Business Law

CIA 1 Component 1
Contract for leased commercial space for rent

Commercial Lease Agreement

THIS LEASE AGREEMENT is made and entered into on June 3, 1997, by and between ABC whose address
is 502, 5th Main, jp nagar, Bangalore (hereinafter referred to as "Landlord"), and XYZ LTD, whose
address is 502, 5th Main, jp nagar, Bangalore (hereinafter referred to as "Tenant").

ARTICLE I - GRANT OF LEASE

Landlord, in consideration of the rents to be paid and the covenants and agreements to be performed
and observed by the Tenant, does hereby lease to the Tenant and the Tenant does hereby lease and
take from the Landlord the property described above.

ARTICLE II - LEASE TERM

Section l. Term of Lease. The term of this Lease shall begin on the Commencement Date, as defined in
Section 2 of this Article II, and shall terminate on December 31, 2040 ("the Termination Date");
provided, however, that at the option of Tenant, Tenant may renew this Lease for five additional
successive one- year terms at a Monthly Rent of Rs. 60,000per month, provided that notice of such
renewal is given in writing no less than 100 days prior to the Termination Date or the expiration of any
one-year renewal term. Tenant may at any time cancel this Lease and terminate all of its obligations
hereunder by the payment of Rs. 200,000 plus all other amounts then due under this Lease.

Section 2. Commencement Date. The "Commencement Date" shall mean June 3rd , 1997.

ARTICLE III - EXTENSIONS

The parties hereto may elect to extend this Agreement upon such terms and conditions as may be
agreed upon in writing and signed by the parties at the time of any such extension.

ARTICLE IV - DETERMINATION OF RENT

Section 1. Monthly Rent: The Tenant agrees to pay the Landlord and the Landlord agrees to accept,
during the term hereof, at such place as the Landlord shall from time to time direct by notice to the
Tenant, monthly rent set forth in the following table:

Initial Period of December 1, 2013 to May 31, 2014: -

June 1, 2014 to May 31, 2015: Rs. 7,20,000

June 1, 2015 to May 31, 2016: Rs. 8,40,000

June 1, 2016 to May 31, 2017: Rs. 9,60,000

June 1, 2017 to May 31, 2018: Rs. 10,80,000

June 1, 2019 to May 31, 2020: Rs. 12,10,000

ARTICLE V WITNESSES TO THE CONTRACT

The above mentioned contract has been witnessed by the following members. The agreement was
mutually accepted by both parties and the event has been witnessed without any mal-practice.

Witness 1

Witness 2

ARTICLE VI BREACH OF CONTRACT

If for any immaterial reason, XYZ Ltd, breaches the contact then the following consequences are to be
faced

1. Have to pay a sum of Rs. 300,000 for damages which includes legal expenses and personal
expenses.
Case Reference: Oil & Natural Gas Corporation Ltd vs Saw Pipes Ltd on 17 April, 2003
2. The remainder of the term in the commercial unit will cease to be for rent as of immediate
effect.
Case Reference: Fateh Chand vs Balkishan Das on 15 January, 1963
3. The initial deposit of Rs. 100,000 will not be returned due to the breach in the rental period.
Case Reference: Maula Bux vs Union Of India on 19 August, 1969

ARTICLE VII E-STAMPING PROCEDURE

The following is the procedure to complete a E-Stamping form online.

Open the SHCIL website shcilestamp.com and check whether your transaction requires stamp
duty. The website provides information about the type of transactions that require stamping. It
also has addresses of collection centres. For details about Karnataka, click on the link
http://shcilestamp.com/estamp_statekarnataka.html.
Fill up an application form at one of the ACCs. The application form must have the details of the
parties involved in the transaction and the purpose for which the e-stamp certificate is to be
used.
Submit the form along with the necessary payment for the stamp certificate. The payment can
be done via cash, cheque, or demand draft if it is done at an ACC. For online payments, one can
use credit cards, debit cards, RTGS, NEFT, pay orders, or make payment through account-to-
account transfer.

A model E-Stamp paper is given below.

References

The above information was taken from the following websites.

1. https://www.sec.gov/Archives/edgar/data/1098009/000100233413000062/elmonteleaseforfili
ng.htm
2. https://www.shcilestamp.com/estamp_statekarnataka.html
3. https://www.google.co.in/search?dcr=0&tbm=isch&q=model+e+stamping+paper&chips=q:mod
el+e+stamping+paper,online_chips:rental,online_chips:karnataka&sa=X&ved=0ahUKEwip8LLIvcr
XAhUOS48KHV_FAq0Q4lYIMygN&biw=1517&bih=735&dpr=0.9
4. http://www.freefranchisedocs.com/agreement_CommLeaseAgreement.php
5. https://www.indiafilings.com/lease-deed-commercial