CONTRACT OF LEASE

KNOW ALL MEN BY THESE PRESENTS:

That this CONTRACT made and executed by and between:

_____________________________., a corporation duly organized and existing

under the Philippine laws, with offices at
_______________________________________, represented herein by
_________________., hereinafter referred to as the LESSOR;

-and-

_______________________, of legal age, and residing at

__________________________________, hereinafter referred to as the LESSEE;

WITNESSETH

Whereas the LESSOR is the absolute owner of residential apartment located at

Molave St. Manuguit, Tondo, Manila which is available for lease;

Whereas the LESSEE has found unit ______ in good order, to his absolute
satisfaction and has decided to lease the same, and the LESSOR has decided to
accept and lease said property under the terms and conditions herein provided;

NOW, THEREFORE, for and in consideration of the foregoing premises, the

parties herein have agreed to be bound by the following terms and conditions;

1. LEASE PERIOD – This Lease Contract shall be for a period of three (3)
years commencing on August 2021 and expiring on August 2024.

The LESSEE is permitted to pre-terminate this contract at the end of each

year, with thirty (30) days’ notice to LESSOR prior to termination. Deadline for
issuance of Pretermination Notice is on December 20 of every year. After
which, it is assumed that LESSEE will continue with the lease for the entire
succeeding year.

After the expiration of the three (3) year period, and in the absence of an
express renewal thereof, it is understood that the lease thereon is on a month
to month basis, subject to the same terms and conditions herein stated.
However, there will be no renewal of contract of lease in case the LESSEE
has outstanding rental balance.

2. RENTAL – The LESSEE shall pay to the LESSOR at the latter’s office or its
duly authorized agent, without the necessity of a demand every first of the
month, the amount of _________________ Pesos (P____) Philippine
Currency, subject to an escalation clause as follows:

Year Escalation Total Rent

2022 10%
2023 10%
2024 10%

In case of renewal of contract, an annual escalation increase of 10% shall be

applied on the monthly rental of the LESSEE.

3. SECURITY DEPOSIT – For the faithful compliance with all the terms and
conditions of this lease contract, the LESSEE shall, upon execution of this
contract, deposit with the LESSOR the amount of _____________________
PESOS (PhP_________________), Philippine Currency, corresponding to two

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 (2) months rental, as Security Deposit, plus Five Thousand Pesos (P 5,000.00)
for electric and water deposit.

The LESSOR shall apply such deposit toward the payment of any claim that the
LESSOR may have against the LESSEE upon the termination of this Contract.
Any balance remaining on such deposit shall be returned to the LESSEE upon
the termination of this Contract. Security deposit will be refunded three (3)
months after lease and utility bills of LESSEE have been cleared. Security
deposit will be forfeited in cases of breach and/or termination of this
contract due to the fault or negligence of the LESSEE.

4. RENTAL ADVANCE – The LESSEE shall pay to the LESSOR an advance rent of
_____________________ PESOS (PhP_________________) Philippine
Currency, corresponding to two (2) months rent and will issue Ten (10)
Postdated Checks equivalent to the monthly rental, corresponding to the rent
for the year.

At the end of each year or until December 31 of every year, the LESSEE shall
issue Twelve (12) Postdated Checks dated 1st of every month covering the
rental payments for the succeeding year.

5. PENALTY- It is hereby agreed that if the rent is unpaid after five (5) days
following its due date, the LESSEE shall pay a penalty charge of five (5%)
percent per month and which interest is to be compounded monthly. This
penalty is without prejudice, however, to the right of the LESSOR to terminate the
lease contract should he decided to do so.

If the LESSEE fails to pay the rent for two (2) consecutive months and other
charges as they fall due, or if he fails to comply with the other terms and
conditions herein stated, the LESSOR, has the right to evict the LESSEE, even
without notice to vacate. In case of court litigation, the latter shall pay the cost of
suit and the amount of not less than FIVE THOUSAND PESOS (P5,000.00) as
attorney’s fees.

6. USE – The LESSEE shall use the premises for residential purposes only. Should
he desire to use the same for any other purpose, he should obtain prior written
consent from the LESSOR.

7. PUBLIC UTILITIES – All charges for water, electricity, telephone and other utility
services utilized and/or availed of in the leased unit shall be for the SOLE
ACCOUNT of the LESSEE. In case LESSEE, for any reason, fails to pay its utility
to bills, LESSOR shall be permitted to turn off or cut the power source of the said
utility, until fully paid.

8. TERMINATION OF THE LEASE – Failure of the LESSEE to pay the public utility
bills or the monthly rental for at least two (2) consecutives months or his failure to
observe the prescribed rules and regulations of the LESSOR relative to the care
and maintenance of the Leased Premises shall be sufficient ground for the
termination of this Contract of Lease.

a. In cases of termination, LESSEE will voluntarily leave the leased

premises; the policy ‘NO PAY – NO ENTRY’ will follow. The LESSEE will
be ejected, banned and can no longer enter the premises. The LESSOR
can padlock the premises if desired so or hire the services of a Security
Guard, at the expense of the LESSEE, to prevent entry of the LESSEE.
b. LESSEE agrees that any personal effects that maybe found within the
lease premises shall be inventoried and held as guarantee for any arrears
of the LESSEE to the LESSOR. After a month of safekeeping if no
payment of LESSEE is done, the personal effects of the LESSEE shall be
deemed forfeited in favor of the LESSOR.

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 c. The LESSOR will not be liable to any civil or criminal action when
implementing a provision of this contract.

9. IMPROVEMENT – The LESSEE shall not introduce any improvement on the

leased unit which are permanent in character, nor make any alteration of any
nature without prior written consent of the LESSOR. In case of permanent but
authorized improvements or alterations, the same shall become integral parts of
the premises and shall inure to the LESSOR upon termination of the lease
without need of reimbursement by the LESSOR for the cost or value thereof to
the LESSEE. Parties herein agree that for this purpose, improvements and
alterations are considered permanent in character.

10. ASSIGNMENT AND SUBLEASE PROHIBITED – The LESSEE shall not assign,
transfer, his rights over the leased unit nor sub-lease the same or any portion
thereof without the prior written consent of the LESSOR.

11. STORING OF GOODS/MATERIALS – The LESSEE shall not store at any given
time in the leased unit highly inflammable and/or hazardous goods, materials or
items which pose danger or inconvenience to neighbor or to the nearby
community.

12. SANITATION AND REPAIR –LESSEE shall, at its own expense, maintain the
leased premises in clean and sanitary condition, free from obnoxious odor,
disturbing noises and other nuisance.

The LESSEE particularly agrees to replace all clogged, broken and damaged
carpentry works, windows, plumbing, electrical fixtures and all drainage, and to
replace the same in and about the premises when the same be broken or
damaged by the misuse and/or negligence of the LESSEE. In cases, the
LESSEE fails to do so, the LESSOR may do the work and to subsequently
charge the expense to the LESSEE’S account. In such case, all advances made
by the LESSOR shall be added to the rental dues of the LESSEE in the
succeeding month, which shall be immediately due and outstanding. Failure to
pay the cost of repairs shall be subject to the same penalty provision as Section
5 of this Agreement.

For avoidance of doubt, all costs of repairs and maintenance, not due to the fault
of LESSEE which exceed Ten Thousand Pesos (PhP10,000) shall be considered
major repairs. Major repairs shall be shouldered by the LESSOR.

13. DAMAGES – If the leased premises is not surrendered at the expiration of this
contract, unless otherwise extended, the LESSEE shall be responsible to the
LESSOR for all damages which the latter may suffer by reason thereof, including
valid claims of the succeeding tenant resulting from the delay in surrendering
possession of the premises to the LESSOR.

14. ACCESS TO PREMISES – The LESSEE shall, at all times deemed reasonable,
permit the LESSOR or its legal representative to enter upon and examine the
premises and make such repairs as it may deem necessary to preserve and
protect the property.

15. FORCE MAJEURE - LESSEE understands and agrees that the COVID-19
pandemic or government regulations incidental thereto, are not considered
fortuitous events that would delay, bar or excuse LESSEE’s payment of monthly
rentals, escalation agreements, the costs of repairs and maintenance or all other
expenses stated in this Agreement.

IN WITNESS WHEREOF, we have hereunto set our hands this ______________

day of __________________, 2021 in Meycauayan City, Bulacan.

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 ______________________________________
(Lessor)

By: _______________________ _________________________

_________________
___________________
LESSOR LESSEE

Witnesses:

______________________
_________________________

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 ACKNOWLEDGEMENT

REPUBLIC OF THE PHILIPPINES)

MEYCAUAYAN, BULACAN ) S.S

BEFORE ME, a Notary Public for and in the above place and jurisdiction, on this
_______________ day of _________________, 2020, personally appeared the
following:

Known to me and to me known to be the same persons who executed the foregoing
Contract of Lease and acknowledged to me that they executed the said document as
their own free and voluntary act and deed and the free and voluntary act and deed of
the corporation which they represent herein.

WITNESS MY HAND AND SEAL on the date and in the place first above written.

Doc. No.:_______
Book No.: ______
Page No.:_______
Series of 2021

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