Commercial Property Lease Agreement Format India

COMMERCIAL PROPERTY LEASE AGREEMENT

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

LESSOR: [Lessor Full Name/Company Name], a company incorporated under the Companies Act, 2013, having its registered office at [Registered Address], represented by its authorized signatory, [Name of Signatory] (hereinafter referred to as the “Lessor”, which expression shall, unless repugnant to the context or meaning thereof, be deemed to mean and include its successors and permitted assigns);

AND

LESSEE: [Lessee Full Name/Company Name], a company incorporated under the Companies Act, 2013, having its registered office at [Registered Address], represented by its authorized signatory, [Name of Signatory] (hereinafter referred to as the “Lessee”, which expression shall, unless repugnant to the context or meaning thereof, be deemed to mean and include its successors and permitted assigns).

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

RECITALS

WHEREAS, the Lessor is the absolute owner of the commercial property situated at [Full Property Address/Description], admeasuring approximately [Area in Sq. Ft./Sq. Meters] (the “Premises”);

WHEREAS, the Lessee desires to lease the Premises for [Commercial Use/Office/Retail] purposes, and the Lessor has agreed to grant such leasehold rights to the Lessee subject to the terms and conditions set forth herein.

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1. OPERATIONAL DEFINITIONS

1.1. “Base Rent” shall mean the monthly sum of [Amount in INR] payable by the Lessee to the Lessor. 1.2. “Security Deposit” shall mean an interest-free refundable amount of [Amount in INR] deposited by the Lessee. 1.3. “Lease Term” shall mean a period of [Number] months commencing on [Start Date] and expiring on [End Date]. 1.4. “Applicable Law” shall mean all statutes, enactments, acts of legislature or parliament, laws, ordinances, rules, by-laws, regulations, notifications, guidelines, or policies of any governmental authority in [Jurisdiction/State], India. 1.5. “Force Majeure” shall mean any event beyond the reasonable control of a Party, including acts of God, war, riot, civil commotion, or governmental restrictions.

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2. SUBSTANTIVE TERMS AND OBLIGATIONS

2.1. Grant of Lease: The Lessor hereby grants the Lessee the right to occupy and use the Premises solely for commercial activities. 2.2. Payment of Rent: The Lessee shall pay the Base Rent on or before the [Day] of each calendar month. Payments exceeding [Number] days past the due date shall incur an interest penalty of [Percentage]% per annum. 2.3. Maintenance and Utilities: The Lessee shall be responsible for all utility charges (electricity, water, internet) consumed at the Premises. Major structural repairs shall be the responsibility of the Lessor, while day-to-day internal maintenance is the Lessee’s obligation. 2.4. Representations: Each Party represents that it has the full legal power and corporate authority to enter into this Agreement and that the execution of this Agreement does not violate any existing contract or Applicable Law. 2.5. Compliance: The Lessee shall comply with all fire safety norms, building codes, and municipal regulations applicable to the Premises.

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3. DEFAULT, TERMINATION, AND REMEDIES

3.1. Event of Default: An Event of Default shall occur if: a) Lessee fails to pay Rent for two (2) consecutive months; b) Lessee breaches any material covenant and fails to cure such breach within thirty (30) business days of receiving written notice from the Lessor. 3.2. Termination: Upon an uncured Event of Default, the non-breaching Party may terminate this Agreement by providing [Number] days’ prior written notice. 3.3. Remedies: Upon termination due to Lessee’s default, the Lessor is entitled to forfeit the Security Deposit, re-enter the Premises, and seek legal recourse for unpaid Rent and damages under the Indian Contract Act, 1872.

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4. BOILERPLATE LEGAL PROVISIONS

4.1. Severability: If any provision of this Agreement is held to be invalid or unenforceable, the remaining provisions shall remain in full force and effect. 4.2. Entire Agreement: This Agreement constitutes the entire agreement between the Parties and supersedes all prior understandings, written or oral. 4.3. Force Majeure: Neither Party shall be liable for failure to perform its obligations if such failure results from a Force Majeure event, provided that the affected Party gives prompt notice to the other. 4.4. Governing Law: This Agreement shall be governed by and construed in accordance with the laws of India. 4.5. Dispute Resolution: Any dispute arising out of this Agreement shall be settled through arbitration under the Arbitration and Conciliation Act, 1996. The seat of arbitration shall be [City, State], and the proceedings shall be conducted in English.

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5. FORMAL EXECUTION BLOCK

IN WITNESS WHEREOF, the Parties have caused this Agreement to be executed by their duly authorized representatives as of the Effective Date.

For and on behalf of [Lessor Name]:

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Name: Title: Date:

For and on behalf of [Lessee Name]:

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Name: Title: Date:

WITNESS 1: Name: ____________________ Signature: ________________

WITNESS 2: Name: ____________________ Signature: ________________