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without necessity of a demand or court/decision, the right to disconnect all utility facilities such as
electricity, water, telephone and others, to the leased building within 72 hours from the receipt of the
LESSEE of the written demand to pay the utilities.
DEFAULT: The LESSEES shall be considered in default if they fail to pay two (2) monthly
rentals, through no fault of the LESSOR and shall give the LESSOR the right to AUTOMATICALLY
CANCEL, RESCIND or TERMINATE this agreement and close the whole facility and take possession
thereof without any need of notice or prior judicial action or court order. The procedure provided in the
clause for ABANDONMENT/DESSERTION DUE TO ARREARS shall be applicable in this case.
Any accommodation and acceptance of late payments to the LESSOR shall not be constructed as
waiver of any rights or modifications or nullification of any provision under this agreement. Should this
contract be terminated by the person of default, all unpaid rental and surcharges thereto shall be
immediately due and demandable. The LESSEES shall need clearance from the LESSOR before they can
bring out anything from the leased premises in case of default. Clearance shall only be issued when all
paid rentals and all other fees for the account of the LESSEES shall have been paid.
USE: The subject building shall be used exclusively for commercial purposes and shall not be
devoted to any improper, offensive or unlawful use.
RENOVATIONS: The LESSEES shall not make any alteration on the premises without first
securing the approval of the LESSOR. All improvements introduced by the LESSEE which cannot be
removed at the end of the lease without damage to the leased premises, shall be permanent at the end of
this agreement without cost of reimbursement to the LESSEES.
REPAIRS: All repairs necessary to keep the leased premises, both inside and outside including
all the appurtenances thereto, from deterioration in value or condition during the period of this lease shall
be for the account of the LESSEES. All the repairs and maintenance shall be for the account of the
LESSEES.
INJURY OR DAMAGE: The LESSEES hereby assume full responsibility for any damage
caused by its fault or damage caused by its negligence which may have caused harm to the person or
property of a third person while remaining in any part of the leased building leased to the LESSEES and
further bind themselves to hold the LESSOR free of and harmless for any claim for injury or damage,
unless such was due to the fault or negligence of the LESSOR. LESSOR shall not be responsible for the
failure of water supply, telephone services, electricity, or for any damages occasioned by arising from
plumbing, gas and other lines from bursting, leaking or destruction from any system, tank, water closet or
water pipes, in above or the leased building unless such was due to the fault or gross negligence of the
LESSOR.
ABANDONMENT/ DESERTION DUE TO ARREARS: In the event that the LESSEES
abandon the leased premises, or otherwise leave the same in an unoccupied position for a period of two
(2) months without any notice or communication whatsoever from the LESSEES, and said LESSEES are
in arrears in the payment of their rentals, the LESSOR has the right in its decision to: (a) enter the
premises by breaking the locks and doors, if necessary, (b) to make the lease premises available for
occupancy to person desiring to lease the same, (c) to remove the LESSEES equipment, furniture and
other effects and properties and hold the same to answer for the rental due. The right herein is granted to
the LESSOR shall be without prejudice to such other right and the remedies the LESSOR may have
against the LESSEES under pertinent laws.
PROHIBITIONS: The LESSEES shall not bring or store in the leased premises the following:
Contraband of any kind;
Illegal and dangerous drugs;
Illegal firearms/ explosives, etc.;
Subversive materials;
Inflammable goods and articles.
It is the essence of this Contract that in the event that the LESSEES violate for any reason the
foregoing prohibitions, this contract of lease shall automatically and be considered pre-terminated subject
of the penalty as herein provided.
OBLIGATION OF PARTIES UPON TERMINATION OF CONTRACT: Upon termination
of this contract at the expiration of its terms and/or pre-termination for any legal reason whatsoever,
LESSEES and the LESSOR shall immediately comply with their obligations.
a) LESSOR, to return the LESSEES the remaining deposit after the end of the contract and
deducting the expenses and charges provided for in this contract. In case of pre-termination by the
LESSEES, without any valid reason or excuse, the LESSOR shall forfeit the rental deposits and advance
rental.
b) LESSEES, to vacate the leased building and return physical possession thereof of to the
LESSOR in good satisfactory condition and tenantable for the use and purpose for which the same is
intended ordinary wear and tear excepted.
Should any of the parties violate the above-mentioned provisioned, he shall be held responsible
for all damages which the innocent party shall suffer by reason hereof.
MISCELLANEOUS PROVISIONS: All payments for the utilities, and the telephone, water
and electric bill as well as any other charges that shall come up during the term of this agreement shall be
for the account of the LESSEES.
The parties agree that any action arising from this contract shall be filed exclusively in the proper
court of Ormoc City, Philippines.
IN WITNESS THEREOF, we have hereunto set our hands this ________________ at Ormoc
City, Leyte, Philippines.