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Early Termination Of Commercial Lease Agreement Template for Philippines

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Key Requirements PROMPT example:

Early Termination Of Commercial Lease Agreement

"I need an Early Termination of Commercial Lease Agreement for my retail space in Manila, with a planned termination date of March 1, 2025, including specific provisions for the return of our sizeable security deposit and detailed inventory of fixtures we're allowed to remove."

Document background
The Early Termination Of Commercial Lease Agreement is a crucial document used in the Philippines when parties mutually agree to end a commercial lease before its original expiration date. This document becomes necessary in various situations, such as business restructuring, relocation needs, or changing market conditions. It must comply with the Civil Code of the Philippines and local commercial property regulations, particularly regarding notice periods and settlement requirements. The agreement typically includes detailed provisions for financial settlements, property handover procedures, mutual releases, and ongoing obligations. It serves to protect both parties' interests while ensuring a clear and legally compliant path to terminating the lease relationship. The document is particularly important in the Philippine context where commercial property relationships are heavily regulated and formal documentation is essential for legal certainty.
Suggested Sections

1. Parties: Identification of the Lessor and Lessee, including their complete legal names, addresses, and corporate details if applicable

2. Background: Reference to the original lease agreement, its date of execution, property description, and brief context for the early termination

3. Definitions: Key terms used in the agreement, including 'Termination Date', 'Outstanding Obligations', 'Security Deposit', etc.

4. Termination Agreement: Clear statement of mutual agreement to terminate the lease, specifying the effective termination date

5. Settlement of Accounts: Details of all financial settlements, including rent, utilities, security deposit, advance payments, and any other financial obligations

6. Handover Procedures: Process and requirements for returning the premises, including condition requirements and inspection procedures

7. Mutual Release: Release of claims and liabilities between parties post-termination, subject to fulfillment of agreement terms

8. Confidentiality: Obligations regarding confidentiality of the termination agreement and related information

9. Governing Law: Specification of Philippine law as governing law and jurisdiction for any disputes

10. Execution: Signature blocks and execution requirements for both parties

Optional Sections

1. Reinstatement Obligations: Detailed requirements for property restoration, used when the original lease requires specific reinstatement conditions

2. Surviving Obligations: List of obligations that continue after termination, used when there are specific ongoing responsibilities

3. Third Party Consents: Requirements for obtaining third party approvals, used when the lease termination requires consent from mortgagees, guarantors, or other parties

4. Insurance: Provisions regarding insurance coverage during the handover period, used when there's a gap between termination and actual vacancy

5. Broker Fees: Settlement of any broker or agent fees, used when brokers were involved in the original lease

6. Tax Provisions: Specific tax-related obligations and arrangements, used when there are significant tax implications

Suggested Schedules

1. Schedule 1 - Property Details: Detailed description of the leased premises including address, floor area, and included fixtures

2. Schedule 2 - Settlement Calculation: Detailed breakdown of all financial settlements including rent, utilities, deposits, and other charges

3. Schedule 3 - Handover Checklist: Itemized list of inspection points and condition requirements for property handover

4. Schedule 4 - Outstanding Obligations: List of any pending obligations to be fulfilled by either party

5. Appendix A - Original Lease Agreement: Copy of the original lease agreement for reference

6. Appendix B - Condition Report: Current condition report and photographs of the premises

Authors

Alex Denne

Head of Growth (Open Source Law) @ Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions


































Clauses






























Relevant Industries

Real Estate

Retail

Commercial Property

Hospitality

Office Space

Industrial

Warehousing

Banking and Financial Services

Healthcare

Education

Food and Beverage

Technology

Relevant Teams

Legal

Real Estate

Facilities Management

Operations

Finance

Compliance

Risk Management

Property Management

Asset Management

Administrative Services

Relevant Roles

Property Manager

Facilities Manager

Real Estate Director

Commercial Lease Administrator

Legal Counsel

Corporate Lawyer

Operations Manager

Chief Financial Officer

Business Development Manager

Asset Manager

Tenant Relations Manager

Compliance Officer

Risk Manager

Corporate Real Estate Manager

Industries






Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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