The Vendor Lease Agreement serves as a crucial legal instrument in Indonesian commercial property operations, designed to formalize the relationship between property owners and vendors operating within their premises. This document is essential when establishing vendor operations in shopping centers, markets, commercial buildings, or other retail spaces in Indonesia. It encompasses critical elements required under Indonesian law, including lease terms, operational guidelines, and compliance requirements with local regulations. The agreement needs to align with the Indonesian Civil Code (KUHPerdata) and relevant local government regulations while addressing specific commercial considerations such as operating hours, maintenance responsibilities, and utility arrangements. This type of agreement is particularly important in Indonesia's growing retail and commercial sector, where clear legal frameworks for vendor operations are essential for both property owners and business operators.
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1. Parties: Identification of the lessor and vendor-lessee, including registration details and authorized representatives
2. Background: Context of the agreement and brief description of the premises and intended use
3. Definitions: Definitions of key terms used throughout the agreement
4. Lease Grant: Specific details of the leased space and permitted use
5. Term and Renewal: Duration of the lease, commencement date, and renewal options
6. Rent and Payment Terms: Rental amount, payment schedule, security deposit, and late payment provisions
7. Operating Hours and Business Operations: Permitted operating hours and basic operational requirements
8. Maintenance and Repairs: Responsibilities for maintenance, repairs, and upkeep of the leased space
9. Utilities and Services: Provisions for utility services and associated costs
10. Compliance with Laws: Obligations to comply with relevant laws, regulations, and permits
11. Insurance and Liability: Required insurance coverage and liability provisions
12. Default and Termination: Events of default, remedies, and termination procedures
13. Assignment and Subletting: Restrictions on transfer of lease rights
14. Notices: Communication procedures between parties
15. Governing Law and Dispute Resolution: Applicable law and methods for resolving disputes
1. Common Areas: Rules and charges for shared facilities, applicable when the vendor space is part of a larger complex
2. Fit-out Works: Provisions for initial tenant improvements, needed when significant modifications are required
3. Environmental Compliance: Special environmental obligations, particularly relevant for food vendors or those handling specific materials
4. Marketing and Signage: Rules for advertising and signage, important in retail locations
5. Security Arrangements: Special security requirements, relevant for high-value goods or specific locations
6. Force Majeure: Provisions for unforeseen circumstances, particularly relevant in uncertain market conditions
7. Competition Restrictions: Non-compete clauses and exclusivity rights, if applicable to the business type
1. Schedule 1: Premises Plan: Detailed plan showing the leased area and measurements
2. Schedule 2: Inventory List: List of any fixtures, fittings, or equipment included in the lease
3. Schedule 3: Operating Rules and Regulations: Detailed operational guidelines and requirements
4. Schedule 4: Rental Payment Schedule: Detailed breakdown of rent, including any escalations
5. Schedule 5: Maintenance Schedule: Specific maintenance obligations and schedules
6. Schedule 6: Required Permits and Licenses: List of necessary permits and licenses for operation
7. Appendix A: Form of Bank Guarantee: Standard format for bank guarantee if required
8. Appendix B: Handover Form: Template for premises handover documentation
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