Commercial Rental Agreement Pakistan

COMMERCIAL RENTAL AGREEMENT PAKISTAN

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

[Lessor Name], a company incorporated under the laws of Pakistan, having its registered office at [Registered Address] (hereinafter referred to as the "Lessor");

AND

[Lessee Name], a company incorporated under the laws of Pakistan, having its registered office at [Registered Address] (hereinafter referred to as the "Lessee").

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

RECITALS

WHEREAS, the Lessor is the lawful owner of the commercial premises located at [Complete Property Address] (the "Premises"); WHEREAS, the Lessee desires to lease the Premises for commercial purposes, and the Lessor agrees to lease the same to the Lessee under the terms and conditions set forth herein.

1. OPERATIONAL DEFINITIONS

1.1 "Premises" means the commercial space measuring [Area in Sq. Ft./Sq. Meters] located at [Address], including all fixtures and internal installations currently existing therein. 1.2 "Rent" means the monthly consideration of PKR [Amount in Figures] ([Amount in Words] Pakistani Rupees) payable by the Lessee to the Lessor. 1.3 "Security Deposit" means the refundable sum of PKR [Amount] held by the Lessor as collateral against damage or breach. 1.4 "Term" means the period of [Number] years commencing on [Start Date] and expiring on [End Date]. 1.5 "Utilities" means all charges related to electricity, water, gas, telephone, internet, and HVAC services. 1.6 "Applicable Law" means the laws of the Islamic Republic of Pakistan, including but not limited to the Transfer of Property Act, 1882, and the relevant Rent Restriction Ordinances of the respective province.

2. SUBSTANTIVE TERMS & OBLIGATIONS

2.1 Grant of Lease: The Lessor hereby demises unto the Lessee the Premises for the Term, subject to the covenants herein. 2.2 Rent Payment: The Lessee shall pay the Rent in advance on or before the [Day] day of each Gregorian calendar month via pay order, demand draft, or bank transfer to the Lessor’s designated account. 2.3 Security Deposit: Upon execution, the Lessee shall deposit the Security Deposit, which shall be non-interest bearing and refundable upon the expiry of the Term, subject to the deduction of any outstanding dues or repairs. 2.4 Permitted Use: The Lessee shall use the Premises strictly for [Nature of Business] and shall not carry out any illegal or hazardous activities. 2.5 Maintenance: The Lessee shall be responsible for routine interior maintenance. The Lessor shall be responsible for structural repairs, provided such damage is not caused by the Lessee’s negligence. 2.6 Taxes: The Lessee shall be responsible for all commercial taxes specific to their business operations, while the Lessor remains liable for property taxes (i.e., property tax/cantonment board charges).

3. DEFAULT, TERMINATION, AND REMEDIES

3.1 Event of Default: An event of default shall occur if: (a) The Lessee fails to pay Rent for [Number] consecutive months; (b) The Lessee breaches any material covenant and fails to cure such breach within 30 business days of receiving written notice from the Lessor; (c) The Lessee files for insolvency or bankruptcy. 3.2 Remedies: In the event of a material breach, the Lessor may: (a) Terminate this Agreement upon [Number] days’ written notice; (b) Re-enter the Premises and forfeit the Security Deposit to cover outstanding arrears or damages; (c) Pursue legal action for recovery of unpaid Rent and damages under the applicable provincial Rent Restriction Ordinance. 3.3 Early Termination: Neither party may terminate this Agreement prior to the expiration of the Term without [Number] months' prior written notice or payment of equivalent rent in lieu thereof.

4. BOILERPLATE LEGAL PROVISIONS

4.1 Severability: If any provision of this Agreement is held to be invalid or unenforceable, the remaining provisions shall continue in full force and effect. 4.2 Entire Agreement: This Agreement constitutes the entire understanding between the Parties and supersedes all prior negotiations, representations, or agreements. 4.3 Force Majeure: Neither Party shall be liable for failure to perform obligations due to events beyond their reasonable control, including acts of God, war, or government-imposed lockdowns, provided that notice is given within 10 days of the event. 4.4 Governing Law: This Agreement shall be governed by and construed in accordance with the laws of [Jurisdiction, e.g., Sindh/Punjab], Pakistan. 4.5 Dispute Resolution: Any dispute arising out of this Agreement shall be settled through binding arbitration in [City, Pakistan] under the Arbitration Act, 1940. If arbitration fails, the courts of [City] shall have exclusive jurisdiction.

5. FORMAL EXECUTION BLOCK

SIGNED, SEALED, AND DELIVERED

For and on behalf of the LESSOR:

Name: __________________________ Title: ___________________________ Date: ___________________________ CNIC/NTN: ______________________

For and on behalf of the LESSEE:

Name: __________________________ Title: ___________________________ Date: ___________________________ CNIC/NTN: ______________________

WITNESS 1: ____________________ (Name & CNIC)

WITNESS 2: ____________________ (Name & CNIC)