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CONTRACT OF LEASE

This lease agreement is made and entered by and between:

and

WHEREAS, the LESSOR is the owner of the parcel of land including a building located at _____, Tacloban
City

WHEREAS, the LESSOR leases unto the LESSEE and the latter hereby accepts the lease from the former
total area of approximately ____ square meters and located at ground floor of the subject property.

NOW, THEREFORE, for and in consideration of the above premises and of the mutual promises,
covenants, and other stipulations herein contained, the parties by these presents have agreed on the
following terms and conditions.

1. The lease shall be for one (1) year, commencing on March 15, 2016 and automatically
terminating on the midnight of March 14, 2017 of which term must be fully utilized by the
LESSEE.
2. The lease premises shall be exclusively used by the LESSEE as beauty parlor/barber shop.
3. Upon signing of this contract, the LESSEE shall remit the amount of ______ only as security
deposit.
4. The monthly rentals exclusive of Value Added Tax shall be as follows:

Year Monthly
Rentals
1st March 15, 2016 to March 14, 2017 PhP

5. At the beginning of each contract year, the LESSEE shall issue checks payable to the LESSOR. The
sum on the checks shall be equivalent to the whole year rental payments plus the Value Added
Tax.
6. Payment date shall be in advance on or before the 5 th day of the applicable calendar month.
7. Government authorities may require that certain amount from the rental be appropriated and
withheld by the LESSEE as withholding tax. The LESSEE shall properly remit to the government
this amount withheld. The LESSEE shall issue the corresponding duly-filled withholding tax
certificate to the LESSOR upon rental payment.
8. Rental payments and issuance of withholding tax certificates shall be made without previous
demand or services of collector.
9. Upon signing of this contract, the LESSEE shall remit to the LESSOR any deficiency on the
required security deposit.
10. The security deposit, at the option of the LESSOR, may be applied to the obligations of the
LESSEE. These obligations may arise from breach of contract or any other liabilities. The LESSEE

_____________________ _____________________________
Lessor Lessee
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shall immediately restore the security deposit in full should there be an appropriation on the
amount.
11. The security deposit shall not earn interest. It may be claimed by the LESSEE SIXTY (60) days after
the termination of the contract.
12. Nothing shall be understood as granting the LESSEE the right to apply the security deposit
against unpaid rentals or other obligations.
13. The LESSOR shall deliver the LEASE PREMISES as is.
14. The LESSEE shall submit plan for improvement on the LEASE PREMISES to the LESSOR. No
improvement shall be made unless approved by the LESSOR in writing. The same shall be
observed when installing signage.
15. The LESSEE shall be responsible for proper lighting of its main signage from 6:00P.M. to
10:00P.M.
16. The LESSEE shall be responsible for its electricity, water, telephone and other utility
requirements. The LESSEE shall obtain all service contracts under its own name and pay for these
services as they become due.
17. The LESSEE shall be responsible for the cleanliness and orderliness of the LEASE PREMISES. It
shall keep the area free from explosive or flammable materials, obnoxious odors, and disturbing
noises.
18. The LESSEE shall be responsible for the repair and maintenance of the LEASE PREMISES as its
expense. It shall restore immediately any damage or injury as closely as possible to their original
condition.
19. The LESSEE shall not directly or indirectly sublease, assign, transfer, convey or encumber its right
on the LEASE PREMISES.
20. The LESSEE shall comply with all the rules and safety regulations of the LESSOR. The LESSEE shall
see to it that all its activities are in compliance with the law.
21. The LESSEE shall be responsible at all times for all acts done by its employees, agents and other
persons entering the LEASE PREMISES.
22. Fixtures and fixed objects introduced by the LESSEE shall not be removed from the LEASE
PREMISES. All objects found at the LEASE PREMISES after the termination of the contract shall be
considered abandoned. These objects shall become the property of the LESSOR.
23. The LESSEE shall insure the LEASE PREMISES against fire and other losses. The insurance policy
shall be used exclusively to repair or construct the building. The LESSEE waives any right of
recovery to any loss or damages from whatever cause it may suffer while occupying the LEASE
PREMISES against the LESSOR.
24. The sidewalks, entries, passages, corridors, and stairways of the building shall not be obstructed
or occupied by the LESSEE. The LESSEE shall not allow any persons such as vendors, repair or
other stands to occupy the sidewalk or arcaded portion in and around the LEASE PREMISES.
25. The LESSOR may conduct maintenance and survey at the LEASE PREMISES after previous notice
with the LESSEE. During the last THREE (3) months prior to the expiration of the lease, the
LESSOR may exhibit the LEASE PREMISES to prospective tenants.
26. Interest at the rate of ONE-TENTH of ONE PERCENT (1/10 of 1%) shall be charged for every
calendar day of delay on the rental payments.
27. The LESSOR reserves its right to terminate the contract in case of violation of the terms and
conditions of the same. If after five (5) days from receipt of the notice of termination, the LESSEE
has not vacated the LEASED PREMISES, the LESSOR can enter and take it without need of judicial
judgment or order.
28. Any extension of lease period shall be signed by both parties at least THIRTY (30) days prior to
its expiration.

_____________________ _____________________________
Lessor Lessee
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29. The LESSEE shall surrender the LEASE PREMISES at the expiration of the term of this contract
without the necessity of prior notice or demand. The LEASE PREMISES shall be returned in good
order and condition except for reasonable wear and tear and devoid of all occupants and
movable items. If violation will occur or persist, the LESSOR shall be entitled to not less than
TWO HUNDRED PERCENT (200%) of the monthly rental or payable of the preceding year prior to
the and per month of violation. The LESSOR further reserves the right to enter and take the
LEASE PREMISES to protect its interest.
30. This lease agreement supersedes and renders void any agreement and understanding, written or
oral, previously entered into by the PARTIES covering the LEASE PREMISES.
31. No waiver of rights by the LESSOR is intended unless made in writing. This lease contract may
not be modified or altered except by instrument in writing signed by both PARTIES.
32. The invalidity or unenforceability of any provision of this contract shall not affect or impair
others.
33. In case of litigation arising from this contract, the courts of Tacloban City shall have proper
jurisdiction.

IN WITNESS WHEREOF, the parties have hereunto affixed their signatures on ____________________, at
Tacloban City, Philippines.

(Lessor) (Lessee)

ACKNOWLEDGMENT

REPUBLIC OF THE PHILIPPINES

CITY OF TACLOBAN

BEFORE ME, a notary public in and for the above jurisdiction, the day of ______________________
personally appeared the following

Known to me to be the same person who executed the foregoing instrument and he acknowledged to
me the same is his free and voluntary act and deed, and that of the corporation represented.

WITNESS MY HAND AND SEAL this day of ________________, 2016.

Doc. No. ________

Page No. ________
Book No. ________
Series of 2016

_____________________ _____________________________
Lessor Lessee