Pakistan Lease Agreement

PAKISTAN LEASE AGREEMENT

1. Document Preamble & Recitals

This Pakistan Lease Agreement (hereinafter referred to as the "Agreement") is entered into and made effective as of this [Day] day of [Month], [Year] (hereinafter referred to as the "Effective Date"), by and between:

LESSOR: [Full Legal Name of Lessor], having its principal place of residence/registered office at [Lessor Address], National Identity Card (NIC) number / National Tax Number (NTN): [Lessor NIC/NTN], (hereinafter referred to as the "Lessor", which expression shall unless repugnant to the context include its successors-in-interest, legal representatives, and assigns) of the FIRST PART;

AND

LESSEE: [Full Legal Name of Lessee], having its principal place of residence/registered office at [Lessee Address], National Identity Card (NIC) number / National Tax Number (NTN): [Lessee NIC/NTN], (hereinafter referred to as the "Lessee", which expression shall unless repugnant to the context include its successors-in-interest, legal representatives, and permitted assigns) of the SECOND PART.

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

WHEREAS: A. The Lessor is the absolute, lawful, and undisputed owner of the commercial/residential immovable property situated at [Complete Property Address including Plot/Building Number, Street, Area, City], measuring approximately [Square Feet/Yards] (hereinafter referred to as the "Demised Premises"); B. The Lessee has represented to the Lessor that it possesses the requisite financial standing, legal capacity, and corporate authority to lease the Demised Premises for [Commercial/Residential] purposes; C. The Lessor has agreed to let out, and the Lessee has agreed to take on lease, the Demised Premises, subject to the terms, covenants, conditions, and stipulations hereinafter contained in accordance with the laws of the Islamic Republic of Pakistan.

NOW, THEREFORE, IT IS MUTUALLY AGREED BY AND BETWEEN THE PARTIES AS FOLLOWS:

---

2. Operational Definitions

For the purposes of this Agreement, except where the context otherwise explicitly requires, the following terms shall have the meanings ascribed to them below:

1. "Agreement" means this Lease Agreement, including all recitals, schedules, annexures, and any lawful amendments executed in writing by the Parties from time to time.
2. "Business Day" means a day (other than a Saturday, Sunday, or a public/gazetted holiday declared by the Government of Pakistan or the Provincial Government of [Province, e.g., Sindh/Punjab]) on which scheduled banks are open for normal banking business in Pakistan.
3. "Demised Premises" means the physical immovable property described in Recital A, inclusive of all permanent fixtures, electrical installations, sanitary fittings, and appurtenances as detailed in the Inventory Schedule attached hereto as Annexure A.
4. "Effective Date" means the date first written above upon which this Agreement comes into full force and effect.
5. "Force Majeure" means any event beyond the reasonable control of the affected Party, including but not limited to acts of God, war, civil commotion, terrorism, lightning, earthquake, fire, flood, strikes, lockouts, or acts of government or regulatory authorities, which directly prevents the performance of obligations under this Agreement.
6. "Lease Term" means the fixed duration of [Number] years, commencing on [Start Date] and expiring on [End Date], unless terminated earlier in accordance with the provisions of this Agreement.
7. "Monthly Rent" means the sum of Pakistani Rupees [Amount in Words] (PKR [Numeric Amount]), payable by the Lessee to the Lessor in consideration for the use and occupation of the Demised Premises.
8. "Security Deposit" means the interest-free refundable sum of Pakistani Rupees [Amount in Words] (PKR [Numeric Amount]) deposited by the Lessee with the Lessor as financial security for the due performance of the Lessee’s obligations hereunder.
9. "Taxes" means all applicable federal, provincial, and local government taxes, duties, cesses, rates, and levies, including but not limited to property tax, stamp duty, and withholding tax under the Income Tax Ordinance, 2001.

---

3. Substantive Terms & Obligations

3.1 Grant of Lease and Term

The Lessor hereby grants, and the Lessee hereby accepts, the lease of the Demised Premises for the Lease Term. The Lease Term may be renewed for an additional period of [Number] years upon mutually agreed terms, subject to the execution of a fresh written lease agreement and an upward revision of the Monthly Rent by [Percentage]%, provided the Lessee serves a written notice of its intention to renew at least ninety (90) days prior to the expiration of the initial Lease Term.

3.2 Rent and Payment Mechanics

1. The Lessee covenants to pay the Monthly Rent to the Lessor in advance, on or before the [Day] day of each calendar month.
2. All payments of Monthly Rent shall be made via crossed cheque, pay order, or direct bank transfer into the designated bank account of the Lessor, details of which are as follows:
   • Account Title: [Bank Account Title]
   • Account Number: [Account Number]
   • Bank Name and Branch: [Bank Name, Branch Name, and Code]
3. A failure to pay the Monthly Rent by the due date shall attract a late payment surcharge at the rate of [Percentage, e.g., 1.5%] per month, calculated on a daily basis from the due date until the date of actual realization, without prejudice to the Lessor's right to terminate this Agreement.

3.3 Security Deposit

1. Upon the execution of this Agreement, the Lessee shall deposit the Security Deposit with the Lessor.
2. The Security Deposit shall remain with the Lessor throughout the Lease Term without bearing any interest.
3. The Security Deposit shall be refunded to the Lessee within thirty (30) Business Days following the expiration or lawful termination of this Agreement, vacant peaceful handover of possession of the Demised Premises to the Lessor, and settlement of all outstanding utility bills and dues, subject to the deduction of any undisputed costs for repairing structural damages caused by the Lessee beyond normal wear and tear.

3.4 Use of Demised Premises

1. The Lessee shall use the Demised Premises strictly for [Commercial/Office/Residential] purposes and for no other purpose whatsoever without the prior written consent of the Lessor.
2. The Lessee shall not store any hazardous, explosive, inflammable, illegal, or contraband materials on the Demised Premises.
3. The Lessee shall comply with all applicable municipal, provincial, and federal laws, bylaws, rules, and regulations issued by the local government, cantonment board, or development authority having jurisdiction over the Demised Premises.

3.5 Maintenance, Repairs, and Utilities

1. Minor Repairs: The Lessee shall, at its own cost and expense, maintain the interior of the Demised Premises in good, clean, and tenantable condition and execute all minor day-to-day repairs, including electrical switches, plumbing fixtures, and bulb replacements.
2. Major Structural Repairs: The Lessor shall be responsible for structural repairs, roof leakage remediation, and external painting of the Demised Premises, provided such damage is not caused by the negligence or willful act of the Lessee, its employees, agents, or invitees.
3. Utilities: The Lessee shall promptly pay all utility bills (including electricity, gas, water, and telephone/internet services) consumed on the Demised Premises during the Lease Term and shall provide copies of paid utility bills to the Lessor upon request.

3.6 Representations and Warranties

1. Lessor Representations: The Lessor represents and warrants that: (a) it has absolute, unencumbered legal title to the Demised Premises and full legal capacity to execute this Agreement; (b) the Demised Premises are free from all mortgages, liens, attachments, or litigation; and (c) the peaceful possession of the Lessee shall not be disturbed by the Lessor or any person claiming through or under it.
2. Lessee Representations: The Lessee represents and warrants that: (a) it has the legal power and corporate authority to enter into this Agreement; (b) the execution and performance of this Agreement do not violate any existing contracts, laws, or judicial orders binding upon the Lessee.

---

4. Default, Termination, and Remedies

4.1 Events of Default

The occurrence of any of the following events shall constitute an "Event of Default":

1. Failure by the Lessee to pay the Monthly Rent or any part thereof within fifteen (15) days after the same becomes due and payable.
2. Breach or non-observance by either Party of any material covenant, term, or condition of this Agreement (other than rent payment) which is not remedied within the cure period specified herein.
3. Filing of any bankruptcy, insolvency, or winding-up petition against the Lessee, or the appointment of a receiver over the assets of the Lessee.
4. Subletting, assigning, or parting with the possession of the Demised Premises, in whole or in part, without the prior express written consent of the Lessor.

4.2 Notice and Cure Period

In the event of a breach of any provision of this Agreement, the non-defaulting Party shall issue a written notice of default to the defaulting Party specifying the nature of the breach. The defaulting Party shall have a period of thirty (30) Business Days from the date of receipt of such notice to rectify, cure, or remedy the said breach to the reasonable satisfaction of the non-defaulting Party.

4.3 Termination and Legal Recourse

1. If the Lessee fails to cure an Event of Default within the thirty (30) Business Days cure period, the Lessor shall have the absolute legal right to terminate this Agreement forthwith by serving a written notice of termination, forfeit the Security Deposit (subject to adjustment of dues), re-enter and take physical possession of the Demised Premises, and initiate legal proceedings for recovery of arrears of rent, damages, and mesne profits.
2. The Lessee may terminate this Agreement prior to the expiration of the Lease Term by providing the Lessor with not less than ninety (90) days prior written notice or by forfeiting the Security Deposit in lieu thereof.

---

5. Boilerplate Legal Provisions

5.1 Severability

If any provision of this Agreement is held to be illegal, invalid, or unenforceable by any court of competent jurisdiction under the laws of Pakistan, such provision shall be severed to the extent of its invalidity, and the remaining provisions of this Agreement shall continue in full force and effect as if the invalid provision had never been a part hereof.

5.2 Entire Agreement

This Agreement, along with any attached schedules or annexures, constitutes the entire understanding and agreement between the Parties concerning the subject matter hereof and supersedes all prior oral or written negotiations, representations, understandings, or agreements between the Parties.

5.3 Force Majeure

Neither Party shall be held liable for any failure or delay in performing its obligations under this Agreement if such failure arises directly from a Force Majeure event. The affected Party shall promptly notify the other Party in writing of the occurrence of the Force Majeure event. If the Force Majeure event continues for a continuous period exceeding sixty (60) days, either Party may terminate this Agreement by written notice without liability, save for the settlement of accrued financial obligations prior to the event.

5.4 Governing Law and Jurisdiction

This Agreement shall be governed by, interpreted, and construed in accordance with the substantive and procedural laws of the Islamic Republic of Pakistan. The courts exercising jurisdiction at [City, e.g., Lahore/Karachi/Islamabad] shall have exclusive territorial jurisdiction to adjudicate any disputes arising out of or in connection with this Agreement.

5.5 Dispute Resolution

Any dispute, controversy, or claim arising out of or relating to this Agreement, including its formation, breach, termination, or invalidity, shall first be settled through amicable negotiations between the senior management or authorized representatives of the Parties within thirty (30) days. If the dispute remains unresolved, it shall be referred to arbitration under the provisions of the Arbitration Act, 1940 (Act X of 1940). The arbitration proceedings shall be conducted by a sole arbitrator mutually appointed by the Parties, in the English language, and the seat and venue of arbitration shall be [City, Pakistan]. The award rendered by the arbitrator shall be final, binding, and enforceable in any court of competent jurisdiction.

---

6. Formal Execution Block

IN WITNESS WHEREOF, the Parties hereto have caused this Pakistan Lease Agreement to be duly executed by their respective authorized signatories, under hand and seal, as of the Effective Date first written above.

LESSOR:

[Full Legal Name of Lessor Entity / Individual]

Signature: _________________________________
Name: [Name of Signatory]
Title: [Title/Capacity, e.g., Owner / Authorized Attorney]
CNIC / NTN: [CNIC or NTN Number]
Date: [Date]

WITNESS 1 (Lessor Side):
Signature: _________________________________
Name: [Witness 1 Name]
CNIC Number: [Witness 1 CNIC]

---

LESSEE:

[Full Legal Name of Lessee Entity / Individual]

Signature: _________________________________
Name: [Name of Signatory]
Title: [Title/Capacity, e.g., Managing Director / CEO]
CNIC / NTN: [CNIC or NTN Number]
Date: [Date]

WITNESS 2 (Lessee Side):
Signature: _________________________________
Name: [Witness 2 Name]
CNIC Number: [Witness 2 CNIC]