CONTRACT DRAFTING
Contract drafting is the process of creating legally binding agreements in written form, outlining the terms,
conditions, and obligations of all parties involved. It involves translating the parties' intentions into clear,
precise, and unambiguous language to ensure the contract is enforceable and minimizes future disputes.
Contract drafting is the process of creating written agreements. It turns
intentions into a clearer document to reduce ambiguities and disputes.
What is Contract Drafting?
Contract drafting is the art and technique of composing a document that puts down terms agreed upon
between parties. It requires good knowledge of the subject matter, the relevant legal framework, and the
ability to foresee possible risks. The well-drafted contract should ensure all aspects of the agreement are
clearly expressed, leaving no room for interpretation that may lead to a conflict.
What is a Contract?
Section 2(h) of the Indian Contract Act, 1872, defines a contract as "an agreement enforceable by law". A
contract is a legally binding agreement between two or more parties that outlines specific obligations, rights,
and duties of each party. It can involve the exchange of goods, services, or promises, and typically includes
terms related to payment, delivery, or performance. Contracts are enforceable by law, ensuring that each
party fulfils their agreed-upon responsibilities. Breaching a contract can lead to legal consequences.
Objectives of Contract Drafting
Clarity, legal compliance, and low risk should be assured. A conflict resolution method should be
established. Enforceable agreements should be developed to safeguard all parties in case of disputes. The
major objectives of contract drafting are:
Clarity: Outline the obligations, rights, and expectations of all parties in clear, precise terms.
Risk Management: To mitigate potential risks by anticipating challenges and including provisions
to handle them.
Legal Compliance: Ensuring that the terms of the contract are compliant with relevant laws and
regulations.
Conflict Avoidance: Minimizing disputes through clear terms and mechanisms of resolving disputes.
Enforceability: Creating a legally binding contract, thus holding up in court in case of disputes.
Types of Contract Drafting
Contract drafting includes employment, service, lease, and partnership agreements. Each type serves specific
needs, and the terms ensure that they are clear, legal, and beneficial to all parties.
1. Drafting Employment Agreements: It outlines the employment terms. It details job roles,
responsibilities, salary, benefits, and termination conditions. This ensures clarity and mutual understanding
between employers and employees.
2. Drafting Service Agreements
Details the extent of services to be rendered including the time, terms of payment, and quality standards,
ensuring the welfare of the service providers and customers.
3. Drafting Sales Agreements
Lays out the terms of either purchasing or selling commodities such as the price, delivery condition,
warranty and returns policies to safeguard the parties buying and selling.
4. Drafting Lease Agreements
Outline terms for renting property, including duration, rent amount, maintenance responsibilities, and
termination clauses, ensuring fair dealings between landlords and tenants.
5. Drafting Partnership Agreements
Define roles, responsibilities, profit-sharing, and dispute-resolution methods among business partners,
fostering collaboration and mitigating potential conflicts.
6. Drafting Non-Disclosure Agreements (NDAs)
Protect sensitive information shared between parties by restricting unauthorized disclosure or use, ensuring
confidentiality and trust in professional relationships.
What language should I use to draft a contract?
There is no specific/ magic language. The key is to make the thing clear to avoid misunderstandings and
disputes.
If there is a dispute, it is not what you think the contract says, it is what the Court thinks the contract says,
usually by interpreting what is stated in the contract.
What should be in a contract?
Who: the parties
What: the rights and duties of the parties
When: the terms of delivery etc
Where: the place of performance
Why: any relevant background
How: method of performance
How much: the amount and terms of payment
What if: termination rights and remedies, LD
How to Draft a Contract?
Contract drafting is not a straightforward process. Rather, it involves defining objectives, researching laws,
drafting clear terms, reviewing for consistency, and finalizing an agreement that meets both legal standards
and party expectations.
Step 1. Understand the Purpose
Start by defining the contract's objective. Whether it involves employment, a sale, or a service agreement,
the purpose shapes the structure and content.
Step 2. Research Legal Requirements
Familiarize yourself with the relevant laws and regulations. For instance, employment contracts should be in
line with labour laws, while international agreements might demand adherence to trade laws.
Step 3. Identify the Parties
Mention the parties involved, their full legal names, and any identifiers such as company registration
numbers.
Step 4. Outline Key Terms
The draft must contain key elements such as obligations, timelines, payment terms, confidentiality clauses,
and governing law.
Step 5. Use Clear Language
Avoid jargon and vague terms. A good contract is written in plain words to ensure that all parties
comprehend the terms.
Step 6. Review and Revise
Proofread the draft several times to ensure consistency and accuracy. Then, request feedback from legal
practitioners or stakeholders.
Step 7. Execution
Once the contract has been finalized, it needs to be signed by all parties and also witnesses if required to
bind it legally.
Distinction between Contract Drafting and Other Types of Legal Drafting
Basis Contract Drafting Other Types of Legal Drafting
To record a mutual agreement and
To present claims, defenses, or applications before
Purpose allocate rights, duties, and liabilities
a court or legal authority.
between private parties.
Voluntary and consensual agreement Adversarial or procedural—used to initiate or
Nature
between two or more parties. respond to litigation.
Focus Clarity, precision, and foreseeability of Persuasion, legal reasoning, factual presentation,
Basis Contract Drafting Other Types of Legal Drafting
future risks; ensuring enforceability. and compliance with procedural rules.
The contracting parties, lawyers, courts
Audience Primarily judges, tribunals, or legal officers.
(only if disputed).
Includes clauses like definitions,
Includes parts like cause title, jurisdiction, facts,
Structure obligations, warranties, indemnities,
grounds, prayer, verification, etc.
dispute resolution, termination, etc.
Tone and Precise, formal, and technical; often Formal but argumentative and persuasive; based
Language uses boilerplate clauses. on legal issues and precedent.
Governed by the law of contracts (e.g., Governed by civil/criminal procedure (e.g., CPC,
Legal Basis
Indian Contract Act, 1872). CrPC) and substantive laws.
Lease deed, partnership agreement, Plaint, written statement, bail application, writ
Examples
employment contract, sale agreement. petition, affidavit, appeal.
Outcome A binding enforceable agreement A legal remedy or order in favor of a party in a
Expected defining future conduct. dispute.
Dispute Not necessarily—contract drafting is Always involves some dispute, claim, or legal
Involvement often preventive. remedy.
Categories Of Contract Provisions
1. Based on Formation
This categorization pertains to the manner of contract formation. It analyses whether they are expressively
mentioned, inferred from action, or enacted by law. Contracts can be categorized as a result of how they are
formed:
a. Express Contracts
Express contracts are clearly stated agreements. They are communicated through written or verbal terms.
Both parties explicitly agree to the contract's terms. These contracts remove ambiguity in obligations.
Illustration: A written contract for the sale of a car.
b. Implied Contracts
Implied contracts are formed through actions or conduct. They are not explicitly written or spoken. The
intent is inferred from the circumstances. Implied contracts rely on mutual understanding.
Illustration: A passenger boarding a bus presumes an acceptance to pay the fare.
c. Quasi-Contracts
Quasi-contracts are legal obligations created by law. They prevent one party from unjustly benefiting. These
are not actual contracts with mutual consent. They arise in situations of fairness and equity.
Illustration: A person acquiring goods by mistake should return the goods or make restitution of their
value.
Applicable Provisions: Sections 68 to 72 pertain to quasi-contractual obligations.
d. E-Contracts
E-contracts are agreements made electronically. They are formed via emails, websites, or digital platforms.
E-contracts follow the Indian Contract Act principles. They ensure legal enforceability in the digital age. E-
contracts provides legal recognition for electronic records and digital signatures.
Examples include online shopping and service subscriptions.
Sections 4 and 5 of the Information Technology Act, 2000 (IT Act) validate contracts formed
electronically.
2. Grounded on Validity/ Enforceability
This category assesses the legality of a contract, whether it is enforceable under the law, void, voidable,
illegal, or unenforceable, depending on whether or not it follows legal principles.
Contracts can be classified based on their legality:
a. Valid Contract
Valid contracts are enforceable by law. They fulfil all essential legal requirements. Free consent and lawful
objects are necessary. It must have lawful consideration. Competent parties are required for valid contracts.
Example: A lease contract that follows all elements for a valid contract.
Section 10 of the Indian Contract Act mentions criteria for a valid contract.
b. Void Contract
Void contracts are unenforceable by law. They lack essential legal validity. Such contracts hold no legal
obligations. A contract for illegal goods becomes void.
Example: A contract to sell goods after a ban is imposed on those goods.
Relevant Provision: Section 2(g) of the Indian Contract Act defines them.
c. Voidable Contract
Voidable contracts are enforceable at one party's discretion. They remain valid until voided by the aggrieved
party. Coercion or fraud often makes contracts voidable. Voidable contracts protect parties from unfair
agreements.
Example: A contract entered into under coercion can be voided by the aggrieved party.
Relevant Provision: Section 2(i) of the Indian Contract Act governs them.
d. Illegal Contract
Illegal contracts are prohibited by law. They involve unlawful or immoral objectives. Such contracts are void
from inception. No legal rights arise from illegal contracts.
Example: A contract for the sale of illegal drugs.
Section 23 of the Indian Contract Act governs them.
e. Unenforceable Contract
Unenforceable contracts cannot be enforced by law. They lack essential legal formalities or evidence.
Defects like improper documentation make them unenforceable. They are valid but not actionable in court.
Examples include unsigned agreements or unstamped contracts.
3. Depending on the Performance/Execution
This classification refers to the performance stage of contractual obligations. It determines if the contract has
been wholly performed, is still on, or partially performed.
Contracts can also be classified according to their performance:
a. Executed Contracts
Executed contracts are fully performed by all parties. All obligations of the contracts are completed. These
contracts leave no pending responsibilities. A completed sale is an executed contract. They signify the
fulfilment of mutual promises. Legal enforceability ends after execution.
Examples include delivered goods with payment made.
b. Executory Contracts
Executory contracts have unfulfilled obligations. At least one party has yet to perform their part. These
contracts are ongoing agreements. A promise to deliver goods next month is executory. They often involve
future commitments.
Example: A contract for future delivery of goods.
c. Partly Executed and Partly Executory Contracts
Partly executed and partly executory contracts involve partial performance. One party has fulfilled their
obligation. The other party's obligation remains pending. They represent incomplete but ongoing
agreements. Legal enforcement applies to unfulfilled terms. They balance performed and pending
obligations. Such contracts ensure accountability during the execution
Examples include advance payment for undelivered goods.
d. Unilateral Contracts
Unilateral contracts involve a promise by one party. The other party performs an act in response. They are
one-sided agreements. A reward for finding lost property is an example. Legal obligations arise only after
the act is performed. They do not involve mutual promises. The promisor sets conditions for the contract.
Example: Unilateral contracts are common in reward-based offers.
e. Bilateral Contracts
Bilateral contracts involve promises from both parties. Each party has reciprocal obligations. They are the
most common type of contract. Both parties are legally bound to fulfill their promises. They ensure mutual
trust in agreements. Bilateral contracts promote balanced obligations.
Example: A sales agreement is a bilateral contract.
4. Based on Nature of Consideration
This classification analyses whether the promises are exchanged between two parties or not. Based on the
nature of the consideration, it further categorises the obligation as unilateral or bilateral.
a. One-way Contracts
One-way contracts involve promises by only one party. The other party performs an act in return. They are
also called unilateral contracts. A reward for finding lost property is an example. No mutual exchange of
promises occurs. They rely on voluntary actions by one party. One-way contracts are common in rewards or
offers.
For example Reward for getting lost item
b. Mutual Contracts
Mutual contracts involve promises from both parties. They are also called bilateral contracts. Each party has
reciprocal obligations. A sales agreement is a mutual contract. Both parties commit to fulfilling agreed
terms. They ensure balanced obligations and rights. Mutual contracts are the most common type. Legal
enforceability applies to all terms. They promote trust and cooperation between parties.
Example: A sale of goods contract in which one party promises delivery and the other promises
payment.
5. Based on Purpose
This classification focuses on a specific objective that a contract aims to achieve. This highlights the roles
and responsibilities tailored to meet distinct purposes like indemnity, guarantee, bailment, pledge, or agency.
a. Contracts of Indemnity
Contracts of indemnity promise compensation for losses. One party protects another against specific
damages. They ensure financial security in uncertain events. Such contracts mitigate financial liabilities.
They promote trust in risk-sharing agreements. Legal enforceability ensures fairness in loss coverage.
Example: Insurance contract.
Section 124 of the Indian Contract Act governs them.
b. Contracts of Guarantee
A contract of three parties in which one person promises to fulfil the obligation of the other in case of failure
to perform. The principal debtor is primarily responsible. The guarantor steps in if the debtor defaults. Such
contracts enhance trust in financial dealings. They provide security for loans or credit.
Example: A bank guarantee.
Section 126 of the Indian Contract Act governs them.
c. Contracts of Bailment
Contracts of bailment involve transferring goods for a purpose. The owner delivers goods to another party
temporarily. The bailee must return or dispose of goods as agreed.
Example: Leaving clothes for dry cleaning.
Sections 148–171 of the Indian Contract Act govern them.
d. Contracts of Pledge
Contracts of pledge involve goods given as security. The pledgor delivers goods to the pledgee. They secure
repayment of loans or obligations. Ownership stays with the pledgor and possession transfers. The pledgee
must safeguard the pledged goods. The pledgor can reclaim goods after fulfilling obligations.
Example: Pawning jewellery for a loan.
Sections 172–181 of the Indian Contract Act govern them.
e. Contracts of Agency
Contracts of agency involve one party acting on another’s behalf. The principal authorizes the agent to
represent them. Agents perform tasks within the defined authority. The principal bears the agent’s actions
legally.
Example: Hiring a lawyer to represent a case.
Relevant Provisions: Sections 182 to 238.
6. Other Types of Contracts
a. Option Contracts
Options contracts grant the right to buy or sell something later. The buyer pays a premium for this right.
They involve no obligation to execute. These contracts limit risk for the buyer. Only the seller is legally
bound to perform. Options contracts are widely used in financial markets. They ensure flexibility in
uncertain conditions. Courts enforce them based on agreed terms. They must specify time limits and
conditions.
Example: Stock options
b. Adhesion Contracts
Adhesion contracts are standard-form agreements. One party drafts terms, leaving no negotiation room.
They are common in insurance or service agreements. The weaker party must accept or reject entirely. These
contracts often favor the drafter. Legal validity depends on fairness and clarity. Courts may strike unfair
terms in adhesion contracts. They simplify agreements for repetitive transactions. Adhesion contracts must
comply with consumer protection laws.
Examples include phone plans or car rentals.
c. Aleatory Contracts
Aleatory contracts depend on uncertain future events. Performance occurs only if specified events happen.
These contracts balance risk and benefit. Both parties face conditional obligations. Section 124 governs
indemnity-based aleatory contracts. They are widely used in risk management. Parties must clearly define
triggering events. Courts enforce them only for lawful contingencies. Aleatory contracts mitigate unforeseen
financial losses.
Insurance agreements are classic examples.
d. Lump Sum Contracts
Lump sum contracts specify a fixed payment for work. Contractors receive one payment for the entire
project. They simplify cost management for clients. Any cost overruns are the contractor’s responsibility.
Lump sum contracts reduce disputes over payments. Parties must agree on scope and deliverables. These
contracts benefit when the project scope is clear. Courts enforce them based on agreed lump sums.
Transparency in terms ensures fair execution.
What is Drafting of Agreement?
Drafting of Agreement refers to the process of creating a written document that clearly and legally outlines
the mutual understanding, rights, obligations, and terms agreed upon by two or more parties. It is a
fundamental legal skill used to translate business or personal arrangements into enforceable legal contracts.
Definition:
Drafting of Agreement is the art and technique of systematically putting into writing the terms and
conditions mutually agreed upon by parties, in a structured, precise, and legally binding manner.
Purpose of Drafting an Agreement:
To record the understanding between parties.
To prevent disputes by specifying rights and duties.
To provide a legal remedy in case of breach.
To comply with legal requirements (some agreements must be in writing).
To serve as evidence of a contractual relationship.
Types of Agreements
Lease or Rent Agreements
Employment Agreements
Partnership Agreements
Sale and Purchase Agreements
Service Contracts
Non-Disclosure Agreements (NDAs)
Loan Agreements
Franchise Agreements
RENT AGREEMENT
This Rent Agreement is made on this ___ day of __________, 20__
By and Between
[Name of Landlord],
S/o/D/o/W/o ___________________,
Residing at __________________________,
(hereinafter referred to as the "Landlord", which expression shall, unless repugnant to the context, mean and
include his/her heirs, legal representatives, and assigns)
AND
[Name of Tenant],
S/o/D/o/W/o ___________________,
Residing at __________________________,
(hereinafter referred to as the "Tenant", which expression shall, unless repugnant to the context, mean and
include his/her heirs, legal representatives, and assigns)
1. Premises
The Landlord agrees to let out and the Tenant agrees to take on rent the property situated at:
Address: ___________________________________________________________
(hereinafter referred to as the 'Premises') solely for residential purposes.
2. Term
The tenancy shall commence on [Start Date] and shall remain in force for a period of 11 (Eleven) months,
unless earlier terminated as per this agreement.
3. Rent
The Tenant shall pay a monthly rent of ₹________ (Rupees __________ only) on or before the ___ day of
each calendar month.
4. Security Deposit
The Tenant shall pay an interest-free refundable security deposit of ₹_________, which shall be refunded at
the time of vacating the premises, subject to deductions (if any) for damage or unpaid dues.
5. Use of Premises
- The premises shall be used only for residential purposes.
- The Tenant shall not sub-let or assign the premises to any third party.
6. Maintenance and Repairs
- The Tenant shall maintain the premises in good condition.
- Minor day-to-day repairs shall be the responsibility of the Tenant.
- Structural and major repairs shall be the responsibility of the Landlord.
7. Utilities
The Tenant shall pay the charges for:
- Electricity
- Water
- Gas
- Internet
- Any other consumables used in the premises.
8. Inspection
The Landlord or his authorized representative may inspect the premises upon giving prior notice of at least
24 hours.
9. Termination
Either party may terminate this agreement by giving one month’s written notice or one month’s rent in lieu
thereof.
10. Vacating the Premises
The Tenant shall hand over peaceful and vacant possession of the premises upon termination/expiry of this
agreement.
11. Stamp Duty and Registration
- The cost of stamp duty and registration (if applicable) shall be borne by the [Landlord/Tenant/Both
Parties].
- This agreement may be registered under the Indian Registration Act, 1908 if mutually agreed.
12. Dispute Resolution
In case of any dispute arising under this agreement, the same shall be subject to jurisdiction of the courts at
[City Name].
IN WITNESS WHEREOF, both the parties have signed this Rent Agreement on the date mentioned above.
Landlord Signature: _____________________
Name: _______________________
Tenant Signature: _____________________
Name: _______________________
Witness 1:
Name: ______________________
Address: ____________________
Signature: ___________________
Witness 2:
Name: ______________________
Address: ____________________
Signature: ___________________
LEASE AGREEMENT
This Lease Agreement is made and executed on this ___ day of ______, 20, at ____________, between:
(1) Lessor/Landlord:
Mr./Ms. ________________________,
S/o or D/o ________________________,
residing at _____________________________________________,
(hereinafter referred to as the "Lessor", which expression shall include his/her heirs, successors, legal
representatives and assigns)
AND
(2) Lessee/Tenant:
Mr./Ms. ________________________,
S/o or D/o ________________________,
residing at _____________________________________________,
(hereinafter referred to as the "Lessee", which expression shall include his/her heirs, successors, legal
representatives and assigns)
Whereas, the Lessor is the absolute and sole owner of the residential premises bearing address:
(hereinafter referred to as the "Premises").
Now This Agreement Witnesseth as Follows:
1. Term
The lease shall be for a term of __ months commencing from ___________ and ending on ___________.
2. Rent
The Lessee agrees to pay the Lessor a monthly rent of ₹__________, payable in advance on or before the
____ day of each month.
3. Security Deposit
The Lessee shall pay a refundable security deposit of ₹__________, which shall be returned at the end of
the lease term after deducting any dues or damages.
4. Use of Premises
The premises shall be used strictly for residential purposes only and not for any commercial or illegal
activities.
5. Maintenance and Repairs
The Lessee shall maintain the premises in good condition and shall be responsible for minor day-to-day
repairs. Major structural repairs shall be the responsibility of the Lessor.
6. Utilities
The Lessee shall bear the cost of electricity, water, gas, internet, and other utilities consumed during the
lease period.
7. Termination
Either party may terminate this agreement by giving ___ months' written notice. The Lessor may also
terminate for breach of terms.
8. Subletting
The Lessee shall not sublet or assign the premises without prior written consent of the Lessor.
9. Possession
The Lessee shall hand over peaceful possession of the premises upon expiry or earlier termination of the
lease.
10. Jurisdiction
Any disputes arising under this agreement shall be subject to the jurisdiction of courts in ____________.
IN WITNESS WHEREOF, the parties hereto have signed this Lease Agreement on the date mentioned
above.
Lessor Signature: ______________________
Name: _______________________________
Lessee Signature: ______________________
Name: _______________________________
Witness 1:
Name: ____________________
Signature: ________________
Witness 2:
Name: ____________________
Signature: ________________
EMPLOYMENT AGREEMENT
This Employment Agreement ("Agreement") is made and entered into on this ___ day of _________, 20
BY AND BETWEEN:
[Employer Name]
A company/firm having its registered office at
[Employer Address]
(hereinafter referred to as the "Employer", which expression shall, unless repugnant to the context, mean and
include its successors and assigns)
AND
[Employee Name],
S/o or D/o ________________________,
residing at ________________________,
(hereinafter referred to as the "Employee")
WHEREAS:
The Employer desires to appoint the Employee, and
The Employee has agreed to accept employment on the terms and conditions mentioned herein.
TERMS AND CONDITIONS
1. Appointment & Designation
The Employee is appointed as [Job Title] and shall report to [Supervisor or Manager Title]. The appointment
shall take effect from [Start Date].
2. Duties & Responsibilities
The Employee shall perform duties as assigned by the Employer, including but not limited to:
[List key responsibilities]
[Other related tasks as required by the Employer]
3. Working Hours
Working hours shall be from [Start Time] to [End Time], [Number of] days a week. Overtime, if applicable,
will be compensated as per company policy.
4. Place of Work
The primary place of work shall be [Office Location], but the Employee may be required to travel or
relocate based on project or business needs.
5. Remuneration
The Employee shall be paid a monthly gross salary of ₹_________ (Rupees ___________ only), subject to
deductions under applicable laws.
6. Probation Period
The Employee shall be on probation for a period of [X] months from the date of joining. Confirmation of
service will be based on performance evaluation.
7. Leave Entitlement
The Employee is entitled to leaves as per the company’s leave policy and applicable laws (e.g., casual leave,
sick leave, earned leave).
8. Confidentiality
The Employee shall not disclose any confidential or proprietary information to any third party during or
after the employment period.
9. Termination
Either party may terminate this agreement by providing [X] days/months notice in writing or salary in lieu
thereof.
The Employer may terminate employment without notice in case of misconduct, breach of confidentiality, or
any act prejudicial to the company.
10. Return of Property
Upon termination, the Employee shall return all company property including documents, devices, and keys.
11. Governing Law & Jurisdiction
This Agreement shall be governed by the laws of India, and any disputes arising out of it shall be subject to
the jurisdiction of the courts in [City].
IN WITNESS WHEREOF, the parties have executed this Agreement on the day, month, and year first above
written.
EMPLOYER
(Signature) ____________________
Name: ________________________
Designation: ___________________
EMPLOYEE
(Signature) ____________________
Name: ________________________
WITNESS 1:
Name: ____________________
Signature: ________________
Address: __________________
WITNESS 2:
Name: ____________________
Signature: ________________
Address: __________________
SALE OF IMMOVABLE PROPERTY
Section 54 of the Transfer of Property Act, 1882 defines Sale as:
“Sale is a transfer of ownership in exchange for a price paid or promised or part-paid or partpromised.”
The contract for sale of immovable property must be in writing.
Section 55 of the Transfer of Property Act, 1882 lays down the duties, obligation and
rights of the vendor and purchaser under an agreement of sale, as well as for sale in case of
absence of contract to the contrary.
Sale deed is chargeable with the stamp duty.
Where the value of the immovable property is more than Rs. 100, it is required to be
compulsorily registered.
An agreement for sale and sale deed should clearly show: who are the parties to the
contract (Vendor/Vendee or Vendor/Purchaser or Seller/Buyer); the subject matter; the
intention to sell and buy; the price agreed and how it is to be paid and other terms of the
contract.
The contract for sale of immovable property is usually preceded by an agreement for
sale
RESIDENTIAL RENTAL AGREEMENT
This agreement made at [City, State] on this [Date, Month, Year] between [Landlord Name], residing at
[Landlord Address Line 1, Address Line 2, City, State, Pin Code] hereinafter referred to as the `LESSOR` of
the One Part AND [Tenant Name], residing at [Tenant Address Line 1, Address Line 2, City, State, Pin
Code] hereinafter referred to as the `LESSEE` of the other Part;
WHEREAS the Lessor is the lawful owner of, and otherwise well sufficiently entitled to [Lease Property
Address Line 1, Address Line 2, City, State, Pin Code] falling in the category, [Independent House /
Apartment / Farm House / Residential Property] and comprising of [X Bedrooms], [X Bathrooms], [X
Carparks] with an extent of [XXXX Square Feet] hereinafter referred to as the `said premises`;
AND WHEREAS at the request of the Lessee, the Lessor has agreed to let the said premises to the tenant for
a term of [Lease Term] commencing from [Lease Start Date] in the manner hereinafter appearing.
NOW THIS AGREEMENT WITNESSETH AND IT IS HEREBY AGREED BY AND BETWEEN
THE PARTIES AS UNDER:
[Link] the Lessor hereby grant to the Lessee, the right to enter into and use and remain in the said premises
along with the existing fixtures and fittings listed in Annexure 1 to this Agreement and that the Lessee shall
be entitled to peacefully possess, and enjoy possession of the said premises, and the other rights herein.
[Link] the lease hereby granted shall, unless cancelled earlier under any provision of this Agreement, remain
in force for a period of [Lease Term].
[Link] the Lessee will have the option to terminate this lease by giving [one month`s notice] in writing to the
Lessor.
[Link] the Lessee shall have no right to create any sub-lease or assign or transfer in any manner the lease or
give to any one the possession of the said premises or any part thereof.
[Link] the Lessee shall use the said premises only for residential purposes.
[Link] the Lessor shall, before handing over the said premises, ensure the working of sanitary, electrical and
water supply connections and other fittings pertaining to the said premises. It is agreed that it shall be the
responsibility of the Lessor for their return in the working condition at the time of re-possession of the said
premises (reasonable wear and tear and loss or damage by fire, flood, rains, accident, irresistible force or act
of God excepted).
[Link] the Lessee is not authorized to make any alteration in the construction of the said premises. The
Lessee may however install and remove his own fittings and fixtures, provided this is done without causing
any excessive damage or loss to the said premises.
[Link] the day to day repair jobs such as fuse blow out, replacement of light bulbs/tubes, leakage of water
taps, maintenance of the water pump and other minor repairs, etc., shall be effected by the Lessee at its own
cost, and any major repairs, either structural or to the electrical or water connection, plumbing leaks, water
seepage shall be attended to by the Lessor. In the event of the Lessor failing to carry out the repairs on
receiving notice from the Lessee, the Lessee shall undertake the necessary repairs and the Lessor will be
liable to immediately reimburse costs incurred by the Lessee.
[Link] the Lessor or its duly authorized agent shall have the right to enter into or upon the said premises or
any part thereof at a mutually arranged convenient time for the purpose of inspection.
[Link] the Lessee shall use the said premises along with its fixtures and fitting in careful and responsible
manner and shall handover the premises to the Lessor in working condition (reasonable wear and tear and
loss or damage by fire, flood, rains, accidents, irresistible force or act of God excepted).
[Link] in consideration of use of the said premises the Lessee agrees that he shall pay to the Lessor during
the period of this agreement, a monthly rent at the rate of [Monthly Rental in Number & Words]. The
amount will be paid in advance on or before the date of [1st day] of every English calendar month.
[Link] is hereby agreed that if default is made by the lessee in payment of the rent for a period of three
months, or in observance and performance of any of the covenants and stipulations hereby contained and on
the part to be observed and performed by the lessee, then on such default, the lessor shall be entitled in
addition to or in the alternative to any other remedy that may be available to him at this discretion, to
terminate the lease and eject the lessee from the said premises; and to take possession thereof as full and
absolute owner thereof, provided that a notice in writing shall be given by the lessor to the lessee of his
intention to terminate the lease and to take possession of the said premises. If the arrears of rent are paid or
the lessee comply with or carry out the covenants and conditions or stipulations, within fifteen days from the
service of such notice, then the lessor shall not be entitled to take possession of the said premises.
[Link] in addition to the compensation mentioned above, the Lessee shall pay the actual electricity, shared
maintenance, water bills for the period of the agreement directly to the authorities concerned. The relevant
`start date` meter readings are [Starting Meter Reading].
[Link] the Lessee has paid to the Lessor a sum of [Rental Deposit in Number and Words] as deposit, free of
interest, which the Lessor does accept and acknowledge.
This deposit is for the due performance and observance of the terms and conditions of this Agreement. The
deposit shall be returned to the Lessee simultaneously with the Lessee vacating the said premises. In the
event of failure on the part of the Lessor to refund the said deposit amount to the Lessee as aforesaid, the
Lessee shall be entitled to continue to use and occupy the said premises without payment of any rent until
the Lessor refunds the said amount (without prejudice to the Lessee`s rights and remedies in law to recover
the deposit).
15. That the Lessor shall be responsible for the payment of all taxes and levies pertaining to the said
premises including but not limited to House Tax, Property Tax, other cesses, if any, and any other statutory
taxes, levied by the Government or Governmental Departments. During the term of this Agreement, the
Lessor shall comply with all rules, regulations and requirements of any statutory authority, local, state and
central government and governmental departments in relation to the said premises.
IN WITNESS WHEREOF, the parties hereto have set their hands on the day and year first hereinabove
mentioned.
Lessor, Lessee,
[Name] [Name]
[Address Line 1] [Address Line 1]
[Address Line 2] [Address Line 2]
[City, State, Pin Code] [City, State, Pin Code]
WITNESS ONE
[Name & Address]
WITNESS TWO
[Name & Address]
ANNEXURE I
List of fixtures and fittings provided in [Lease Property Address Line 1, Address Line 2, City, State, Pin
Code]:
1. Item 1
2. Item 2
3. Item 3