caused by events beyond reasonable control, including natural disasters, fire, flood, war, riots, government restrictions, epidemics or other force majeure events.
43. INDEMNITY BY LESSEE
The Lessee shall indemnify the Lessor against losses, claims, penalties, damages or liabilities arising from the Lessee's business activities, negligence, unlawful acts or breach of this Agreement.
44. INDEMNITY BY LESSOR
The Lessor shall be responsible for claims arising from any defect in the Lessor's lawful title or authority to lease the premises, subject to applicable law.
45. NO PARTNERSHIP
Nothing contained in this Agreement shall create any partnership, joint venture, employment or agency relationship between the Parties.
46. ASSIGNMENT
The Lessee shall not assign or transfer its rights under this Agreement without prior written consent of the Lessor.
47. CONFIDENTIALITY
The Parties shall maintain confidentiality of confidential information exchanged in connection with this Agreement, except where disclosure is required by law.
48. NOTICES
All notices shall be given in writing and delivered by hand, registered post, courier, email or any other mutually accepted mode to the addresses/contact details of the Parties.
49. AMENDMENT
Any modification or amendment to this Agreement shall be valid only if made in writing and signed by both Parties.
50. ENTIRE AGREEMENT
This Agreement constitutes the entire understanding between the Parties concerning the lease of the premises and supersedes prior oral or written arrangements concerning the same subject matter.
51. SEVERABILITY
If any provision of this Agreement is declared invalid or unenforceable, the remaining provisions shall continue to remain effective to the extent permitted by law.
52. DISPUTE RESOLUTION
The Parties shall first attempt to resolve any dispute through mutual discussion and negotiation. If the dispute cannot be resolved amicably, either Party may seek appropriate legal remedies.
53. JURISDICTION
Subject to applicable law, the competent courts at ____________ shall have jurisdiction over disputes arising from this Agreement.
54. GOVERNING LAW
This Agreement shall be governed by and construed in accordance with the applicable laws of India.
55. VOLUNTARY EXECUTION
Both Parties confirm that they have read and understood the terms of this Agreement and are executing it voluntarily and without force, fraud, coercion or undue influence.
MAINTENANCE CHARGES
The monthly rent is Including Maintenance Charges.
UTILITY CHARGES
Electricity: As applicable; fixed monthly charge: Rs. ____________; rate per unit: Rs. ____________.
Water: Included in Rent; fixed monthly charge: Rs. ____________; rate per unit: Rs. ____________.
IGL / Gas: Included in Rent; fixed monthly charge: Rs. ____________; rate per unit: Rs. ____________.
FURNISHING
Status: Unfurnished. Items provided: .
PAYMENT DETAILS
Payment Mode: Cash; UPI ID: ____________; Bank Account Name: ____________; Bank Name: ____________; Account Number: ____________; IFSC Code: ____________.
TERMINATION
Either party may terminate this Agreement by giving ____________ month(s) prior written notice in advance.
ADDITIONAL / SPECIAL CLAUSES
____________
IN WITNESS WHEREOF
The Parties have signed and executed this Commercial Lease Agreement on the date and place first mentioned above in the presence of the following witnesses.
LESSOR / LANDLORD
Name: ______________________________
Signature: ___________________________
Date: ______________________________ | LESSEE / TENANT
Name: ______________________________
Signature: ___________________________
Date: ______________________________ |
WITNESS NO. 1
Name: ______________________________
Father's/Husband's Name: _____________
Address: ____________________________
Mobile No.: _________________________
Signature: __________________________
WITNESS NO. 2
Name: ______________________________
Father's/Husband's Name: _____________
Address: ____________________________
Mobile No.: _________________________
Signature: __________________________
