This commercial lease agreement is a contract between ABC, the lessor who owns the property located at the address mentioned below and DEF, the lessee who intends to rent the same property. The agreement is dated dd/mm/yyyy and shall take effect on dd/mm/yyyy.
1. Location of Premises on Lease
This commercial lease agreement relates to the property located at XXXX, which is approximately XXXX square feet. Full details relating to the property and its inclusions are contained in exhibit A of the annexure to this document.
2. Duration of Commercial Lease Agreement.
As is customary with commercial lease agreements, this section contains the duration of the lease and associated terms.
2.1. This commercial lease agreement shall commence on dd/mm/yyyy and culminate on dd/mm/yyyy.
2.2. In case the lessee wishes to extend the commercial lease agreement, a fresh agreement shall have to be framed along with an increase in the rental amount of X%.
3. Rent and Payment Processes
Commercial lease agreements are required to specify the amount of rent payable by the lessee and the associated payment modalities. In connection with these, the following guidelines are agreed:
3.1. Rent Amount
The lessee shall pay the lessor $XXXX as consideration for leasing him the property for commercial purposes.
3.2. Date of Payment
This commercial lease agreement requires that the rent be paid on the 10 day of every month. In case this falls on a holiday, rent has to be paid on the last working day prior to the 10th day.
3.3. Late Payment
As with commercial lease agreements in case of late payment, the lessor can impose a penalty of $ XXX to cover the cost of delaying payment. While the lessee might appeal for this to be waived, he is obligated to pay the penalty if the lessor imposes it on him.
4. Purpose for the Property
The property may only be used for the purpose of making XXXX. It may not be use for any other purpose other than XXXX. The following purposes are specifically restricted as per the terms of this commercial lease agreement:
4.1. The commercial lease agreement prevents the lessee from conducting any business that will disturb the workings of other lessees occupying space in the property.
4.2. According to commercial lease agreements, the lessee is restricted from conducting any unlawful or illegal activity in the space on lease.
5. Maintaining the Property
As with commercial lease agreements, the lessee is liable for maintaining the property in good condition. The following guidelines shall apply.
5.1. At the time of signing the commercial lease agreement, the lessee shall inspect the premises and call attention to any damage that has not been outlined in exhibit A.
5.2. The lessor is required to maintain certain components in the property like its air conditioning and plumbing or heating needs.
5.3. According to commercial lease agreements, amendments to the property require the written approval of the lessor prior to conducting any alternation work on the premises.
This commercial lease agreement is fully understood by all parties who agree to abide by its conditions.