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This Business Lease Agreement (“Agreement”) is made and entered into on __________ (“Effective Date”) by and between:
Landlord Name, with its place of business at
Hereinafter referred to as the FIRST PARTY or LESSOR.
Tenant Name, residing at/with its place of business at
Hereinafter referred to as the SECOND PARTY or LESSEE.
The expressions FIRST PARTY and SECOND PARTY shall mean and include their respective legal heirs, executors, administrators, respective assignee, and successors.
WHEAREAS the FIRST PARTY herein owns and possesses a business premises situated at __________ (“Premises”), and more specifically described in Schedule A of this Agreement.
WHEREAS the SECOND PARTY has requested the FIRST PARTY to lease out the said Premises on monthly rental basis for a period of 11 months and the FIRST PARTY has agreed to lease out to the SECOND PARTY the Premises for business purposes on the following terms and conditions:
In consideration of mutual covenants set forth herein and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, and intending to be bound hereby, the parties agree as follows:
- The FIRST PARTY has agreed to lease out the Premises and the SECOND PARTY has agreed to accept the said Premises on monthly rental lease basis for a period of eleven (11) months commencing from the Effective Date (“Term”).
- The rent for the Premises shall commence from Effective Date for the Term.
- The SECOND PARTY shall pay the monthly rental of Rs. __________ (Rupees __________ Only) (“Monthly Rent”).
- The SECOND PARTY shall pay the Monthly Rent for every month in advance on or before the __________ day of every month through CASH/CHEQUE/ECS/BANK TRANSFER to the FIRST PARTY.
- The SECOND PARTY shall pay the Monthly Rent in the stipulated time as mentioned above. In case the SECOND PARTY fails to pay the Monthly Rent as per above, the SECOND PARTY shall be liable to pay late interest charge at a monthly rate equal to twelve percent (12%) from the date payment is due until the date payment is made.
- In the event that the SECOND PARTY fails to pay the Monthly Rent continuously for a period of three (3) months, the SECOND PARTY shall be liable to surrender the Premises to the FIRST PARTY without the need of any prior notice.
3.Use of Premises
- The SECOND PARTY shall use the Premises for the intended business purpose only.
- The purpose for which the Premises will be used is as under: __________
- The SECOND PARTY shall also comply with all the rules and regulations of the applicable local authority.
- The SECOND PARTY shall not do any act which may be a nuisance or annoyance to the adjoining occupiers.
- The SECOND PARTY shall not keep any prohibited articles in the Premises including but not limited to explosives, arms, ammunitions, chemicals or such other inflammable or corrosive materials.
4. Termination and Renewal
- This Agreement may be terminated by either party by issuing a written notice thirty (30) days to the other party.
- This Agreement may be extended further with the mutual consent of both the parties after the expiry of the Term.
5. Security Deposit
- The security deposit for the Premises is fixed as Rs. __________ (Rupees __________ only) (“Security Deposit”) to be held as security for the payment of Monthly Rent and the due compliance by the SECOND PARTY of all of its obligations in this Agreement which shall be paid to the FIRST PARTY by the SECOND PARTY on the execution of this Agreement.
- The Security Deposit shall be refundable to the SECOND PARTY, without any interest within 20 days after the Premises have been completely vacated by the Lessee.
- FIRST PARTY may deduct any amount necessary from the Security Deposit and ask for further payment from the SECOND PARTY of any amount necessary if such amount exceeds the value of the Security Deposit, to cover any SECOND PARTY’s default under this Agreement.
- The FIRST PARTY hereby represents that it is the absolute owner of the Premises being let out to the SECOND PARTY under this Agreement and is lawfully entitled to execute this Agreement.
- The SECOND PARTY hereby warrants that it is lawfully entitled to execute this Agreement and the Premises shall only be used for the purposes of business as specified in this Agreement and agrees that any other use of the Premises in contravention of this Agreement shall entitle the FIRST PARTY to unilaterally terminate this Agreement.
- The SECOND PARTY represents that it has been afforded ample opportunity by the FIRST PARTY to inspect the Premises and after such inspection the SECOND PARTY has validated that there are no defects existing in the Premises making it unsuitable for possession and the Premises is in good condition.
- The SECOND PARTY shall pay maintenance charge of __________ (Rupees __________ only) per month to the FIRST PARTY on or before the __________ of every month.
- The SECOND PARTY shall pay the electricity and water bills directly to the authorities at their own cost.
- Any minor repairs within the Premises will be the responsibility of the SECOND PARTY. However, if any major repairs are required it shall be the responsibility of the FIRST PARTY provided the SECOND PARTY promptly informs the FIRST PARTY about the said repairs.
- The SECOND PARTY shall not sub-lease the Premises to any other person without the prior written consent of the FIRST PARTY.
- No structural changes or alterations shall be made by the SECOND PARTY in the Premises without the prior written consent of the FIRST PARTY.
- The FIRST PARTY shall hold the right to visit in person or through their authorized agent(s) the Premises for inspection, or as and when required, by giving a 24 hours’ notice to the SECOND PARTY. However, this notice will be deemed waived in case of emergency visits.
- The FIRST PARTY shall pay all taxes and fees levied on the Premises by the applicable government authorities.
- The SECOND PARTY agrees to indemnify and hold harmless the FIRST PARTY for any claims resulting or arising due to the business activities conducted by the SECOND PARTY or for claims for statutory dues, municipal taxes and other charges or for claims for breach of this Agreement by SECOND PARTY.
12. Governing Law
- This Agreement shall be governed by the laws of India and the courts of __________ State shall have the sole jurisdiction to entertain any disputes arising under this Agreement.
- Any term or provision of this Agreement may be amended, only by written agreement between the parties.
- If any provision of this Agreement shall be found invalid or unenforceable, the validity, legality, and enforceability of the remaining provisions shall not in any way be affected or impaired thereby.
- The rights and remedies of each party may be waived only by a specific written waiver.
16. Entire Agreement
- This Agreement constitutes the entire understanding of the parties concerning its subject matter and supersedes all prior and contemporaneous agreements or understandings.
IN WITNESS WHEREOF, the FIRST PARTY and SECOND PARTY have signed this Agreement on __________ day of __________ month of the __________ year at __________ .
FIRST PARTY (LESSOR):