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.
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 © Copyright 2011 Docstoc Inc. registered document proprietary, copy not 2 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. © Copyright 2011 Docstoc Inc. registered document proprietary, copy not 3 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: ______________ © Copyright 2011 Docstoc Inc. registered document proprietary, copy not 4
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