Commercial shop or office lease agreement format

DEED OF LEASE FOR COMMERCIAL PREMISESLEAVE AND LICENCE AGREEMENT FOR COMMERCIAL PREMISES

THIS DEED OF LEASELEAVE AND LICENCE AGREEMENT is made on this the ________ at ________

B E T W E E N

1. ________, representing M/s ________, ________, having its registered office at ________, duly authorised by ________, hereinafter called and referred to as the "LESSORLICENSOR" (which expression shall, unless excluded by or repugnant to the context, be deemed to mean and include ________ heirs, executors, administrators, legal representatives and assigns, and in the case of a firm or company its partners, directors, successors and permitted assigns) of the ONE PART;

A N D

2. ________, representing M/s ________, ________, having its registered office at ________, duly authorised by ________, hereinafter called and referred to as the "LESSEELICENSEE" (which expression shall, unless excluded by or repugnant to the context, be deemed to mean and include ________ heirs, executors, administrators, legal representatives and assigns, and in the case of a firm or company its partners, directors, successors and permitted assigns) of the OTHER PART.

WHEREAS

A. The LessorLicensor is the absolute owner of and is seized and possessed of the commercial premises described in the FIRST SCHEDULE below (the "Premises"). The LessorLicensor acquired the Premises as follows: ________. The title deed is ________. The name of the LessorLicensor has been mutated in the records of the local authority as follows: ________.

B. The LessorLicensor has represented that the Premises are free from all encumbrances, charges, liens, lis pendens, attachments and acquisitions, and that the LessorLicensor has full right, power and authority to enter into this agreement.

C. The LesseeLicensee required commercial premises for ________ and, after negotiations between the parties, the LessorLicensor has agreed to demise and let out on leasegrant leave and licence to use and occupy the Premises to the LesseeLicensee, and the LesseeLicensee has agreed to take the Premises, on the terms and conditions recorded below.

NOW THIS AGREEMENT WITNESSETH AND IT IS HEREBY AGREED, DECLARED AND COVENANTED BY AND BETWEEN THE PARTIES AS FOLLOWS:

I. DEFINITIONS AND INTERPRETATION

1. That in this agreement, unless the context requires otherwise: (a) "Premises" means the premises described in the FIRST SCHEDULE together with the fixtures and fittings listed in the SECOND SCHEDULE; (b) "Term" means the period stated in clause 2; (c) "Rent" means the monthly rent stated in clause 5; (d) "Security Deposit" means the amount stated in clause 9; (e) "Commencement Date" means ________. Headings are for convenience only and do not affect the meaning of any clause.

II. TERM, COMMENCEMENT AND FIT-OUT PERIOD

2. That the Term of this leaselicence is ________ months, commencing from the Commencement Date, unless ended earlier in accordance with this agreement.

3. That the LesseeLicensee shall have a rent free fit-out period of ________ days from the Commencement Date for carrying out interior work and obtaining approvals. The Term and the lock in period run from the Commencement Date, and Rent is payable only after the fit-out period ends. All other covenants of the LesseeLicensee apply during the fit-out period.

4. That if the LesseeLicensee continues in possession after the Term with the consent of the LessorLicensor, the occupation shall be on a month to month basis on the same terms and shall not create any further right of renewal unless renewal is agreed in writing.

III. RENT, ESCALATION AND PAYMENT

5. That the LesseeLicensee shall pay to the LessorLicensor Rent of ________ per month (the "Rent"), payable in advance on or before the ________th day of each calendar month.

6. That the Rent shall be increased by ________ percent on the Rent payable at that time, after every ________ months from the Commencement Date.

7. That the Rent shall be paid by ________ to the account or in the manner notified in writing by the LessorLicensor, and a receipt or proof of payment shall be kept by the LesseeLicensee. If any payment is not made by the due date, the LesseeLicensee shall pay interest on the late amount at ________ percent per annum from the due date until payment, without affecting any other right of the LessorLicensor.

8. That the LesseeLicensee has paid advance Rent for ________ month(s), which shall be adjusted against the Rent falling due for the last ________ month(s) of the Term. The LesseeLicensee shall not deduct any amount from the Rent except tax deducted at source as required by law.

IV. SECURITY DEPOSIT AND LOCK IN

9. That the LesseeLicensee has paid to the LessorLicensor an interest free refundable Security Deposit of ________, the receipt of which the LessorLicensor acknowledges, as security for the due performance of this agreement.

10. That the LessorLicensor shall refund the Security Deposit within ________ days after the LesseeLicensee hands over vacant and peaceful possession of the Premises, after deducting only unpaid Rent, unpaid charges for electricity, water or maintenance, and the cost of repairing damage beyond normal wear and tear, each supported by a written statement. The Security Deposit shall not be adjusted against Rent by the LesseeLicensee during the Term.

11. That the LesseeLicensee shall not end this agreement for the first ________ months of the Term and the LessorLicensor shall not end it for the first ________ months of the Term (the lock in periods), except for default as provided in this agreement. If the LesseeLicensee leaves during the lock in period, the Rent for the unexpired part of the lock in period shall be payable.

V. TAX ON RENT

12. That tax shall be deducted at source from the Rent by the LesseeLicensee where the law requires it, and the LesseeLicensee shall give the LessorLicensor the tax deduction certificate. The provision of the Income-tax law under which this is done is: ________. GST, if applicable to the Rent under law, shall be charged by the LessorLicensor and paid by the LesseeLicensee as required by law, and the LessorLicensor shall give a proper tax invoice.

VI. ELECTRICITY, WATER, MAINTENANCE AND TAXES

13. That the electricity load sanctioned for the Premises is ________ kVA. The LesseeLicensee shall pay for electricity consumed as shown by ________, and shall pay for water and for maintenance and common area charges of ________, on or before the due date.

14. That municipal and property taxes and rates on the Premises shall be paid by ________, and the party liable shall produce the receipts on request.

VII. USE OF THE PREMISES

15. That the LesseeLicensee shall use the Premises only for ________ and for no other purpose without the written consent of the LessorLicensor.

16. That the LesseeLicensee shall not use the Premises for any illegal, immoral or hazardous purpose, shall not store dangerous or prohibited goods, shall not cause nuisance or annoyance to neighbours, and shall not do anything that may invalidate the insurance of the building.

VIII. TITLE, PEACEFUL ENJOYMENT, LICENCES AND APPROVALS

17. That the LessorLicensor warrants that the LessorLicensor has a clear and marketable title to the Premises and shall indemnify the LesseeLicensee against any claim arising from a defect in that title. The LesseeLicensee, paying the Rent and observing the covenants, shall peacefully enjoy the Premises during the Term without interruption by the LessorLicensor or any person claiming through the LessorLicensor.

18. That the LesseeLicensee shall obtain at its own cost every licence and approval needed for its business at the Premises (for example trade licence, food licence, fire clearance and signage permission). The LessorLicensor shall give a no objection certificate, copies of title and tax receipts, and all co-operation needed for this within seven days of a written request.

IX. FIT-OUT, ALTERATIONS, REPAIRS AND INSURANCE

19. That the LesseeLicensee may carry out interior fit-out and install its own fixtures with the prior written consent of the LessorLicensor, which shall not be unreasonably withheld, but shall make no structural change. The LesseeLicensee shall not damage the structure, walls, pillars, roof or common areas.

20. That structural repairs, roof, external walls and common areas shall be repaired by the LessorLicensor, and day to day repairs and maintenance inside the Premises shall be done by the LesseeLicensee at its own cost.

21. That the LesseeLicensee shall keep its own stock, goods and fit-out insured, and the LessorLicensor shall keep the building insured.

X. SUB-LETTING AND INSPECTION

22. That the LesseeLicensee shall not sub-let, assign, part with possession of or share the Premises or any part of it, or transfer this agreement, without the prior written consent of the LessorLicensor.

23. That the LessorLicensor or an authorised person may inspect the Premises at reasonable hours after giving reasonable prior notice.

XI. TERMINATION AND HANDOVER

24. That after the lock in period, either party may end this agreement by giving ________ month(s) prior written notice to the other party.

25. That if the LesseeLicensee defaults in paying Rent or in any other covenant and does not cure the default within ________ days of a written notice from the LessorLicensor, the LessorLicensor may end this agreement and take back possession. If the LessorLicensor defaults in any covenant and does not cure it within ________ days of a written notice from the LesseeLicensee, the LesseeLicensee may end this agreement and claim refund of the Security Deposit.

26. That on the end of the Term or earlier ending, the LesseeLicensee shall remove its own movable fixtures, stock and signage, make good any damage caused by removal, and hand over vacant and peaceful possession of the Premises with the fixtures and fittings in the SECOND SCHEDULE in the same condition as received, normal wear and tear excepted.

XII. INDEMNITY AND FORCE MAJEURE

27. That each party shall indemnify the other against loss, damage and claims arising from its own breach of this agreement or its own negligence.

28. That neither party shall be liable for delay or failure caused by events beyond its reasonable control, such as fire, flood, earthquake, riot, war, epidemic or an order of a government authority. Rent shall abate in proportion if the Premises cannot be used for more than thirty consecutive days because of such an event.

XIII. DISPUTES, NOTICES AND GENERAL

29. That any dispute arising out of or in connection with this agreement shall be referred to a sole arbitrator appointed by mutual consent, under the Arbitration and Conciliation Act, 1996. The seat and venue of arbitration shall be ________, and the language shall be English. The award shall be final and binding. Subject to this, the courts at ________ alone shall have jurisdiction.That the courts at ________ alone shall have jurisdiction in respect of any dispute arising out of or in connection with this agreement.

30. That every notice under this agreement shall be in writing and sent by registered post or speed post, or by courier, to the address of the party written above or to any other address notified in writing, and shall be treated as received on the third day after posting.

31. That the stamp duty on this agreement shall be paid as required by the stamp law of the State of ________ (________) and shall be borne by ________. This agreement shall be registered where the Term exceeds one year, as required by ________, and the registration charges shall be borne by ________. This agreement is subject to ________, to the extent that law applies to the Premises.

32. That this agreement is the entire agreement between the parties on its subject and replaces every earlier understanding. It may be changed only by a written document signed by both parties.

33. That if any clause is held invalid, the rest of this agreement shall remain in force.

34. That this agreement is made in two counterparts, each signed by both parties, one kept by each party, and each counterpart is an original.

THE FIRST SCHEDULE ABOVE REFERRED TO (THE PREMISES)

ALL THAT ________ on the ________ floor, having a ________ area of about ________ square feet, forming part of Premises No. ________, Holding No. ________, ________, Mouza ________, Khatian No. ________, Dag No. ________, within the local limits of ________, in the District of ________, PIN ________.

Butted and bounded as follows:
On the North: ________
On the South: ________
On the East: ________
On the West: ________

THE SECOND SCHEDULE ABOVE REFERRED TO (FIXTURES AND FITTINGS)

________

IN WITNESS WHEREOF the parties hereto have set and subscribed their respective hands on the day, month and year first above written.

SIGNED AND DELIVERED by the within named LESSORLICENSOR: ________, for M/s ________

Signature: ______________________

SIGNED AND DELIVERED by the within named LESSEELICENSEE: ________, for M/s ________

Signature: ______________________

WITNESSES:

Drafted by: ________

Prepared in my office.

ANNEXURES: Annexure A: Memo of consideration and receipt of Security Deposit. Annexure B: Declaration cum affidavit of the LessorLicensor as to title and no encumbrance. Annexure C: List of identity and address proof of the parties and the authorised signatories (and board resolution or partners' consent where a firm or company is a party).