CONTRACT OF LEASE
KNOW ALL MEN BY THESE PRESENTS:
This CONTRACT OF LEASE, made and entered into by and between:
SPOUSES ____________________ and ____________________, both of legal age, Filipino and residing at No. ________________________________________, the former duly represented herein by his attorney-in-fact ____________________, hereinafter referred to as the “LESSOR”;
-- and --
____________________, of legal age, and Filipino, herein referred to as the “LESSEE”.
WITNESSETH: That --
WHEREAS, the LESSOR is the lawful and registered owner of a house and lot located at No. ________________________________________ (hereinafter referred to as the “Leased Premises”):
WHEREAS, the LESSEE desires and has offered to lease the aforesaid leased premises and the LESSOR has agreed to lease the same to the LESSEE subject to the terms and conditions hereinafter set forth;
NOW THEREFORE, for and in consideration of the foregoing premises and the terms and conditions hereinafter set forth, LESSOR hereby leases unto the LESSEE the aforesaid leased premises, under the following terms and conditions:
1. TERM OF LEASE - This Contract shall be for a period of One (1) year commencing on ____________________ and automatically terminating on ____________________. No interruption in the physical possession by the LESSEE for any reason shall serve to extend the term of this lease. The LESSOR shall be entitled to the immediate recovery of the possession of the leased premises upon such automatic termination, without the necessity of any previous notice or demand, or of any judicial action for ejectment or rescission; provided, however, that the continued possession by LESSEE of the leased -premises for fifteen (15) days or more after the said automatic termination of this contract shall never be interpreted as implied renewal thereof, the provisions of Article 1670 of the new Civil Code to the contrary notwithstanding, and no matter how long LESSEE may continue the illegal possession of the leased premises thereafter, LESSOR shall always retain the right to elect LESSEE; provided, finally that if the LESSEE should persist in occupying the leased premises without any valid lease contract in writing after the expiration or earlier termination of this Contract, the LESSEE shall be liable to pay LESSOR the stipulated penalties or liquidated damages provided herein as well as such reasonable rental/value for the use and enjoyment of said leased premises as may be determined by LESSOR in its sole discretion, over and above any damages.
2. RENTAL - The LESSEE shall pay to the LESSOR, for the use and occupancy of the leased premises a basic monthly rental of ____________________ subject to increase in rental by ____________________ if renewed after one year.
3. ADVANCE RENTAL - The LESSEE shall pay to the LESSOR the sum of ____________________ representing two months deposit and one month advance rental for the month of ____________________.
4. USE OF THE PREMISES - The leased premises shall be used solely and exclusively by the LESSEE for residential purposes.
5. RENOVATION, ALTERATION, ADDITION, OR IMPROVEMENT - The LESSEE shall not make or introduce any alterations, renovations, improvements or additions, whether minor or major, to the leased premises without first securing the prior written consent of LESSOR. Upon the expiry or earlier termination of this Contract, all repairs, alterations, renovations, improvements or additions introduced or made on the leased premises by the LESSEE, upon prior consent of the LESSOR, shall inure to the benefit of, and become the property of the LESSOR without any need to reimburse the cost thereof to the LESSEE.
6. CARE OF THE LEASED PREMISES - The LESSEE shall, at its sole expense maintain the leased premises in a clean and sanitary condition, free from obnoxious odors, disturbing noises, or other nuisances. Upon the expiration or earlier termination of this lease, the LESSEE shall surrender and return the leased premises and all its fixtures in good condition, ordinary wear and tear excepted. The LESSEE shall not in any manner deface or damage any part of the leased premises, and any damage caused by LESSEE, its employees and agents, guests and visitors, shall be repaired or replaced immediately by LESSEE at its own expense; provided that if the LESSEE should fail to do so, the LESSOR may, at its discretion, effect the repair and/or replacement and charge the cost thereof to the LESSEE.
7. REPAIRS AND MAINTENANCE - LESSEE shall, at its own expense, maintain the leased premises in good order and condition. All expenses for extraordinary, necessary, major and/or minor repairs shall be for the sole account of the LESSEE.
8. INFLAMMABLE AND EXPLOSIVE MATERIALS - The LESSEE shall not bring into or store in the leased premises, any contraband, illegal matters and materials nor things that are inflammable or explosive in nature, nor install therein any apparatus, machinery or equipment which may cause obnoxious odors, pollution, tremors or noises or which may expose the leased premises to fire or increase the fire hazard of the Complex or which may tend to increase the insurance rate for the Complex, or any other articles which the LESSOR may reasonably prohibit, it being understood that should the LESSEE violate this provision, it shall be answerable for all damages caused thereby.
9. LIABILITY FOR SUITS - The LESSEE shall indemnify and hold the LESSOR free and harmless against any and all actions, suits, damages, liabilities, claims, costs and expenses whatsoever arising out of or in connection with the non-compliance by the LESSEE or any of its agents, employees, guests or customers with the applicable statutes, laws, ordinances, rules and regulations referred to above.
10. EXPROPRIATION - In the event that expropriation proceedings involving or affecting the leased premises is instituted during the period of this lease by any instrumentality of the Government or by any other entity with authority to exercise such power, either party may rescind this Contract should the leased premises become no longer useful for the purposes of this lease, upon giving the other party thirty (30) days prior written notice thereof. In case of- such expropriation, the LESSEE hereby unconditionally and irrevocably relieves and releases the LESSOR from any and all liability under this Contract, without prejudice to whatever recourse the LESSEE may have against the expropriating entity on account of damage done or caused to it or its properties.
11. SUB-LEASE OR ASSIGNMENT OF LEASE - The LESSEE shall not directly or indirectly sub-lease, or assign, transfer, convey or in any manner encumber his right of lease over the leased premises or any portion thereof under any circumstances and in any form whatsoever; any contract that may be made, or transaction entered into, in violation of this provision shall be null and void. It is expressly understood and agreed by the parties that the business reputation and financial capacity of the LESSEE as herein represented, the present monthly rentals due for the term of this lease, the LESSEE’S undertaking to expend for all extraordinary, necessary, minor and/or major repairs as stated herein, and the nature of the occupancy of the leased premises as above restricted and constituted, are special considerations and inducements for the granting of this lease by the LESSOR; consequently, any violation, direct or indirect, of any of the stipulations hereof, including this provision on the prohibition against sub-lease and assignment of lease, shall automatically and irrevocably terminate this Contract of Lease from the time such violation occurs. The LESSOR, however, has the absolute and unrestricted right to assign, transfer or otherwise convey its rights under this Contract in favor of any person, affiliate or subsidiary.
12. INSPECTION OF PREMISES - The LESSOR’s agents and representatives shall have the right to enter the leased premises at all reasonable hours to inspect and examine the same, or at any time whenever necessary, such as in cases of fire or other emergencies.
13. TERMINATION OF LEASE - The LESSEE, agrees to promptly and peaceably return and surrender the leased premises at the expiration of the term of this lease or its earlier termination pursuant to paragraph 17 hereof, in as good condition as reasonable wear and tear will permit and without any delay whatsoever, devoid of all occupants, furniture, articles and effects of any kind other than such properties, alterations, installations, additions or improvements, ownership over which accrues in favor of the LESSOR in accordance with the provisions of this Contract, without prejudice to LESSOR‘S right of retention to defray any and all damages caused by unpaid rent due from LESSEE.
14. LIQUIDATED DAMAGES - Without prejudice to paragraph 18 hereof, should the LESSEE refuse to voluntarily vacate and deliver possession of the leased premises to the LESSOR despite demand or notice from the LESSOR, then the LESSEE shall be pay the LESSOR liquidated damages equivalent to Two Thousand Pesos (Php 2,000.00) for each day of unlawful detention of the leased premises until LESSEE shall have finally vacated the leased premises in favor of the LESSOR or his duly authorized representative.
15. ABANDONMENT OF LEASED PREMISES - In case the leased premises is, for any reason abandoned, deserted, vacated or closed by the LESSEE or by any other party for a period of at least ?fteen (15) days, or any of the terms and stipulations hereof be violated, the LESSOR shall have the right to enter the same, by any reason whatsoever, as agent or attorney-in-fact of the LESSEE, and the LESSOR shall furthermore have the option to relet the same to any other party without prejudice to any right of action against the LESSEE. In such event, LESSEE shall not have any right of action against the LESSOR whether civil or criminal, on account thereof.
16. NO WAIVER - The failure of the LESSOR to insist upon a strict performance of any of the terms, conditions, stipulations and covenants hereof shall not be deemed a relinquishment or waiver of any right or remedy that LESSOR may have nor shall it be construed as a waiver of any subsequent breach or default of the terms, conditions, stipulations and covenants hereof which shall continue to be in full force and effect. No waiver by the LESSOR of any right under this Contract shall be deemed to have been made unless expressed in writing and signed by the LESSOR. All remedies granted to the LESSOR under this Contract or elsewhere shall be deemed cumulative and non-exclusive.
17. BREACH OF DEFAULT - (a) lf the LESSEE violates or defaults in fulfilling any of the covenants of this Contract other than the covenants for the payment of rent or additional rent, or (b) If the leased premises is closed, vacated, deserted of abandoned, for a period of at least fifteen (15) days without notice to the LESSOR, or (c) If LESSEE shall default in the payment of the rent herein stated or any additional rent or any part of either or in making any payment herein provided or (d) lf any execution or attachment shall be issued against LESSEE or any of LESSEE'S property whereupon the leased premises shall be taken or occupied and attempted to be taken or occupied by someone other than the LESSEE, then in any one or more of such events and upon the expiration of five (5) days from and after the date of service of the written notice of cancellation and demand to vacate and take possession of the leased premises by the LESSOR to the LESSEE, this lease contract shall be deemed automatically canceled and terminated without need of court action. In such event, LESSEE hereby authorizes LESSOR or any of his duly authorized representative to take possession of the leased premises including all its improvements or other properties found therein without compensation to the LESSEE and without necessity of resorting to any court action, in which case said improvements or other properties found and taken possession of by the LESSOR from the leased premises shall automatically and voluntarily be pledged to LESSOR, without need of any further act or deed, as security for the rentals or other liabilities due LESSOR under this Contract, and which LESSOR may proceed against, for failure of LESSEE to pay his liabilities within sixty (60) days from such date of possession, in accordance with the laws on pledge in partial or full satisfaction thereof.
In case this Contract is terminated or canceled, whether judicially or extra-judicially, by reason of any default or breach committed by the LESSEE, the LESSEE shall be fully liable to the LESSOR for the damages that is sustained by the latter, actual or consequential, resulting from such default or termination.
18. JUDICIAL RELIEF - Should the LESSOR be compelled to seek judicial relief against the LESSEE, the latter shall in addition to any other damages that may be awarded to the LESSOR and the liquidated damages provided under paragraph 14 hereof, pay an amount equivalent to Twenty Five percent (25%) of the entire amount claimed in the complaint, as and by way of attorney's fees, which amount shall in no case be less than P 20,000.00 aside from the costs of litigation and the expenses.
19. VENUE OF ACTIONS/SUITS - All actions and/or suits under this contract shall be brought exclusively with the proper courts of the City of ____________________.
20. ENTIRETY OF AGREEMENT - This contract embodies the entire agreement of the parties and no other stipulation or provisions not provided herein shall bind the parties.
21. SEPARABILITY - The invalidity of unenforceability of any provision hereof shall not affect or impair the other provisions which otherwise can be given full force and effect.
22. AMENDMENTS - This Contract may be modified or amended only in writing duly executed by both parties.
IN WITNESS WHEREOF, the parties hereto have caused this instrument to be signed and executed on the date and at the place first above written.
For her own behalf and For her own behalf
On behalf of ____________________
SIGNED IN THE PRESENCE OF:
Republic of the Philippines )
BEFORE ME, a Notary Public, for and in ____________________, this _____ day of _______________ 201__, personally appeared affiants:
Resident Cert. No. Date Issued
____________________ ____________________ ______________
____________________ ____________________ ______________
respectively known to me and to me known to be the same persons who executed the foregoing instrument and acknowledged to me that the same is their free act and deed.
IN WITNESS WHEREOF, I gave hereunto set my hand and affixed my notarial seal on the date and place first above written.
Doc. No, __________;
Page No. __________;
Book No. __________;
Series of 201__.