Commercial Lease Agreement Ontario Template

COMMERCIAL LEASE AGREEMENT

THIS COMMERCIAL LEASE AGREEMENT (the "Lease") is made and entered into as of this [Day] day of [Month], [Year] (the "Effective Date").

1. DOCUMENT PREAMBLE & RECITALS

BETWEEN: [Landlord Name], a corporation incorporated under the laws of [Jurisdiction], having its head office at [Address] (hereinafter referred to as the "Landlord");

AND: [Tenant Name], a corporation incorporated under the laws of [Jurisdiction], having its head office at [Address] (hereinafter referred to as the "Tenant").

WHEREAS: A. The Landlord is the registered owner of the commercial property municipally known as [Address] (the "Premises"); B. The Landlord desires to lease the Premises to the Tenant, and the Tenant desires to lease the Premises from the Landlord, subject to the terms and conditions set forth herein.

NOW, THEREFORE, in consideration of the mutual covenants and agreements contained herein, the receipt and sufficiency of which are hereby acknowledged, the Parties agree as follows:

2. OPERATIONAL DEFINITIONS

1. "Basic Rent" means the annual sum of $[Dollar Amount], payable in monthly installments of $[Dollar Amount].
2. "Additional Rent" means all costs, expenses, and obligations related to the Premises, including but not limited to realty taxes, insurance premiums, and common area maintenance (CAM).
3. "Term" means the period commencing on [Start Date] and expiring on [End Date].
4. "Permitted Use" means [Description of Business Activity] and no other purpose without the prior written consent of the Landlord.
5. "Lease Year" means each twelve (12) month period during the Term.

3. SUBSTANTIVE TERMS & OBLIGATIONS

1. Grant of Lease: The Landlord hereby leases the Premises to the Tenant for the Permitted Use, subject to all applicable municipal bylaws and provincial statutes of Ontario.
2. Rent Payments: Tenant shall pay Basic Rent and Additional Rent on the first day of each month via [Payment Method]. Payments received after the fifth (5th) day of the month are subject to a late fee of [Percentage]%.
3. Maintenance and Repair: The Tenant shall maintain the interior of the Premises in good order and repair. The Landlord shall be responsible for the structural integrity of the building, including the roof, foundation, and exterior walls.
4. Insurance: The Tenant shall maintain, at its sole expense, comprehensive general liability insurance in an amount not less than $[Dollar Amount] per occurrence, naming the Landlord as an additional insured.
5. Representations: The Tenant represents that it is duly incorporated, validly existing, and has full corporate power to execute this Lease.

4. DEFAULT, TERMINATION, AND REMEDIES

1. Events of Default: A default occurs if the Tenant fails to pay Rent for five (5) days, fails to perform any obligation under this Lease, or becomes insolvent.
2. Notice and Cure: In the event of a non-monetary breach, the Landlord shall provide written notice to the Tenant. The Tenant shall have thirty (30) business days from the receipt of such notice to remedy the breach.
3. Remedies: Upon an uncured default, the Landlord may, at its option: (i) terminate this Lease upon notice; (ii) re-enter and take possession of the Premises; (iii) recover all damages resulting from the breach; or (iv) pursue any other remedy available under the Commercial Tenancies Act (Ontario).

5. BOILERPLATE LEGAL PROVISIONS

1. Severability: If any provision of this Lease is held to be invalid or unenforceable, the remaining provisions shall continue in full force and effect.
2. Entire Agreement: This document constitutes the entire agreement between the Parties and supersedes all prior negotiations or understandings.
3. Force Majeure: Neither party shall be liable for failure to perform (excluding payment obligations) due to events beyond their reasonable control, including acts of God, war, or governmental restriction.
4. Governing Law: This Lease shall be governed by and construed in accordance with the laws of the Province of Ontario and the laws of Canada applicable therein.
5. Dispute Resolution: Any dispute arising out of this Lease that cannot be resolved through good-faith negotiation shall be submitted to mandatory and binding arbitration in [City, Ontario], conducted in accordance with the Arbitration Act, 1991 (Ontario).

6. FORMAL EXECUTION BLOCK

IN WITNESS WHEREOF, the Parties have executed this Lease as of the Effective Date.

LANDLORD: [Company Name]

Per: ___________________________ Name: [Signatory Name] Title: [Title] Date: [Date]

TENANT: [Company Name]

Per: ___________________________ Name: [Signatory Name] Title: [Title] Date: [Date]