If a hotel establishment has a hotel part and restaurant part. Now if the owner(first party) of the hotel only wants to lease out the restaurant part to a second party then what are the factors the owner must clarify with the second party.
If would be helpful if anyone can share sample agreement for such cases.

From India, Patnagarh
Dear friend,

You may include the following points in the lease agreement:

a) Payment of the lease amount, who will pay, when they will pay? What will happen if the amount is not paid by due date

b) What is the advance amount that leaser will take? Will it be refundable or non-refundable? If refundable, then on expiry of the agreement, by what time period leaser will return the advance?

c) For the cessation of the agreement, how many months advance notice either party needs to give?

d) Clause related to fulfillment of the laws related to labour laws, pollution control etc

e) Possession and further renewal of license under Shops and Establishment Act or any other act

f) Clause related to employment of children or adolescent workers

g) Clause related to possession of authorised or unauthorised fire arms

h) Clause related to consumption of narcotics and other banned drugs

i) Clause related to workplace injury, accidents and death of the employee arising out of the work

j) Payment of electricity charges, water charges or any other charges etc

k) Operation hours for the restaurant as prescribed by the local laws

l) If party is conducted then decibel limit for the noise

m) Issues arising out of fire in kitchen, explosion of the gas cylinder, short circuit etc

n) Clause related to the safety of women. These women could be customers or restaurant employees

o) Clause related to parking space and allotment parking slots for the restaurant owner, staff and customers

p) Clause related to damage to the property owing the fracas with the customers or amongst the restaurant employees

q) Clause related to the poaching of the staff employed by the hotel owner or vice versa

r) Clause related to the serving of the liquor as prescribed by the excise department

s) Clause related to the disposal of wet waste and dry waste as prescribed by the local municipal corporation

t) Clause related to the frequency of the paste control operations. Issues related to the serving of the hygienic food to restaurant customers

u) Clause related to the theft of the restaurant property

v) Clause related to inspection by the various government agencies

w) Clause related to the display of the sign board as per the norms of the local municipal corporation

x) Clause related to the serving the food to the guest or occupants of the room of the hotel, how to handle the billing?

y) Clause related to the jurisdiction of the court under which disputes to be settled

z) Any other clause


Dinesh Divekar

From India, Bangalore

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