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Mutual Cancellation of Commercial Lease

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Mutual Cancellation of Commercial Lease Powered By Docstoc
					This is an agreement entered into between a commercial tenant and a commercial
property owner to cancel a current lease. For this agreement to be valid, both parties
must voluntarily consent to the cancelation. The agreement contains essential
provisions, such as the security deposit, terms of the termination, and ongoing liabilities.
This document should be used by commercial property owners or commercial tenants
who want to cancel an ongoing lease agreement.
                          Mutual Cancellation of Commercial Lease


For good and valuable consideration, the receipt and sufficiency of which is hereby
acknowledged, ____ [Instruction: Insert Tenant’s name.], a ___ [Instruction: Insert
jurisdiction and type of business entity.] as Tenant and ___ [Instruction: Insert Landlord’s
name.] a ___ [Instruction: Insert jurisdiction and type of business entity.], as Landlord do
hereby agree to the following terms and conditions to mutually terminate that certain lease dated
___ [Instruction and Comment: Insert original lease date. If the Lease has been extended,
modified or amended or if the Tenant is an assignee of an original tenant, also include those
recitals here.] entered into by and between Tenant and Landlord for the premises located at
____ [Instruction: Insert property municipal address, including suite number if any.] and
known as _______ [Instruction: Insert legal description.] and which lease is presently in force.
The parties hereto agree the new Lease termination date shall be _____ [Instruction: Insert new
termination date.] (the “New Termination Date”). The parties hereto further agree that upon
the satisfaction of the conditions and obligations set forth herein, the Lease shall thereafter be
deemed terminated and no further rights and obligations shall remain as between the parties,
other than those which by its terms survive the lease, and those set forth herein.

1. The parties hereto agree to the disposition of the security deposit as set forth in the Lease.
   The Tenant surrenders and releases to the Landlord all his/her interest in the Premises
   [Comment: If the Lease defines the leased property as something other than the
   Premises, revise the name throughout this document to conform to the defined term in
   the Lease.] with vacant possession and the Landlord accepts this surrender.

2. [Instruction: Please choose one of the following release methods and delete
   inapplicable.]

    The Landlord confirms that all rent and other amounts due under the Lease to date have been
    paid and that no further payments, whether in respect of rent or otherwise, are due.


    Both parties release and discharge each other from all liabilities arising under the
    Lease EXCEPT the obligation on the part of Tenant to pay the rent reserved
    in the tenancy (but only up to the date of this agreement).

3. The Tenant shall surrender possession of the Premises on the New Termination Date, in the
   condition and manner set forth in the Lease. Upon the surrender of the Premises by the
   Tenant, the Landlord shall release the Tenant from his/her continuing obligation under the




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    Lease to pay rent.


4. Each of the parties shall be responsible for all obligations, including but not limited to the
   payment of any utilities, fines, fees or any other such payments set forth in the Lease and the
   maintenance of any applicable insurance, until and through the new termination date.

5. The parties hereto agree that this agreement shall be deemed notice pursuant to the required
   termination notice provided in the Lease, and no further notice shall be required. Neither
   party shall incur any liability for any failure to provide such notice as set forth in the Lease.

6. Any and all improvements, renovations and/or fixtures (trade or otherwise) installed by the
   Tenant shall be retained by the party set forth in any and all applicable Lease provisions.
   [Instruction: In the event the Lease did not speak to the installation of any
   improvements, renovations or fixtures (trade or otherwise), parties should set forth the
   applicable agreement regarding same here, and delete the current language.] Tenant
   shall be liable for any damage, beyond normal wear and tear, caused as a result of the
   removal of any and all such improvements, renovations and/or fixtures.

7. Tenant and Landlord represent and warrant to each other and agree as follows: the Lease has
   not been modified or amended except as set forth herein; there are no other agreements,
   understandings, contracts, or commitments of any kind by, between or among such party to
   this agreement and any third party with respect to the Lease or the Premises except as
   expressly provided in the Lease; such party has not assigned, transferred, sublet or
   hypothecated its rights, obligations or interests (or any portion thereof) under the Lease; and
   to the best of such party’s knowledge, neither party is in default under the Lease nor is there
   any condition or event which has occurred, which, with the passage of time or the giving of
   notice or both, would constitute a default or breach under the Lease.

8. The provisions of this agreement (other than those contained in this clause) shall not
   have any effect until this agreement has been dated.

9. This agreement shall be binding upon both parties, their successors, assigns and personal
   representatives.

10. Any term used herein which is not defined herein shall have the meaning set forth in the
    Lease.




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11. This agreement shall be governed, construed and interpreted by, through and under the Laws
    of the State of _____ [Instruction: Insert applicable state.]

12. The pronouns used herein shall include, where appropriate, either gender or both, singular
    and plural.

13. If any provision of this agreement or the application thereof shall, for any reason and to any
    extent, be invalid or unenforceable, neither the remainder of this agreement nor the
    application of the provision to other persons, entities or circumstances shall be affected
    thereby, but instead shall be enforced to the maximum extent permitted by law.

14. Should it become necessary for Landlord to employ an attorney to enforce any of the
    conditions or covenants hereof, including the collection of rentals or gaining possession of
    the Premises, Tenant agrees to pay all expenses so incurred, including a reasonable attorneys'
    fee. Tenant hereby understands and agrees specifically that such attorney may be Landlord,
    and in such instance, Tenant would remain responsible for all expenses so incurred, including
    such reasonable attorneys’ fee as Landlord would normally charge in such matters.




The Landlord and The Tenant mutually consent to the termination of the tenancy on this date:
__________


Landlord Name: ______________________________

Landlord Signature: ______________________________                         Date: _______________


Tenant Name: ______________________________

Tenant Signature: ______________________________                          Date: ______________




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Description: This is an agreement entered into between a commercial tenant and a commercial property owner to cancel a current lease. For this agreement to be valid, both parties must voluntarily consent to the cancelation. The agreement contains essential provisions, such as the security deposit, terms of the termination, and ongoing liabilities. This document should be used by commercial property owners or commercial tenants who want to cancel an ongoing lease agreement.