Contingency Lease Agreement Template for Philippines

The Contingency Lease Agreement is a specialized legal instrument used in the Philippines when parties wish to enter into a lease arrangement subject to certain conditions being met before the lease becomes effective. This type of agreement is commonly used in scenarios such as property development projects, business expansion plans, or situations where property modifications are required before occupancy. The document integrates Philippine property law requirements with specific provisions addressing the contingent nature of the arrangement, making it particularly valuable for commercial real estate transactions, retail space leasing, and industrial property arrangements. It provides a framework for managing the pre-lease period, establishing clear criteria for contingency fulfillment, and protecting both lessor and lessee interests throughout the process. The agreement's structure ensures compliance with Philippine Civil Code requirements while accommodating the complex needs of modern commercial leasing arrangements.

1. Parties: Identifies and provides complete details of the lessor and lessee, including their legal capacity to enter into the agreement

2. Background: Establishes the context of the agreement, including description of the property and the general purpose of the contingency arrangement

3. Definitions: Defines key terms used throughout the agreement, including specific contingency-related terminology

4. Contingency Conditions: Clearly states the specific conditions that must be met before the lease becomes effective

5. Term and Commencement: Specifies the duration of the lease and when it begins after contingencies are met

6. Rent and Payment Terms: Details the rental amount, payment schedule, and any adjustments or escalation clauses

7. Security Deposit: Specifies the amount, terms, and conditions for the security deposit

8. Use of Premises: Defines permitted uses of the property and any restrictions

9. Maintenance and Repairs: Outlines responsibilities for property maintenance and repairs

10. Insurance and Liability: Specifies required insurance coverage and allocation of risks

11. Default and Remedies: Details what constitutes default and the available remedies

12. Termination: Specifies conditions for early termination and the process involved

13. Governing Law: Confirms Philippine law as governing law and jurisdiction

14. General Provisions: Standard boilerplate clauses including notices, amendments, and severability