Commercial Lease Agreement Template Philippines

COMMERCIAL LEASE AGREEMENT

This Commercial Lease Agreement (the "Agreement") is entered into this [Day] day of [Month], [Year] (the "Effective Date"), by and between:

[Lessor Name], a corporation duly organized and existing under the laws of the Republic of the Philippines, with principal office address at [Office Address], represented herein by its [Title], [Signatory Name] (hereinafter referred to as the "Lessor");

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[Lessee Name], a corporation duly organized and existing under the laws of the Republic of the Philippines, with principal office address at [Office Address], represented herein by its [Title], [Signatory Name] (hereinafter referred to as the "Lessee").

RECITALS

WHEREAS, the Lessor is the absolute and registered owner of that certain real property located at [Full Address of Premises], consisting of approximately [Number] square meters (the "Premises");

WHEREAS, the Lessee desires to lease the Premises for [Commercial Use, e.g., office/retail] purposes, and the Lessor agrees to lease the same to the Lessee under the terms and conditions set forth herein.

NOW, THEREFORE, for and in consideration of the foregoing premises and the mutual covenants herein contained, the parties agree as follows:

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1. OPERATIONAL DEFINITIONS

1.1 "Premises" shall mean the commercial space described in the Recitals, including all fixtures, improvements, and appurtenances therein. 1.2 "Lease Term" shall mean the period of [Number] years/months commencing on [Start Date] and expiring on [End Date]. 1.3 "Monthly Rent" shall mean the sum of [Currency Amount] per month, exclusive of applicable Value Added Tax (VAT) and withholding taxes. 1.4 "Security Deposit" shall mean the sum of [Currency Amount], equivalent to [Number] months of rent, held as collateral for the faithful performance of the Lessee’s obligations. 1.5 "Default" shall mean the failure of a party to perform any obligation under this Agreement that remains uncured after the prescribed notice period.

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2. SUBSTANTIVE TERMS AND OBLIGATIONS

2.1 Use of Premises: The Lessee shall use the Premises strictly for [Permitted Business Use] and for no other purpose without the prior written consent of the Lessor. 2.2 Rent Payment: Rent shall be paid in advance within the first [Number] days of each calendar month. Late payments shall incur a penalty interest of [Percentage]% per month. 2.3 Utilities and Taxes: The Lessee shall be responsible for the payment of all utilities, including electricity, water, telecommunications, and common area maintenance (CAM) charges. The Lessee shall withhold and remit applicable taxes to the Bureau of Internal Revenue (BIR) as required by law. 2.4 Maintenance and Alterations: The Lessee shall maintain the Premises in good and tenantable condition. Any structural alterations or renovations require prior written approval from the Lessor. 2.5 Compliance with Laws: The Lessee shall comply with all national and local ordinances, building codes, and safety regulations.

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3. DEFAULT, TERMINATION, AND REMEDIES

3.1 Events of Default: An Event of Default occurs if: (a) Lessee fails to pay Rent for [Number] consecutive months; (b) Lessee breaches any material covenant and fails to remedy said breach within thirty (30) business days following receipt of written notice from the Lessor; or (c) Lessee becomes insolvent or files for bankruptcy. 3.2 Remedies: Upon an Event of Default, the Lessor may, at its option: (a) Terminate this Agreement by written notice; (b) Forfeit the Security Deposit; (c) Initiate eviction proceedings in a court of competent jurisdiction; or (d) Pursue any other legal recourse under Philippine law. 3.3 Termination: Upon expiration or pre-termination, the Lessee shall surrender the Premises in the same condition as received, ordinary wear and tear excepted.

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4. BOILERPLATE LEGAL PROVISIONS

4.1 Force Majeure: Neither party shall be liable for failure to perform obligations due to events beyond their reasonable control, including but not limited to acts of God, strikes, or government mandates. 4.2 Governing Law: This Agreement shall be governed by and construed in accordance with the laws of the Republic of the Philippines. 4.3 Dispute Resolution: Any dispute arising out of this Agreement shall be settled amicably through negotiation. If unresolved within thirty (30) days, the dispute shall be submitted to binding arbitration in accordance with the Philippine Dispute Resolution Center, Inc. (PDRCI) rules, with venue exclusively in [City/Province]. 4.4 Severability: If any provision of this Agreement is held to be invalid or unenforceable, the remaining provisions shall remain in full force and effect. 4.5 Entire Agreement: This document constitutes the entire agreement between the parties and supersedes all prior understandings, written or oral.

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5. FORMAL EXECUTION BLOCK

IN WITNESS WHEREOF, the parties have caused this Agreement to be executed as of the date first above written.

[LESSOR NAME]

By: ___________________________ Name: [Signatory Name] Title: [Title]

[LESSEE NAME]

By: ___________________________ Name: [Signatory Name] Title: [Title]

SIGNED IN THE PRESENCE OF:

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ACKNOWLEDGMENT

REPUBLIC OF THE PHILIPPINES) CITY OF _______________ ) S.S.

BEFORE ME, a Notary Public for and in the city above-mentioned, this [Date], personally appeared the above-named parties with their respective Government Issued IDs, known to me to be the same persons who executed the foregoing instrument and acknowledged to me that the same is their free and voluntary act and deed.

Doc No. _____; Page No. _____; Book No. ___; Series of 20.