The contract selected here is lease agreement which is a contract between two parties in which the landlord gives right to tenant to live on his property for a mentioned time period and to surrender the property after the mentioned time.
In this lease agreement, the tenant is allowed to use a property of the landlord form a specified time period mentioned in the agreement. The description of the property including its full address, furniture and other accessories included in the property is given in the agreement. In this agreement, the rent of the property is predefined and it is also mentioned that to whom the rent should be given and at what place the rent settlement will take place.
The services provided by the landlord which are included in the rent amount like electricity, gas supply, water supply etc are mentioned in the agreement so that in future, no mismatch of agreement can take place.
The tenant is asked to deposit a amount as initial deposit (advance) which in case the tenant do not pay rent or cause any damage to landlord property can be used by landlord.
The proposal do not specifically reflects who is making the agreement and who is accepting. It is a general contract between a tenant and a landlord.
Mutual consideration for both parties:
The agreement is a balance agreement which gives consideration to rights of both the landlord and the tenant. The basic considerations covered in the agreements are as follows:
Name of the parties undergoing agreement
The duration of the agreement
Initial deposit amount
Service that are included in the rent
Time period given to tenant and landlord to resettle the agreement once the actual date is expired.
Based on the above basic specification we can identify the considerations given to both parties. They are as follows:
An initial deposit amount is clearly mentioned in the lease agreement. In this, it is clearly mentioned that the landlord can use the deposit if the tenant is not able to pay monthly instalment on time. It is also written in the document that the initial deposit can partly refunded by the landlord if he found any damage to his property rented.
The agreement also mention that if the tenant want to reconsider the agreement, he must sent a application 15 day prior to the date of expiry of the agreement otherwise, the agreement may not be considered for renewal, this saves the rights of the landlord.
It is mentioned that the tenant cannot sublease the property without prior permission of the landlord, this will again a beneficial clause for landlord. The landlord from this agreement make is clear that any accessories under this property should be maintained properly otherwise an amount from initial deposit can be used to recover the damage.
To preserve the right of the landlord, it is mentioned in the agreement that tenant must use the property peacefully and must vacant is at desired date.
Tenant’s rights are also well considered in the agreement. It is given that what all services are there which the landlord should provide to the tenant. In addition, it is also mentioned that the landlord cannot enter the premises under agreement without the permission of the tenant.
Most important consideration for tenant is the clause which makes it very clear that any decision related to the property should be taken with the permission of tenant too. This will protect the rights of tenant during the legal dates of the contract.
It is also mentioned that it is the landlord’s responsibility to maintain the premises clean and well maintained. This dimension does not fall in responsibilities of tenant.
Legal Purpose of lease agreement:
The purpose of the agreement makes a transparent set of rules between the landlord and the tenant for the use of property. The agreement serves the requirement of both the tenant and the landlord. It protects the landlord from any damage to his property, unlawful control of the tenant on his property etc. At the same time, the contract serves a tool to protect tenant from unmeaning full disturbances that the landlord may create.
The agreement is thus a legal document that will serve for rights of both the involved parties.
The agreement can be used by any of the party in case any violation is found from the other party involved.
Legal capacity of the agreement:
The agreement is easy to understand by both the parties. It clearly mentions the rules and obligations for both the parties. The various clauses are written in points so that both of the parties can understand the contract easily.
Taking about the legal ability to understand the contract, the contract nearly converted all the appropriate clauses for both the tenant and the landlord. One possible drawback in understanding comes from the non-disclosure of the settlement process in case any damage to property is caused. This puts a little uncertainty for the tenant.
Talking about the ability to enter into re-bidding of the contract, it is given in the contract that if tenant want to renew the agreement, he or she must contact the landlord 15 days prior to the actual expiry date of the agreement. In case none of the parties contact each other before the expiry, the duration of the contract will be automatically increased by one month.
The agreement is signed by both the parties with complete reference and thus the agreement can be used by both the parties legally.
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