CONTRACT OF LEASE

KNOW ALL MEN BY THESE PRESENTS:

This CONTRACT OF LEASE is made and executed at Butuan City, Philippines, this ____ of _______
2022, by and between;
RAMISES M. CASALS JR. , Filipino, of legal age, married and a resident of Buenavista, Agusam Del Norte,
Philippines, hereinafter referred to as the LESSOR.
-AND-
ROSEMARIE L. YAP, Filipino, of legal age, married and a resident of P-6 Libertad Butuan City, Philippines,
hereinafter referred to as the LESSEE.
WITNESSETH;
WHEREAS, the LESSOR is the owner of the LEASED PREMISES a COMMERCIAL BUILDING
situated at Purok 3 Buenavista, Agusan Del Norte;
WHEREAS, the LESSOR will hereby leases unto the lessee and the latter hereby accepts in lease from the
former, subject to the following terms and conditions, to wit:
USE AND PURPOSE OF LEASE. That the premise property leased shall be used exclusively by the LESSEE
for COMMERCIAL OCCUPANCY only. The LESSEE shall not directly or indirectly sublease, assign,
transfer, convey or mortgage or in way, encumber its right to lease the whole in the part the leased property
under in any circumstances whatsoever, without written consent of the LESSOR. It is agreed that if at any time
the premise is used for other purposes, the LESSOR shall have the right to rescind this contract without
prejudice to its other rights under the law;

1. TERM. This CONTRACT shall be for ONE (1) YEAR from DECEMBER 7, 2022 to DECEMBER 7,
2023, inclusive without prejudice to the pre-termination clause herein provided upon expiration, this
LEASE is renewable yearly;

2. RENTAL RATE. The monthly rate shall be THIRTEEN THOUSAND PESOS (PHP 13,000.00). All
rental payments shall be payable to the LESSOR in accordance with R.A 9653- Rent Control Act of
2009 on or before the 7th DAY of the month.

3. PAYMENT OF TAX ON RENT. All the taxes due on rent shall be borne by the LESSEE who shall
personally pay the same to the BIR on the date it falls due. Liabilities which may arise due to failure to
pay necessary tax due on rental shall be borne by the LESSEE, including the incidental and
consequential liabilities thereof and he shall forever defend the avoidance, discharge ad release of such
liability to the LESSOR.

4. ADVANCE RENTAL. Each LESSEE shall pay an advance rental equivalent to ONE (1) months
rental. The advance rental shall be consumed for the 1st month upon effectivity of the contract.

5. SECURITY DEPOSIT. The LESSEE shall deposit an amount equivalent to TWO (2) months rental.
As security deposit. The security deposit hereby undertakes not to charge future payment of lease against
the deposit of two (2) month/s. Such deposit shall be returned unto the LESSEE upon expiration of this

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 contract, less whatever unpaid consumption of light and water and damages that may have been incurred
upon the property by reason of LESSEE usage thereof except the normal wear and tear and of those by
fortuitous events. .

6. FAILURE TO PAY RENT. The LESSEE shall cause the delivery of the payment to the address of the
LESSOR on the day it fails due without need of demand. Failure to pay ONE (1) MONTH rental shall
constitute a ground for the revocation and cancellation of this contract upon proper notice made to the
LESSEE, within 48hrs from the date receipt such notice. The LESSOR, may as a consequence, effect the
closing or padlocking of the leased premise; failure to pay rent for ONE (1) MONTH shall be a ground
for the cancellation and annulment of this contract;

7. UTILITIES. The LESSEE shall solely pay for the charges on electricity, water, telephone and internet.

The LESSEE must promptly pay all bills and must at all times avoid incurring penalties and surcharges
and disconnection.

The LESSEE shall submit, without need of demand and notice, every 1st week of the month together
with the monthly rental, photocopies of the payment of the utilities.

8. FORCE MAJEURE. If the whole or any part of the leased premise 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 the use and occupation of the
LESSEE, this contract may be terminated without compensation by the LESSOR or by the LESSEE
after due notice made writing.

9. IMPROVEMENTS. The LESSEE is without authority to introduce improvements and all forms of
construction on the leased premises without the prior written approval of the LESSOR.

The LESSEE is strictly prohibited to alter, modify, tamper, or change the existing structures and
connections therein, such as but not limited to, pipes, electrical connections and posts.
The LESSOR shall become the owner of the improvements introduced and the LESSOR has no
obligation to reimburse the improvements introduced by the LESSEE.
At the end of the term or in case of pre-termination, the LESSEE may remove the removable
improvements without affecting damage on the premises.

10. CLEANLINESS. The LESSEE shall maintain and preserve the cleanliness and sanitation of the leased
premises in accordance with the laws, rules and regulations in effect in the City of Butuan and Republic
of the Philippines.

11. NECESSARY REPAIRS. The LESSEE shall observe and exercise the EXTRA ORDINARY
DILIGENCE OF A GOOD FATHER OF A FAMILY in the use and maintenance of the leased
premises and shall treat the leased property as its own.

Any and all necessary repairs required to be made on any portion of the leased premises shall be the
responsibility of and for the sole account of the LESSEE.
The LESSEE’s shall –

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 a. Make urgent repairs and immediately report to the knowledge of the LESSOR
Within the shortest possible time the repairs made.
b. Observe all the obligations of the LESSEE enumerated under the Civil Code of the
Philippines
12. INSPECTION. The LESSOR or his duly authorized representative may inspect the lease premises
during at reasonable hours of the day without need of prior notice to the LESSEE.
The LESSOR may issue notices to call the attention of the LESSEE who shall be obligated to
immediately act on the issues raised in the notices.
13. COMPLIANCE. During the term of the lease, the LESSEE shall comply all national laws, rules and
regulations and ordinances pertinent to the use, occupation and sanitation of the leased premises.

14. MORTGAGE/SALE. The LESSOR reserves the right to mortgage or sell or otherwise dispose od the
land and the improvements provided that the rights of the LESSEE and the terms and conditions of this
contract shall be respected.

15. RETURN. Upon termination of this contract, the LESSEE shall immediately vacate the premises and
return possession thereof to the LESSOR, devoid of removal fixtures and furniture without delay and
without demand and without need of judicial intervention.
Thirty (30) days prior to the expiration of the lease, the LESSOR shall have the right to affix the “FOR
RENT” sign at the lease premises and show the lease premises to interested LESSEE during the non-
operating hours of the business of the LESSEE.
If the LESSEE fails to vacate and remove the improvements from the leased premises, after the
expiration of the term or pre-termination, the LESSOR is granted the right and authority without judicial
intervention or ruling, to padlock the leased premises and/or enter the leased premises and free the same
removable fixtures and furniture occupants.
For the exercise of this right and authority, the LESSEE’s forever free from any and all liabilities, of
whatever nature, and waive and abandon any and all cause/s of action, now and in the future, the
LESSOR, its incorporators, directors, officers and assigns.
16. DILIGENCE. The LESSEE’s and their agents must exercise extraordinary diligence of a good father of
a family.

For the purpose of this lease contract, the LESSEE’s deemed and considered themselves as
owners/proprietor/head of a family and managers referred to in Article 2180 and Article 2190, in relation
to Article 2176 and other applicable provisions, Civil Code od the Philippines, and all laws, such as but
not limited to R.A. 7610, and assume penal and solidary liabilities and any and all liabilities and the sole
burden to prove the exercise of diligence of a good father of a family.

17. TERMINATION. Violation/Non Compliance of local laws and national laws/department administrative
order/regulation is a ground to pre-terminate/terminate the contract without need of judicial intervention
and ruling.
Issuance by the local government unit or national government/or its department/bureaus of notice of
violation and/or demand is sufficient evidence of the violation/non compliance by the LESSEE.

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18. VENUE. The parties submit to the court of Butuan City and Agusan Del Norte as the sole and exclusive
venue to the complete and total exclusion of al venues.

19. VIOLATION OF TERMS AND CONDITIONS. That the violation of any of the above terms and
conditions shall produce ipso facto rescission of this Contract of Lease.

IN WITNESS WHEREOF, parties herein affixed their signatures on the date and place above written.

RAMISES M. CASALS JR. ROSEMARIE L. YAP

Lessor Lessee

Signed in the presence of:

______________________ ________________________

ACKNOWLEDGEMENT

Republic of the Philippines)

-----------------------)s.s.

Before me, personally appeared:

Name Id/Ctc Date/Place of issue

__________________ ____________ ________________

__________________ ____________ ________________

Known to me and known to be same persons who executed the foregoing instrument consisting
FOUR (4) pages, duly signed by the parties and acknowledged to me that the same are their
voluntary act and deed.

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

Doc No. ____

Page No. ____
Book No.____
Series of 2022