Docstoc Legal Agreements
This Commercial Lease Agreement is used by individuals to lease the premises with Use,
Subletting, Damage, Alteration and Termination Clauses that will protect the best interests
of the landlord. It is used by either landlords or tenants to save money and secure the best
terms and conditions for the lease. This document is intended to allow the landlord to set
the price, length, security deposit, and other terms of a commercial lease. This document
is ideal for entities or other individuals located in California who want to enter into a
standard commercial lease agreement.
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COMMERCIAL LEASE AGREEMENT
THIS COMMERCIAL LEASE AGREEMENT (hereinafter referred to as the “Agreement”)
made and entered into this ____ [Month] ____ [Date], 20____ [Year], by and between
____________________________ [Instruction: Insert the name of Lessor or manager (if
applicable)] (hereinafter referred to as the “Lessor”) and ____________________________
[Instruction: Insert the name of Lessee] (hereinafter referred to as the “Lessee”).
WHEREAS, the Lessor wishes to Lease the premises (defined below) to the Lessee; and the
Lessee wishes to Lease those premises from the Lessor;
NOW, THEREFORE, in consideration for the mutual promises, covenants, and agreements
made below, the parties, intending to be legally bound, agree as follows:
For purposes of this Agreement, the following terms will have the indicated definitions:
a. “Agreement” This Agreement is by and between the Lessor and the Lessee.
b. “Premises” The offices situated in the city of __________ [Insert the City], state of
___________ [Insert the State], described as __________________________ [Insert
the address of the Premises], and having an area of approximately
_____________________ [Insert the square footage) rentable square feet, particularly
describe in Exhibit A.
2. Term and Rent:
The Lessor leases the above Premises,
Commencing on : ____ [Month] ____ [Date], 20____ [Year]
Terminating on : ____ [Month] ____ [Date], 20____ [Year]
Both parties agree that this is in no way a month-to-month Lease. The Lessee shall pay to the
Lessor as rent for the Premises, without demand, deduction, or rights of off-set, the following
sums: equal monthly installments of ________ ($___) [Instruction: Insert the amount, e.g.,
twenty thousand dollars ($20,000)], payable in advance on the __________ [fourth (◊
4th)] day of each month. If that day falls on a weekend or legal holiday, the rent is due on the
next business day. Rent shall be paid by personal check, money order, or cashier’s check
only, to _________________________ [Instruction: Insert the name of the Lessor] at,
________________________________________, [Instruction: Insert the address of the
Lessor] or at such other place as the Lessor shall designate from time to time.
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3. Late Charge/Bad Checks:
If rental payments are not received by the date due, a collection charge of ________ ($___)
[Instructions: Insert the amount of late charge, e.g., fifty dollars ($50)] in addition to the
monthly rent will immediately become due and payable. In addition, for each check not
honored by the Bank or Trust Company upon which it is drawn, a collection charge of
________ ($___) [Instructions: Insert the amount of bad checks charges, e.g., fifty
dollars ($50)] in addition to the monthly rent will become immediately due and payable.
4. Security / Damage Deposit:
The Lessee shall deposit with the Lessor the sum of one (1) month rent as a security deposit
to secure the Lessee's faithful performance of the terms of this lease. After all the Lessees
have vacated, leaving the premises vacant, the Lessor may use the security deposit for the
cleaning of the premises, any unusual wear and tear to the premises or common areas, and
any rent or other amounts owed pursuant to the lease agreement.
5. Use of Premises:
a. Uses Permitted: The Lessee shall use and occupy the Premises for commercial use only.
The Premises shall be for no other purpose. The Lessee represents that the Premises will
lawfully be used for commercial purpose only and no other purpose.
b. Uses Prohibited: The Lessee shall not do or permit anything to be done in or about the
Premises nor bring or keep anything therein that will increase the existing rate or affect
any fire or other insurance upon the building or any of its contents, or cause a
cancellation of any insurance policy covering said building or any part of it or any of its
contents, nor shall the Lessee sell or permit to be kept used or sold in or about said
Premises any articles or substances, inflammable or otherwise, that may be prohibited by
a standard form policy of fire insurance.
c. The Lessee shall not do or permit anything to be done in or about the Premises that will
in any way obstruct or interfere with the rights of other Lessees of the building or injure
or annoy them or use or allow the Premises to be used for any unlawful or objectionable
d. The Lessee shall not use the Premises or permit anything to be done in or about the
Premises that will in any way conflict with any law now in force or that may hereafter be
enacted. The Lessee shall at its cost promptly comply with all laws now in force or that
may be in force hereafter and with the requirements of any board of fire underwriters or
other similar body relating to the Lessee’s improvements or acts.
e. The Lessee shall not use the Leased Premises for the purposes of storing, manufacturing
or selling any explosives, inflammables, or other inherently dangerous substance,
chemical, thing, or device.
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f. The Lessee shall comply with any and all laws, ordinances, rules, and orders of any and
all governmental or quasi-governmental authorities affecting the cleanliness, use,
occupancy, and preservation of the Premises.
6. Assignment and Subletting:
The Lessee shall have the right without the Lessor's consent, to assign this Lease to a
corporation with which the Lessee may merge or consolidate, to any subsidiary of the Lessee,
to any corporation under common control with the Lessee, or to a purchaser of substantially
all of the Lessee's assets. Except as set forth above, the Lessee shall not sublease all or any
part of the Leased Premises, or assign this Lease in whole or in part without the Lessor's
consent, such consent not to be unreasonably withheld or delayed.
a. If the Leased Premises or any other part of the building is damaged by fire or other
casualty resulting from any act or negligence of the Lessee or any of the Lessee's agents,
employees, or invitees, rent shall not be diminished or abated while such damages are
under repair, and the Lessee shall be responsible for the costs of repair not covered by
b. The Lessor shall maintain fire and extended coverage insurance on the building and the
Leased Premises in such amounts as the Lessor shall deem appropriate. The Lessee shall
be responsible, at its expense, for fire and extended coverage insurance on all of its
personal property, including removable trade fixtures, located in the Leased Premises.
c. The Lessee and the Lessor shall, each at its own expense, maintain a policy or policies of
comprehensive general liability insurance with respect to the respective activities of each
in the building with the premiums thereon fully paid on or before due date, issued by and
binding upon some insurance company approved by the Lessor, such insurance to afford
minimum protection of not less than ________ ($___) [Instructions: Insert the amount
of insurance, e.g., one thousand dollars ($1,000)] combined single limit coverage of
bodily injury, property damage, or combination thereof. Lessor shall be listed as an
additional insured on the Lessee's policy or policies of comprehensive general liability
insurance, and the Lessee shall provide the Lessor with current Certificates of Insurance
evidencing the Lessee's compliance with this Paragraph. The Lessee shall obtain the
agreement of The Lessee's insurers to notify the Lessor that a policy is due to expire
________ (___) [Instructions: Insert the number of days, e.g., ten (10)] prior to such
expiration. The Lessor shall not be required to maintain insurance against thefts within
the Leased Premises or the building.
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8. Alterations and Improvements:
The Lessee shall not, without first obtaining the written consent of the Lessor, make any
alterations, additions, or improvements, in, to, or about the Premises. Any such alterations,
additions, or improvements, including, but not limited to, wall covering, paneling, and built-
in cabinet work, but excepting movable furniture and trade fixtures, shall become a part of
the realty, shall belong to the Lessor and/or be surrendered with the Premises at expiration or
termination of the Lease. If the Lessor consents to any such alterations, additions, or
improvements by the Lessee, they shall be made by the Lessee at the Lessee’s cost, and any
contractor or person selected by the Lessee to perform the work shall first be approved of, in
writing, by the Lessor. Upon expiration, or sooner termination of the term, the Lessee shall,
upon written demand by the Lessor, promptly remove any alterations, additions, or
improvements made by the Lessee and designated by the Lessor to be removed. Such
removal and repair of any damage to the Premises caused by such removal shall be at the
The Lessor shall have the right to enter upon the Leased Premises at reasonable hours to
inspect the same, provided the Lessor shall not thereby unreasonably interfere with the
Lessee's business on the Leased Premises.
10. Damage and Destruction:
Subject to Section 7(a), if the Leased Premises or any part thereof or any appurtenance
thereto is so damaged by fire, casualty, or structural defects that the same cannot be used for
the Lessee's purposes, then the Lessee shall have the right within ninety ___________ (___)
[Instructions: Insert the number of days, e.g., ninety (◊ 90)] days following damage to
elect by notice to the Lessor to terminate this Lease as of the date of such damage. In the
event of minor damage to any part of the Leased Premises, and if such damage does not
render the Leased Premises unusable for the Lessee's purposes, the Lessor shall promptly
repair such damage at the cost of the Lessor. In making the repairs called for in this
paragraph, the Lessor shall not be liable for any delays resulting from strikes, governmental
restrictions, inability to obtain necessary materials or labor, or other matters which are
beyond the reasonable control of the Lessor. The Lessee shall not be relieved from paying
rent and other charges during any portion of the Lease term that the Leased Premises are
inoperable or unfit for occupancy, or use, in whole or in part, for the Lessee's purposes.
Rentals and other charges paid in advance for any such periods shall be credited on the next
ensuing payments, if any, but if no further payments are to be made, any such advance
payments shall be refunded to the Lessee. The provisions of this paragraph extend not only to
the matters aforesaid, but also to any occurrence which is beyond the Lessee's reasonable
control and which renders the Leased Premises, or any appurtenance thereto, inoperable or
unfit for occupancy or use, in whole or in part, for the Lessee's purposes.
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If any legally constituted authority condemns the building or such part thereof which shall
make the Leased Premises unsuitable for leasing, this Lease shall cease when the public
authority takes possession, and the Lessor and the Lessee shall account for rental as of that
date. Such termination shall be without prejudice to the rights of either party to recover
compensation from the condemning authority for any loss or damage caused by the
condemnation. Neither party shall have any rights in or to any award made to the other by the
12. Possession of the Premises:
The failure of the Lessee to take possession of the premises shall not relieve the Lessee of its
obligation to pay rent. If the Lessor is unable to deliver possession of the premises for any
reason not within the Lessor’s control, the Lessor shall not be liable for any damage caused
thereby, nor will this Agreement be void or voidable, but the Lessee shall not be liable for
any rent until possession is delivered. If the Lessor is unable to deliver possession within
_______ [Instructions: Insert the number of days, e.g., four (◊ 4)] calendar days after the
agreed commencement date, the Lessee may terminate this Agreement by giving written
notice to the Lessor, and shall receive a refund of all rent and security deposits paid.
13. Hazardous Materials:
The Lessee shall not keep on the Premises any item of a dangerous, inflammable, or
explosive character that might unreasonably increase the danger of fire or explosion on the
Premises or that might be considered hazardous or extra hazardous by any responsible
The provisions of this Lease shall extend to and be binding upon the Lessor and the Lessee
and their respective legal representatives, successors, and assigns.
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15. Remedies Upon Default:
If the Lessee defaults in the payment of rent, or any additional rent, or defaults in the
performance of any of the other covenants or conditions of this Agreement, the Lessor may
give the Lessee notice of such default, and if the Lessee does not cure any such default within
Five (5) business days after the giving of such notice (or if such other default is of such a
nature that it cannot be completely cured within such period, if the Lessee does not
commence such curing within Seven (7) business days and thereafter proceed with
reasonable diligence and in good faith to cure such default), then the Lessor may terminate
this Lease by giving not less than Sixty (60) calendar days notice to the Lessee, pursuant to
[STATUTE]. On the date specified in such notice the term of this Lease shall terminate, and
the Lessee shall then quit and surrender the Premises to the Lessor, but the Lessee shall
remain liable as hereinafter provided. If this Lease shall have been so terminated by the
Lessor, the Lessor may at any time thereafter resume possession of the Premises by any
lawful means and remove the Lessee or other occupants and their effects. No failure to
enforce any term shall be deemed a waiver.
The Lessee shall be responsible for arranging for and paying for all utility services required
on the Premises.
If any provision of this Agreement is held to be invalid, such invalidity shall not affect the
validity or enforceability of any other provision of this Agreement.
18. Governing law:
This Agreement shall be governed, construed, and interpreted by, through, and under the
Laws of the State of California.
19. Compliance with Law:
The Lessee shall comply with all laws, orders, ordinances, and other public requirements
now or hereafter pertaining to the Lessee's use of the Leased Premises. The Lessor shall
comply with all laws, orders, ordinances, and other public requirements now or hereafter
affecting the Leased Premises.
The parties hereby agree that this document contains the entire agreement between the parties
and this Agreement shall not be modified, changed, altered, or amended in any way except
through a written amendment signed by all of the parties hereto.
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Any notice required or permitted under this Lease or under state law shall be deemed
sufficiently given or served if sent by United States certified mail, return receipt requested,
addressed as follows:
If to the Lessor to: _____________________________________
If to the Lessee to: _____________________________________
[Instructions: Insert the addresses to be used to receive notice]
The Lessor and the Lessee shall each have the right from time to time to change the place
notice is to be given under this paragraph by written notice thereof to the other party.
22. Additional Provisions:
[Instructions: Insert any other additional clauses the parties want to have]
23. Entire Agreement:
This document constitutes the entire Agreement between the Lessee and the Lessor. This
Agreement cannot be modified except in writing and must be signed by all parties. Neither
the Lessor nor the Lessee has made any promises or representations, other than those set
forth in this Agreement and those implied by law. The failure of the Lessee to comply with
any term of this Agreement is a ground for termination of the tenancy, with appropriate
notice to the Lessee and procedures as required by law.
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IN WITNESS WHEREOF, the said parties hereto have set their hands and seals as of the date
first here above written
[Lessor] Signature Block
[Lessee] Signature Block
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[Instructions: Insert detailed description of premises to be leased]
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