CONTRACT OF LEASE

KNOWN ALL MEN BY THESE PRESENTS:

DR. RICHARD H. CORDIAL
President, BISCAST

This Contract of Lease made and entered into this ____ day of _____________ at Naga
City, Philippines, by and between:

BICOL STATE COLLEGE OF APPLIED SCIENCES AND TECHNOLOGY (BISCAST), a State

institution of higher learning, established and operating pursuant to R.A. 10231, as amended,
with principal office at Peñafrancia Ave., Naga City, Philippines, represented herein by its
President, DR. RICHARD H. CORDIAL, hereinafter referred to as the “LESSOR”;
Principals:

And

__________________, represented herein by _________________________, with

residence address at ______________________________, hereinafter referred to as the
“LESSEE”;

WINTESSETH THAT

WHEREAS, the LESSOR is the owner, of the premises known as the BISCAST Canteen
located at BISCAST, Peñafrancia Ave., Naga City which is available for lease;

WHEREAS, the LESSEE presently renders valuable food services to the LESSOR’s
constituency;

WHEREAS, the LESSEE desires to lease four (4) Food stalls in the BISCAST Canteen under
set terms and conditions;

NOW, THEREFORE, for and in consideration of the foregoing premises, the LESSOR hereby
lets and leases unto the LESSEE, and the LESSEE hereby accepts in lease, the above-described
food stalls, under the following terms and conditions:
VP for Academic Affairs
DR. ORBEL S. CEPEDA

ARTICLE I
SUBJECT AND DURATION OF LEASE

Section 1. This contract of lease pertains to the four (4) food stalls which lease shall be in
force and will take effect from ___________ to ___________, except summer months of April
and May, unless sooner terminated pursuant to Article XIV hereof, subject to prior
recommendation of the Office of Auxiliary Services or its equivalent authorized body.
Witnesses:

Section 2. This contract may be renewed upon satisfactory evaluation and

recommendation of the Office of Auxiliary Services or its equivalent authorized body. However,
bidding is mandated upon termination of this contract.
VP for Administration and Finance

ARTICLE II
ATTY. SHARIFA SJ. QUINCOSE

RENTAL

Section 3. In consideration of the lease of the premises, the LESSEE hereby agrees to pay
the LESSOR, without need of demand, a monthly rental of TWENTY THOUSAND PESOS ONLY
(20,000), Philippine currency on or before the 15th day of every month covered by the period of
lease to the BISCAST Cashier’s Office.
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Upon execution hereof, the LESSEE shall pay in cash such amounts equivalent to one (1)
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month rental as Security Deposit and one (1) month rental in advance.
 In case of delay in payment, the LESSEE shall pay the LESSOR a penalty or surcharge on all
amounts unpaid on due dates, at the rate of ten percent (10%) per month, to be computed from
the date of delinquency until fully paid.
DR. RICHARD H. CORDIAL
President, BISCAST

ARTICLE III
SECURITY DEPOSIT

Section 4. To insure the faithful compliance of the LESSEE of all terms and conditions of
this contract, the LESSEE shall, upon execution hereof, deposit in cash with the LESSOR an amount
equivalent to one (1) month rental, which shall constitute the Security Deposit. The Security
Deposit shall answer for any damages and/or monetary liabilities or obligations left by the LESSEE
Principals:

at the expiration of this contract.

Section 5. The Security Deposit cannot be applied by the LESSEE to any unpaid rental. It
shall be kept intact and returned to the LESSEE, without interest, upon the expiration of this
contract, after the LESSEE shall have completely and satisfactorily vacated and delivered
possession of the premises, less whatever amount or amounts LESSEE may owe the LESSOR.

Should the LESSEE pre-terminate this contract for whatever cause or reason, the Security
Deposit shall be automatically forfeited in favor of the LESSOR since the parties herein agree that
time is of the essence of this contract and the period has been fixed for the benefit of the LESSOR.
The LESSEE shall automatically forfeit the Security Deposit if he fails to vacate the premises upon
expiration of this contract.

ARTICLE IV
ADMINISTRATION AND USE OF PREMISES

Section 6. The LESSEE shall abide by the rules and regulations promulgated by the LESSOR,
through the Office of Auxiliary Services or its equivalent authorized body, governing concessions,
health and sanitation, student organization, security, safety and other existing rules and
regulations of the latter, including those that may, from time to time, be promulgated by the
latter.
VP for Academic Affairs
DR. ORBEL S. CEPEDA

Section 7. The LESSEE shall be responsible for the proper maintenance and repair of
equipment and facilities already existing and or subsequently installed by the LESSOR at the
leased premises at the time of the signing of this contract.

Section 8. The LESSEE shall engage solely in the sale and service of food, refreshment,
bread and pastries, confectionery and allied products. Cooking shall be prohibited though
reheating may be allowed. The LESSEE shall serve meals in any manner convenient to its
Witnesses:

customers, except when requested otherwise, or when the occasion requires some other mode
of service; and, for the purpose, the LESSEE shall acquire, for its account, the necessary
equipment and facilities.

Section 9. The LESSEE shall charge customers reasonable prices for regular meals made
VP for Administration and Finance

available at adequate quantities. The LESSEE shall post on a blackboard the following information
ATTY. SHARIFA SJ. QUINCOSE

visibly written a) the menu for the day for regular and catered meals and equivalent prices; b) a
la carte dishes sold during the day together with the corresponding prices; c) special menu and
price.

The LESSEE shall likewise place a price tag on all other items it is authorized to sell and
serve.
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Section 10. The LESSEE shall provide sufficient boiled and drinking water to customers.
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 Section 11. The LESSEE shall repair and/or change broken chairs and tables and provide
DR. RICHARD H. CORDIAL

for trashcans, and other waste receptacles.

President, BISCAST

Section 12. The LESSEE shall require its employees to wear appropriate clothing while on
duty on school days.

Section 13. The LESSEE shall, at all times, keep the premises clean and free from all forms
of fire hazards and nuisances. Otherwise, The LESSEE shall be responsible for all damages which
such violation may cause to the LESSORS and/or third persons, aside from the LESSEE’s other
Principals:

liabilities under this contract.

The LESSEE shall not cause, allow or permit any obnoxious, disturbing or offensive odors,
fumes, gases, or any smoke, dust, steam or vapors or any loud disturbing noise, sound or
vibration to emit or originate from the leased premises.

Section 14. Gambling of whatever nature shall not be allowed inside the leased premises,
nor shall dart boards, jukeboxes, slot, pinball and similar machines be installed or operated
therein.

The sale of liquor, beer, pornographic or indecent materials and the sale, distribution or
use of prohibited drugs, contraband articles and the like within the leased premises shall be
prohibited.

The LESSEE shall, at all times, enforce the NO SMOKING policy of the College and the
CHED, by posting NO SMOKING signs on walls of the leased premises.

Section 15. The LESSEE shall not use/convert the leased premises into sleeping or living
quarters or as lodging rooms. Should its employees be required to sleep within the leased
premises for security purposes, prior written permission from the LESSOR must be secured.

Neither shall the LESSEE keep or harbor therein live animals, fish or bird, or use the same
VP for Academic Affairs
DR. ORBEL S. CEPEDA

for illegal purposes.

Section 16. The LESSEE shall observe proper solid waste disposal in accordance with
College’s waste disposal policy.

ARTICLE V
AS FOOD LABORATORY
Witnesses:

Section 17. The LESSEE shall abide by the rules and regulations promulgated by the
LESSOR, through the mutual efforts of the Office of Auxiliary Services, and the College of Trades
and Technology and College of Education, concerning the use of the School Canteen as Food
Laboratory, which aims to provide for the practical learning and on-the-job training of the
VP for Administration and Finance

students.
ATTY. SHARIFA SJ. QUINCOSE

Section 18. The LESSEE shall facilitate the practical learning of students by allowing the
latter to observe, inquire, render service, and conduct such other matters as may be provided in
the rules and regulations mentioned above.

Section 19. The LESSEE shall provide laboratory venue/ on-the-job training to students by
employing the latter, providing them with work that is relevant and appropriate to their vocation,
supervising them while at work, monitoring their progress, assessing their performance based on
the training plan, meeting legal requirements, including but not limited to occupational health
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and safety, and payment of wages and conditions under the relevant employment arrangements,
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 and conducting such other matters, as may be provided in the rules and regulations mentioned
DR. RICHARD H. CORDIAL

above.
President, BISCAST

ARTICLE VI
UTILITIES

Section 20. Water and electrical consumption shall be for the LESSEE’s account and
determined by separate meters and sub-meters.
Principals:

Section 21. Utilities and services used and consumed at the leased premises such as, but
not limited to, electricity, water, telephone, gas, janitorial as well as garbage disposal services,
shall be at the sole expense of the LESSEE. In the case of electricity and water consumption, the
LESSOR shall bill the LESSEE the amount corresponding to their actual consumption based from
the sub-meter provided for the purpose and using the rate prevailing during a particular billing
period.

In case of failure by the LESSEE to reimburse the LESSOR for electric and water bills paid,
a 10% penalty shall be charged accordingly.

Section 22. In case of power failure, the LESSEE may install and operate the appropriate
generator, the costs thereof for its account, subject to the LESSOR’s prior approval.

Section 23. Extra electrical fixture such as bulbs, starters, outlets, and switches, extra
plumbing, toilet and kitchen facilities, including replacements, shall be for the account of the
LESSEE and installed only upon prior written approval of the LESSOR.

Section 24. All furnishings, fixtures and equipment used in the leased premises, except
those which are permanent in nature, supplied and installed at the sole cost and expense of the
LESSEE, shall remain the property of the LESSEE.

ARTICLE VII
VP for Academic Affairs
DR. ORBEL S. CEPEDA

SIGNS, ADVERTISEMENTS

Section 25. The LESSEE shall not affix, inscribe or paint any notice, sign or other advertising
medium outside the leased premises or any part thereof, except upon prior written permission
from the LESSOR, and subject to the rules and regulation issued by the latter hereafter.

ARTICLE VIII
Witnesses:

SUB-LEASE, TRANSFER, ASSIGNMENT

Section 26. The LESSEE shall not, directly or indirectly, sell, sub-lease, assign, transfer,
convey, mortgage, or in any other manner alienate or dispose or encumber its lease rights over
the premises or any portion thereof under any circumstances whatsoever. Any contract made
VP for Administration and Finance

in violation of this provision shall be null and avoid.

ATTY. SHARIFA SJ. QUINCOSE

ARTIVLE IX
ALTERATIONS/ADDITIONS/IMPROVEMENTS

Section 27. The LESSEE shall not make alterations, additions, or improvements in or upon
the leased premises, except furniture and fixtures put in at the expense of the LESSEE and
removable without defacing or injury to the leased premises. Any such alterations, additions, or
improvements in or upon the leased premises shall become the property of the LESSOR and
surrendered with the leased premises as part thereof at the termination of the lease, without
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compensation to the LESSEE. Repairs, alterations, or improvements shall be subject to prior

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 submission of plans and specifications and the estimate cost of materials and labor and approved
DR. RICHARD H. CORDIAL

by the LESSOR.
President, BISCAST

ARTICLE X
TRANSPORTATION AND CARRYING OUT OF FURNITURE, ETC.

Section 28. In case the LESSEE has an outstanding obligation under this contract, the
LESSOR or its employees, agents and representatives are hereby granted the rights and
authority without civil and/or criminal liability of any kind, to prevent the LESSEE, its
Principals:

employees, agents or representatives, in any manner dictated by circumstances, from taking

out goods, fixtures, furniture, or equipment for office use, from the leased premises.

ARTICLE XI
INJURY OR DAMAGE

Section 29. The LESSEE hereby assumes full responsibility for any or all damages and/or
injuries which may be caused to the person and/or property of third persons while remaining,
either casually or in business, in any part of the leased premises, if the damage or injury be caused
wholly or partly through the fault of negligence of the LESSEE or that of its employees, agents or
representatives. LESSEE further binds itself to hold the LESSOR and its employees and
representatives free and blameless from any such claim for injury and/or damage.

Section 30. In case of damage to the leased premises or its appurtenances by reason of
fire, earthquake, riots, or any other fortuitous events, the LESSEE shall give immediate notice
thereof to the LESSOR; provided however, that there will be no interruption or extension of the
period of lease or abatement/reduction in the payment of the monthly rental. Damage caused
by the fault of the LESSEE or its agents to prevent greater injury or damage including losses on
account of theft or similar acts shall be assumed by the LESSEE.

Section 31. If the entire complex occupied by the LESSEE is destroyed by fire, earthquake,
or other fortuitous events, then this Agreement shall automatically terminate pursuant to Article
No. 1655 of the New Civil Code.
VP for Academic Affairs
DR. ORBEL S. CEPEDA

ARTICLE XII
FOOD POISONING

Section 32. In case of food poisoning or sickness or injuries caused by or arising from food
intake at the leased premises, the findings of the LESSOR or any other appropriate agency, shall
be binding to the LESSEE and, on which basis, the LESSOR shall hold the LESSEE liable thereof.
Witnesses:

The LESSEE shall be solely responsible for, and hold the LESSOR free and blameless from any and
all administrative, civil and/or criminal liability that may arise therefrom or any other damage In
connection with the operation and maintenance of the leased premises.

Section 33. The LESSEE shall be solely responsible for the acts of its employees or persons
VP for Administration and Finance
ATTY. SHARIFA SJ. QUINCOSE

it shall allow to enter the “off-limit” areas of the canteen.

ARTICLE XIII
INSPECTION AND REPAIR OF PREMISES

Section 34. The LESSOR or its authorized agents (Office of Auxiliary Services or its
equivalent authorized body) shall have the right to enter the leased premises at reasonable hours
to examine the same or make alterations or repairs therein of for any purpose deemed necessary,
for the security operations or maintenance of the leased premises, and during the last three (3)
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months of the lease, to exhibit/show the leased premises to prospective tenants.

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 ARTICLE XIV
DR. RICHARD H. CORDIAL

INVENTORY
President, BISCAST

Section 35. Immediately before the beginning of the operations, the LESSEE shall conduct
an inventory of the LESSOR’s property found within the leased premises, in the presence of two
representatives of the LESSOR, one from the Supply and Property Management and Accounting
Office and a representative from the Auditor’s Office. The inventory shall be in writing duly signed
by the representatives of the parties and attached to this contract as a supplement and to form
an integral part thereof.
Principals:

Section 36. Upon termination or pre-termination of the lease and during the actual
turnover of the leased premises, the LESSEE shall likewise conduct a similar inventory.

Section 36. The value of the missing property of the LESSOR shall be deducted from the
Security Deposit and the remainder shall be paid by the LESSEE, under existing accounting and
auditing rules.

ARTICLE XV
TERMINATION OF CONTRACT

Section 38. Either party may terminate this contract by a prior thirty (30) days written
notice and without necessity of judicial action on the following grounds: (1) violation of the terms
and conditions herein stipulated; (2) non-payment of monthly rental for two (2) consecutive
months; or (3) failure by the LESSEE to conduct business, without good cause shown, for a period
longer than fifteen (15) days during the term of the lease; or (4) unsatisfactory performance as
determined by the LESSOR, through the Office of Auxiliary Services (OAS) or its authorized
equivalent body, which may include: a) unreasonable high prices, b) valid complaints; c) other
reasonable causes;

In this regard, the LESSEE hereby constitutes the LESSOR as Attorney-in-Fact for the
purpose of taking possession, and management of the premises.
VP for Academic Affairs
DR. ORBEL S. CEPEDA

Section 39. In case of pre-termination by the LESSEE for reasons other than stated in
Section 36 of this contract, the LESSEE shall be imposed a penalty charge equivalent to one (1)
month rent, exclusive and separate from the Security Deposit, which sum shall be paid prior to
the approval thereto by the LESSOR. Should the request be disapproved, the amount shall be
retained and the contract shall subsist and the LESSEE shall be liable for all sums due and
outstanding on account of said lease, until the expiration of the period stated herein.
Witnesses:

Section 40. In case of judicial action arising from this contract, the LESSOR, in addition to
the damages mentioned herein, shall be entitled to cost of suit.

The parties hereby agree that the venue for judicial action shall be the proper courts of
VP for Administration and Finance
ATTY. SHARIFA SJ. QUINCOSE

law in Naga City.

ARTICLE XVI
WAIVER

Season 41. No provision of this contract shall be deemed waived by any of the parties
hereto unless such waiver is in writing and signed by the party making the waiver. No such waiver
shall be constructed as a modification or amendment of any of the provisions of this Contract, or
as a waiver of any past or future default, breach or violation thereof, unless expressly stated or
provided for such in waiver.
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 ARTICLE XVII
ENTIRE AGREEMENT

Section 42. This contract embodies the entire agreement of the parties hereto with
respect to the transactions contemplated herein and the subject matter hereof, and the parties
shall not be bound by, or be liable for any statement, representation, promise, inducement or
understanding of any kind or nature relating to the said transactions and subject matter which is
not set forth or provided for in this contract. Except as otherwise expressly provided for in this
contract, no changes, amendments, or modifications of any of the terms or conditions set forth
herein shall be valid and binding unless reduced into writing and signed by both parties.

IN WITNESS WHEREOF, the parties have hereto affixed their signature on the date and
at the place first above written.

BICOL STATE COLLEGE OF APPLIED

SCIENCES AND TECHNOLOGY

By:

DR. RICHARD H. CORDIAL

President

Signed in the presence of:

DR. ORBEL S. CEPEDA ATTY. SHARIFA SJ. QUINCOSE

Vice President for Academic Affairs Vice President for Administration and Finance

ACKNOWLEDGEMENT

REPUBLIC OF THE PHILIPPINES}

Naga City }S.S

BEFORE ME, a Notary Public for the City of Naga, Camarines Sur, this ___ day of ____________,
personally appeared the following:

Name Competent Evidence of Identity Date and Place of Issue

Dr. Richard H. Cordial Passport No. P9230473A Oct. 19, 2018/DFA Legazpi

known to me to be the same person who executed and signed the foregoing instrument
consisting of seven (7) pages, including this page, signed by the parties and acknowledged to me
that the same is the free and voluntary act and deed of the principal he represent.

WITNESS MY HAND AND SEAL at the place and date above-mentioned.

Doc No. ___;

Page No. ___;
Book No. ___;
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Series of 2019.
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