Contract Form sample

of 7

CONTRACT OF LEASE FORM

KNOWN ALL MEN BY THESE PRESENTS:

This Contract of Lease, made and entered into this ___ day of __________ 20xx

at Baguio City, Philippines, by and between:

UNIVERSITY OF THE PHILIPPINES BAGUIO, a State institution of higher learning, established and operating pursuant to R.A. 9500, as amended, with principal

office at Governor Pack Road, Baguio City, Philippines, represented herein by its

Chancellor, RAYMUNDO D. ROVILLOS, hereinafter referred to as the LESSOR;

and

< WINNING BIDDER >, represented herein by < proprietor/authorized representative >, with residence address < company/residential address >, hereinafter referred to as the LESSEE;

WITNESSETH THAT

WHEREAS, the LESSOR is the owner, of the premises known as the UP Baguio

Canteen Building located at U.P. Baguio, Gov. Pack Road, Baguio 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 a space in the UP Baguio Canteen Building

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 Canteen, under the following terms and conditions:

ARTICLE I

SUBJECT AND DURATION OF LEASE

Section 1. This contract of lease pertains to the UPB Lower Canteen which

lease shall be in force and will take effect from < date of duration of contract >, unless sooner terminated pursuant to Article XIV hereof, subject to prior

recommendation of the Office of Auxiliary Services or its equivalent authorized body.

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.

ARTICLE II 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 < amount in words > only ( ), Philippine currency representing monthly rental and 12% VAT payable on or before the 15th day of every month covered by the

period of the lease to the UPB Cashier's Office.

Upon execution hereof, the LESSEE shall pay in cash such amounts equivalent to

two (2) months rental as Security Deposit and one (1) month rental in advance; and in

addition, the LESSEE shall issue eleven (11) postdated checks in favor of the LESSOR

representing the remaining monthly rentals for the remaining eleven (11) months of the

year.

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

of 7

month, to be computed from the date of delinquency until fully paid.

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 two (2) months 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 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.

The LESSEE's liability for any breach of this contract or for any obligation for the

operation of the UPB Lower Canteen shall in no manner be limited to the amount of

Security Deposit. For this reason, any debt or obligation owed by the LESSEE to the

LESSOR in excess of the Security Deposit at the time of termination or pre-termination of

the contract shall constitute a lien on the personal property of the LESSEE located at the

leased premises.

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.

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. The LESSEE shall

serve meals in any manner convenient to its 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 available at adequate quantities. The LESSEE shall post on a blackboard the

following information 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. Price adjustments due only to inflation or deflation shall be subject to

prior written approval by the LESSOR.

Section 10. The LESSEE shall provide sufficient boiled and cold drinking water to

customers.

Section 11. The LESSEE shall repair and/or change broken chairs and tables and

of 7

provide for trashcans, and other waste receptacles.

Section 12. The LESSEE shall require its employees to wear appropriate uniforms

while on duty on school days. The LESSEE's employees shall present to the LESSOR

certification of medical and physical examinations, and every six (6) months thereafter,

for the duration of the lease.

Section 13. The LESSEE may, in a limited manner, engage in catering business

outside UPB campus, provided that, the interest of the UPB shall not be prejudiced. In

the pursuit of this activity, the LESSEE shall not use the leased premises and/or the

equipment or facilities therein.

Section 14. 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 LESSOR and/or third persons, aside

from the LESSEE's other 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 15. 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 University

and the CHED, by posting NO SMOKING signs on walls of the leased premises.

Section 16. 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 for illegal purposes.

Section 17. The LESSEE shall observe proper solid waste disposal in accordance

with the plan it submitted during the bidding process.

ARTICLE V UTILITIES

Section 18. 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 and paid for by the LESSEE

directly to the supplier of said services, or to the LESSOR in case the latter shall have

advanced the payment thereof, for which the LESSEE obligates itself to pay the LESSOR

an additional ten percent (10%) of the total cost of utilities advanced, as and by way of

administrative cost.

Section 19. Water and electrical consumption shall be for the LESSEE's account

and determined by separate meters and sub-meters. In the absence of these separate

measuring devices, water and electricity consumed in the leased premises shall be

reasonably computed and billed by the LESSOR and paid by the LESSEE within three (3)

days from written notice, plus ten percent (10%) administrative costs provided for in

Section 18 of this contract.

Section 20. In case of lack of, or deficient water supply, it shall be the LESSEE's

responsibility to provide the same without resort to the LESSOR's emergency water

of 7

supply system.

Section 21. 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 22. 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 23. 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 VI SIGNS, ADVERTISEMENTS

Section 24. 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 regulations

issued by the latter hereafter.

ARTICLE VII

SUB-LEASE, TRANSFER, ASSIGNMENT

Section 25. 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 in violation of this provision shall be null and void.

ARTICLE VIII ALTERATIONS/ ADDITIONS/ IMPROVEMENTS

Section 26. 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 compensation to the LESSEE. Repairs, alterations, or

improvements shall be subject to prior submission of plans and specifications and the

estimate cost of materials and labor and approved by the LESSOR.

ARTICLE IX

TRANSPORTATION AND CARRYING OUT OF FURNITURE, ETC.

Section 27. 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 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 X INJURY OR DAMAGE

Section 28. 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 29. In case of damage to the leased premises or its appurtenances by

of 7

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 30. 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.

ARTICLE XI FOOD POISONING

Section 31. 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. 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 32. The LESSEE shall be solely responsible for the acts of its employees

or persons it shall allow to enter the off-limit areas of the canteen.

ARTICLE XII

INSPECTION AND REPAIR OF PREMISES

Section 33. 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) months of the lease, to exhibit/ show the leased

premises to prospective tenants.

ARTICLE XIII INVENTORY

Section 34. 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.

Section 35. 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.

ARTICE XIV TERMINATION OF CONTRACT

Section 37. 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;

of 7

c) other reasonable causes;

d) and/or as stated in the attached Memorandum of Agreement

with the Director of Students Affairs, who heads the OAS.

In this regard, the LESSEE hereby constitutes the LESSOR as Attorney-in-Fact for the

purpose of taking possession, and management of the premises.

Section 38. In case of pre-termination by the LESSEE for reasons other than

stated in Section 37 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.

Section 39. In case of judicial action arising from this contract, the LESSOR, in

addition to the damages mentioned herein, shall be entitled to liquidated damages in the

amount of Twenty Thousand Pesos (P20, 000.00) and Ten Thousand Pesos (P10, 000.00)

as, and by way, of attorney's fee.

The parties hereby agree that the venue for judicial action shall be the proper courts of

law in Baguio City.

ARTICLE XV WAIVER

Section 40. 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.

ARTICLE XVI ENTIRE AGREEMENT

Section 41. 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 signatures on the

date and at the place first above written.

UNIVERSITY OF THE PHILIPPINES BAGUIO < Company Name >

By:

RAYMUNDO D. ROVILLOS < Name of authorized signatory > Chancellor < Position >

Signed in the presence of:

JESSICA K. CARIO _________________________ Vice Chancellor for Administration

of 7

ACKNOWLEDGMENT

REPUBLIC OF THE PHILIPPINES)

BAGUIO CITY ) s.s.

BEFORE ME, a Notary Public for and in Baguio City, Philippines personally appeared:

NAME CTC NO. DATE/PLACE ISSUED

RAYMUNDO D. ROVILLOS

< name of authorized representative >

Known to me and to me known to be the same persons who executed the forgoing

instrument and acknowledged to me that the same is their free and voluntary act and

deed and that of the institution or entity, which they represent.

This instrument consisting of seven (7) pages including this page whereon this

acknowledgment is written refers to the Contract of Lease signed by the parties together

with their instrumental; witnesses on each and every page thereof.

WITNESS MY HAND AND SEAL on this ____ day of __________________ at Baguio City,

Philippines.

Doc. No. _________

Page No. _________

Book No. _________

Series of 20xx

Documents

Contract Form sample