Business Lease Agreement Template Word South Africa

BUSINESS LEASE AGREEMENT

THIS LEASE AGREEMENT (the "Agreement") is made and entered into on this [Day] day of [Month], [Year] (the "Effective Date"), by and between:

THE LESSOR: [Lessor Full Legal Name], a company duly incorporated under the laws of South Africa, with registration number [Registration Number], having its registered office at [Physical Address] (hereinafter referred to as the "Lessor");

AND

THE LESSEE: [Lessee Full Legal Name], a company duly incorporated under the laws of South Africa, with registration number [Registration Number], having its registered office at [Physical Address] (hereinafter referred to as the "Lessee").

(The Lessor and the Lessee are collectively referred to as the "Parties" and individually as a "Party").

RECITALS

WHEREAS the Lessor is the registered owner of the premises located at [Full Property Address including Erf/Unit Number] (the "Premises");

WHEREAS the Lessee desires to lease the Premises for the purpose of conducting business activities, and the Lessor agrees to grant such lease subject to the terms and conditions set forth herein;

NOW, THEREFORE, the Parties agree as follows:

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1. OPERATIONAL DEFINITIONS

1.1 "Business Day" means any day other than a Saturday, Sunday, or a public holiday as defined in the Public Holidays Act 36 of 1994. 1.2 "Commencement Date" means [Start Date]. 1.3 "Termination Date" means [End Date], unless terminated earlier in accordance with this Agreement. 1.4 "Rent" means the monthly sum of [Currency and Amount] payable by the Lessee to the Lessor. 1.5 "Deposit" means the sum of [Currency and Amount] held as security for the performance of the Lessee’s obligations. 1.6 "Premises" means the property described in the Recitals, including all fixtures and fittings specified in the "Premises Inspection Report" annexed hereto as Schedule A.

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2. SUBSTANTIVE TERMS AND OBLIGATIONS

2.1 Grant of Lease: The Lessor lets to the Lessee, and the Lessee hires from the Lessor, the Premises for the duration of the Lease Period. 2.2 Use of Premises: The Lessee shall use the Premises strictly for [Nature of Business Activity] and shall comply with all applicable municipal bylaws, zoning regulations, and health and safety legislation. 2.3 Rent Payment: Rent shall be paid monthly in advance, without deduction or set-off, on or before the 1st day of each month via electronic funds transfer (EFT) to the account nominated by the Lessor. 2.4 Maintenance: The Lessee shall, at its own cost, maintain the interior of the Premises in good order and repair. The Lessor shall be responsible for the structural maintenance of the building, including the roof and exterior walls. 2.5 Compliance: The Lessee shall adhere to the Occupational Health and Safety Act 85 of 1993 and indemnify the Lessor against any claims arising from the Lessee’s operations on the Premises.

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3. DEFAULT, TERMINATION, AND REMEDIES

3.1 Breach: In the event that either Party commits a material breach of any term of this Agreement, the aggrieved Party may give the defaulting Party written notice to remedy such breach within 30 (thirty) business days. 3.2 Termination: If the defaulting Party fails to remedy the breach within the 30-day notice period, the aggrieved Party shall be entitled, without prejudice to any other rights available at law, to: 3.2.1 Cancel this Agreement immediately upon written notice; and/or 3.2.2 Claim damages arising from the breach. 3.3 Interest: Any overdue payments shall attract interest at the prime overdraft rate as charged by the Lessor’s bankers from time to time, plus 2% (two percent), calculated from the due date until the date of actual payment.

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4. BOILERPLATE LEGAL PROVISIONS

4.1 Severability: If any provision of this Agreement is found to be invalid or unenforceable, such provision shall be severed, and the remaining provisions shall continue in full force and effect. 4.2 Entire Agreement: This document constitutes the entire agreement between the Parties and supersedes all prior negotiations, representations, or agreements, whether oral or written. 4.3 Force Majeure: Neither Party shall be liable for any failure to perform its obligations hereunder where such failure results from a cause beyond its reasonable control, including acts of God, war, or governmental regulation. 4.4 Governing Law: This Agreement shall be governed by and construed in accordance with the laws of the Republic of South Africa. 4.5 Dispute Resolution: Any dispute arising out of or in connection with this Agreement shall be settled by way of mandatory arbitration in [City, South Africa] in accordance with the rules of the Arbitration Foundation of Southern Africa (AFSA).

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5. FORMAL EXECUTION BLOCK

SIGNED at [Location] on this [Day] day of [Month], [Year].

FOR AND ON BEHALF OF THE LESSOR:

Signature: __________________________ Name: [Signatory Name] Title: [Title]

FOR AND ON BEHALF OF THE LESSEE:

Signature: __________________________ Name: [Signatory Name] Title: [Title]

WITNESSES:

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