MINDANAO STATE UNIVERSITY (MSU)

COLLEGE OF LAW - ILIGAN EXTENSION

CONTRACT OF LEASE

In Partial Fulfillment

of the Requirements for the Subject

LEGAL FORMS AND CONTRACT DRAFTING

Submitted by:

Chezanie Chelle L. Punongbayan

Submitted to:

Atty. Jane G. Baguio- Verdida

May 24, 2019

 CONTRACT OF LEASE

This Contract of Lease (“this Contract”) is made and executed at the City of
Iligan, this 27th day of January, 2018, by and between:

(1) Juan Dela Cruz, Filipino, of legal age, and with residential address
at Barangay Tibanga, Iligan City (the “LESSOR”); and

(2) ABC Bank, with its address at Barangay Tambo, Iligan City (the
“LESSEE”).

Recitals

(A) LESSOR is the owner of the 250 sq. m. residential property lot situated at
Brgy. San Miguel, Iligan City (the “Apartment”).

(B) LESSEE desires to lease the Apartment and the LESSOR is willing to lease
the same subject to the terms and conditions specified in this Contract.

NOW THEREFORE, for and in consideration of the payment of rents and other
sums due hereunder, and the faithful compliance with all the conditions and
covenants hereinafter contained, the LESSOR hereby leases and lets unto
LESSEE, and the latter does hereby accept under lease, the Apartment subject
to the following terms, covenants, conditions and restrictions:

TERMS AND CONDITIONS

1. PURPOSE: The Apartment shall be used exclusively by the LESSEE as a

private residence only and shall not be diverted to other uses. It is hereby
expressly agreed that if at any time the Apartment is used for other purposes,
the LESSOR shall have the right to terminate this Contract without prejudice
to its other rights under the law and shall result in the automatic forfeiture of
the advance rental and security deposit in favor of LESSOR.

2. TERM: The term of the lease is for FIVE (5) YEARS commencing on
February 4, 2018 and expiring on February 4, 2023.

3. RENTAL RATE: The monthly rental rate for the leased premises shall be
FIVE THOUSAND PESOS PHILIPPINE PESOS (Php 5,000.00). All rental
payments shall be paid to the LESSOR in cash on every 30th day of the month.
4. ADVANCE RENTAL: Upon execution of this Contract and prior to move-in,
the LESSEE agrees to pay in advance two (2) months’ rent and one (1) month
deposit which will be applied to rental payments for the last two (2) months of
the lease term.

5. SECURITY DEPOSIT: Upon execution of this Contract and prior to move-in,

the LESSEE agrees to pay a security deposit in an amount equivalent to two (2)
month’s rent, as security for the faithful compliance by the LESSEE of all
terms and conditions of this Contract and for the return of the Apartment in
good and proper condition, and to answer for any and all repairs or damages to
the Apartment and other liabilities of the LESSEE under this Contract,
including unpaid utilities such as water, electricity, telephone, internet and
cable TV. This security deposit cannot be applied by the LESSEE to any unpaid
rental(s) or to any other liability of the LESSEE to the LESSOR. The security
deposit shall, unless the same is subject to forfeiture under this Contract, be
refunded to the LESSEE, without any interest thereon and less the allowable
deductions herein, within sixty (60) days after the expiration of the lease and
after the LESSEE has moved out of and vacated the Apartment, whichever is
later.

6. UTILITY SERVICES: All charges for water, electricity, telephone, internet,

cable TV and other utility services to the Apartment shall be for the sole
account of the LESSEE. The LESSEE shall promptly pay all utility charges
directly to the utility company concerned. The LESSOR will not be liable for the
discontinuance of or interruptions in utility services to the LESSEE due to any
cause or reason whatsoever.

7. LOSS: The LESSOR is not liable to any resident, guest, or occupant for
injury, damage, or loss to person or property, from any cause including fire,
smoke, rain, flood, water leaks, lightning, wind, explosions, interruption of
utilities, pipe leaks, theft, negligent or intentional acts of resident, occupants,
guests, or criminal conduct of other persons including theft, burglary, assault,
vandalism or other crimes.

8. FORCE MAJEURE: If whole or any part of the Apartment shall be

destroyed or damaged by fire, flood, lightning, typhoon, earthquake, storm, riot
or any other unforeseen disabling cause of acts of God, as to render the leased
premises during the term substantially unfit for use and occupation of the
LESSEE, then this Contract may be terminated without compensation by the
LESSOR or by the LESSEE by notice in writing to the other.

9. DEFAULT PAYMENT: In case of default by the LESSEE in the payment of

the rent, the LESSOR at its option may terminate this contract and exercise its
rights under clause 16.
10. SUB-LEASE AND ASSIGNMENT: It is expressly understood and agreed
that the personal character of the LESSEE and the nature of occupancy of the
Apartment are special considerations for LESSOR’s grant of this lease to the
LESSEE. Accordingly, the LESSEE shall not assign or transfer its rights under
this Contract, nor sublease all or any part of the Apartment or enter into any
arrangement whereby the use or possession of any part of the Apartment is
transferred to any person without the prior written consent of the LESSOR.

11. CONDITION OF THE PREMISES AND ALTERATIONS: The LESSEE

acknowledges to have received the Apartment in a clean, safe, and good
working condition. The LESSEE shall not make any alteration, addition, or
improvement within the Apartment or in any of the common areas, without the
prior written consent of LESSOR. No holes are allowed inside or outside the
Apartment. Only items using non-permanent or removable adhesive strips or
tapes may be placed on the walls, floors, or ceiling of the Apartment. Any
improvements to the Apartment (with or without LESSOR’s consent) shall
become property of the LESSOR unless agreed otherwise in writing. The
LESSEE must use customary diligence in maintaining the Apartment and not
damaging or littering the common areas.

12. LESSOR'S RIGHT OF ENTRY: The LESSOR or its authorized agent shall
after giving due notice to the LESSEE shall have the right to enter the premises
in the presence of the LESSEE or its representative at any reasonable hour to
examine the same or make repairs therein or for the operation and
maintenance of the building or to exhibit the leased premises to prospective
LESSEE, or for any other lawful purposes.

13. RENEWAL: Upon its expiration, this Contract may be renewed under such
terms and conditions as may be mutually agreed upon by both
parties. LESSEE shall give thirty (30) days’ prior written notice to LESSOR of
its intention to renew. In the event no renewal is agreed upon, LESSEE must
vacate Apartment on the date of expiration of lease for turn-over to LESSOR.

14. PRE-TERMINATION: Pre-termination of this Contract by LESSEE shall

result in the forfeiture of the advance rental and security deposit.

15. EXPIRATION OF LEASE: At the expiration of the term of this lease or

termination thereof, as herein provided, the LESSEE shall promptly deliver to
the LESSOR the leased premises with all corresponding keys and in as good,
clean, sanitary, and tenantable condition as the same is now, ordinary wear
and tear excepted, devoid of all occupants, movable furniture, articles and
effects of any kind.
16. REMEDIES FOR BREACH: If the LESSEE violates any of the terms or
conditions of this Contract, the LESSOR may, in addition to any other remedies
or recourse prescribed by law, pursue any or all of following remedies,
simultaneously or successively, as follows:

(a) To terminate this Contract without the need of any prior notice, demand or
judicial declaration;

(b) To immediately repossess the Apartment without the necessity or instituting

any judicial or court action. In this connection, the LESSEE hereby names,
constitutes, and appoints the LESSOR, its authorized agents, employees,
and/or representatives, as its attorney-in-fact, with full power and authority, to
open, break-open, padlock, enter, occupy, secure, the Apartment, to clean up,
make repairs in, and re-let the premises, remove property left in the Apartment
and to take such other steps and employ such other means to enable the
LESSOR to take full and complete physical possession and control of the
Apartment, barring the LESSEE from entering the Apartment.

The LESSEE hereby expressly agrees to hold the LESSOR and/or its
authorized agents, employees, or representatives will be free and harmless from
any civil and/or criminal liability or responsibility for the acts described under
this provision.

(c) To demand and receive from the LESSEE payment for any and all unpaid
rentals, fees, charges, damages, and other financial obligations stipulated in, or
arising out of this Contract.

(d) To automatically forfeit the advance rental and security deposit in its favor.

17. JUDICIAL RELIEF: Should the LESSOR be compelled to seek judicial

relief against the LESSEE in order to enforce any or all its rights under this
Contract, the LESSEE, in addition to any other damages that may be awarded
by the court, shall pay an amount of twenty five percent (25%) of the amount
clamed in the complaint as attorney's fees which shall in no case be less than
Fifty Thousand Philippine Pesos (Php50,000.00) in addition to other cost and
damages which the said party may be entitled to under the law. The parties
hereby agree to submit any action arising from or incident to this Contract to
the jurisdiction of the proper courts of Lucena City only, to the exclusion of all
other courts.

18. SUCCESSION: This CONTRACT OF LEASE shall be valid and binding

between the parties and their successors-in-interest.
IN WITNESS WHEREOF, the parties herein affixed their signatures on the
date and place above written.

JUAN DELA CRUZ ABC BANK

LESSOR LESSEE

Signed in the presence of:

_____________________________ ______________________________

ACKNOWLEDGEMENT

Republic of the Philippines)

_________________________) S.S

BEFORE ME, personally appeared:

Name Government Issued ID Date/Place Issued

JUAN DELA CRUZ 885903756048 05/17/18

ABC BANK 948263056482 05/15/18

Known to me and to me known to be the same persons who executed the foregoing instrument and
acknowledged to me that the same is their free and voluntary act and deed.

This instrument consisting of four (4) page/s, including the page on which this acknowledgement is
written, has been signed on each and every page thereof by the concerned parties and their witnesses,
and and sealed with my notarial seal.

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

Notary Public
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